what performs better in terms of supporter value · 2009. 10. 16. · are integrating your...
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Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #2
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Question: What Performs Better in Terms of Supporter Value:
Direct Mail or Email?
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #3
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Direct Mail is Dead or Dying... Direct mail responsiveness is dependent upon characteristics of a
particular generation that has largely passed. Online fundraising’s growth is explosive. For online fundraising to rise,
direct mail fundraising must fall. Direct mail is expensive and ineffective for supporter acquisition and
retention.
Haven’t we heard this before? Who is conducting these studies in the ‘direct mail is dead’ camp?
The debate continues...
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #4
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Myth: Direct mail responsiveness is dependent upon characteristics of a particular generation that has largely passed.
FACT: The direct mail donor universe is alive and well and actually shows little signs of rapidly diminishing.
A.B. Data Group conducted a survey of direct mail donors in 1995 and again in 2007. For the 2007 survey, they found: – 68% of direct mail donors are over 60– Average age of direct mail donors is 68
These results nearly mirrored the direct mail donor population that was found in 1995 (12 years difference), meaning that a new generation of contributors had been found.
This supports the idea that direct mail responsiveness is not dependent upon characteristics of a particular generation but instead is a function of their stage in life.
Source: “Is direct mail fundraising really headed for the exit?” Chuck Pruitt, A.B. Data Group
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #5
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Myth: Online fundraising’s growth is explosive. For online fundraising to rise, direct mail fundraising must fall.
FACT: The growth of online fundraising is happening but it’s happening much more slowly than many predicted.
According to The Chronicle of Philanthropy’s survey, online fundraising accounts for about 2% of the $306 billion raised by nonprofit organisations. While there are not equivalent numbers available for funds raised via direct mail, it is believed that the direct mail channel accounts for at least 15 times and perhaps as much as 25 times as much as the online channel.
In the UK, Charity Trends 2007 stated that the UK's top 100 fundraising charities generated around 4% of their annual voluntary income via new media fundraising methods (online).
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #6
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Myth: Direct mail is expensive and ineffective for supporter acquisition and retention. FACT: The 2008 DonorCentrics Internet Giving Benchmark Analysis found that online donors
have lower retention rates and a lower cumulative lifetime value than traditional mail-acquired donors. Mail-acquired donors are outperforming online-acquired donors.
“People are asking us all the time why we don’t reduce mailing costs and save paper with online fundraising but the simple fact is that people come online to give once and don’t repeat.”
– Jennifer Tierney from Doctors without Borders commenting on the DonorCentrics Internet Giving Benchmark Analysis
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #7
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Myth: Email is impersonal FACT:
– Fundraising emails sent to previous donors received response rates more than three times as high as those sent to non-donors
– Alerts sent to previous action-takers on a given issue received response rates three times higher than those sent to the full file
Source: 2009 eNonprofit Benchmarks Study
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #8
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Myth: Email is spam Not if its been asked for and is relevant!
FACT: 67% of respondents in a recent study said they prefer email as a communications channel over other online vehicles
More than 88% of respondents said they would like organisations to give them more choices over the content and frequency of the emails they receive.
CHOICE = A SUCCESSFUL EMAIL
Source: Email Insider Summit, Habeas, Inc., 2008
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #9
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Myth: Email has Reached Its Saturation Point FACT: While email open and click-through rates fell from 2007 to 2008,
response rates remained relatively steady.
Open rates declined from 17 to 16 percent, and click-through rates have declined nearly a half of a percent, to 2.4 percent. These declines are less pronounced than the downward trends found in previous studies.
Email lists continue to grow, though more slowly every year: growth was at 17 percent in 2008, down from 19 percent in 2007 and 21 percent in 2006
Source: 2009 eNonprofit Benchmarks Study
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #10
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Remember the Question: What Performs Better in terms of Supporter Value:
Direct Mail or Email?
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #11
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Answer:It’s both!! Integrated, Multi-channel Marketing!!
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #12
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Why is a multi-channel strategy so important? A.B. Data Group’s 2007 survey found that direct mail and online donors
live in very distinct fundraising worlds: – 33% percent of online donors also give through the mail – 67% do not.– 22% of direct mail donors give online – 78% do not.
You will not get both kinds of donors and you will, therefore, notmaximise your fundraising potential unless you do both online and direct mail marketing.
Source: “Is direct mail fundraising really headed for the exit?” Chuck Pruitt, A.B. Data Group
However, there is a trend towards donors switching between these two different fundraising worlds. Online giving is not a strong renewal channel; every year, large numbers of online donors migrate away from online or email giving and to other sources, primarily direct mail. The 2008 DonorCentrics Internet Giving Benchmark Analysis found that a median 33% of the donors who were acquired online in 2007 gave offline when they renewed in 2008.
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #13
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Multi-channel value Having an email address on file makes a positive difference in the giving behaviour of offline
donors. Offline donors who have an email address on file, and who have no record of giving online, give far more per year and retain and reactivate at higher rates than those who do not have an email address on file.
