Connect engage and Convert Donors
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The document outlines a presentation by Kate Dunn on enhancing fundraising strategies through current trends and technology for non-profits in 2013. It discusses the importance of improving data utilization, donor engagement, and the integration of innovative technologies to enhance fundraising outcomes. Key strategies include targeting donors effectively, maintaining relevance in communications, and utilizing cross-channel approaches to cultivate donor relationships.
Connect engage and Convert Donors
- 1. Connect, Engage and Convert Presented by Kate Dunn, Digital Innovations Group (DIG)
- 2. Sponsors
- 3. Questions are Welcome Your Participation Open and hide your control panel Join audio: • Choose ―Mic & Speakers‖ to use VoIP • Choose ―Telephone‖ and dial using the information provided Submit questions and comments via the Questions panel Note: Today’s presentation is being recorded and will be provided within 48 hours.
- 4. Agenda • Current state • Opportunities • Best Practices • Case Studies • Next Steps
- 5. Objective • Discuss current trends in fundraising, share best practices and insight to help you improve results from your 2013 initiatives.
- 6. 2013 Trends • Overall giving in 2012 remained flat. • Donors are beginning to consolidate giving to their “vital few”, those they consider sustainable. • Need for services is increasing while government support continues to decline increasing demands on Non-profits.
- 7. Technology 2013 • More Non-profits will start to use Mobile, cloud computing, Data Analysis and CRM in 2013. • New technologies are helping non-profits move toward: – a comprehensive understanding of all the ways supporters interact with their organizations – an ability to tailor branded experiences for each and every supporter.
- 8. Technology • Online giving is growing • Online-acquired donors have much higher cumulative value over the long term than traditional, mail-acquired donors. • As long as - the online donor has been converted to offline giving!
- 9. Retention Source: 2011 donorCentrics™ Internet and Multichannel Giving Benchmarking ReportBlackbaud
- 10. Merger & Alliances • Human service organizations - which account for nearly one-third of public charities – are hurting the most. • Many are undergoing a painful restructuring, including mergers, acquisitions, collaborations, cutba cks and closings. • 17% of nonprofit respondents noted an interest in merger information. • 42% reported already participating in cross agency collaboration initiatives.
- 11. Options • Keep same tactics, hope for things to get better in the future • Reduce spending to keep costs inline with declining revenues and hope that things get better in the future • Take action to increase results by learning from others and incorporating new ideas into your plan.
- 12. Three Key Strategies • Improved data • Improved relevancy – Content – Timing – Channels • Converting e-donors to multi-channel donors.
- 13. Percent of Income Given Source: Chronicle of Philantropy August 20, 2012 Exploring philanthropy in your state, city, and neighborhood
- 14. Connect - Key Strategy #1 • Use research and analytics to more effectively target both donors and non donors. – Improved segmentation based on: • Demographic and life state • Behavioral – gifts, events, engagement • Attitudinal – interests, priorities
- 15. High Performance Organizations • Over 65% of HPOs utilize a combination of proactive prospecting techniques including wealth screening, peer screening and predictive modeling. • 23% of organizations have at least some staff devoted to analytics and predictive modeling.
- 16. Best Practice • American Bible Society – Compared their donor list to publicly available data on those giving to non profits. – Indentified 10% of donors with ability to give more. – Appended additional demographic information. – Built a cloning model to target more of their donors. – Developed stretch “asks” to grow gift size. – Integrated pre-campaign voice messages, simultaneous emails, personalized contact from development officers.
- 17. Best Practice Results In all four segments, the stretch offer had a higher average gift, higher response rate and brought in twice as much as the control. General Upper Rising Rising Prospect Donor Donor Donor Improvement 134% 156% 104% 144% vs. control Rising donors — $1,000 to $9,999 cumulatively in one of the last three years. Rising donor prospects — $500 to $999 cumulatively in one of the last three years Upper donors —recent one-time gift of $100 to $499. General donors — current donor but last gift less than $100.
- 18. What opportunity exists for your institution to grow gift size with a similar strategy?
- 19. Engagement - Key Strategy #2 • Give donors relevance, speed and brevity. – Just like they get from Amazon and Netflix – People want to give to organizations that are personally relevant to them. – Donors don’t want to wait until next year to learn how their gift helped.
