AMA NONPROFIT MARKETING CONFERENCE July 19-21, 2004

WHY Innovate? Key Trends Reduced corporate & government support Aging donor base & need to attract younger donors Growth in online transactions (shopping, giving, advocacy, etc.) Technologically-savvy baby boomers Increased marketplace “noise” (email, websites, etc.) Growth in consumer empowerment (ability to punish/reward companies based on their social responsibility) Value of innovation in brand development Urgency & risk of late adoption Bottom line: Innovate or become extinct

Key Trends

Reduced corporate & government support

Aging donor base & need to attract younger donors

Growth in online transactions (shopping, giving, advocacy, etc.)

Technologically-savvy baby boomers

Increased marketplace “noise” (email, websites, etc.)

Growth in consumer empowerment (ability to punish/reward companies based on their social responsibility)

Value of innovation in brand development

Urgency & risk of late adoption

Bottom line: Innovate or become extinct

Those Who Missed the Point “ Nonprofits will never generate enough money with these ‘ shop & give’ concepts – we saw that in the tech bust of the late ’90’s” VP Marketing & Development, Anonymous Nonprofit, 2003 “This telephone has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” Western Union Internal Memo, 1876 “I think there is a world market for maybe five computers.” Thomas Watson, Chairman, IBM, 1943 “There is no reason why anyone would want a computer in their home.” Ken Olsen, Founder Digital Equipment Corp., 1977

“ Nonprofits will never generate enough money with these

‘ shop & give’ concepts – we saw that in the tech bust of the

late ’90’s”

VP Marketing & Development, Anonymous Nonprofit, 2003

“This telephone has too many shortcomings to be seriously

considered as a means of communication. The device is

inherently of no value to us.”

Western Union Internal Memo, 1876

ASSESS Your Situation Where’s Your Pain? Shifting donor dynamics Budget & resource cuts Outdated technology systems Know your culture What are your organization’s strengths & weaknesses? Is your organization more like a chameleon or a dinosaur?

Where’s Your Pain?

Shifting donor dynamics

Budget & resource cuts

Outdated technology systems

Know your culture

What are your organization’s strengths & weaknesses?

Is your organization more like a chameleon or a dinosaur?

The Chameleon Mentality: Adapts to change, early to mid-stage adopters, encourages/rewards innovation, open to (calculated) risk-taking

The Chameleon Mentality:

Adapts to change, early to mid-stage adopters, encourages/rewards innovation, open to (calculated) risk-taking

The Dinosaur Mentality: Slow to adapt, joins reluctantly at end of product/concept lifecycle, key staff build internal silos, eventually becomes extinct or irrelevant in marketplace

The Dinosaur Mentality:

Slow to adapt, joins reluctantly at end of product/concept lifecycle, key staff build internal silos, eventually becomes extinct or irrelevant in marketplace

Where does your organization fall on the innovation scale?

EVALUATE Your Options What are your options? What marketing mix makes sense for your organization?

What are your options?

What marketing mix makes sense for your organization?

The Landscape Loyalty Marketing: Large and Growing Market $236 billion media spending Ad agencies, consultants and other services $141 billion+ Loyalty and incentive industry estimated to be $85 billion Cause Marketing is expected to eclipse $1 billion in 2004

$236 billion media spending

Ad agencies, consultants and other services $141 billion+

Loyalty and incentive industry estimated to be $85 billion

Cause Marketing is expected to eclipse $1 billion in 2004

The time is right : Convergence of 3 key trends: changing consumer, technological advances and corporate philanthropy NPOs should consider “Cause-Related Loyalty Coalition” as an option in integrated mktg. plan Urgency – act now Someone is going to own this space – we’re positioned to be leader 100+ retailers and merchants with brick & mortar on horizon LOIs with nationally recognized nonprofits and unsolicited enrollments Cause-Related Loyalty Coalition An Innovative Evolution of Proven Methods The New Landscape

The time is right :

Convergence of 3 key trends: changing consumer, technological advances and corporate philanthropy

NPOs should consider “Cause-Related Loyalty Coalition” as an option in integrated mktg. plan

Urgency – act now

Someone is going to own this space – we’re positioned to be leader

100+ retailers and merchants with brick & mortar on horizon

LOIs with nationally recognized nonprofits and unsolicited enrollments

Benevolink: How it Works For consumers… For nonprofits…

Boosts bottom line Raises brand awareness Creates infrastructure for partnering Taps into corporate funding Efficient, national and localized Leverages new support from current contributors Generates interest from new donors Engages supporters 4 times per year Limited and targeted engagement of staff & volunteers Benefits of Partnering with Benevolink Best of all, it’s absolutely free to your organization and supporters!

Boosts bottom line

Raises brand awareness

Creates infrastructure for partnering

Taps into corporate funding

Efficient, national and localized

Leverages new support from current contributors

Generates interest from new donors

Engages supporters 4 times per year

Limited and targeted engagement of staff & volunteers

Benevolink Example Enrolled, plan summer mailing with back-to-school theme to its parent base, live demos and parent/consumer enrollment campaign at it’s Fall Festival and engagement of volunteer “champions” – all to drive shopping and giving during Q4 holiday season The Atlanta International School, comprised of 500+ HH’s, seeking alternative fundraising tool that will increase unrestricted giving and engage first-time donors WHAT: HOW: & Atlanta International School

ACT Now! Innovate or become extinct! Must become marketers Think in terms of web years vs. calendar years To paraphrase Nike, “Just Do Something”

Innovate or become extinct!

Must become marketers

Think in terms of web years vs. calendar years

To paraphrase Nike, “Just Do Something”

REPEAT the Process Principle of ‘Kaizen’ Continuous improvement, innovation Innovation is an ongoing process Size doesn’t matter (really!) Attitude vs. size drives action Do what works best for your organization & resources available Technology coupled with guerrilla tactics create impact

Principle of ‘Kaizen’

Continuous improvement, innovation

Innovation is an ongoing process

Size doesn’t matter (really!)

Attitude vs. size drives action

Do what works best for your organization & resources available

Technology coupled with guerrilla tactics create impact

Questions