E-Renewal Strategies for enhancing member loyalty using the ...

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  • Carnegie had no online membership development function: there was no online member center, or online transactions for members to purchase, upgrade, or renew. Their renewal rates, especially for first year members, were much lower than where they wanted to be, and they had an active goal of improving retention.
  • Carnegie started off with a systematic e-newsletter strategy and a plan to provide value to online constituents in frequent newsletters as well as emails about upcoming events of interest, and interaction with members through surveys and polls. They strongly promoted their e-newsletter on their site, as well as developed a system to collect emails and opt-ins for the newsletter on site at their museums. This program was extremely successful within one year – it drew more people to visit the museums, and to tell their friends about events and exhibits through forwarded emails. They truly built online relationships with members, and a poll result proved that early one, where 78% felt more connected. The subscriber base of their e-newsletter continues to grow at a rapid rate.
  • Overall member retention increase significantly from 2002 to 2003, largely due to the online constituents bringing the average much higher.
  • Overall member retention increase significantly from 2002 to 2003, largely due to the online constituents bringing the average much higher.
  • Carnegie started off with a systematic e-newsletter strategy and a plan to provide value to online constituents in frequent newsletters as well as emails about upcoming events of interest, and interaction with members through surveys and polls. They strongly promoted their e-newsletter on their site, as well as developed a system to collect emails and opt-ins for the newsletter on site at their museums. This program was extremely successful within one year – it drew more people to visit the museums, and to tell their friends about events and exhibits through forwarded emails. They truly built online relationships with members, and a poll result proved that early one, where 78% felt more connected. The subscriber base of their e-newsletter continues to grow at a rapid rate.
  • Overall member retention increase significantly from 2002 to 2003, largely due to the online constituents bringing the average much higher.
  • The big idea of this conference it seems is the notion of My Time. Changing how we think of program delivery to match the expectations and technology available to our listeners. In this presentation I want to extend the idea of “My Time” to giving. Our web sites are making it possible to reach out to potential contributors in a way that matches their transaction habits. <fun stat> GABE IS GETTING STAT FOR $$ RAISED ONLINE BETWEEN 10PM-6AM FOR FY04.
  • In the ideal world, we’d ask each listener to contribute exactly and only when they are primed and prepared to give. Saves us a ton of money and on-air inventory and reduces annoyance of fundraising to zero. In fact the annoyance of fundraising is almost entirely a function of asking at the WRONG time. On the other hand, in our traditional direct response appeals, our chances of hitting someone at the RIGHT time is slim, especially when we are reducing the amount of on-air fundraising. Pledge Drive Direct Mail Renewals Telemarketing All other direct mail appeals and contacts (newsletters, thank you letters etc)
  • Revenue Trend: Fy04 Web revenue made up 21% of all membership revenue, and for the first time eclipsed on-air as a revenue source. $1.9 million in FY04
  • Acquired Donors By Source. We know people are doing more and more of their financial activity online, be it, suscriptions, bill pay, banking, or consumer activity. We should be as obvious as Amazon and Ebay.
  • Average gift In every category, online givers give more. New gifts 20% more, Renewal gifts 20% more, Ad gifts 44% more than offline giving.
  • This is where you see the difference between web and on-air. They may seem like the same kind of folks, but they aren’t. First year web donors renew better than on-air – in fact about half-way between on-air and mail acquired donors.
  • Non-web: $32,000 new, $31,000 renew Web: $32,000 new, $46,000 renew
  • Don’t Close your Direct Mail Shop. Don’t quit the on-air drives… use these tools to raise money AND send people to the web.
  • June 2004 – I’m A Member Campaign July/August – Catch A Wave With Dave October – Buy Back the Drive December – ‘Tis The Season – Special Programming February – BEZ ROX
  • 2 hits
  • Every Hit
  • Our mailed newsletter raises $200,000 a year with a small insert envelope. But one of the key elements is to get people to visit our website. That’s why we have an exclusive in each printed newsletter –a secret, easy link with a feature audio interview with someone on our staff. Driving our newsletter readers to the website.
  • E-Renewal Strategies for enhancing member loyalty using the ...

