integrated multi-channel marketing and fundraising best ... · donors, participators loyal...

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Integrated Multi-channel Marketing and Fundraising Best Practices

Kenneth Kuhler – Senior Account Specialistkkuhler@convio.com

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Keys for Success – Today’s Agenda

• Next Generation of Canadian Giving• The data and what it really means

• Practical Applications of the Research• Understanding the multichannel approach

• Deeper Dive into Online Best Practices

• Closer look at the latest 2011 ConvioBenchmarks

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• To download: www.convio.com/canadanextgen

• Data on how four generations of Canadians give, how they want to be involved with you and the implications for nonprofits trying to reach these distinct age segments.

Next Generation of Canadian Giving

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Canadian Generational Giving

$-

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

$900.0

$1,000.0

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Aver

age

Ann

ual G

ivin

g

Percent Giving

Boomers

Civics

Gen X

Gen Y55% Give2.7M donors$325 yr/avg3.5 charities$.8 B/yr

61% Give4.2M donors$549 yr/avg4.1 charities$2.3 B/yr

66% Give5.7M donors$725 yr/avg4.9 charities$4.1 B/yr

73% Give3.2M donors$833 yr/avg5.3 charities$2.6 B/yr

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Will we still have jobs in the future?

21%

58%

3%

18%15%

66%

4%

16%13%

61%

2%

23%

11%

64%

2%

23%

Increase Same Decrease DK

Donations Planned to One of Three Named Charity Next Year

Gen Y Gen X Boomers Matures

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Can anyone guess when this picture was taken?

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Applying Generational & Channel Learnings

Audit online strategy and tactics to determine how we’re meeting generational needs.

Create connections between the online and offline worlds to support generation “migration” and giving channel preference.

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How are we meeting Generational Needs?

Generation Civics Boomers Gen X Gen Y

Attitudes/Values

Unconditional Looking for you to be good stewards of their $

Time vs. MoneyPremeditated Giving

Online ConnectionPeer Motivated

Time to Give BackWhat’s In It For Me? Random

Tact

ics

+ St

rate

gies

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Assessment: How do we reach Civics?

• Annual Tax Receipts

• Charity Navigator Insignia

• Fundraising Expenditure Disclosure

• E-Newsletters

Unconditional

Stewardship of Donor $’s

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How are we meeting Generational Needs?

Generation Civics Boomers Gen X Gen Y

Attitudes/Values

Unconditional Looking for you to be good stewards of their $

Time vs. MoneyPremeditated Giving

Online ConnectionPeer Motivated

Time to Give BackWhat’s In It For Me? Random.

Tact

ics

+ St

rate

gies

Longer-form appeals

Annual Tax Receipts

Guidestar/BBB/Charity Navigator logos

Fundraising Expenditure Disclosure

E-Newsletter

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Assessment: How do we reach Boomers?

• Renewal Appeals and Notices

• Event Fundraising Donation (vs. Participation)

• Basic Donation Forms

• Volunteer Opportunities

• Data Mining Planned Giving

Pre-meditated Giving

Time vs.. Money

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How are we meeting Generational Needs?

Generation Civics Boomers Gen X Gen Y

Attitudes/Values

Unconditional Looking for you to be good stewards of their $

Time vs. MoneyPremeditated Giving

Online ConnectionPeer Motivated

Time to Give BackWhat’s In It For Me? Random

Tact

ics

+ St

rate

gies

Longer-form appeals

Annual Tax Receipts

Guidestar/BBB/Charity Navigator logos

Fundraising Expenditure Disclosure

E-Newsletter

Renewal Appeals and notices

Event Fundraising Donation (vs. participating)

Basic Donation Forms

Volunteer Opportunities

Data Mining Planned Giving

E-Newsletter

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Assessment: How do we reach Gen X?

• Create/Donate to a Tribute Fund

• Make a Sustained/Committed Gift

• Sign a Pledge

• Event Attendance

• Mobile Site Optimization

Random, peer motivated

Online connection

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How are we meeting Generational Needs?

Generation Civics Boomers Gen X Gen Y

Attitudes/Values

Unconditional Looking for you to be good stewards of their $

Time vs. MoneyPremeditated Giving

Online ConnectionPeer Motivated

Time to Give BackWhat’s In It For Me? Random

Tact

ics

+ St

rate

gies

Longer-form appeals

Annual Tax Receipts

Guidestar/BBB/Charity Navigator logos

Fundraising Expenditure Disclosure

E-Newsletter

Renewal Appeals and notices

Event Fundraising Donation (vs. participating)

Basic Donation Forms

Volunteer Opportunities

Data Mining Planned Giving

E-Newsletter

Creation of/Donation to a Tribute Fund

Make a Sustained/Committed gift

Sign a pledge

Event attendance

Mobile Site Optimization

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Assessment: How do we reach Gen Y?