Providing an email address may indicate greater affinity towards an organisation. Donors who have email addresses on file may tend to be those who have had more opportunities to provide it to the organisation, and who would therefore be those with greater giving loyalty or who receive more frequent communication from the organisation.
Source: 2008 DonorCentrics Internet Giving Benchmarking Analysis
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #14
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Multi-channel opportunities Multi-channel contributors have dramatically higher long-term value
than single-channel donors. Analysis has shown that: Multi-channel donors contribute over 2.5 times as much as their
single-channel counterparts Multi-channel donors give almost 2.75 times more gifts than single-
channel contributors Multi-channel donors, who first give through direct mail, end up giving
almost 3.15 times more than single-channel, direct mail-only donors.
Source: “Is direct mail fundraising really headed for the exit?” Chuck Pruitt, A.B. Data Group
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #15
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New media – SMS Unsure about introducing a new media source? Will it work for our
organisation? Will it appeal to our supporters? – Test, Test, Test:
• Integrate SMS into existing Marketing campaigns by adding it as an additional call-to-action. – Lower commitment barrier:
• You may find that people that were not able/willing to call or go online are able/willing to send a text.
– Understand the demographics of your existing supporter base: • Diversify your existing supporter pool by attracting younger supporters• Will older supporters respond to SMS? Test!
Testing in the field: – “ActionAid launched a DRTV drive which offered SMS as a response mechanism for
the first time, as well as a traditional telephone number. There was concern that this would jeopardise existing response.
– If the ad simply encouraged existing donors to text rather than phone to make a pledge this could have resulted in a decrease in donations. However it did, in fact, deliver incremental response, perhaps engaging with people who would be unwilling to respond by phone.”
– Source: Charity Times
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #16
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New media - SMS To get the best results (as with any other media channel), you need to ensure that you
are integrating your marketing message across channels. Example:
– “Shelter is using SMS as a response mechanism for recruiting donors through a campaign across London Underground stations as part of its ‘More homes now’ activity. The initiative uses moving digital panels installed down the escalators of some tube stations. The campaign shows children living in bad housing and encourages consumers to text to make a donation.”
– “Using new channels is all about integration. It needs to be combined with other activity. So when commuters reach the top of the escalators they are greeted by face-to-face fundraisers handing out leaflets. The campaign is a real mix of old and new media. Shelter then texts back anyone who responds to the campaign to sign them up.”
– Source: Charity Times
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #17
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And That’s Just the Start
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #18
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Social Media as Another Tool There are now 300 million users on Facebook
67% of online users belong to a social networking site
The average Brit spends 2.5 hours a day online for personal use
Social network users are, on average, connected to 150 - 200 “friends”
Providing information in a shareworthy way can turn messages viral very quickly and reach a new group of supporters very similar to the one you already have
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #19
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Does This Mean Email is Dead Too? Not a chance!
Email is still the most widely used social medium
Lessons learned on how to use Social Media to grow your email and contact lists:– Content is King – especially in social media! You have to give in order to
receive, so provide useful and informative information first and then ask for signups or money.
– Have a clear call to action to which you drive traffic. Capitalise on that traffic by giving them something to do!
– Be patient. Social media is about having conversations. It will take you a while to build the connections that will help you drive the traffic you need to really amplify your list building and further your mission.
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #20
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Considerations So now you are (hopefully) bought into the concept and value of
integrated, multi-channel marketing. Are there any other considerations?
Manage customer experience and brand promise delivery – Are your direct mail and email communications working together in
harmony or in conflict (timing & messages)?– If you have asked your supporters their preferred channel for
communication, are you able to fulfil that promise? – Does your CRM system allow you to test your marketing strategy and easily
report the findings? – Is your offline / online strategy joined up from the supporter’s point of view
(cumulative giving totals in acknowledgement letters)?
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #21
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Here’s What You Can Do Today Add your online members to your direct mail acquisition program. Remember
that people who already know your mission are more likely to respond to an appeal than a non-house list—and they’re free.
Ask for email addresses at every opportunity and update your CRM. Ask for email address on all your paper forms. Having an active email address on file increases that donor’s value.
Send eNewsletters to your traditional offline donors to give them additional touch points.
Send email appeals to your traditional offline donors, either to reinforce the message they’re getting in the mail or to act quickly when there’s no time to send mail.
Ask your supporters what they want and how they want to be communicated with – use surveys, forums, polls, and ask them when you meet with them.
Integrate your communications to make sure that supporters get a consistent message in the mail, in email, on the Web site, on your Facebook page, even in your tweets!
Blackbaud’s Conference for Not-For-Profits — London | Emily Cunningham & Sandra Luther | Page #22
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Reminders... You can download conference session slides online at:
http://conferencecentral.blackbaud.co.uk
Come check out a demonstration of Blackbaud’s Integrated Marketing Solutions tomorrow (Tuesday 13 Oct) at 13.15 in the MarketPlace with Alex Ross, Solutions Engineer for Blackbaud Europe.