Crowdfunding is all about the campaigner-donor relationship. The process of crowdfunding depends solely on the crowd and how you can use it. There are two layers to your interaction with your donors. One is the process of acquiring new donors, appealing to the people and convincing them to contribute, i.e., “Donor Acquisition”. There’s another factor to your relationship to your donors, the process of retaining the donors, after they have completed their donation for one campaign, so that they will donate in your other, future campaigns. This process is called “Donor Retention”. Now the question comes, which process is more important in these two? What? Which one will provide us the best benefits? Crowdfunding India here answers all your questions and tallies “Donor Acquisition” with “Donor Retention”.
Crowdfunding India says that ergo acquisition of new donors is necessary, the value proposition and financial benefit for your organization depends directly on keeping the existent donors over finding new ones.
There is a general idea that more is the number of donors, the more successful your campaign will be. Crowdfunding India confirms that this is true and that is why so many fundraising efforts focus on donor acquisition. Yet when it comes to raising major funds, it is crucial to focus on the donors you have.
Crowdfunding India says that your major donors have already ratified your allegiance to your organization. They have donated a lumpsum amount. Now when it comes to asking for huge funds, your existing donors will be more willing or responsive than your first donor, who already has a clear idea about your agenda and trusts you. There is value and financial benefit in successfully retaining your donor.
It is easier in fact to retain a donor than acquire one. Crowdfunding India says that when you fail to acquire one new donor, you actually suffer a financial loss. Whereas when you approach an existing one, you have no risk of any loss. Retaining a donor does not require any further investment whereas acquiring does.
Crowdfunding India says that donors can be retained by simple ways like, keeping in touch with them, updating them about your project, saying thank you or asking for their advice. Be honest with your donor about everything, don’t give false accounts or budgets. If something has gone amiss, admit it immediately. Let them know about your success and failures, ask them to help you further by asking for social media shares or volunteer work.
But does this mean that acquiring new donors is completely needless? Of course not. Crowdfunding India says that it is absolutely necessary that you try and convince more and more people to support your cause. Because without acquisition, there will be no retention. And also, you cannot reap donations from the same donor each and every time.
So Crowdfunding India suggests that the correct campaigner-donor relationship, is the balance between “Customer Retention” and “Customer Acquisition”. Only by striking the perfect mid-point between the two, will you be able to get the maximum benefits of your campaign.