ifc holland november 24th session mike
TRANSCRIPT
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The fundraising future of digital media: a story of integration
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Mike JohnstonFounder, HJC,
Online and Integrated Fundraising Specialist, Aerobics Instructor, Computer Game Player,
and Sports Fanatic
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Digital fundraising on it’s own can be like…
“Best practice fundraising creates results (statistics) that prove that fundraising integration of more channels and more areas of fundraising and non-fundraising – is indeed, best practice.”
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1) The NeedWhat is driving changes in how we fundraise?
2) The ValueWhat’s the value of being integrated?
3) Self-AssessmentWhere are you as an organization?
4) SolutionHow do you align culture, staff, and technology?
5) Evidence – Put It All TogetherWhat does integration look like around the world (France, Canada, US)?
Examples from the World through this structure….
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The Need
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1) Nonprofit offline donors are aging around the world
2) Donor files and acquisition list sources are shrinking
3) Revenues are flat and–in many cases–are falling
4) Fundraising costs are increasing/ fundraising margins are shrinking
5) Online fundraising – when kept in a silo - underperforms
Nonprofits need (younger) more valuable donors in many parts of the world
The Need (in many countries)
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Creating silos...
Event Fundraisers (online)
E-Newsletter subscribers
Donors (direct mail)
Volunteers
Advocates
Staff
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The pie is bigger when we get to this...
Event Fundraiser’s
eNewsletter subscribers
Donors
Volunteers
Advocates
Staff
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Online donor retention of single gift donors can be terrible...
Year Acquired Number Acquired Gave in Year 22006 99 32.30%2007 1736 24.20%2008 3194 19.30%2009 2913 26.40%2010 76562011 7570
25.5% average retention rate
Benchmark 28%
How can we improve this?
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The Value
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• Integrated Marketing Benefits• Deepens constituent loyalty and increases lifetime value
• Strengthens the brand
• Engage new audiences, grow revenue, and maybe even save money.
• Audiences are becoming increasingly multi-channel – in every country - and greater data intelligence is required to raise more money.
The Value: Qualitative
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04/12/2023 Proprietary & Confidential 13
Generational 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
20-30 year old
31-46 year old
47-65 year old65+ year old
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One last group – the millennials… the Gen Z…
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Fundraising is profoundly multi-channel
Proprietary & Confidential Slide 15
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Connect the pairs...Which Generation of givers is the most prolific user of the following giving channels?
Proprietary & Confidential Slide 16
Gen X Tribute Giving
Civic (Mature) Web Giving
Gen Y Telephone
Boomer Retail Check Out
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Online and Integration
• The Brady Campaign started with 38,000 email addresses
• 16,000 were Brady members
• 22,000 were non-donor activists
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Rapidly Growing An Email File
• Launched branded campaign and microsite NRAblacklist.com supported by a print ad campaign
• The site had a visitor to “signer” conversion rate of 40%
• Grew email list from 38,000 to 101,257 in under 3 months
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Sustaining Engagement
• Growth of NRAblacklist.com was followed by urgent federal legislative battles
Started a new branded campaign: stoptheNRA.com
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An online advocacy effort by the Brady Campaign grew their email file from 40K to140K. The vast majority were new prospects.
Multi-Channel: Acquisition – Best Practice
0.37%; $46 avg. gift
Email Solicitation
1.26%; $24 avg. gift
Direct Mail Solicitation
21%; $27 avg. gift
Phone Solicitation
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Onlne and Integrated Best Practice Takeaways…
• Don’t Wait! Integrate online non donors into online, direct mail, and telephone conversion as soon as you have enough for a good test. Remember: younger donors ACCEPT more channels for solicitation!
• Online Flanker Brand Campaigns. Need constant campaigns (like NRAblacklist.com) to grow your online non donor list.
• Online Petitions. Build campaigns around online petitions so that you get full address.
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Proprietary and Confidential
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What happens when you connect culture and fundraising?
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Online and another channel
Not Called Called $-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$722.18
$920.09
Yoga In MotionImpact of Calling Partic-
ipants
Avg. Revenue Per Participant
Action Taken
Ave
rag
e R
even
ue
($)
Up 27.4%
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Amnesty Denmark – digital includes mobile...
• Amnesty Denmark has several ways of acquiring new donors including Face 2 Face, Cold TM and calling their SMS network
• The SMS network is kept engaged through texts whereas F2F and Cold TM prospects are not engaged before they get an ask
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Mobile is digital...and very valuable...
Channel Acq. Cost
Avg. Amount
Lifetime (months)
Lifetime value
Return on Investment
Face2Face €549 €60 30 €1,800 3.28
Telemarketing €842 €62 31 €2,542 3.02
Calling SMS network
€420 €74 60 €4,465 10.63
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Online and Integrated Best Practice: Integration Increases Multi-Channel Loyalty and Value
Retention Rate2Annual Donor Value1
Sources: 1. Convio / Strategic One White Paper: Integrating Online Marketing (eCRM) with Direct Mail Fundraising: Adding a New Communication
and Donation Channel Increases Donations; total contributions over 12 month period, excluding $10k+ gifts for SPCA of Texas2. Ibid. Comparison of retention rates for multi-year donors, SPCA of Texas
82.3%
70.1%62.3%
$102.64
$191.35
$255.74
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Self-Assessment to be Best Practice
Where Are You in Your Online and Integrated Fundraising Journey?
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Where are You?
