9/10/2015

1

Current Data and Trends of Successful

Phonathon Programs – Part II

CASE Online Speaker SeriesSeptember 10, 2015

Ruffalo Noel Levitz

Brian Gawor, CFREBrian Gawor, CFREBrian Gawor, CFREBrian Gawor, CFRE

Vice President of Research

� Former Annual Fund and Major Gifts officer

� Doctoral student at Illinois State University

� Dissertation topic: higher education phonathons

Brian KishBrian KishBrian KishBrian Kish

President, Emeril Lagasse Foundation

� Former Senior VP, U of Arizona Foundation

� Consultant with top firm Campbell and Co.

and Blackbaud’s Target Analytics

� CASE Crystal Apple Award Winner

9/10/2015

2

Ruffalo Noel Levitz

1111

2222

3333

4444

5555

Phonathon Research

An Army of Gift Officers? How?

Phonathon’s Value Add

Benchmarks and Trends

Myths, Truths, Debunks and Your Questions

Webinar OutlinePlease ask questions at any time in the chat window!Please ask questions at any time in the chat window!Please ask questions at any time in the chat window!Please ask questions at any time in the chat window!

Ruffalo Noel Levitz

Poll:Poll:Poll:Poll:

What are the biggest challenges you are facing in What are the biggest challenges you are facing in What are the biggest challenges you are facing in What are the biggest challenges you are facing in

running your running your running your running your phonathonphonathonphonathonphonathon????

- Caller Recruitment and RetentionCaller Recruitment and RetentionCaller Recruitment and RetentionCaller Recruitment and Retention

- Reaching Alumni (Contact Rates)Reaching Alumni (Contact Rates)Reaching Alumni (Contact Rates)Reaching Alumni (Contact Rates)

- Cost Per Dollar RaisedCost Per Dollar RaisedCost Per Dollar RaisedCost Per Dollar Raised

- Integration With Other SolicitationsIntegration With Other SolicitationsIntegration With Other SolicitationsIntegration With Other Solicitations

---- Others on Campus Don’t See the ValueOthers on Campus Don’t See the ValueOthers on Campus Don’t See the ValueOthers on Campus Don’t See the Value

9/10/2015

3

Ruffalo Noel Levitz

Phonathon MattersAnd Research Proves ItAnd Research Proves ItAnd Research Proves ItAnd Research Proves It

�Meer and Rosen (2011) looked at

volunteer calls to alumni and determined

that personalization matters.

� Edwards and List (2014) - an

experimental study involving phonathon

suggestions determined what a caller

suggests greatly affects what a donor

pledges, even if prior giving was higher.

� Sargeant (2015) worked with calls to NPR

stations and donor identity cues (“donors

like you”) and increased donation amounts

by 20% or more.

Ruffalo Noel Levitz

2 2 2 2 2013 Silverpop Email Marketing Metrics Benchmarking Study, global average for education emails2013 Silverpop Email Marketing Metrics Benchmarking Study, global average for education emails2013 Silverpop Email Marketing Metrics Benchmarking Study, global average for education emails2013 Silverpop Email Marketing Metrics Benchmarking Study, global average for education emails3 3 3 3 2014 DMA Statistical Fact Book, for education direct mail appeals2014 DMA Statistical Fact Book, for education direct mail appeals2014 DMA Statistical Fact Book, for education direct mail appeals2014 DMA Statistical Fact Book, for education direct mail appeals4 4 4 4 2014 On2014 On2014 On2014 On----Campus Phonathon Programs (3,795,972 contacts)Campus Phonathon Programs (3,795,972 contacts)Campus Phonathon Programs (3,795,972 contacts)Campus Phonathon Programs (3,795,972 contacts)5555 Blackbaud, Inc. “How to Start A Direct Mail Program.”Blackbaud, Inc. “How to Start A Direct Mail Program.”Blackbaud, Inc. “How to Start A Direct Mail Program.”Blackbaud, Inc. “How to Start A Direct Mail Program.”6666 Convio 2012 Benchmark ReportConvio 2012 Benchmark ReportConvio 2012 Benchmark ReportConvio 2012 Benchmark Report7777 Based on Ruffalo Noel Levitz fundraising indexBased on Ruffalo Noel Levitz fundraising indexBased on Ruffalo Noel Levitz fundraising indexBased on Ruffalo Noel Levitz fundraising index

Importance of Phone Calls

9/10/2015

4

Ruffalo Noel Levitz

Phone Calls Matter

Ruffalo Noel Levitz

Please respond

in the chat window:

What makes

a great caller?

