10/10/2013 Blackbaud Confidential 1
Presented By:
Kenneth Kuhler
Online Solutions Consultant
Blackbaud
The Constituent Eng...
10/10/2013 Blackbaud Confidential 2
AGENDA
• Current Landscape & Trends
• Constituent Engagement Fundamentals
• The Evolut...
10/10/2013 Blackbaud Confidential 3
The Nonprofit
Landscape
10/10/2013 Blackbaud Confidential 4
Total Fundraising
$19.7 Billion*
* Adjusted for inflation giving has not grown since 2...
10/10/2013 Blackbaud Confidential 5
# of Nonprofits
43% since 2001
Competition for Awareness and Support
10/10/2013 Blackbaud Confidential 6
3000+ Messages
Targeting Supporters
Every Day
Competition for Awareness and Support
10/10/2013 Blackbaud Confidential 7
New Donor Acquisition
23.4% since 2006
Competition for Awareness and Support
Source: T...
10/10/2013 Blackbaud Confidential 8
Renewals & Lifetime
Value Mostly Flat
Average Annual Gift/Attrition Rate = LTV
Competi...
10/10/2013 Blackbaud Confidential 9
Deepen Relationships
& Build Loyalty
10/10/2013 Blackbaud Confidential 10
FUNDRAISING EMPHASIS: MATURES
Matures
Boomers
Gen X
Gen Y
1
10/10/2013 Blackbaud Confidential 11
GENERATIONAL GIVING
$0.
$100.
$200.
$300.
$400.
$500.
$600.
$700.
$800.
$900.
$1,000....
10/10/2013 Blackbaud Confidential 12
GIVING AMOUNTS
% who say have donated in this way in last 2 years (total)
58%
41%
34%...
10/10/2013 Blackbaud Confidential 13
Constituent
Expectations
Have
Changed.
10/10/2013 Blackbaud Confidential 14
Constituents Want to Engage
on Their Terms & in Their Channels
10/10/2013 Blackbaud Confidential 15
ONLINE FUNDRAISING CONTINUES TO GROW
10/10/2013 Blackbaud Confidential 16
THE STATE OF ONLINE FUNDRAISING
ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT
Mor...
10/10/2013 Blackbaud Confidential 17
ONLINE FUNDRAISING GROWTH HAS KEPT
PACE WITH RETAIL E-COMMERCE
Sources: Convio benchm...
10/10/2013 Blackbaud Confidential 18
.. BUT PERFORMANCE VARIES WIDELY
* Excludes major, corporate gifts, and planned givin...
10/10/2013 Blackbaud Confidential 19
Peer Solicitation Is Broadly Accepted
52%
41%
28%
22%
15%
8%
Peer to Peer
Mail
Email
...
10/10/2013 Blackbaud Confidential 20
PEER TO PEER / SOCIAL FUNDRAISING
10/10/2013 Blackbaud Confidential 21
ALZHEIMER’S ASSN:
THE LONGEST DAY
In Year 1,
200 Teams
Raised $236K
10/10/2013 Blackbaud Confidential 22
Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate
VALUE OF MULTI-CHANNE...
10/10/2013 Blackbaud Confidential 23
MULTI-CHANNEL GROWS TOTAL REVENUE
$28M $28M
$47M
$0
$5
$10
$15
$20
$25
$30
$35
$40
$4...
10/10/2013 Blackbaud Confidential 24
Multi-Channel Strategy
10/10/2013 Blackbaud Confidential 25
If You Could…
THE VISION: CONSTITUENT ENGAGEMENT
• Anticipate your
constituents’ need...
10/10/2013 Blackbaud Confidential 26
Constituent Experience
• Disjointed constituent
experience
• Fragmented
messaging fro...
10/10/2013 Blackbaud Confidential 27
• Unified constituent
experience
Goal:
Constituent Experience
• Integrated messaging
...
10/10/2013 Blackbaud Confidential 28
Better Engagement with Supporters =
Better Results for Your Organization
10/10/2013 Blackbaud Confidential 29
Constituent
Engagement
Fundamentals
10/10/2013 Blackbaud Confidential 30
• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• C...
10/10/2013 Blackbaud Confidential 31
• Align processes and communication to
respect constituent preferences, needs and
int...
10/10/2013 Blackbaud Confidential 32
A Single Email with
Conditional Content
Donor Version
Survivor Version
CONSTITUENT CE...
10/10/2013 Blackbaud Confidential 33
CONSTITUENT CENTRICITY - WELCOME SERIES
2-Part Series
10/10/2013 Blackbaud Confidential 34
Direct Mail
Email
Web Page
PRESENCE IN MULTIPLE CHANNELS
10/10/2013 Blackbaud Confidential 35
• Get the right message in front of the right person at the right moment.
