5b finding new supporters AO community conference
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5b finding new supporters AO community conference

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How do you grow your email list? This priority objective for most organisations will be examined in this session. Justin Perkins, of sponsor agency Care2, will look at the main drivers of ‘new ...

How do you grow your email list? This priority objective for most organisations will be examined in this session. Justin Perkins, of sponsor agency Care2, will look at the main drivers of ‘new joins’: conversion of website traffic, ‘tell a friend’ functions, capturing data from social networks, widgets, offline event promotion, traditional print and electronic media, online media, and working with partners, and options for paid promotion, and look at ways of comparing cost and effectiveness. The session will also look at retention strategies: why build an email list if you can’t retain the engagement of supporters. Several key technologies in the Advocacy Online platform will also be covered: email triggers, segmentation, conditional content, and the best options for structing data forms in order to maximize conversion.

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  • Goal. What are you trying to achieve? By when? Audience . Who are you trying to reach? Traffic . What kind of volume are you looking for? Rates. What is the net cost per name and does the media site guarantee performance based terms? How much does it cost to create the ads on top of placing the media buy? What is the Return on Investment? Resources. How much staff time needed? Can your staff create good ads? How are you going to track campaign performance? Is your website equipped to convert traffic?
  • Use Right tool for the right purpose. Look at the tools that you have at your disposal as a nonprofit, and think about the right time and the right purpose for each tool. If you want to impress major donors, send them an annual report. If you want to impress grassroots donors (who incidentally aren’t necessarily going to donate through Facebook), send them an email while they’re at work. If you’re trying to grow your list, guerilla marketing and earned media are often a lot harder and a lot slower than paid advertising. Etc. You need to be very conscious about what tools you’re using, and why you’re using them, because unless you have unlimited budget and can afford to do all of these things – which is ideal – you’ll have to make some tough choices. And for each choice you make for where you spend budget and time, there is an opportunity cost.
  • The groups that I have worked with who are starting to coordinate their efforts across these mediums, and are preparing that infrastructure now, will have the first-mover advantage in the marketplace. This is the holy grail. At Care2, we’re starting to do some really interesting campaigns where we leverage our members activism and interest to reach Facebook and Twitter. We grew our MySpace presence when it was popular very quickly. Leverage email – the original social network – to reach other channels. It’s easy to match data with email addresses. Fish where the fish are – don’t build your own social network. Whatever you do, please do not build your own social network unless you have a very clear understanding of online community behavior, have at least 1 million people on your email list, or a very defined niche of people you’re trying to connect, such as a private network for people with a specific disease and just need a platform for an existing community of people to easily share information and communicate. If your organization is considering implementation of Ning or another social network tool on your site, start with a free blog, or a Facebook group, as free tests, FIRST. You will quickly see how engaged your community is, and if you have enough of a critical mass to make it interesting. Use the rule of 99:1 – for every 99 people who sign up for a social network, only 1 will be active.
  • Last year, I engineered a study of Facebook Causes – a peer-to-peer fundraising tool – in hopes of seeing what was possible. I looked at all of the Causes with more than 20,000 members in hopes of seeing a correlation with size of the group and the amount of dollars raised. I was pretty shocked. The median dollars raised from all of the causes with over 20,000 members was only $570. -The groups that managed to raise more than $100,000 had some sort of gimmick -the group with the largest Cause a few weeks ago got there because the CEO donated 999,999 dollars. I did a similar study about 6 months after Facebook Causes launched and the trend was the same. And the story gets worse. Even of the top Causes, 50% or more of the entire amount is often donated by the top 5 donors, and even then, it’s often the top donor, who is usually an employee or board member, who accounts for the majority of the 50% of donations. Contrast that with the median $ raised from nonprofit organizations using an email fundraising strategy – it’s about $47,000 per year. Right tool for the right purpose. Social networks are proving to be great listening mechanisms for brands, and a way to engage with people on their terms. However, peer-to-peer fundraising in the context of social networks doesn’t work unless there’s some sort of gimmick – an outside factor such as a contest, a birthday widget, or perhaps a pledge drive for Cancer. The data do not support that social networks are the holy grail of fundraising because you need some sort of social permission to ask people for money. It’s just a tool.
