Analysis: How Consumer Confidence Affects Regular Giving

Tim Paris – 30 April 2020

The COVID-19 pandemic has led to a historic plunge in consumer confidence.

As part of our analysis of economic downturns and regular giving retention, we compared consumer confidence metrics with regular giving churn. The correlation is clear; drops in consumer confidence are typically closely followed by an increase in regular giving churn.

The analysis provides an important insight for charities stepping up their retention programs in response to the crisis.

In this analysis, we compare consumer confidence data from the ANZ-Roy Morgan Consumer Confidence Monthly Rating with regular giving data back to before the global financial crisis.

To generate this analysis, churn rates and consumer confidence metrics are normalised. The consumer confidence index is also inverted, so a drop in consumer confidence is reflected as a spike in this graph.

There are several key trends. Importantly, when consumer confidence plunged in 2008, it was closely followed by an increase in regular giving attrition. Equally, as consumer confidence improved, retention rates followed. The question is, will the record consumer confidence drop triggered by COVID-19 result in a similar outcome?

Testimonials

“Dataro is completely reinventing how we use data in our fundraising. These guys are one of the most exciting things to happen in the industry for years.

Liesha Hanekroot Fundraising Manager

“I’m really impressed with the results we had for Christmas! It brings me so much joy to know that we’re contacting the right people...and that we can get better and more efficient about this over time! Data has never been easier to manage!

Amelia Szulerecka Senior Fundraising Manager

“The thing that stood out for me the most was that we are able to be proactive in our retention strategies instead of reactive. I don’t know a simpler and more accurate way than Dataro propensity scores to determine who and when to contact RGs for better retention.

Andrew Jung F2F & Telemarketing Manager

“We tested Dataro's propensity scores in our 2020 Tax Appeal and the results speak for themselves. We were able to raise more funds and reduce our costs. We're now rolling out Dataro's propensity scores across all of our appeals and regular giving programs.

Daniel Blucher Data & Insights Specialist