2024 – The Beat of Digital Conversion

Overview of Industry Trend

• Steve Stapleton emphasized that donor acquisition in 2024 was at its lowest in three years, despite maintaining reach. He noted that organizations were distributing media better than before, but engagement and acquisition trends had declined. The focus needed to shift towards optimizing existing relationships while finding new strategies for acquisition.

Focus on Retention

• Stapleton explained that organizations were still generating stable revenue from engaged donors, defined as those who had contributed financially in the past 12 months. The revenue from this group remained between $29 and $35 on average. He urged the audience to prioritize deepening loyalty and retaining the 70% of current supporters through improved digital communication and personalized outreach.

Economic Impact and Donor Behavior

• He highlighted the significant squeeze on discretionary income due to rising costs like insurance and inflation, reducing household spending power. Stapleton suggested that organizations needed to become a priority for donors by creating recognition, loyalty, and necessity in their messaging. He pointed out that organizations without these qualities risked being deprioritized by donors facing financial constraints.

Importance of Digital Impressions

• In today’s saturated digital landscape, Stapleton shared that digital impressions required 25 to 30 touchpoints before a potential donor would recognize an organization—compared to just 5-7 impressions in previous years. He encouraged the audience to refine their digital strategies by increasing touchpoints across platforms to improve recognition and engagement.

Challenges with Acquisition and Conversion

• Steve Stapleton discussed the challenges in acquiring new donors, particularly in converting leads from “non-donors” (people without financial contributions) into active donors. He explained that it was becoming more expensive and difficult to acquire new donors, making it essential to focus on top-of-funnel efforts and reducing acquisition costs.

Second Transaction Focus

• Stapleton shared data showing that donors who made a second transaction within six months were 400 times more likely to become long-term supporters. He emphasized that organizations should prioritize strategies aimed at driving second-time conversions to secure long-term loyalty.

Correlations with Economic Indicators

• Stapleton noted an interesting negative correlation between the S&P 500 index and new donor acquisition in 2024. Although the S&P and Dow Jones performed well, higher consumer price indexes led to reduced charitable donations. He pointed out that even though economic indicators showed strength, donors were hesitant to part with their money.

Engaging Baby Boomers

• Stapleton emphasized the importance of Baby Boomers in charitable giving, noting that they hold the largest share of charitable wealth. While younger generations were less engaged, Boomers represented the future of sustained giving. He indicated that the focus should be on reaching Boomers through the right media consumption channels, a topic that would be explored further in later sessions.

The Role of Digital Moving Forward

• Stapleton concluded by reinforcing the importance of digital as a significant participant in building engagement and reach, even though it may not always be the primary channel. He encouraged organizations to leverage digital platforms to create momentum and drive donor loyalty, despite the challenges seen in acquisition and conversions.