  • PROs: Lowest risk option – risk is on the media site when paying for performance only Easier to predict results of ad campaigns Positions nonprofit further along in fundraising sales cycle if lead is quality Can be less creative development cost and effort for nonprofit Can require less media buy management time and complexity Can cost less and yield higher ROI than other advertising CONs: Not many sites willing to offer CPL terms – too risky for the site Quality of names depends on quality of site and opt-in process Quantity can be limited by size of site’s audience or targeting Up front cost can seem higher for high quality leads (harder to sell internally when costs are seen – actual cost not seen till after campaign with CPM or CPC) Can require complex management if multiple networks used Not all networks are transparent so difficult to track quality
  • PROs: High volume - lots of names of people who “agreed” to receive email Cheap CONs: Low quality (you get what you pay for) High risk that folks will not respond or report you for SPAM Quality and source of name not always known if buying from a network Context for recruitment may be irrelevant Net result may be negative due to poor response and danger of SPAM ratings
  • PROs: Can work with a broader array of sites and leverage creative Good for branding if done well Rich Media can catch attention Can sometimes work for direct response to fundraising or event promotion CONs: Few instances where we’ve seen results end up cheaper than CPL Very risky – risk is entirely on nonprofit Sites have different creative req’s Difficult to implement and track – very complex to do well Requires lots of staff time and expertise or experienced consultants Net result is expensive and usually low ROI When was the last time you clicked a banner ad? Need a large budget and sustained effort over time to be effective
  • PROs: Can be great, high quality response due to targeting You only pay for clicks, not impressions Can sometimes work for direct response to fundraising or event promotion if context is ripe Can see good ROI over time if done well Google Grants are “free” for nonprofits CONs: Learning curve for SEM is steep Risk is still high – nonprofit must have excellent landing page and keywords to convert well Difficult to implement and track – very complex to do well Requires lots of staff time and expertise or experienced consultants Net result is expensive Volume can be limited for nonprofits unless during crisis or major news event
  • PROs: Good to develop long-term capacity and raises overall awareness – builds foundation for quicker donor conversion and constant list-growth Can require less cash outlay with the right skills on staff Quality of names recruited can be higher than paid efforts Good campaigns can go viral with a perfect storm Once list is large, impact of guerilla campaigns can be increased greatly CONs: ROI is very low especially for smaller groups with no brand recognition Quantity of list-growth is low – hard to drive consistent traffic sufficient for list-growth Extra effort put in social networks can be opportunity cost for cultivation of email list Very complex to manage effectively Requires tons of staff time and/ or outside consultant costs Requires excellent, interesting website and campaigns = time and money to accomplish
  • This grid is a helpful way to visualize some of the tradeoffs involved in running campaigns to grow your list. Remember that three of the questions we said you need to answer are: 1) How big is your budget? 2) How fast do you want to grow your list? and 3) What kind of quality of names are you seeking, subject to what you can afford? The grid maps out different types of list growth activities, based on these three factors. On the vertical axis is Name Quality, reflecting the extent to which these names are the ones most valued by your organization for their loyalty, member lifetime, donations, activism, etc. And on the horizontal access is the speed at which you need to grow your list. A third factor here -- represented by the number of dollar signs under each activity -- is the price your organization has to pay for the activity. So your least favorite type of activity is going to be slow growth, low quality names and high cost. In other words, this Southwest quadrant where you find CPM-based advertising. Care2’s advice is just not to go there at all. In the northwest and southeast quadrants you find some other perfectly valid options that score high on one or the other axis measures, but not both. So collecting opt-ins on your site yields very high quality names, but it’s a slow growth activity because of the limited traffic coming to the Web site of most nonprofit organizations. List swaps also can give you high quality names, and just like collecting opt-ins on your site, the price is very low -- the main cost is really just your staff time. Guerilla marketing activities and flash movies (think of JibJab) cost a bit more, but they, too, can produce high quality names. Canvassing is toward the middle, so it’s a bit faster growth, as an activity, but it’s high cost in terms of staff time and the quality of names is a bit lower than some of the other choices. Down in the southeast quadrant, you find list appending and name acquisition from general community sites (think Yahoo). These can give you rapid list growth, but the quality of names you get is usually pretty low. Your ideal list growth activity is one that allows you to grow your list rapidly, and to collect names that are of high quality, in terms of their targeted value to your organization. In other words, this northeast quadrant where you find viral campaigns, and list growth acquisition from progressive communities. Every organization has a different ideal profile of who they’d like to recruit,. But in general we have found that these viral campaigns that turn on a cause or an issue important enough to create a passalong effect -- in which people forward the email or the petition to all their friends and family -- are the ones that invoke enough passion to spur someone to subscribe to a publication or join a nonprofit organization. [EXAMPLE HERE?] Likewise, we have found that the most rapid and cost-effective recruiting campaigns for nonprofit organizations are those that target the audiences of high-traffic social networking sites that cater to cultural creatives, such as iVillage does, or to progressive activiists, such as MoveOn.org, does or The Nation does -- or both to an audience that combines cultural creatives and progressive activists, the way that Care2 does. -------------- ? Flash Movie = JibJab (e.g. Matrix, Monster Slash (Defenders) Halloween last year.
  • Sample organization paid media budget with donor conversions circa 2005. Kelly O'Neal has been working with nonprofit organizations for more than 12 years. She has extensive experience developing, implementing, and managing online communication campaigns. Kelly provides strategic consulting and training advising clients on effective Internet strategies to identify, recruit, and engage activists and donors online. kellykoneal@gmail.com
  • Response rates are measured over a six month period.