- 20. Relevance Counts Over 3x higher Relevant Just Personalized Static DM Relevant DM response averages 6.5% averages less than 2%
- 21. Conversations Not Campaigns • Track engagement – Overt • Information supplied • Attendance • Involvement • Gifts • Requests for information – Covert • Links clicked • Frequency of clicks • Social media activity
- 22. Money is Important, but… • Devote time to non donors who are interacting • Young donors who make their first gift • Sybunt triggers • Lybunt engagement levels
- 23. A New Definition • Email - Opening, clicking, interacting • Social Media – connecting, posting, promoting • Direct Mail – responding, seeking information • Volunteering
- 24. New Donors • Steward your first time donors like you would a major gift prospect.
- 25. Small Budget – Big Results Push The Rock Annual Fund • Small Christian sports ministry • Annual Fund September 2011 – August 2012 • Solicitation base approximately 8,000 • Program budget less than $30,000
- 26. Client Situation • Stagnant participation rate • Declining revenue • Inability to automate solicitations and create versioned appeals for donor database
- 27. Client Situation • Limited electronic communication • Inability to capture donor/prospective donor information • With a variety of reasons to donate to the organization, there was little/no way to capture that data
- 28. Program Objectives • Increase participation from those connected with Push The Rock • Increase gift amounts from past donors • Develop and execute fully branded cross-channel campaign focusing on Push The Rock’s mission
- 29. Program Objectives • Streamline overall fundraising process to improve efficiencies and focus human capital on larger gifts • Collect relevant information from all constituents solicited that Push The Rock can utilize throughout 2011 and in subsequent years
- 30. Campaign Components Four Solicitation Phases • 1 variable direct mail piece/phase • 2 Corresponding e-mails/phase • Personalized landing pages General Pieces • 2 Holiday e-mails
- 31. Donor Data Donate/Pledge Does Not Donate Direct Mail Piece Business Reply Envelope Personalized Landing Page No Action Phase 1 E-mail #2 Donate/Pledge Donate/Pledge Does Not Donate Complete Survey Does Not Complete Survey Phase 1 E-mail #2 Donate/Pledge Does Not Donate Donate/Pledge
- 32. Campaign Components Variable Direct Mail Variable text based on donor status Variable text based on affiliation Personalized landing page
- 33. Campaign Components Variable Direct Mail Donor contact information Variable ask amount
- 34. Campaign Components Variable E-mail Donor name Variable copy Personal landing page
- 35. Campaign Components Personalized Landing Page Donor name Variable copy Personalized question
- 36. Campaign Results • 26% increase in dollars raised over 2011 • 27% increase in donors over 2011 • ROI of 362% • Cost to raise $1: $.21
- 37. Steps to Building a Profitable Solution • Analyze past giving trends – Looked at past donors to determine: • When they typically gave • How often they gave • How much they gave • How they give (i.e. – BRC, online) – Didn’t send every solicitation to every donor – especially lifetime non-donors
- 38. Steps to Building a Profitable Solution • Analyze general giving trends – Philanthropic research has shown that organizations will receive the highest number of gifts at two points throughout the year: • Approximately 33% of gifts will be received during the month of December • 2nd largest time for gifts is at the end of the organization’s fiscal year – Solicited entire population during these two times
- 39. Steps to Building a Profitable Solution • Reviewed past solicitation pieces – Repurposed as much as we could based on the following information: • When the piece sent • Who they were sent to • Response rate • Segments that responded • Goal – Identify elements of their branding – Recognize what worked
- 40. Steps to Building a Profitable Solution • Streamlined fundraising process – Eliminated unnecessary outbound pieces by integrating multiple messages • Events • Donor programs – Necessary steps: • Had them outline their entire fiscal year – E-mail communication – Solicitations – Phone-a-thon programs – Events
- 41. Steps to Building a Profitable Solution • Integrated web technology – Utilized video elements to get attention of donors in different format – Integrate social media to remain top of mind to donors – Focused on e-mails to consistently communicate with donors and prospective donors – Determined which donors and prospects are more likely to respond online and used online solicitations/appeals
- 42. Monitoring Engagement Levels • Can tell you – Who should be giving – What’s not working – Where to focus when crunch time arrives – When to use certain channels – What to say to convert them
- 43. Convert - Key Strategy #3 • Cultivate donor engagement with innovative ways to grow the relationship with a cross channel approach.
- 44. • Gift Catalog - print and fulfillment system – Program Objectives • Save the Children US (STC) produces a print and digital Holiday Gift Catalog which launches every October and continues throughout the year. Consumers can make a gift donation on behalf of another person. Each designated recipient of a donation given in their name is sent a personalized acknowledgement Gift Card.
