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Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
Alumni Motivation Under the Microscrope
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Alumni Motivation Under the Microscrope

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  • Transcript

    • 1. Alumni MotivationUnder the Microscope Presented by Ann Oleson, Chief Visionary Officer Converge Consulting
    • 2. Someone sleeping in class
    • 3. Why Do We Do What We Do? Motivation 1. The reason or reasons one has for acting or behaving in a particular way. 2. The general desire or willingness of someone to do something.
    • 4. Maslow’s Hierarchy of Needs
    • 5. What Motivates Your Alumni?
    • 6. Our Time Together• The higher education fundraising marketplace• Why we completed a lifestyle segmentation study• The top findings from the study• Application of findings to your alumni/donor communication strategies
    • 7. Changing Landscape of Fundraising
    • 8. Changes in Fundraising• Rise of the non-profits• Non-funded written marketing plans• Younger donors• Female donors• Technology
    • 9. The Rise of Non-Profits Over __________ non-profits competing for donated dollarsThe 2009 report presented by the National Center for Charitable Statistics, number of 501 c 3 organizations risen 31% from 1999-2009
    • 10. No Written Communications PlansNonprofit Marketing Guide indicates that _______% ofthose interviewed had no formally approved marketing orcommunications plan
    • 11. Changing Face of Wealth: Younger DonorsYounger donors are becoming moresignificant as they take on leadershiproles and assume positions of greaterinfluence in their workplace andcommunitiesThe Center on Philanthropy at IndianaUniversity found that those who arebetween the ages of 18-30 are:More __________ing savvy and morecynical than predecessorsLess trustingMore service-drivenMore interested in playing active andconsequential roles in advocacy ofcauses that they believe in
    • 12. 2010 study by Engagement Strategies Group Many among this generation of donors considers the cost of ______________ as well as the perceived overall wealth of the college or university that they attended to be perfectly valid reasons for lack of supportChanging Face of Wealth: Younger Donors
    • 13. Changing Face of Wealth: Younger Donors 2009 article “Donors of the Future” by Growth Design Holding institutions accountable for their decision-making The timeliness of the decisions they make Partnering and engagement opportunities they offer: expected with organizations they support
    • 14. Earning power of women and ability to give increases Significant and increasing impact of women Women outnumber men on college campuses/across the nation 60% of all master’s degrees awarded in the 2008-2009 academic year went to women 30% increase of women with college degre since the late 1970’sChanging Face of Wealth: Women 2008 Center for Educational Stati
    • 15. Changing Face of Wealth: Women Current IRS “Personal Wealth Tables” __________% of nation’s top wealth holders (those with assets exceeding 1.5 million) are women Women have moved from “influencer” role to: • Significant force • Established professionals who are financially independent and who offer support and resources ON THEIR OWN TERMS. • Viewing giving as Millennials: focused on supporting issues that impact the world • Inclined to focus efforts and resources on helping other • Disposed to giving in relational ways through personal involvement in activities
    • 16. Influence of Technology Most critical factor that successful fundraisers will need tomorrow ___________% of U.S. population now connected via the internet Digital media is critical: few fundraisers have embraced social media, mobile applications, and other online spaces as communication vehicles Use to: Inform thinking Shape fundraising strategies Measure success of online initiatives
    • 17. Photo of all alums from one pager Who are your alumni?What do you know about them?
    • 18. Meet Jennifer• 35 years old• Vice-President of Sales• Student Government Officer• Honors Student: 3.9 GPA• Full pay student• Not engaged with her college
    • 19. Meet Jennifer• Future leader of her company• Married to an attorney• HHI Volunteer of the year• Gives 10% of income to charity• Engaged with 3 networking groups• Serves on a number of community boards• Has great feelings towards her college but not engaged• Will inherit significant family wealth Gets 50 pieces of mail every week from non-profits• No home phone number• Has never been asked to engage
    • 20. Meet JenniferJust because Jennifer isable to give does notmean she is motivatedto give.How do we understandwho Jennifer is, whatshe cares about, andhow to reach her?