  • This is a term that has been twisted by many a consultant in the last couple years when it comes to social media and thrown around more and more in the nonprofit sector. It’s actually a very simple mathematical formula that can be used to calculate a ratio, but it’s not the same as Profit. For example, if you had two choices for spending your time or money, you’d look at the results from running both choices through this equation. If one choice yields an ROI of 50%, and another yields an ROI of 100%, you should probably go with the the latter choice. Of course there are other variables to consider such as how long it would take to make back the investment and how much cash or capacity it would actually take, but I’d highly encourage you to look before you leap and make some estimates based on publicly available data. If you were going to invest your own time or money as a campaigner or a development director – vs. having someone else paying for it – you’d probably do this type of estimation. That doesn’t mean you should test new concepts – absolutely. But you should also look at publicly available data and ask leaders in the field to see what’s possible before committing to a tool or flawed strategy.
  • While the email is not client-branded Care 2 will consult with the client so that the email content is relevant and accurate.
  • Great tools for organizations who don’t have an advocacy program. There are numerous ways to utilize the survey option. NG asked basic questions fromWhat is the most densely populated city? What is the most popular language in the world?
  • Maslov’s hierarchy of needs – first two are basically food and shelter. These are the higher level needs that we have as human beings, and to some extent, social networks have spread so quickly because they provide a platform for meeting these needs. As fundraisers and campaigners, we can use these three simple principles for every message that we send to our potential donors or campaigners. Most of the people you’re trying to reach already have their basic human needs met, but most of us are searching for meaning, and you have an opportunity to serve as a conduit for helping people find meaning. That’s a vastly different paradigm to work from, but I think it’s part of the secret to why Care2 has grown to 13 million people from 5 million people in the 4 years that I’ve been involved.
  • Make sure to place your campaigners in the story.
  • It’s super important to put your customers at the center of your campaigns. You need to make them feel like they’re the heros.
  • This could be you mother or grandmother. Tie it into the campaigner’s life – put a face to the problem – make it personal and something that someone in their family or community can be affected by. By making it personal, the activist will be more inspired to do something – to be a hero.
  • Stats are usually glossed over, but the personal story helps put a face to the larger problem. If you’re going to use stats, you must tie it to a specific example like
  • It’s a basic human need to feel fulfillment and to be part of a group. Draw the activist in to be a hero – you’re providing a service by connecting them with a way to make a difference, just as much as they’re helping your organization.
  • Care2 has spent millions of dollars and 10’s of thousands of hours testing our email formatting. Please steal from us freely. By signing with a personal note, accompanied by a real human’s face, it’s a seal of approval that this is a sincere action. As campaigners, our job is to make people feel good – not just to play with data and email lists. So many people get the basics wrong. These emails are designed to be personal and make people feel good. An informal approach with a thanks is more personal. As evidence of these photos being important, our Campaigners become celebrities. When we do presneations at Greenfest and other conferences, we often have Care2 members come up to the booth and ask for our campaigners, or treat them like rockstars when they meet them. If you make it your goal to put your activists at the center of your messaging in a personal way, and craft your action alerts as stories, you’ll do wonders for your brand and the results of our campaigns. Small percentages mean a lot when you’re talking about large volume messaging programs. .1% can mean 10’s of thousands of dollars. Make it count.

5b finding new supporters AO community conference Presentation Transcript

  • 1. Finding New Supporters Justin Perkins Director Nonprofit Strategy [email_address] twitter: @elperko
  • 2. Are you ready to reach 100,000 supporters tomorrow morning?
  • 3. Why start now?
  • 4. The Cost of Getting Attention To grow 10,000 people/ month at 3% conversion = 333,333 monthly visitors = 33 Million web impressions from ads or links (at a click-through-rate of 1%) = The cost of 33 Million web impressions at a CPM of $10.00, would be $330,000 = The cost per email address would be $33.30
  • 5. 5 Rules of Thumb for List-growth
    • Viral is rare (usually)
    • You get what you pay for
    • Email drives online fundraising
    • Be prepared to be lucky
    • Staff time isn’t free, so measure it & compare to other options
  • 6. Paid Recruitment and Ads
    • Look before you leap!
    • Goal.
    • Audience .
    • Traffic .
    • Rates.
    • Resources.
    Copyright ©2008 Care2, Inc. All rights reserved 09/29/10
  • 7. Options for Nonprofit List-growth
    • Cost Per Lead (CPL)
    • Co-registration
    • Chaperoned Emails & Swaps
    • Banner/ Display Ads
    • Search Engine Marketing
    • Guerilla marketing
    • (Appends to DM list)
  • 8.  