PRESENCE IN...
10/10/2013 Blackbaud Confidential 36
• 125,000 born each year
• 6.5 million people
• 10% of American families
• 25 time mo...
10/10/2013 Blackbaud Confidential 37
EFFECTIVE STORYTELLING – APPEAL TO THE HEART
NOT THE HEAD
10/10/2013 Blackbaud Confidential 38
EFFECTIVE STORYTELLING - DIAGNOSED WITH
CHRONIC LYMPHOCYTIC LEUKEMIA
10/10/2013 Blackbaud Confidential 39
EFFECTIVE STORYTELLING – PICKED HIMSELF BACK
UP AND ACHIEVED GREATNESS
10/10/2013 Blackbaud Confidential 40
CONSISTENT BRANDING
21
Envelope back
Integrated tiger appeal results
show 40% better ...
10/10/2013 Blackbaud Confidential 41
YEAR OF THE TIGER
A MULTIMEDIA YEAR LONG EFFORT
WWF: For 1st time
ever, heads of stat...
10/10/2013 Blackbaud Confidential 42
INTEGRATED PROCESS
Frequency Target
Q2week1
Q2week2
Q2week3
Q2week4
Q2week5
Q2week6
Q...
10/10/2013 Blackbaud Confidential 43
• Establish metrics that:
• Measure donor behavior and campaign
performance across ch...
10/10/2013 Blackbaud Confidential 44
CROSS-CHANNEL CONTACT INFORMATION
10/10/2013 Blackbaud Confidential 45
KEY ACQUISITION METRICS TRACKED
10/10/2013 Blackbaud Confidential 46
DONOR CHANNEL MIGRATION TRACKED
10/10/2013 Blackbaud Confidential 47
• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• C...
10/10/2013 Blackbaud Confidential 48
The Evolution
of Nonprofit
Operations
10/10/2013 Blackbaud Confidential 49
• Minimal Online
Marketing
• Calendar-Based
Campaigning
• Not Financially
Committed t...
10/10/2013 Blackbaud Confidential 50
• Integrated marketing sophistication and size don’t closely correlate.
WHERE ARE YOU?
10/10/2013 Blackbaud Confidential 51
THE TRAJECTORY OF NP EVOLUTION
Aggregate
and improve
constituent
data
Consistent
mess...
10/10/2013 Blackbaud Confidential 52
• Organizational Alignment
• Technology / Infrastructure
Keys to Evolution
10/10/2013 Blackbaud Confidential 53
Traditional
• Separate Metrics & Team
for Online Marketing
• No Calendar / Campaign
C...
10/10/2013 Blackbaud Confidential 54
Coordinated
Coordinating
Teams
Communications Development
Government
Affairs
IT
Coord...
10/10/2013 Blackbaud Confidential 55
Optimized
Coordinating
Teams
Development Online Communications Marketing
Optimized
• ...
10/10/2013 Blackbaud Confidential 56
Support Business Units
Infrastructure Challenge
Track Performance
Add New Channels
Co...
10/10/2013 Blackbaud Confidential 57
• Identify where you are and map your key 2013 steps
now…today, while you’re thinking...
10/10/2013 Blackbaud Confidential 58
IN CONCLUSION –
• More donors does not mean more engagement or
revenue but more engag...
10/10/2013 Blackbaud Confidential 59
WANT MORE? DOWNLOAD OUR RESEARCH.
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The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value. Presentation by Ken Kuhler

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The Constituent Engagement Journey: Growing Engagement, Loyalty, and
Lifetime Value. Presented by Ken Kuhler, Interactive Strategy Manager, Blackbaud.
Ken will discuss how to apply next generation trend data to your multi‐channel,
multi‐generational fundraising and engagement efforts including practical tools
and techniques, and real‐world case studies.