    • 21. Research Objectives• Develop a motivationally-based segmentation model• Uncover the motivations that drive the different types of relationships• Prioritize which alumni segments provide the best opportunities for colleges• Provide recommendations regarding how these different alumni segments should be managed to optimize their individual likelihood of donating• Develop a predictive model and applied tool to classify alumni into segments based on a minimum number of questions
    • 22. A MotivationalSegmentation ofCollege AlumniSegmentation Method and Analysis
    • 23. “Nowhere in the field of mass communication research has the concept of `lifestyle been so prominently and fruitfully used as in the field of marketing communication, where it has been shown that lifestyles influence both consumption patterns and the processing of different forms of marketing communication. Therefore, the lifestyle concept has become the core of a special kind of segmentation research called `psychographics. This psychographic or lifestyle research usually takes as its point of departure extensive and ad hoc AIO (activities, interests and opinions) surveys, which then lead to often very colourful and useful lifestyle typologies using the technique of cluster analysis.”From: Lifestyle Segmentation: From Attitudes, Interests and Opinions, to Values, Aesthetic Styles, Life Visions and Media PreferencesPatrick Vyncke, Ghent University, Department of Communication Sciences, Universiteitstraat 8, 9000 Gent, Belgium, Lifestyle Segmentation Research
    • 24. Questionnaire DevelopmentSecondary ResearchOver 250 research articles concerning college donating and charitable givingwere reviewed to identify current issues, trends, and alumni motivations. – The following variables were identified in the literature and provided guidance for the questionnaire design. Demographics College Experience College Relationship Charitable Giving • Age • Type of college • Personal identification • Personal values • College prestige • Pride • Gender • Perceived need • Religious values • Professors • Income • Campus/facilities • Benefits from giving • Political orientation • Marital status • Activities • Uniqueness of college • Tax benefits • Employment • Grades • Obligation or duty • Networking • Education level • Time to graduation • Professional benefits • Life satisfaction • Tuition • Current involvement • Ethnicity • Trust • Perceived need • Scholarships/grants • Religious affiliation • Family legacy • Prioritization • Academic major • Recognition • Residence • Gratitude • Placement • Student loan balance • Social experience
    • 25. Sample CharacteristicsWho answered the questionnaire? • 2,050 college alumni participated in a web-based survey during July, 2011. • Participation criteria were established to correspond with known college population estimates. – Female: 56% – Advanced Degrees: 31% – Institutional Type: 65% Public – Married: 59% – Employment Status: 25% Retired – Ethnicity: 87% White/Caucasian – Average Household Income: $74,285 – Religious Orientation: 67% Christian • Sample estimates across numerous variables of interest in this research are consistent with statistics found in the US Census or other published surveys. – These findings provide us with confidence that inferences drawn in this sample are valid for the overall college alumni population.
    • 26. Segmentation Alternatives A Priori SegmentationA priori segments are usually based on college major or demographicvariables. However, such descriptive variables are known for being poorpredictors of behavior. Do they donate Does he donate because they because he is a are married? man? Does she donate because she is over 65? Does he donate because he majored in History?
    • 27. Segmentation AlternativesTailor Strategies to What Motivates Alumni Colleges using post hoc segmentation develop strategies specific to the motivations of their alumni segments. Fundraising programs become more successful because they target what motivates different groups of alumni. College Different Fundraising Messages Gratitude Program Hypothetical We’ll put your name on a brick! Recognition Alumni Segments Privileges
    • 28. • Insert slide from page 3 of white paper segmentation measures
    • 29. • Insert slide from page 4 of white paper graph
    • 30. Persona DevelopmentThe national study identified three segments ofalumni respondents that vary significantly interms of their attitudes and motivationsassociated with giving to their alma maters:• Champions• Friends• Acquaintances
    • 31. Pull image from page 5 of the white paper
    • 32. Major Differences Among Segments • Average income between three persona groups varies by less than $8,000 • Champions are the only segment with a male majority • Friends are the most philanthropic segment, overall • Champions give in the highest amounts among those who donate
    • 33. Major Differences Among Segments • Champions have given the most in the last five years • 49% of Champions have never given • 56% of Friends have never given • 86% of Acquaintances have never given
    • 34. Motivation to Give• Champions are motivated by giving opportunities that allow them to have their names visibly associated with their donations• Friends would rather receive a personal “thank you” note from a dean or faculty member and want to make a significant impact on the world• Acquaintances are not likely to be motivated to give or engage
    • 35. Summary of FindingsImplications – Colleges are better at managing relationships with ___________ than they are with _____________. – Colleges ineffectively manage the _______________ segment. – Colleges spend as much money contacting Acquaintances as they do either Champions or Friends. This is a waste of scarce resources that would be better spent enhancing programs targeting other segments.
