3 Online-Giving Performance Indicators to Measure
High donor-attrition rates (58.5 percent a year, according to the 2012 Fundraising Effectiveness Survey Report) force nonprofits to constantly recruit new donors. Fundraising economics have made online channels (Web, social, mobile) an important way, in their own right, to acquire and retain new donors across all demographic groups. And numerous studies have shown that donors who use both online and offline channels give more and are more loyal.
So, most nonprofits are seeking ways to expand their online fundraising and successfully access the new funds that are moving online each year.
The good news is that online fundraising does not have to be complex. Just like in direct mail, there are three simple key performance indicators (KPIs) that impact your online donations: website traffic (who sees your message), donation conversion rate (response percentage) and average gift (how much they give).
You can't make improvements if you don't manage outcomes, and you can't manage what you don't measure. When managed correctly, even small, incremental improvements in each KPI can greatly impact the revenue received to support your mission. For example, the third column of the table to the right shows how a small improvement in the conversion rate (from 2 percent to 2.5 percent) increases revenue by 25 percent.
Ready to get started? Step one is to establish a baseline by reviewing your performance on each indicator using basic Web analytics. Step two is to compare your results to industry benchmarks. Don't worry when you see the results. Most organizations find themselves behind in one or more of the indicators. From here you can start measuring your improvement.
● Web traffic: This is the foundation of any online program — if no one sees your message, it doesn't matter what it is. There are a number of basic list-building strategies and a number of new channels of outreach available for increasing traffic. Often, quality online traffic can be generated through offline means.