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The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value. Presentation by Ken Kuhler

  1. 1. 10/10/2013 Blackbaud Confidential 1 Presented By: Kenneth Kuhler Online Solutions Consultant Blackbaud The Constituent Engagement Journey:
  2. 2. 10/10/2013 Blackbaud Confidential 2 AGENDA • Current Landscape & Trends • Constituent Engagement Fundamentals • The Evolution of Nonprofit Operations
  3. 3. 10/10/2013 Blackbaud Confidential 3 The Nonprofit Landscape
  4. 4. 10/10/2013 Blackbaud Confidential 4 Total Fundraising $19.7 Billion* * Adjusted for inflation giving has not grown since 2000 and giving as a percent of GDP is down 16% since 2006. Competition for Awareness and Support
  5. 5. 10/10/2013 Blackbaud Confidential 5 # of Nonprofits 43% since 2001 Competition for Awareness and Support
  6. 6. 10/10/2013 Blackbaud Confidential 6 3000+ Messages Targeting Supporters Every Day Competition for Awareness and Support
  7. 7. 10/10/2013 Blackbaud Confidential 7 New Donor Acquisition 23.4% since 2006 Competition for Awareness and Support Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter Results
  8. 8. 10/10/2013 Blackbaud Confidential 8 Renewals & Lifetime Value Mostly Flat Average Annual Gift/Attrition Rate = LTV Competition for Awareness and Support
  9. 9. 10/10/2013 Blackbaud Confidential 9 Deepen Relationships & Build Loyalty
  10. 10. 10/10/2013 Blackbaud Confidential 10 FUNDRAISING EMPHASIS: MATURES Matures Boomers Gen X Gen Y 1
  11. 11. 10/10/2013 Blackbaud Confidential 11 GENERATIONAL GIVING $0. $100. $200. $300. $400. $500. $600. $700. $800. $900. $1,000. $1,100. $1,200. 30% 40% 50% 60% 70% 80% 90% % Giving Totalannualgiving Boomers Gen X Matures Gen Y 58% Give 35.9M donors $796 yr/avg 4.2 charities $35.9 B/yr 56% Give 28.5M donors $341 yr/avg 3.6 charities $9.7B/yr 67% Give 52.2M donors $901 yr/avg 5.2 charities $47.1 B/yr 79% Give 30.8M donors $1066 yr/avg 6.3 charities $32.7 B/yr
  12. 12. 10/10/2013 Blackbaud Confidential 12 GIVING AMOUNTS % who say have donated in this way in last 2 years (total) 58% 41% 34% 33% 32% 27% 25% 21% 16% 16% 3% Checkout Donation Fundraising Event Tribute Gift Charity Gift Shop Online via Website Mailed Gift Monthly Debit In lieu of Gift Phone Third Party Vendor SMS or Social Media GEN Y GEN X BOOMERS MATURES 59% 64% 56% 58% 27% 43% 44% 44% 19% 28% 37% 50% 30% 34% 34% 30% 41% 37% 29% 24% 12% 17% 33% 38% 25% 28% 24% 24% 22% 23% 21% 20% 6% 14% 21% 19% 24% 21% 14% 12% 7% 4% 2% 0% 4.7% 2.8% 2.3% 1.3%
  13. 13. 10/10/2013 Blackbaud Confidential 13 Constituent Expectations Have Changed.
  14. 14. 10/10/2013 Blackbaud Confidential 14 Constituents Want to Engage on Their Terms & in Their Channels
  15. 15. 10/10/2013 Blackbaud Confidential 15 ONLINE FUNDRAISING CONTINUES TO GROW
  16. 16. 10/10/2013 Blackbaud Confidential 16 THE STATE OF ONLINE FUNDRAISING ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT More good news - Online giving increased 13.7% for the three months ending January 2013 as compared to the same period in 2012 Even more good news – No matter what online benchmark study you look at, revenue is growing, sustained giving is growing and housefile size is up
  17. 17. 10/10/2013 Blackbaud Confidential 17 ONLINE FUNDRAISING GROWTH HAS KEPT PACE WITH RETAIL E-COMMERCE Sources: Convio benchmark reports 2007-2012 and eMarketer.com
  18. 18. 10/10/2013 Blackbaud Confidential 18 .. BUT PERFORMANCE VARIES WIDELY * Excludes major, corporate gifts, and planned giving. Source: Convio/ Edge Research survey of integrated marketing practices, Q1 2011 5-20% Raised Online >25% Raised Online <5% Raised Online
  19. 19. 10/10/2013 Blackbaud Confidential 19 Peer Solicitation Is Broadly Accepted 52% 41% 28% 22% 15% 8% Peer to Peer Mail Email Social Media Phone Text % say appropriate solicitation channel (rank ordered by very important –blue) Did you know? Blackbaud clients raised 70% of event funds raised by the top 30 events in 2011.