    • 36. Summary of FindingsIf Institutions can cultivaterelationships with Champions andFriends, they could then realize: 1. Additional prospects for major gift solicitations/planned giving 2. Additional opportunities to increase annual fund participation rates 3. Additional understanding of Alumni Association and how/why alums engageIdentifying Acquaintances canhelp institutions reallocateresources more effectivelyOverall impact = Smart Marketing
    • 37. A First Glance SEGMENT PROFILES
    • 38. Segment ProfilesAverage Donation Size Among DonorsThe average donation from Champions is over 75% greater than the averagedonation from Friends and over eight times larger than the average donationfrom Acquaintances. Average Annual College Donations 2006 – 2010 (among alumni who donated) $400 $354 $350 $300 $250 Mean $197 $200 $150 $100 $45 $50 $- Champions Friends Acquaintances Sample Size = 708 Note: Alumni who only donated in 2011 are excluded in order to provide complete years.
    • 39. Segment Profiles Total Charitable GivingFriends donate substantially more dollars to charities than Champions do.College donations are part of Friends’ giving program rather than the focus.Earning a larger share of Friends charitable giving budget could provideconsiderable rewards for colleges. Q56. Please estimate the total dollar amount of your donations to charitable organizations during the past year. $3,000 $2,750 $2,500 $2,000 $1,603 Mean $1,500 $1,300 $1,000 $500 $- Champions Friends Acquaintances Sample Size = 2050
    • 40. Segment Profiles A Relationship Goes Both WaysChampions are more likely to have areciprocating relationship with their college where Reciprocatingthey both give and receive. Relationship  Donating to my college is more important to me than donating to any 3.5 other charity. 3.1  I feel like I can influence 3.0 policy at my college.  I enjoy the social opportunities donating to 2.5 my college provides.Mean Response 2.0  Financially supporting my 2.0 college is a priority to me.  I have maintained 1.5 1.4 relationships with faculty from my college.  I like having others know I 1.0 contribute to my college.  My college is one of my 0.5 favorite charities to support. 0.0 Champions Friends Acquaintances Sample Size = 2050
    • 41. Segment Profiles The Benefits of Donating Champions believe that donating to charities can advance their careers. Professional Benefits • My involvement in charitable organizations 3.0 may someday lead to 3.0 advancement in my career. 2.5 • People I met through charitable giving have turned out to be helpful 2.0 2.0 in my career.Mean Response 1.7 • Making new business contacts is a strong 1.5 benefit from charitable giving. • My employer expects me 1.0 to donate time and money to charities. • Other people will think 0.5 more highly of me if I donate my time and 0.0 money to charities. Champions Friends Acquaintances Sample Size = 2050
    • 42. Segment Profiles Life is GoodFriends are very satisfied with their lives.Research finds that happy people are more Life Satisfactionconfident, outwardly focused, and willing to help • I am very satisfied withothers. my life. • My life has turned out 5.0 worse than I expected. 4.5 (Reversed) 4.5 4.0 3.5 3.2 3.2Mean Response 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Champions Friends Acquaintances Sample Size = 2050
    • 43. How can you classify your alumni?Discriminant analysis was performed to find a small subset ofquestions that could accurately predict segment membership(predicts with 80% accuracy) Alumni Donor Five Question Classification Tool Classification Questions Please rate your overall level of agreement with each of the following statements Response Agree completely Donating to my college is more important to me than donating to any other charity. Disagree completely I like having others know I contribute to my college. Agree completely I donate because charitable donations make the world a better place. Disagree completely My involvement in charitable organizations may someday lead to advancement in my career. Agree completely I am very satisfied with my life. Segment Friends
    • 44. Targeting and MessagingDISCUSSION
    • 45. Why Target? Better use of resources Better use of time Better ROI
    • 46. Champions are the most important segment for collegesTargeting Priorities to target and manage. – These alumni donate the most frequently and make the largest average donations. They are the foundation for alumni giving programs. • Although we did not focus on major gifts, financially able Champions have the passion to make major donations. – Champions are the low hanging fruit for fundraising programs. Colleges who already have proactive alumni relations programs are likely enjoying at least some success with these alumni through self-selection.
