Accelerating second gift conversion for new online donors

Written by Ben Cockrel

In the world of nonprofit fundraising, securing that all-important second gift from a new donor is critical to ensuring long-term donor value. Here’s why focusing on second gift conversions is so essential and how you can boost these conversions by implementing custom strategies for new online donors:

The importance of the second gift

The initial gift from a donor is a promising first step, but it’s the second gift that truly indicates a donor’s commitment and potential for long-term giving. When a donor makes a second contribution, they are far more likely to continue supporting your organization over time. Hence, moving donors from that first gift to the second gift is a key metric for long-term fundraising success.

Direct mail vs. online donor conversion

In direct mail campaigns, it’s common practice to mail to single-gift donors at an upfront net loss with the primary goal of securing that crucial second gift. This strategy is rooted in the understanding that the initial loss is an investment towards building a more valuable, long-term donor relationship.

However, many organizations struggle to replicate the tactics that work with direct mail donors into the online space. The conversion rates from first to second gift are often lower for online donors compared to those acquired through direct mail. This discrepancy calls for a tailored approach to online donor engagement. In addition to important strategies like email welcome series, there are actions you can take in your digital media platforms to improve second gift conversion.

Crafting custom social strategies for online donors

To bridge this gap, organizations need to develop unique, customized strategies that specifically target new online donors. Here’s how you can do it:

1. AI-driven targeting and ad frequency: In digital media, AI-driven targeting systems typically do not prioritize ad frequency for single-gift active donors. By creating a separate audience segment specifically for new online donors, you can control and increase the frequency of ads shown to this group.
2. Custom creative content: Tailor your creative content to resonate specifically with new online donors. This could mean highlighting different aspects of your organization’s impact or crafting messages that speak directly to the motivations of new online donors.

Case study: Success in action

We recently tested this approach with an organization that had been struggling to improve their year-over-year second gift conversion rates. By creating a custom audience of new online donors and implementing tailored ad strategies, they saw remarkable results. Over a period of six months, their second gift conversion rate increased by 17%, moving from a relatively flat year-over-year performance to significant growth.

Balancing ROI with long-term value

It’s important to note that while the upfront return on investment (ROI) for targeting new online donors may not be as high as that for other active online donors, the long-term benefits are substantial. By focusing on second gift conversions, you’re investing in the future value of these donors, ultimately building a more robust and sustainable donor base.

Securing a second gift from new donors is critical for improving donor lifetime value. By implementing custom strategies for new online donors, such as creating separate audience segments and using tailored creative content, you can significantly boost second gift conversion rates. While the initial ROI may be lower, the long-term payoff in donor retention and value is well worth the effort.