  20. 20. 10/10/2013 Blackbaud Confidential 20 PEER TO PEER / SOCIAL FUNDRAISING
  21. 21. 10/10/2013 Blackbaud Confidential 21 ALZHEIMER’S ASSN: THE LONGEST DAY In Year 1, 200 Teams Raised $236K
  22. 22. 10/10/2013 Blackbaud Confidential 22 Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate VALUE OF MULTI-CHANNEL ENGAGEMENT Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOne Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use. 34.4% 50.9% Mail +48% Multi-Channel $96 $187 Mail +95% Multi- Channel $314 $694 Mail +121% Multi-Channel
  23. 23. 10/10/2013 Blackbaud Confidential 23 MULTI-CHANNEL GROWS TOTAL REVENUE $28M $28M $47M $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 1990 2000 2010 Millions Online Direct Mail
  24. 24. 10/10/2013 Blackbaud Confidential 24 Multi-Channel Strategy
  25. 25. 10/10/2013 Blackbaud Confidential 25 If You Could… THE VISION: CONSTITUENT ENGAGEMENT • Anticipate your constituents’ needs • Know their interests, passions & preferences • Offer more relevant interactions & opportunities to engage You Would… Improve acquisition & referrals Establish lifetime relationships Grow support & fundraising
  26. 26. 10/10/2013 Blackbaud Confidential 26 Constituent Experience • Disjointed constituent experience • Fragmented messaging from a variety of channels • Less engagement Current Landscape:
  27. 27. 10/10/2013 Blackbaud Confidential 27 • Unified constituent experience Goal: Constituent Experience • Integrated messaging across a variety of channels • Optimized engagement
  28. 28. 10/10/2013 Blackbaud Confidential 28 Better Engagement with Supporters = Better Results for Your Organization
  29. 29. 10/10/2013 Blackbaud Confidential 29 Constituent Engagement Fundamentals
  30. 30. 10/10/2013 Blackbaud Confidential 30 • Constituent Centricity • Presence in Multiple Channels • Effective Storytelling • Consistent Branding • Integrated Process • Integrated Measurement Constituent Engagement Fundamentals
  31. 31. 10/10/2013 Blackbaud Confidential 31 • Align processes and communication to respect constituent preferences, needs and interests • Tailor channel mix, content and program participation and message frequency • Ask, “What matters to a constituent?” CONSTITUENT CENTRICITY
  32. 32. 10/10/2013 Blackbaud Confidential 32 A Single Email with Conditional Content Donor Version Survivor Version CONSTITUENT CENTRICITY
  33. 33. 10/10/2013 Blackbaud Confidential 33 CONSTITUENT CENTRICITY - WELCOME SERIES 2-Part Series
  34. 34. 10/10/2013 Blackbaud Confidential 34 Direct Mail Email Web Page PRESENCE IN MULTIPLE CHANNELS
  35. 35. 10/10/2013 Blackbaud Confidential 35 • Get the right message in front of the right person at the right moment. PRESENCE IN MULTIPLE CHANNELS
  36. 36. 10/10/2013 Blackbaud Confidential 36 • 125,000 born each year • 6.5 million people • 10% of American families • 25 time more common than blindness • Over 250 causes discovered EFFECTIVE STORYTELLING – INTELLECTUAL DISABILITY STATISTICS
  37. 37. 10/10/2013 Blackbaud Confidential 37 EFFECTIVE STORYTELLING – APPEAL TO THE HEART NOT THE HEAD
  38. 38. 10/10/2013 Blackbaud Confidential 38 EFFECTIVE STORYTELLING - DIAGNOSED WITH CHRONIC LYMPHOCYTIC LEUKEMIA
  39. 39. 10/10/2013 Blackbaud Confidential 39 EFFECTIVE STORYTELLING – PICKED HIMSELF BACK UP AND ACHIEVED GREATNESS
  40. 40. 10/10/2013 Blackbaud Confidential 40 CONSISTENT BRANDING 21 Envelope back Integrated tiger appeal results show 40% better response rate Offline Appeal & Envelope Online Appeal, Included Envelope Image
  41. 41. 10/10/2013 Blackbaud Confidential 41 YEAR OF THE TIGER A MULTIMEDIA YEAR LONG EFFORT WWF: For 1st time ever, heads of state convene 2 try 2 save tigers. Tell the US 2 commit to global tiger conservation. http://bit.ly/dp0ovd (reply STOP 2 unsub) Direct Mail Email Social Media TV (Custom Web) Outdoor Ads Mobile Web Celebrity Leadership
  42. 42. 10/10/2013 Blackbaud Confidential 42 INTEGRATED PROCESS Frequency Target Q2week1 Q2week2 Q2week3 Q2week4 Q2week5 Q2week6 Q2week7 Q2week8 Q2week9 Q2week 10 Q2week 11 Q2week 12 General Communications eNewsletter Weekly - Fridays Subscribers Quarterly Update mailer 2nd Week / Quarter $50+ donors Gala Promotion Email Biweekly - Tuesday General Direct Mail Once $100+ Donors Telemarketing $200+ Donors Mother's Day Campaign Email ~Biweekly - Thursday Direct Mail Once Prospects, Donors Telemarketing Select targets Inbox / Received Send Event
