Multi-channel Fundraising in the 21th Century

Multi-Channel Fundraising in the 21st Century
Mike Johnston – HJC
September 16, 2010
7:00 – 9:00
AFP/CAGP Vancouver

9/16/2010
proprietary and confidential
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We are omnivorous…since 1993 cross channel

A virtual tour
What is it?
Why do it?
What’s stopping you?
Online and Direct Mail
Paper and the Phone
Text and the Phone
Online and the Phone
New York Public Library – using cross channel fundraising to break down silos
Online and video
Online and major gifts and legacies: Canada, Mexico, United States
Culture, structure – the change management challenge!

MULTI-CHaNNEL Fundraising
The use of multiple channels (online, direct mail, telephone, mobile) to support one another to raise more money and build better donor relationships

MULTI-CHANNEL Fundraising
Why do it?

Giving Channels% donated this way in last 2 years (total)
Emerging Channels

Solicitation Channel (From charities/nonprofits with established relationship)
% say appropriate solicitation channel
(rank ordered by very important –blue)

What about Canada?

Always Check Website Before Donation
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Email Address Collection
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Promote Causes Through Email & Social Networks?
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School is an important way in which Gen Y learned about Charity's they support. Mail is important for Civics. All generations learn about charity through media and personal connections.
All generations think that donating money is the best way they can make a difference but younger generations also think that spreading the word is extremely valuable too. So create more tell-a-friend links.

Quite staggering differences in the feeling between different generations about being contacted for a donation on social media channels. Younger people find it dramatically more acceptable than older people.
This is the most controversial channel.

X and Boomers are the biggest supporters P2P. Everyone loves P2P but the charity has to be right too to get a donation - not just about the personal ask.
It is hard to get phone numbers from people across all age groups. However, people are AS likely to give you there phone number after they have donated as they are after they have taken an advocacy action. So ask!

The web as the glue...
People come 24 hours a day from other channels to your web site… is it ready to take donations most effectively!
Google Browser Lab…www.browsersize/googlelabs.com

Channel Integration
Multi-channel donors are nearly 3x more valuable than single channel donors.
Source: Defenders of Wildlife Jul08-Jun09

Integration opportunities or threats? Area One: Direct mail and email

Web Triggers Direct Mail Response When you received a mail solicitation from a charity, which of the following places on the Internet do you look at before deciding whether to give money
NPT Research: 1,000 calls

If 37% of direct mail donors who get a direct mail solicitation go to the charity’s web site before giving then shouldn’t cross-channel integration look like this?
Press Advertisement

Multi-channel integration
Magazine Advertisement
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Visitors were asked to fill out petition including mailing address and email…

Direct Mail integration (coordinating messaging)
There were three test cells:
Received only mailing
Received email before the mailing
Received email after the mailing

Pre-DM

Post-DM

Paper catalogue in support of an online symbolic giving campaign…
In 2005, an online only symbolic gift catalogue was introduced, it raised approximately $48,000 in its first year.
The second year, a simple catalogue was sent to direct mail donors in November of 2006 introducing them to the symbolic giving catalogue.
It was sent to approximately 10,000 donors and raised an additional $74,180.00
And a comparison of Nov 05 dm donors receiving a holiday appeal without a catalogue the month before vs. the 06 donors who received the catalogue showed a $15,000 reduction in income vs. $74,180 increase – for $59,180 net return on more integrated offline/online approach
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Gaza conflict early 2009: Save the Children UK run National press campaign - text support for a ceasefire.
Call to action – text CEASEFIRE’ - pass details onto friends and family .
Campaign goes viral - 182,000 people text - petition taken to Downing Street.
All supporters were called on their mobile phones and prior to the call we had no information (name, address, etc) about these prospects.

Use the telephone with online!
Responsibly and strategically

The Phone can be irritating…
“The bathtub was invented in 1850 and the telephone in 1875. In other words, if you had been living in 1850, you could have sat in the bathtub for 25 years without having to answer the phone”
Bill DeWitt

But it can have power and resonance
“The telephone, which interrupts the most serious conversations and cuts short the most weighty observations, has a romance of its own” Virginia Woolf

What do we mean by the telephone?

The phone and online?

Further tests…
A phone test was conducted a second year with online event registrants…
The test group that received a phone call (2.5 minutes in length) raised $131.42 more than a registrant who did NOT receive a call

Online pledge pages and calling….

High touch…high gift amounts…
20 board member pages
$237,534 raised ($143,000 by one board member)
Phone used to stimulate, manage, and help board members with their personal pages

Advocacy & List Growth

What brought in the largest growth?
Third party emails (over 70%)
Tell-a-friend on action alerts (over 14%)
Banner ads (over 5%)
Facebook ads (over 3%)
Google Adwords (less than 1%)

What had the lowest cost per acquisition?
Tell-a-friend on action alerts
Third party emails
Facebook ads
Banner ads

The next step is to call convert these donors. We did not breakout the different online warm lead sources to compare telephone conversion rates.
UK
7.25% conversion to monthly giving
No single donations – not asked
Average gift: $6.5 per month
North America
7% - 12% conversion to monthly giving
Average gift: $15 per month

Fundraising and Mobile...