• Premiums/Contests

• Event Fundraising Participation (vs. Donation)

• Social Media

• Mobile Outreach

What’s in it for me?Time to give back

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How are we meeting Generational Needs?

Generation Civics Boomers Gen X Gen Y

Attitudes/Values

Unconditional Looking for you to be good stewards of their $

Time vs. MoneyPremeditated Giving

Online ConnectionPeer Motivated

Time to Give BackWhat’s In It For Me? Random.

Tact

ics

+ St

rate

gies

Longer-form appeals

Annual Tax Receipts

Guidestar/BBB/Charity Navigator logos

Fundraising Expenditure Disclosure

E-Newsletter

Renewal Appeals and notices

Event Fundraising Donation (vs. participating)

Basic Donation Forms

Volunteer Opportunities

Data Mining Planned Giving

E-Newsletter

Creation of/Donation to a Tribute Fund

Make a Sustained/Committed gift

Sign a pledge

Event attendance

Mobile Site Optimization

Premiums/Contests

Event Participation (vs.. Donation)

Social Media

Mobile Outreach

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How should we respond to new technologies?

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How should we respond to new technologies?

• Determine gaps in existing strategy that new technology might fill. Is our strategy balanced for each generation?

• Set realistic goals for the type of response and constituents that technology will drive as part of investment strategy.

• Is donor conversion a realistic goal for Twitter?• Should Facebook be used to drive awareness and outreach through peer-

to-peer sharing and gift giving• Would we drive visitation to a museum through Gowalla “check ins”?

• Ensure that constituents, particularly Gen X and Y, have the ability to respond in a channel of preference.

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Create Online + Offline Connection

• Research tells us that a multi-channel approach is the only option for reaching across generational constituencies and for planning for the next generation.

• Key tactics will ease the migration to incorporate digital channels as Boomers come on line and younger generations make more significant financial impact.

• Online feeder acquisition• Multi-channel campaign methodology• Segmentation methodology

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Online Feeder Acquisition

• In the multi-channel world the goals of any online fundraising manager should extend beyond revenue raised online, but the ability to influence the overall relationship through online campaign.

• Online must serve as a list acquisition channel for offline campaigning, similar to capturing an email address in offline channels.

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Multi-Channel Campaign Methodology

• Take a multi channel campaign approach by following an integrated fundraising calendar.

• Allow constituents to respond in the channel of choice, regardless of solicitation channel – and expect response to cross channels.

• Respect previous giving behaviors and promote offers with consistency.

• Don’t overlook a customized homepage experience (in addition to email and direct mail) for delivering your integrated appeal.

• Expect to measure response on an aggregate basis. Ease tracking by using shortcut URLs in direct mail.

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Segmentation Methodology

• Is it time to begin capturing birth year data and segment based on generational characteristics and assumptions?

• Does the offer and primary action change based on what we know about constituents?

Cancer OrganizationCancer Research Month

Generation Civics Boomer Gen X Gen Y

Call to Action Give to all Cancer Research

Give to a Cancer Tribute Fund

Give to a Cancer Tribute Fund

Create a Tribute for CancerResearch

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Let’s look at Canada more closely…

Donation Channels Overall and by Generation

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Traditional Direct Response Model

Prospects

Donors, Participators

Loyal Constituents

■ Rent/exchange donor lists from similar groups

■ “Fish in the same pond”

■ Cannot access younger prospects who are not already on lists

■ Cost per dollar raised for acquisition has risen from ~$0.50 in 1950s to $1.69 today

■ Limited cross-program coordination

Churn first year donors and event participants

30-50%1%

Mailing non-responders is cost prohibitive

99%50-70%

Churn multi-year donors

30-40%

Sources: Estimates based on Convio experience and DMA research including 2005 DMA Response Rate Report, the Direct Marketing Association. Professor Adrian Sergeant, at Henley Management College in Great Britain

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Fundraising Emphasis: Matures

MaturesBoomers

Gen XGen Y

25

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Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate

Value of Multi-channel Engagement

Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOneTraditional defined as offline use. Internet Enabled defined as both offline and eCRM use.

34.4%50.9%

Mail

+48%

Multi-Channel

$96

$187

Mail

+95%

Multi-Channel

$314

$694

Mail

+121%

Multi-Channel

Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate

30%61%

Mail

+103%

Multi-Channel

$ 81.18

$ 94.37

Mail

+16%

Multi-Channel Mail

+16%

Multi-Channel

$ 81.18

$ 94.37

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Finding and Retaining Donors

Source: Target Analytics donorCentrics Report

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1) Nonprofit offline donors are aging

2) Donor files are churning and acquisition list sources are limited

3) Revenues are flat and–in many cases–are falling

4) Direct mail costs are increasing / fundraising margins are shrinking

5) Constituents’ expectations are changing

Needs for a Multi-channel Approach

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What are the main factors driving your organization to a more integrated

approach?