  43. 43. 10/10/2013 Blackbaud Confidential 43 • Establish metrics that: • Measure donor behavior and campaign performance across channels • Focus on long-term value • Collect and aggregate constituent data to correlate and extract meaningful information INTEGRATED MEASUREMENT
  44. 44. 10/10/2013 Blackbaud Confidential 44 CROSS-CHANNEL CONTACT INFORMATION
  45. 45. 10/10/2013 Blackbaud Confidential 45 KEY ACQUISITION METRICS TRACKED
  46. 46. 10/10/2013 Blackbaud Confidential 46 DONOR CHANNEL MIGRATION TRACKED
  47. 47. 10/10/2013 Blackbaud Confidential 47 • Constituent Centricity • Presence in Multiple Channels • Effective Storytelling • Consistent Branding • Integrated Process • Integrated Measurement Constituent Engagement Fundamentals – Difficult Without Organizational Alignment
  48. 48. 10/10/2013 Blackbaud Confidential 48 The Evolution of Nonprofit Operations
  49. 49. 10/10/2013 Blackbaud Confidential 49 • Minimal Online Marketing • Calendar-Based Campaigning • Not Financially Committed to Second Channel • Thematically Integrated • Limited sensitivity to solicitation frequency • Decisioning beyond RFM • Shared Metrics • Some consolidation of data across channels Coordinated OptimizedTraditional • Separate Metrics & Team for Online Marketing • No Calendar / Campaign Coordination • 2nd channel constitutes 5-20% Direct Response Revenue • Separate databases for online/offline • Unified Strategy & Real-time data integration • Measures Success Across Channels, Not By Channel • Donors’ behaviors and interests drives communication stream • Shared budget and resources Early Stage WHERE ARE YOU?
  50. 50. 10/10/2013 Blackbaud Confidential 50 • Integrated marketing sophistication and size don’t closely correlate. WHERE ARE YOU?
  51. 51. 10/10/2013 Blackbaud Confidential 51 THE TRAJECTORY OF NP EVOLUTION Aggregate and improve constituent data Consistent messages across channels Increased personalization & relevance Dynamic response to interactions Optimize channel mix & message cadence Aggregate and improve constituent data
  52. 52. 10/10/2013 Blackbaud Confidential 52 • Organizational Alignment • Technology / Infrastructure Keys to Evolution
  53. 53. 10/10/2013 Blackbaud Confidential 53 Traditional • Separate Metrics & Team for Online Marketing • No Calendar / Campaign Coordination • 2nd channel constitutes 5- 20% Direct Response Revenue • Separate databases for online/offline Communications Development IT Others (?)Government Affairs Traditional ORGANIZATIONAL ALIGNMENT
  54. 54. 10/10/2013 Blackbaud Confidential 54 Coordinated Coordinating Teams Communications Development Government Affairs IT Coordinated • Thematically Integrated • Limited sensitivity to solicitation frequency • Decisioning beyond RFM • Shared Metrics • Some consolidation of data across channels ORGANIZATIONAL ALIGNMENT
  55. 55. 10/10/2013 Blackbaud Confidential 55 Optimized Coordinating Teams Development Online Communications Marketing Optimized • Unified Strategy & Real- time data integration • Measures Success Across Channels, Not By Channel • Donors’ behaviors and interests drives communication stream • Shared budget and resources ORGANIZATIONAL ALIGNMENT
  56. 56. 10/10/2013 Blackbaud Confidential 56 Support Business Units Infrastructure Challenge Track Performance Add New Channels Coordinate Departments Integrate Systems Understand Data
  57. 57. 10/10/2013 Blackbaud Confidential 57 • Identify where you are and map your key 2013 steps now…today, while you’re thinking about it! • Every step toward Constituent Engagement will have an impact on your bottom line. • Start with fundamentals. • Evolving understanding of metrics can drive you forward faster. • Be aware of opportunities to evolve the operational structure – shared goals, team alignment, technology REMEMBER: IT IS AN EVOLUTION.
  58. 58. 10/10/2013 Blackbaud Confidential 58 IN CONCLUSION – • More donors does not mean more engagement or revenue but more engaged donors will mean more revenue/LTV. • Donors feel more engaged and more inclined to give if they are hit up on multiple channels with consistent messages • Therefore, your organization needs to be organized to ensure a consistent and integrated experience on multiple channels. No silo’s.
  59. 59. 10/10/2013 Blackbaud Confidential 59 WANT MORE? DOWNLOAD OUR RESEARCH.

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