    • 47. Friends are the second most important target for colleges.Targeting Priorities – Like Champions, Friends donate frequently. But their average donation is much smaller. Friends provide outstanding opportunities for revenue growth. – Friends donate much more to charities than any other segment, but only devote7% of their charitable giving budget to their college . – Even small increases in the proportion of Friends charitable budget being allocated to their alma mater would provide substantial rewards. Friends are already in the habit of giving to their college and other charities. – Colleges need to do a better job persuading Friends that their college deserves more of their support relative to other charities.
    • 48. Messaging Champions – Champions agree with Friends and Acquaintances that messages based on tax benefits, giving back to the college, and solving an important human problem are the most compelling. – In contrast to other segments, Champions also find messages based on donor recognition, special donor benefits, improvements to facilities, and personal satisfaction to be nearly as compelling. – The key is that Champions have complex relationships with the college that are not dependent upon any one benefit. Colleges should not ignore benefits such as recognition and donor privileges. These appeals provide opportunities to strengthen relationships with Champions. – Removing these benefits could endanger a college’s relationship with Champions since these alumni already enjoy and expect to receive these benefits.
    • 49. MessagingFriends – The most compelling appeal for Friends is that the college needs help to solve an important human problem or create opportunities for current students. – Friends do not seek more contact with the college or value recognition for their gifts. – Appeals to Friends that focus on external reinforcement for giving are likely fail. Similarly, unfocused messages that include non valued benefits along with the key core message of helping people are also more likely to fail. Finally, Friends are not motivated to increase their college donations to support abstract academic research. – Fundraising messages directed toward Friends should prominently feature and focus on the college’s accomplishments that improve the world in general and help people.
    • 50. MessagingAcquaintances – No comments are provided since Acquaintances are unlikely to respond to fundraising requests regardless of the messages being used.
    • 51. Application
    • 52. Examples from AudienceHow are you using information aboutyour alumni to segment thecommunications that they receive?
    • 53. How Can a School Utilize This Research?
    • 54. How Can a School Utilize This Research?Segment alumni who are not alumni associationmembers to: – Increase dues paying alumni association membership – Increase engagement
    • 55. How Can a School Utilize This Research?Survey to classify alumni asChampions, Friends, Acquaintances and toidentify communication channel preferences aswell as philanthropic interests in order to:• Increase annual fund participation• Find more major gift prospects pre-campaign• Determine who should go and visit• Create a customized messaging strategy
    • 56. How Can a School Utilize This Research?Classifying alumni, identifying their communicationchannel preferences and philanthropicinterests, and enabling them to provideunstructured feedback enables schools to:Create segmented communications that: – Are delivered via the preferred channels of different segments – Contain messages that resonate for different segments
    • 57. How Have Schools Already Utilized This Research?Several colleges and universities across the countryhave:• Classified their alumni as Champions, Friends, and Acquaintances• Identified the communication channel preferences of their Champions, Friends, and Acquaintances• Identified the philanthropic interests of their Champions, Friends, and Acquaintances• Collected Open-Ended responses from all respondents
    • 58. Findings from the FieldPercentage of Champions, Friends, and Acquaintances at threeuniversities across the United States as well as from the national study National Study College 1 College 2 College 3Champions 31% 31% 49% 32%Friends 36% 41% 41% 60%Acquaintances 33% 28% 10% 8%
    • 59. Data Analysis School Study Respondent Demographics Champions Friends Acquaintances 14,806 27,508 3,438Average Age 44 51 49Male 54% 54% 57%LSA 40% 39% 39%Members of Alumni 42% 35% 27%AssociationParticipations in the 3.4 3.1 2.9Past YearLive in State 38% 40% 41%Have Ever Donated 63% 69% 55%Donated in 2011 29% 28% 16%