    1. 1. E-Renewal Strategies for enhancing member loyalty using the Internet iMa January 2005 Al Anderson, Director Membership Marketing, Minnesota Public Radio Wendy Turner, Director of on-air and online fundraising, Chicago Public Radio Vinay Bhagat, Founder & Chief Strategy Officer Convio
    2. 2. Key Messages <ul><li>The goal of integrated marketing is to create more value through the combination of channels than each channel creates alone </li></ul><ul><li>Impact should be quantified in terms of total impact on member value </li></ul>
    3. 3. Observations <ul><li>Significant growth in member retention rates, especially for first year members </li></ul><ul><li>Cost effective online renewal defrays some mailing costs </li></ul><ul><li>Online gifts are on average higher </li></ul><ul><li>Increased participation in “additional” gift contributions </li></ul><ul><li>Prospect list development and cultivation </li></ul>
    4. 4. <ul><li>Starting Point (2002) </li></ul><ul><li>First year member renewal rate: 40% </li></ul><ul><li>Multi-year member renewal rate: 73% </li></ul><ul><li>No e-newsletter, or way to develop online relationship with members </li></ul><ul><li>5,000 member email addresses </li></ul><ul><li>No capability for online prospecting for new members/ visitors </li></ul>Carnegie Museums Case Study
    5. 5. Strategy <ul><li>Created online Member Center and e-Newsletter program </li></ul><ul><ul><li>Online calendar of museum events </li></ul></ul><ul><ul><li>Exclusive benefits to members with email </li></ul></ul><ul><li>Engage members with surveys and other interactive opportunities </li></ul><ul><li>Promote email to museum visitors </li></ul>
    6. 6. Online Member Center
    7. 7. Member Center – Returning Member View
    8. 8. Segmented Email Newsletters
    9. 9. Results - Engagement <ul><li>Email newsletter subscribers say: </li></ul><ul><li>E-news keeps them informed: 82% </li></ul><ul><li>E-news makes them feel more connected: 78% </li></ul><ul><li>Intend to renew or upgrade: 89% </li></ul>
    10. 10. Results: Member Retention <ul><li>Overall first-year member renewals up from 40% in 2002 to 58% in 2003 </li></ul><ul><li>Overall Multi-year member renewals up from 73% in 2002 to 78% in 2003 </li></ul>
    11. 11. Results: Average Gift In addition, online membership transactions grew from $0 in 2002 to $121,000 in 2003 to $209,000 in 2004 Average online gift is 18% higher than offline
    12. 12. How E-marketing Affects Renewal Rates Case Study: Minnesota Public Radio
    13. 13. Goals For E-marketing <ul><li>Keep members up-to-date </li></ul><ul><li>Develop additional revenue sources </li></ul><ul><li>Reduce expenses </li></ul><ul><li>Deliver information to members the way they want to receive it </li></ul><ul><li>Enhance renewal rates </li></ul><ul><li>Build relationships further with lapsed donors and prospects </li></ul>
    14. 14. Member E-mail Newsletter <ul><li>Sent twice monthly plus special issues. </li></ul><ul><li>Includes two sponsor messages which generate over $60,000 in underwriting. </li></ul><ul><li>Friends email sent to Lapsed Members and Prospects. </li></ul>
    15. 15. <ul><li>Message is short, and has a specific purpose </li></ul><ul><li>Simple plain text message </li></ul><ul><li>Embedded ask amount </li></ul><ul><li>Focuses on valuable programming and eliminating paper renewals and waste </li></ul><ul><li>Subject line is: Your MPR Membership Renewal </li></ul>Email Renewals
    16. 16. Email Renewal Message
    17. 17. <ul><li>Don’t send renews to your standard pledge form, build one specifically for renewals </li></ul><ul><li>Personalize the ask amount </li></ul>Email Renewal Results
    18. 18. Renewal Form on Web Number Emailed % Response Avg. Gift Feb. 2004 1,554 4.83% 123.25 $ Mar. 2004 2,135 7.59% 127.31 $ Apr. 2004 1,774 5.64% 119.28 $ May 2004 949 6.43% 124.11 $ Jun. 2004 754 7.69% 140.03 $ July 2004 3,520 5.43% 133.17 $ Aug. 2004 3,055 6.28% 140.54 $ Sept. 2004 2,771 5.77% 131.53 $ Oct. 2004 1,567 5.17% 148.38 $ Nov. 2004 2,709 6.64% 161.50 $ Dec. 2004 5,528 5.23% 148.65 $ Jan. 2005 1,323 8.31% 126.15 $ 27,639 6.51% 136.95 $
    19. 19. <ul><li>Renewals due the first six months of 2004 </li></ul><ul><li>Sample includes 39,411 members up for renewal </li></ul><ul><li>New members up for first renewal – 4,841 </li></ul><ul><li>Members who had renewed at least once up for renewal – 34,570 </li></ul><ul><li>Sorted by those who have given an email address vs. those who have not </li></ul>How Renewal Rates Are Affected by E-Marketing
    20. 20. Results Email No Email Increase with Email New 49.12% 43.14% 13.86% Renewed 1+ 81.61% 79.15% 3.10%
    21. 21. <ul><li>Ask during on-air fund drives </li></ul><ul><li>Ask on your renewal form </li></ul><ul><li>Append opt-in email addresses from outside databases </li></ul><ul><li>Ask in your membership packages </li></ul><ul><li>Require them to sign-up for giveaways </li></ul><ul><li>Require them for web site registration </li></ul>Obtaining Additional Email Addresses
    22. 22. Renewal Insert To Acquire Email Addresses
    23. 23. <ul><li>Use outside email address service for address correction and address append. </li></ul><ul><ul><li>www.freshaddress.com Trudy Glidden 617-965-4500 ext. 204 </li></ul></ul>Additional Resources
    24. 24. O pen A ll N ight Round-up, Renew, and Upgrade Members Online, Even While You’re Sleeping Case Study: Chicago Public Radio
    25. 25. The Fundraising Pie Direct Response Solicitation The Rest of the Time
    26. 26. Help Move People to Online Giving Revenue Trend
    27. 27. They’re Going There Anyway
    28. 28. And They Give More Average gift
    29. 29. And They Renew Pretty Well First Year Renewal
    30. 30. And They Upgrade Really Well Snapshot of First Time Renewals From Fall 2003 Pledge Drive If They Renewed by Mail or On-Air: renew amount flat If They Renewed Online: 40% Upgrade revenue. 2821 New Members 48% Renewed
    31. 31. Web Site Fundraising – Open For Business Online Campaigns E-Renewals E-Update Using Mail and Telemarketing
    32. 32. Online Campaigns June 2004 July/Aug 2004 Oct Dec Feb 05 ‘ Tis The Season Support Chicago Public Radio with An End of Year Contribution. Pledge Now Pledge Now and Shorten the Fall Drive November 09-19 2 days off so far! Pledge a dollar a day for someone you love
    33. 33. E-Renewals
    34. 34. E-Update
    35. 35. Using Mail and Telemarketing
    36. 36. Wendy Turner – [email_address] Al Anderson – [email_address] Vinay Bhagat – [email_address] Questions

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