Friday, August 12, 2011

Donor retention just as important as finding new donors

I'm gonna tell you a short story.

Back in December of 2008, the economy was crashing, stocks were tumbling, and getting return phone calls or emails about sponsorships was depressing, to say the least.

Then I get a phone call from the title sponsor of Mecklenburg County Park and Recreation's signature event, Bark in the Park. Due to the economy and changing marketing priorities, the title sponsor was not renewing its $50,000 title sponsorship of that event.

It's hard to find a title sponsor. It's even HARDER to replace a title sponsor and replacing a title sponsor during the Great Recession was almost impossible.

After much networking and just two months before the event, I was able to find a new title sponsor, but for $20,000. I talked to the event committee - we agreed to take it. Not too many people were announcing new $20,000 sponsorships at this time, I pointed out to them.

My job then became really simple: Make sure the new sponsor was thrilled with what they recieved for sponsoring Bark in the Park.

I made sure all the ducks were in a row, made sure their logo was in all the right places, and sat down with my new best friend title sponsor a number of times to make sure he was getting everything he wanted out of the event.

At the April 2009 Bark in the Park event, I was insisting that the new sponsors' tables were being set up exactly like the sponsor wanted.

A staffer helping with the event said, "What do you care? You've already got their money!"

I replied: "I'm already working on next year!"

And I was.

The next year, the new title sponsor increased their commitment to the event by 50% from $20,000 to $30,000. They were thrilled with what they got out of their first title sponsorship of Bark in the Park.

And while that didn't bring us back up to the $50,000 we were at before, by working with the new sponsor we were able to open up some new sponsorship categories that had been closed at the insistence of the previous sponsor and that brought in another $10,000.

The point is, fight like heck to keep the sponsors and donors you've got. Sit down with them often and ask them if they are getting everything they want and expect from your event. You may not be able to replace them.

What steps are you taking to retain major donors?