    • 60. Noteworthy Open-Ended Responses from Champions Comments Positive Negative Sentiment SentimentSometime I dont hear about all the events so post on Facebook and email moreoften! I really enjoyed the Sugar Bowl tour, the flight was great, loved the footballbuses, all the events were amazing including the paddleboat, tour and best of all the 5 -1fabulous tailgate party and big win at the Sugar Bowl. I plan on donating more andbeing more active after meeting all of you. Thank you so much!Attending XXX had a major influence on my life. I absolutely loved every minute of itand would encourage anyone to go there. 5 -1I loved my time at XXX and am happy to be able to contribute to its successful future. 4 -5I dont need all the prodding I get from various parts of the University with respectto contributions and I absolutely hate phone calls. Thank youI work for a non-profit organization in Cambodia and fundraising is also part of myresponsibility. Ive found that knowing a little bit about my donors and customizingthe message is important to be effective due to the overwhelming amount ofrequests people receive. That would be difficult with a donor/alumni base as large 4 -3as XXXs but information gleaned from social media and online surveys could behelpful. Good luck! Christina
    • 61. Noteworthy Open-Ended Responses from Friends Comments Positive Negative Sentiment SentimentThe robo-calls I was getting every single night at around the same time, from a # that I could notreach a human being at when I tried to call back, were VERY unwelcome!! I would get a call andwould see the "734" area code and those four zeros at the end of the # and I knew it was yetanother fundraising call from a xx undergrad in a college/program completely different than the oneI was in when a student at xx...calling to ask for money under the guise of being interested in meand my experience at xx, life post-xx, etc. I had already had a long conversation with such a studentand explained that I didnt have the funds to donate, yet she got me to say I might be able to pledge$25 in the future (then kept trying to "up-sell" it to $50...sounded like she was reading a script shehad been trained to read, on how to try to get more money than the alumn was willing to give). Atthat point I almost just hung up on her, but politely told her to just send me info. in the mail andleave it at that. I got the info. in the mail and proceeded NOT to donate, as I told her would likely bethe case (poor finances but more than that, being so disgusted by the nature of the call I received).Then, I started receiving the daily "follow up calls" (seriously, I had a missed call from that "0000"number on my cell phone just about every day until finally I answered the call and told the 4 -5student caller to remove my name completely from the list, which he said he would do). Bottomline: for alumni, this is a VERY unprofessional and ineffective way to promote a good feelingabout our alma mater, xxx--not to mention raise funds! It leaves a very bad taste in my mouth,and I bet many other alumni feel the same. I loved my school (Natural Resources andEnvironment, SNRE) and I loved xxx--all four years of my time there. If I had ample funds (which Ido not and am not likely to have anytime soon), Id consider donating money directly to SNRE--butthere is no way in hell Id donate *anything, ever* via the crazy telefund system xx is currently using.I certainly understand the need to raise funds--but that is NOT the way to do it!!Thanks for allowing me the chance to send feedback on this.
    • 62. Don’t Miss Out on Valuable OpportunitiesFrom a Friend:“In 30 years since my graduation from college(Under Grad and MBA) and being a seniorexecutive at a company in the Area, I haveNEVER been contacted to help support thecollege and their graduates get placed at XXXXXXX. I find this insane.”
    • 63. Messaging is EverythingFrom an Acquaintance:“I do not appreciate the fact that you carenothing about me and my life except that as agraduate I could be seen as a funding source.The only time I hear from you is when you wantmoney that I dont have. You could disappearand I could care less.”
    • 64. Friend• From a Friend: I am a Head of School for an independent school in - --------, --, and therefore have quite a bit of experience in fundraising, just having raised $21 million for our capital campaign. I am retiring in June 2012 and will be returning to -------, where I have a home close to. After taking some time off I intend to get more involved with the institutions I attended in the area. You may contact me after June 2012.
    • 65. Recommendations• Take Champions and Friends who are not giving, but who have expressed positive sentiment and pilot test campaigns.• Visit/call any Champion or Friend who had wanted to give in the past but who was turned away because his/her specific cause couldn’t be supported.• Identify Champions/Friends who support education but not your college and develop messages that resonates.• Develop a social media strategy to engage Champions.
    • 66. Recommendations• Develop messaging (both verbally and visually) that speaks to what different segments care about.• Test offers with Champions and Friends that are more specific to the causes and issues that are close to their hearts.• Conduct a communications audit to see how you can use the web to integrate, coordinate, and evaluate your communications efforts.• Continue to gather updated contact information at all points (e-mails).• Continue to conduct qualitative and quantitative research with alumni. They want to be heard!
    • 67. To Continue the Discussion@AnnCOlesonWhite PaperWebinarsann@convergeconsulting.org
    • 68. Questions?

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