- 45. • STC was looking for a new custom fulfillment system that would: – streamline the process and allow them to receive detailed reporting from each processing cycle – Reduce the turnaround time for order print/fulfillment from the time a file is received to processing and inserting into the USPS mail stream to 2 business days. – Provide inventory reporting and inquiry – In addition the system should provide the status of submitted orders.
- 46. • Results – System implemented smoothly and on time. – Processed over 21,000 orders during holiday season. – Fixed the previous process and reduced donor confusion. – System significantly reduced all usual manual efforts of STC near the holidays. – Donors made multiple donations due to flexibility and ease of use. – Harty is now viewed as a partner. – In process of expanding the system.
- 50. Dear John, I’d like to wish you the very best this holiday season and give you a gift that will make a world of difference to hurting children and their families living in poverty. After looking through the Save the Children holiday catalog, I’ve made a donation to Save the Children in your name. From me to you... to the world’s poorest families... may this holiday season be filled with joy and abundance. Happy Holidays! Always, Jane
- 51. Dear Reva & Jeff, I’d like to wish you the very best this holiday season and give you a gift that will make a world of difference to hurting children and their families living in poverty. After looking through the Save the Children holiday catalog, I’ve made a donation to Save the Children in your name. From me to you... to the world’s poorest families... may this holiday season be filled with joy and abundance. Happy Chanukah! Love, Debbie
- 53. WMFCU • PODi Digital Print Case Study – Program Objectives • The number of car loans provided by WMFCU was running below the rate needed to meet its objective for the year. WMFCU needed a program to increase the number of car loans to get back on track. After witnessing the success of the car loan campaign, it was decided to expand the program to market home equity loans and online banking.
- 54. First Steps • Determine reader preferences – Consider adding personalized or customized landing page as a response mechanism to capture reader preferences – Evaluate existing publications for digital conversion – Audit existing audio/video assets for inclusion – Brainstorm opportunities to repurpose content in meaningful ways – Brainstorm ways to add links to existing publications to drive strategy
- 55. Following the Webinar • You will be contacted by the company that invited you. • The slides will be made available for all attendees.
- 56. Thank you!
Editor's Notes
- #2: I’d like to welcome you to the Connect, Engage and Convert Webinar. Today’s webinar has been designed to provide fundraisingprofessionals with insight andbest practices that can be incorporated into existing strategies. and help increase both participation and revenue. My name is Kate Dunn and I am President of the Digital Innovations Group and I will be the speaker today. I have directly helped many non profit organization modify their strategies to deliver improved results and I have served as a consultant to many of the companies sponsoring today’s webinar. In addition to experience in the higher education arena, I have worked extensively with banks and credit unions, manufacturing and technology to develop effective lead generation strategies and successfully modified those strategies to work in the fundraising arena. We hope to share some insight and get you thinking today about ways that you can be more successful recruiting new donors, growing gift sizes and increasing overall participation for your organizations.
- #3: Our webinar today is sponsored by the following companies:Harty Integrated Solutions in New Haven ConnecticutLithExcel Marketing in Albuquerque, NMFoley Direct fro Yorktown, NYFusion Corporate Services from the Chicago areaBlue Tape from San Antonio TXHolmes from Springfield OhioAnd the Digital Innovations Group from Richmond VA.These companies who all work with non profit organizationsin their respective areas of the country have banded together to share best practices and develop innovative strategies to help their clients grow participation and revenues. We have some guest speakers today as well.First, Bill Nims, the from Arga Marketing a division of Harty Press and also Kim Gross, Vice President from Pacesetter Enterprises in Allentown Pennsylvania. Lastly Heather Liefheit from holmes in Springfield Ohio who herself has developed innovative strategies to help non profits in her area like the YWCA, Project Woman The Springfield Foundation will be fielding your questions today and making sure that our speakers can answer them.
- #4: Everybody’s microphones are muted today to minimize any noise for our speakers but you can still ask your questions. To your right on theGotoMeeting dashboard down at the bottom you should see a place to type your questions. Heather will monitor those during the webinar and make sure our speakers can answer them during their presentations. Ok, let’s get started.