9/10/2015

5

Ruffalo Noel Levitz

An Army of Gift Officers?And how do And how do And how do And how do you get there?get there?get there?get there?

�We have traditionally thought of phonathon

as an immediate ROI vehicle.

� Increasingly, the investment is about donor

retention, building the pipeline, and quality

conversation.

�This requires rethinking the caller selection

and training process as well as the call center

environment.

� It might also cause us to start thinking

differently about our metrics and “return on

investment” conversations.

Ruffalo Noel Levitz

Humboldt State UniversityUsing Call Notes to Tailor CallUsing Call Notes to Tailor CallUsing Call Notes to Tailor CallUsing Call Notes to Tailor Call

�Writes call notes—just like contact reports

� Reviewed next day –forwarded on if necessary

� Entered into RE (use to be just D$100+, now all)

� Given to caller before each call

� Can use to track “Case Points”, starting to code

9/10/2015

6

Ruffalo Noel Levitz

York UniversityVeteran Callers Truly become an Army of Major Gift OfficersVeteran Callers Truly become an Army of Major Gift OfficersVeteran Callers Truly become an Army of Major Gift OfficersVeteran Callers Truly become an Army of Major Gift Officers

• In the Student Philanthropy Officer

Program the students act like junior

development officers.

• Working twelve hours a week, they

reach out to alumni by mail and

phone, conduct discovery meetings,

draft proposals, and close leadership

level ($1,000 to $25,000) gifts.

• By bringing an annual giving mentality

to traditional face-to-face solicitation

they created structure and systems

that allowed them to deliver highly

personalized fundraising in a high

quality, high volume, and repeatable

way.

Ruffalo Noel Levitz

What makes a great caller?

9/10/2015

7

Ruffalo Noel Levitz

The Survey:130 RNL Sites in US, Canada and Australia

714 students responded

Follow-up interviews

Largest we could find

Download paper at:

ruffalonl.com/fundraising-management

This fall: open to all worldwide call centers.

Ruffalo Noel Levitz

9/10/2015

8

Ruffalo Noel Levitz

Ruffalo Noel Levitz

EXPERIENCE MATTERSEXPERIENCE MATTERSEXPERIENCE MATTERSEXPERIENCE MATTERS

9/10/2015

9

Ruffalo Noel Levitz

Ruffalo Noel Levitz

• Conflict, Conflict, Conflict, Conflict, especially over finances, will

be an issue for callers.

• Expectations matter. Expectations matter. Expectations matter. Expectations matter. Young people use

plastic. Paper is so 1994.

• RetentionRetentionRetentionRetention is a key ROI tool for call

centers.

• Callers gain a great deal from the

experience, putting phonathon on par

with your institution’s most challenging most challenging most challenging most challenging

leadership experiences.leadership experiences.leadership experiences.leadership experiences.

• Callers grow in their philanthropicphilanthropicphilanthropicphilanthropic and

institutionalinstitutionalinstitutionalinstitutional orientation.

9/10/2015

10

Ruffalo Noel Levitz

of student fundraisers

(phonathon) indicate

that because of their because of their because of their because of their

experience, they are experience, they are experience, they are experience, they are

more likely to give.more likely to give.more likely to give.more likely to give.

RuffaloCODY 2014 Survey

USA, Canada, Australia

n = 714

94%94%94%94%

https://www.ruffalonl.com/papers-research-higher-education-fundraising/2014/developing-

phonathon-callers-with-challenge-and-support

Ruffalo Noel Levitz

Are our expectations lagging reality?Example: Credit CardsExample: Credit CardsExample: Credit CardsExample: Credit Cards

�Yet, 69% of students say asking for a credit card

is “Easy or Very Easy”

�New Programs: Always Higher, up to 80%

26.5% 28.1% 29.9% 31.2%

0.0%

20.0%

40.0%

2012 2013 2014 2015

Credit Card Rate – All RNL Phonathons

9/10/2015

11

Ruffalo Noel Levitz

Importance of Cell Phones

2004: Landlines in 9 of every 10 households

2015: Landlines in 1 of every 2 households

Ruffalo Noel Levitz

• Calling donors on

their mobile device

is highly successful.