Multi-channel Engagement

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Two factors that have the greatest impact on advancing integrated marketing & communications:• An organization’s / leadership’s commitment to the philosophy• Investing in the mechanics to make it happen

Roadblocks to Success

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Remove Data Silos

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Integrated marketing sophistication and size don’t closely correlate.

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Deeper Dive into Online Best Practices

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1. Reach – Be everywhere they are

2. Know – Be interested in who they are

3. Welcome – Be intentional in warming them up

4. Cultivate – Be effective in communicating

5. Ask – Be bold in soliciting gifts and making sure to properly steward them after the gift.

The top 5 things you need to be SUCCESSFUL online

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#1: REACH!

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Constituents have many different entry points to your organization

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85% of “Wired Wealthy” are likely to visit your website before making their first gift

Your website is critical

Source: Convio, Sea Change Strategies, Edge Researchhttp://www.convio.com/wiredwealthy

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Benchmark Results- web visitors

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Benchmark Results- web traffic

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Engaging Websites

Canadian Breast Cancer Foundation

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Percentage Who Currently Use Social Media Best Practices

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Built-in Donation Forms

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Members can submit a favorite video and register to win.

Open voting to members!

Video

Nature Canada

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Benchmark Results- email file size

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Benchmark Results- email file growth

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What will you do to get more people to give you their email address?

Constituent Engagement

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Acquisition- eCards

Daily Bread Food Bank of Toronto

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Acquisition – Petitions

Canadian Wildlife Foundation

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Acquisition- Pledges

Nature Canada

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#2. Know

Be interested in who they are, what they want, and how they

relate to you.

(Mind reading ability not required).

http://www.flickr.com/photos/baccharus

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Understand Preferences

Double the response

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Getting to know your members

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Membership

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Who Are You?

Total Recipients:2,196

Opens:947 (43.24%)

Click-Throughs:471 (21.51%)

Recipient Actions: 386 (17.63%)

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Survey your constituents

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#3. Welcome

Be intentional in warming them up

www.flickr.com/photos/eelssej_

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First impressions count!

Supporter engagement decreases over time

0%

10%

20%

30%

40%

50%

60%

1 month 2 to 3months

4 to 6months

7 to 12months

Year 2 Year 3

Time on Housefile

Emai

l Ope

n R

ate

Source: Analysis of 3 major nonprofits

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Welcome Series- Alberta Children’s Hospital Foundation

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#4. Cultivate Be effective in your online

communications

http://www.flickr.com/photos/question_everything

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Cultivation

Content is king

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Get Your Clicks• Guess what topic

gets the most clicks?• The recipes!

• 30% yr/yr revenue growth

• #1 objective is list growth

• Confident in eventual conversion to customer

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Deliver Distinctive, Compelling Content

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Subject lines matter

Short subject lines outperform long subject lines

Source – MailerMailer LLC 2008, based on number of characters in subject line

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Open Rate vs. Subject Line Length

Analysis of 16 monthly eNewsletters

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#5. Ask

Be bold in soliciting gifts.

(Wishing and waiting is not asking)

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Benchmark Results- online revenue

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Benchmark Results- online revenue

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Benchmark Results- online revenue

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Reach: Email File Expansion

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

10/2

006

11/2

006

12/2

006

1/20

072/

2007

3/20

074/

2007

5/20

076/

2007

7/20

078/

2007

9/20

0710

/200

711

/200

712

/200

71/

2008

2/20

083/

2008

4/20

085/

2008

6/20

087/

2008

8/20

089/

2008

10/2

008

11/2

008

12/2

008

1/20

092/

2009

3/20

094/

2009

5/20

096/

2009

7/20

098/

2009

9/20

0910

/200

911

/200

912

/200

91/

2010

2/20

103/

2010

4/20

105/

2010

6/20

10

Cumulative Online Revenue

# Email Records

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What Motivates an Online Gift?

Email, 36%

Search, 21%

Direct Mail, 20%

Telemarketing, 13%

Other, 10%

Source: 2009 Convio Analysis of one Major Mailer Account

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Make It Easy to Donate Online

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Donation Form– Canadian Cancer

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Encourage sustainer giving programs…

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Canadian Wildlife – purchase a “virtual animal”

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Multi-Part Campaigns1

2

3

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Unexpected Events – Ability to be Timely

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Provide a “mission related” value add premium to their gift

Nature Conservancy Canada

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Stewardship – properly thanking donors

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Stewardship – keeping your constituents informed of results

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Articulation of what your donation will provide.

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Effective storytelling – share success stories.

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We got opening pitch last week!!!!

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Fundraising Performance Metrics

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Increased competition for wallet share. Be the organization that is “15 minutes ahead”.

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• Unified constituent experience

With Convio Solutions:

Engaging Constituents with Convio Solutions

• Integrated messaging across a variety of channels

• Optimized engagement

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free resources that will help your organization execute multichannel strategies

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