- #7: According to the Blackbaud Index, overall giving remainded flat in 2012 and not likely to dramatically increase in 2013. For the past 40 years, fundraising in the United States has remained fairly static at around 2 percent of GDP; and that’s not expected to change over the next few years. There will be a what’s now being referred to as a a “flight to quality” with donors choosing to support fewer organizations in 2013. In addition the need for services will continue to increase as a result of the continued sluggish economy and also gov’t cutback that are likely to affect non profit organizations. To be successful, nonprofits will need to focus their effots on donor retention while also investing in cost-effective donor acquisition.
- #8: As far as technology is concerned 2013 is going to be a big year. More non profits will finally begin to incorporate Mobile strategies, more elaborate data analysis and improvements in CRM capabilities this year. These moves are designed to help organizations develop a comprehensive understanding of how donors interact with their organizations across all channels. This will give them the ability to improve the experience of both donors and prospective donors have when interacting with their organizations.
- #9: On-line giving continues to grow especially with younger donors. But it’s important to note that 32% of online-acquired donors switch from online giving to offline sources during year two. Eventually, just under half of all online-acquired donors convert entirely to offline, primarily direct mail giving.Robust direct mail programs drive up the retention and long-term value of new donors acquired online.
- #10: The transition from online to offline donor is also critical to retention as well where online donors converted to offline have the higher retention rates that either offline donors acquired through direct mail and online donors.
- #12: We certainly hope that you are here today because you are focused on number 3!
- #13: So with that in mind let’s look at some best practices that you may be able to incorporate into your 2013 strategy in three key areas:Improving your data so you increase the return you are getting from both your acquisition and loyalty efforts. Improve the relevancy of you communication so that you gain a comprehensive understanding of all the ways supporters interact with your organizations and can deliver those tailored and branded experiences for each one of your supporters craves.Using the key elements of content, timing and channels to convert new online donors coming into your organization into more valuable off line donors.
- #16: Over 65% of high performance organization in the non profit area utilize a combination of proactive prospecting techniques including wealth screening, peer screening and predictive modeling. Wealth screening is used by 93% of all respondents, with peer screening and predictive modeling used by just over 50% of organizations. By utilizing a combination of techniques, organizations can build comprehensive strategies that focus their fundraising efforts efficiently.Studies have shown that when these techniques are used, 17% of wealth screened constituents can be typically identified as new prospects. Nineteen percent eventually interact with fund raising professionals and 10% of those contacts eventually result in a closed major gift. This results in an incredible calculated return on investment (ROI) of over 40,000% for most screening sizes.These data strategies are growingin popularity. 38% of organization in a recent survey indicated that there were doing predictive modeling either in-house or in conjunction with a consultant. Twenty-three percent of respondents have some staff devoted to analytics and predictive modeling. They are using these models to predict a broad range of behaviors and then targeting these groups with individualized communication strategies to provide them information, solicit gifts and nurture long term relationships. These strategies are providing the benefits of decreasing fundraising costs and increasing revenues.
- #17: A great many more our outsourcing at least some of these responsibilities to help them put their focus on the most likely new donors.In a best practice from the American Bible Society – they compared their donor base to publicly available data for those making gifts to charitable organizations. They were able to match about 10% of their database. They appended other information to their file and developed a cloning model to uncover those with a likelihood to give more.They focused their efforts on four main groupsRising donors who had given between $1,000 and $9,999 cumulatively in the last three yearsRising donor prospects — $500 to $999 cumulatively in one of the last three yearsUpper donors — one-time gift of $100 to $499 recentlyGeneral donors — current donor but last gift less than $100They added to this logic some stretchasks based on donors ability to give in an effort to grow grow gift sizes.
- #18: Their net revenue for those in this group compared to their control group grew 134% for their general donors – Under $100 previous gifts.Net Revenue from those who had previously given a one time gift between $100 and $499 grew by 156%.Net revenue for rising donors netted 104% increased and for rising prospects the test strategy developed from their data analysis helped to increase revenues 144% in the rising prospect group.
- #20: Americans are exposed to over 5,000 marketing messages per day.They notice about 52 during the day and will actually remember only 4.Cutting through the clutter is key for any organization trying to communicate something important in today’s world.
- #23: Track engagement levels by media usedDirect MailEmailMobilePhoneDevelop engagement indices by segmentDonorsMajor donorsPlanned giving prospectsYoung alumniNon donors
- #37: Wanted to showcase this non-profit b/c they are a smaller organization, and it’s important to show that organizations of ALL sizes can benefit from this process