• Online Marketing Makes Minimal Contribution
• Calendar-Based Campaigning
• Not Financially Committed to Second Channel
• Thematically Integrated
• Coordinated Appeals
• Integrated Calendar
• Shared Metrics
• More Stuff, More Channels
Coordinated IntegratedSilos
• Separate Metrics & Team for Online Marketing
• No Calendar / Campaign Coordination
• Online Constitutes 5-25% Direct Response Revenue
• Unified Strategy & Full Integration Across Channel Managers
• Measures Success Across Channels, Not By Channel
• Seamlessly Integrates New Media
• Shared success, budget and goals
Single
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Which Type of Organization Are You?
Type A
Tension Behavior Outcome
Fear BlamingBurnout, Detachment
Anxiety Self-interestStagnation, Isolation
Political Downgrading
Tension Behavior Outcome
Innovation Cooperation Achieve Goals
Creativity TeamworkShared Success
Productive Rewards
Type B
Source: Mark Climie-Elliott, HJC Senior Consultant, “Turning Point” Webinar, April 15, 2010.
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• “1” = Type A, “5” = Type B
• Where do you fall on the scale?
On A Scale of 1-5…
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SolutionGetting people to change – to make online and offline
connect together
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• To create change – you need a process.• System
• Input
• Challenge
• Three drivers of change for a more integrated organization:
• People
• Knowledge
• Technology
Where to Begin? Release the Fear.
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Shared Reality
• Your organization as it is today:• How you see it – your reality
• How others see it – their reality
• No right or wrong – simply respected observations
• Collectively, this becomes your “shared” reality.
Reality is something you rise above.Liza Minelli
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• Shift ahead & articulate a shared vision or desired state of what you want (or think) your fundraising will look like in 3-5 years
• Can be applied to any time frame• Short-, Mid-, Long-Term
Shared Future
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The Camembert
All the rest: Online 1%; Legacy 2%; Major 3%; Corporate 4%; Government and Foundations 3%
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The Camembert
All the rest: Online 25%; Legacy 12%; Major 3%; Corporate 8%; Government and Foundation 3%
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• Draw your fundraising pie charts:
A Quick Exercise
NOW 2021
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Integration of all LEVELS of giving
Legacies, Large Gifts and smaller gifts..
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A great way to get started: An Integrated Survey
• The cultivation survey:
• Sent to 57,400 donors
• 3 key segments: Monthly, Active & Lapsed
• 5,530 responses (response rate of 11%)
• Raised $17,574 – a bonus!
• Reactivated 30 donors
• Found 85 expectances and 292 legacy leads and 143 middle and major donor leads!
• Key: shared budgeting!
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The goals of the survey
1. Collect personal preferences of donors for targeted marketing appeals
2. Collect demographic data for marketing purposes – and connect it automatically to the database!
3. Build a deeper relationship with donors – give them a platform to be heard
4. Uncover leads for other forms of giving – including legacies, middle gifts, and major donor gifts
proprietary and confidential
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Social Media and personalization
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FacilitationGetting everyone on the same page
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Integrated Planning: a full contact sport…
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What do you do before you meet?
Talk, and listen, to team members
Review the past, the current reality, and future plans
Analyze the data
Prepare for a face to face session that will push, pull, cajole, challenge and team build.
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Sometimes a disaster forces people to meet, plan and launch…
Proprietary & Confidential Slide 45
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04/12/2023 Proprietary & Confidential 46
The Library Online
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o 10,974 emails sent to City Council Memberso Over 20,000 written letters sento Gross revenue $50,058.68 o 1,000 donorso 584 new donors (a few from social media)
“The main reason we stopped the cuts was this online campaign. I would be the first to say otherwise, but it's true.”
Results
Proprietary & Confidential Slide 47
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Everyone in a room to create an online and integrated schedule
Proprietary & Confidential Slide 48
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The Balanced ScorecardThe Dramatic Oversimplifcation of Integrated Fundraising, Marketing, Communications and
Campaigning
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How does it help Convio and its clients?
• Development and Peace – were sent a quick audit (evaluation) by a Convio staff person
• HJC followed up with a more hands-on, facilitative, and integrated engagement
• It led to a plan that has made implementation easier and more successful with buy in (and understanding from senior leadership across the organization, including the CEO)
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The EvidencePutting It All Together
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• Brand is perceived as authentic
• They have moved away from a past of innovation to a current reality of ‘bureaucracy and silos’
A Public Broadcaster
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• 2nd gift conversion dropped from 83% to 30%
• Net loss of donors since 2005.
• LTV of donors decreasing significantly since 2001
• Magazine, which was the primary stewardship vehicle, stopped in 2007.
• Share of voice, i.e. number of times donors hear from TVO in a year, has decreased.
“A hanging in a fortnight concentrates the mind wonderfully”
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• Senior management support
• Cross departmental cooperation
• Create an integrated plan and stick to it
It would take an integrated solution…
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Online and offline integration
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Launched Impact Report for Donor Loyalty
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Launched Symbolic Giving
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• Highlighted 40th anniversary
• Telemarketing
• Integrated Telemarketing with DM strategy
• Follow-up post direct mail appeal
• In-bound support
• Brought in industry-leading call centre to handle inbound fundraising calls outside of regular hours (weekends/holidays etc.)
• Introduced integrated (mail, phone, online) renewal strategy
Launched online and integrated channels
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• Q3 - Best end of year result since 2006, best result of 2010
• Q3 - 26% increase over same quarter previous year
• Q4 - 40% increase over same quarter previous year (over $1 million additional income)
Results - 2010
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Digital Games
• $68 billion (bigger than music, books, and the movie industry)
• It’s entertainment• 29% over 50• 55% play on their mobile phones
• Are you ready?
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The future of digital media
• Online can’t be in a silo
• Integrate all channels, all departments and all levels of giving
• Get over attribution!
• Remember, all generations, use online and all channels
• Make an integrated plan and a lifecycle plan
• And digital includes mobile phones and computer games!
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Thank You!