One million text “votes” in 51 days.

9.65% conversion to monthly giving: 15,388
Average gift 3.28 dollars/month
170,658 called on their mobile phones
7.6 million dollars LTV (over 5 years)
800,000 new contacts
50% converted to monthly giving

5% of total donations to tsunami
MSF Austria
Medécin San Frontiers Austria

282,000 Euros in single gifts
60% said YES
Voice and text to build relationships
Médecins Sans Frontières - Austria

TV and mobile phone – Prospect donors
Spanish prospect donors generated by personalities asking people to send in SMS to demonstrate support
Prospects called within 7 days (only information is name and number)
Conversion to monthly giving.
JESÚS VÁZQUEZ, UNHCR Goodwill Ambassador

Ringtones from UNHCR
Over 50,000 downloads
Over 110.000 Euros raised
8.7 % conversion rate via telephone conversion call
Source: Francesco Sciacca / UNHCR Spain

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Prospective
charity
supporters visit
and
browse charity
website
Software
identifies likely
prospect and
when to engage
to collect contact
details and
permission
Prospects are
telephoned/contacted at a
later date to convert
into a regular giver
Supporter
Optimising your website to generate supporters
AIM & CONCEPT
To convert more charity website visitors to new supporters

Pop up’s – Integrating Web and Telephone

UNICEF Pop Up - Spain

Spanish Results - Childrens Charity
25% Positive response
Annual average per donor: 115 euros
94% monthly donors
ROI 1:2.5

Why we have to get this right...
Catholic Relief Services – when someone made a text donation during the Haiti earthquake aftermath they were given a chance to connect to a call centre. The organization believed that “calls could build a stronger bond with donors”. They are right – and we’ve shown you.
Sprint Nextel shut the service down.
Charities need to fight for the FCC to make sure that texts, like telephone calls, cannot be interrupted by phone companies. You can see why it’s important!

Sending a recorded message works too!

Sending a recorded message works too!
$250 set up
.05 to .10 cents per message – depending on volume…
It’s worth testing!

New York Public Library

“When a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully”
—Samuel Johnson
Integrated campaign over 44 days, summer 2009

Advocacy Page

Results
10,974 emails sent to City Council Members
Over 20,000 written letters sent
Gross revenue $50,058.68
1,000 donors
584 new donors
“The main reason we stopped the cuts was this online campaign. I would be the first to say otherwise, but it's true.”

The Library Online

Creating an integrated schedule

What did we learn about making cross-channel work with New York Public Library?1. Get buy-in at the senior level2. Have departments work together (maybe for the first time)3. Create an integrated team4. Create an integrated goal (with different metrics of success for each department)5. Create an integrated plan6. Matrix reporting structure MAY make sense with individuals temporarily reporting cross-departmentI’m going to come back to this at the very end!

Online and Video

An acquisition test online:


Banner
Email
Banners and email rentalsdrovetraffic to a landing page thatasked people to watch a video and donate…



Bannière
Email


page appel à don
page vidéo

Online acquisition that works… our approach
DM test: In the end, the dm appeal found 528 single gift donors, 29 monthly donors and invested 79,000 euros to find those donors.
vs.
Online test: In the end, the online appeal found 256 single gift donors and 62 monthly donors and invested only 4,100 Euros.

All channels together lead to…
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Automated tactics to enhance experience
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Integrated Campaigns
Dynamic changing elements
Huge call to action
Highlight waysto give
Highlighted thank you areas
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Online will be increasingly important for major gifts and legacy giving

Four Legacy Online Surveys

Do people make major gifts online?

tracking the impact that sites like Facebook make to fundraising and campaigning
Proprietary and Confidential

What’s your credit card limit?

And of course…what about social media!

Greenpeace Chile
Outbound calling for warm leads
1,510 calls (May-December 2009)
Inbound calling for warm leads
503 people filled the form
Result – ~10% conversion
193 people converted to paid monthly donors

Success Factors for Transforming an online and integrated fundraising operation
Strategic and Tactical development
Integrated multi-channel approach
Alignment of structure, culture and skills with strategy

A virtual conclusion
Cross channel fundraising: increases response, increasing average gift and the number of gifts?
What’s stopping you? Senior leadership, departmental rivalry and silos, or just having a plan?
Time to start now! Your donors are already cross-channel supporters…

Embrace Change
Take Personal Responsibility
#1 Mistake is to “decide not to change.”
Thanks for joining me today!

Multi-channel Fundraising in the 21th Century

by hjc on Sep 20, 2010

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