  • 9. Mobile phone list Social media “friends” Direct mail list Email list Phone list
  • 10. OPPORTUNITY COST = Better or more profitable opportunities you miss choosing to do something else with your time or money.
  • 11. $47,000 $570
  • 12. CPA/CPL Advertising
  • 13. CPA/CPL Advertising
    • CPA (Cost Per Acquisition or Cost per Action)
    • CPL (Cost Per Lead)
    • Highest quality is through niche sites with relevant campaigns.
    • Net Cost per name ~ $1.00-$10.00+ depends on quality, targeting, quantity
  • 14. Co-registration (Co-reg)
  • 15. Co-registration (Co-reg)
    • Co-reg – you pay per name.
    • Usually not a high-quality option unless targeted.
    • Common tactic of Lead Gen Networks
    • “ Agree to receive emails from our partners”
    • Net Cost per Name ~ $.01-$100.00+
  • 16. Banner/Display Ads
  • 17. Banner/Display Ads
    • CPM-based pricing
    • CPM = Cost Per 1000 Impressions
    • Not recommended unless big budget
    • Net Cost per Name ~ $1.50-$100+
  • 18. PPC & SEM
  • 19. PPC & SEM
    • PPC = Pay Per Click usually refers to Google Adwords and the equivalent on Yahoo and MSN
    • SEM = Search Engine Marketing (paying for search engine ads)
    • Good for targeting, but volume limited
    • Net Cost per Name ~ $.75-$100+ (click doesn’t = name !!)
  • 20. Guerilla Marketing
  • 21. Social Network Widgets
  • 22. Guerilla Marketing
    • All efforts to drive traffic to your website including link swaps, PR, social networking, blogger outreach, SEO and “viral” campaign efforts.
    • Roughly 2-3% of website visitors sign up
    • Net Cost per Name ~ $.50-$200+
  • 23. Budget vs List-Growth Rate vs List Quality Page Low Quality High Quality Slow Growth (<1k/month) Rapid Growth (>8k/month) Collecting Opt-ins on your site ($) Large Targeted Community ($-$$) Viral Campaigns (priceless) General Portal ($-$$$) Canvassing/ Events ($$) Co-reg ($-$$$) Targeted List Swaps ($) Guerilla Marketing ($$ - $$$) List Append ($) CPM Advertising ($$$) SEM ($-$$$) Small Niche Community ($-$$)
  • 24. Tracking, Tracking, Tracking Campaign Summary: Budget: $50,500 Actions: 2,483 Cost Per Action: $20.34
    • What does it take to make a paid promotion campaign work? There is no guarantee any one ad or landing page will perform to your satisfaction.
    • Test and track results of ad images
    • Test and track results ad content
    • Test and track results landing pages
  • 25. Control Your Risk & Costs You can end up paying $105.63 or more for a single supporter. It’s less risky to maximize sites that guarantee CPL pricing, first.
  • 26. Example of Media Buy Tracking Copyright ©2008 Care2, Inc. All rights reserved 09/29/10 (Fundraising Goal)
  • 27. Media Buy Tracking (Advocacy) Copyright ©2008 Care2, Inc. All rights reserved 09/29/10
  • 28. RETURN ON INVESTMENT (ROI) = (Gain from Investment – Cost of Investment) ------------------------------ (Cost of Investment)
  • 29. RETURN ON INVESTMENT (ROI) “ If an investment does not have a positive Return On Investment, or if there are other unrealized opportunities with a higher ROI, then the investment should be not be undertaken.”
  • 30. Predicting ROI from Social Networks
    • Social Networks Aren’t Free…
    • a negative 75-95% ROI for fundraising
    • ~$5.00 per email acquired
    • ~$7.00 per action taken on emails acquired from social networks
    • Run the numbers first!
    • www.socialnetworkcalculator.com
  • 31. EMAIL $415,000 raised in 1 week vs. Facebook Causes $28,000 raised in 1 year
  • 32. Care2’s Approach to Marketing © Care2, Inc. p.
  • 33. Promotion of Campaigns via email © Care2, Inc. p.
  • 34. Contextual, Permission-based Recruitment © Care2, Inc. p. Permission-based Marketing After signing a petition the user is given the option to sign up for your list.
  • 35. Pledges
  • 36. Other Campaigns: Surveys & Polls
  • 37. So you have a list… Now what?
  • 38. Every Human Needs to… 1. Connect with a group 2. Have voice heard 2. Create and be creative
  • 39. Tell stories
  • 40.  
  • 41.  
  • 42. The Supporter is the Hero
  • 43. Keep it Personal
  • 44. Make global problem local
  • 45. Fulfill the supporter’s needs
  • 46. Help People Feel Good
  • 47. Nonprofit Marketing Tips & Care2 Info © Care2, Inc. p. .com Justin Perkins Director Nonprofit Strategy [email_address] twitter: @elperko