• Statistics from

mobile

append/“bought”

numbers last year:

Over $7 million in Over $7 million in Over $7 million in Over $7 million in

pledges.pledges.pledges.pledges.

9/10/2015

12

Ruffalo Noel Levitz

What your phonathon also providesThe “value add”The “value add”The “value add”The “value add”

�A pipeline for major donors: they have to

start somewhere.

�Valuable address, email address, and

donor information updates.

�A connection between students and

alumni.

�Buzz on your campus and the

establishment of a culture of philanthropy

from day one of the student experience.

Ruffalo Noel Levitz

Where your Major Gift Donors Come From* Data from Target Analytics* Data from Target Analytics* Data from Target Analytics* Data from Target Analytics

• On average, it took 14 years for a donor to make his/her first $1,000+ gift.

• Those who gave $1,000+ in FY2014, gave about 79% of the years that they were on file (and stayed at the high end level 40% of those years)

• 46% of them made a first gift less than $100. However, of those that eventually gave $1,000+, a $100 first time donor did so at about a 24% faster rate than a $1-24 dollars donor

9/10/2015

13

Ruffalo Noel Levitz

3%

36%

23%

16%

6%

15%

Percent Percent Percent Percent of of of of Grand Total (Contacts)Grand Total (Contacts)Grand Total (Contacts)Grand Total (Contacts)

2ND ASK

ACQUISITION

MIXED

REACQUISITION

REFUSAL

RETENTION

$1 Million + Phonathons, 2013 $1 Million + Phonathons, 2013 $1 Million + Phonathons, 2013 $1 Million + Phonathons, 2013 ----2015201520152015

Ruffalo Noel Levitz

• From 2013 to 2015, $500+

pledges made up approximately approximately approximately approximately

3% of the pledges3% of the pledges3% of the pledges3% of the pledges at all

institutions.

• $1000+ pledges made up

approximately 1% of all pledgesapproximately 1% of all pledgesapproximately 1% of all pledgesapproximately 1% of all pledges.

• These pledges represented a

whopping 29% of all pledged 29% of all pledged 29% of all pledged 29% of all pledged

dollarsdollarsdollarsdollars.

9/10/2015

14

Ruffalo Noel Levitz

Ruffalo Noel Levitz

• New research: Over $700 million

in phonathon pledges aggregated

by zip code and compared to US

Census income records.

• Income is correlated with

phonathon average pledge.

• Surprisingly, this factor only only only only

accounts for about 28%accounts for about 28%accounts for about 28%accounts for about 28% of the

variance in pledge amount.

• What might this mean?

Personalization matters.Personalization matters.Personalization matters.Personalization matters.

Look for more info and Look for more info and Look for more info and Look for more info and

other research on the other research on the other research on the other research on the

RNL blog at RNL blog at RNL blog at RNL blog at

blogfm.ruffalonl.comblogfm.ruffalonl.comblogfm.ruffalonl.comblogfm.ruffalonl.com

9/10/2015

15

Ruffalo Noel Levitz

SOLDIERSOLDIERSOLDIERSOLDIER

Ruffalo Noel Levitz

SOLDIERSOLDIERSOLDIERSOLDIER

NINJA!NINJA!NINJA!NINJA!

9/10/2015

16

Ruffalo Noel Levitz

Brian Gawor, CFREBrian Gawor, CFREBrian Gawor, CFREBrian Gawor, CFRE

Vice President of Research

� Email: Brian.Gawor@RuffaloNL.com

� Twitter: @BrianGawor

� Blog: blogfm.ruffalonl.com

Brian KishBrian KishBrian KishBrian Kish

President, Emeril Lagasse Foundation

� Email: Brian_Kish@Yahoo.com

PLEASE

Complete the evaluation to help us

produce future quality programming.

The link to the evaluation is included in the

Links box located to the left of the slide

Help us Help YOU