Doubling Your Christmas Appeal Appeal Income July 2009 Toronto V1 Jg

Unwrapping the magical steps to doubling your Christmas appeal income

What we’ll cover today 1. Setting the scene

What we’ll cover today 1. Setting the scene 2. Uncovering the magical steps

What we’ll cover today 1. Setting the scene 2. Uncovering the magical steps 3. Busting some myths

What we’ll cover today 1. Setting the scene 2. Uncovering the magical steps 3. Busting some myths 4. Final takeaways

This is why we do what we do

What do you want?

Defining an appeal • Solicitation by direct mail (to individuals) • For the purposes of today to existing donors (warm, in-house) • With an ask for cash (or a monthly gift) and/or a request to take some other action (I.e. survey)

What are we seeing? • Developed 22 Christmas appeals in 2008 • In Australia, NZ, Hong Kong and Canada • 13 up on income versus 2007, 9 down on 2007 • Overall income 2008 around $8.5m CAD versus $8m CAD in 2007 • Individual giving still on the rise • Monthly giving strong, still growing • Cash giving stagnant (donors over $1k not giving at same levels) • Organizational income falling • Specifically corporate support

What are we seeing? • Developed 18 appeals in May/June 2009 • In Australia, NZ • 7 up on income versus 2008, 11 down on 2008 • Overall income 2009 around $9.9m CAD versus $9.2m CAD in 2008

Uncovering the magical steps 1. Targeting the right people

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right 4. Getting the letter right

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right 4. Getting the letter right 5. Getting personal

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right 4. Getting the letter right 5. Getting personal 6. Getting the execution right

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right 4. Getting the letter right 5. Getting personal 6. Getting the execution right 7. Making it easy to respond

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right 4. Getting the letter right 5. Getting personal 6. Getting the execution right 7. Making it easy to respond 8. Getting the follow up right

Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right 4. Getting the letter right 5. Getting personal 6. Getting the execution right 7. Making it easy to respond 8. Getting the follow up right 9. Test, test and test again

Talking to different people

How do I decide who to ask?

How do I decide who to ask? Recency Frequency Value indicates indicates indicates how likelihood of likelihood of much they giving giving will give

How do I decide who to ask? Recency Frequency Value 0-12 months >1 a$1000+ 13-24 1 b$500-$999.99 25-36 c$250-$499.99 37-48 d$100-$249.99 49-60 e$50-$99.99 61-72 f$25-$49.99 73-84 g$10-$24.99 85+ h$0.01-$9.99

Drilling down Recency Frequency Value 0-12 months >1 a$1000+ 13-24 1 b$500-$999.99 25-36 c$250-$499.99 37-48 d$100-$249.99 49-60 e$50-$99.99 61-72 f$25-$49.99 73-84 g$10-$24.99 85+ h$0.01-$9.99

How often should I ask?

Ask Thank Thank The donor communications cycle Ask © Pareto Fundraising May 2008 Care

Some tips • RFV is the most important thing to drive the success of your appeal • Consider different packs for different audiences • Include confirmed bequestors, monthly givers if they have given historically

Asking for the right thing Segment R F V Qty to Mail Ask 1 Ask 2 Ask 3 001 0-12 >1 $500+ 246 *1.5 *2.5 *4 $100- 002 0-12 >1 $249.99 1,011 *1.5 *2.5 *4 003 0-12 >1 $50-$99.99 2,555 *1.5 *2.5 *4 $100- 004 0-12 1 $249.99 4,340 *1.5 *2.5 *4 005 0-12 1 $50-$99.99 6,618 *1.5 *2.5 *4 $100- 006 13-24 >1 $249.99 1,330 *1.25 *2 *3

Personalized asks • Based on previous donation patterns • Used to prompt increase of donation amount • Consider using highest gift, last gift, average gift prompts to elevate gift level

Personalized asks • Based on previous donation patterns • Used to prompt increase of donation amount • Consider using highest gift, last gift, average gift prompts to elevate gift level • Repetition of ask increases response • Personal (and increased) ask amount increases average gift

Personalized asks

Some tips

Some tips • “I need you to <insert action>…”

Some tips • “I need you to <insert action>…” • “This is the most important letter I have ever written…”

Some tips • “I need you to <insert action>…” • “This is the most important letter I have ever written…” • “…respond by the 30th of June..”

Some tips • “I need you to <insert action>…” • “This is the most important letter I have ever written…” • “…respond by the 30th of June..” • “I need to raise $250,000”

Some tips • “I need you to <insert action>…” • “This is the most important letter I have ever written…” • “…respond by the 30th of June..” • “I need to raise $250,000” • Singularly focused**

Remember to tell them • What the single most important thing is that you want them to do (proposition) • Why they should give you money • By when • All of this in the first 3 paragraphs and in the P.S.

Singularly focused

Asking for two things

Emotion

A story

Repetitive and personalized asks

Urgency

Target and deadline

As long as it needs to be

Colloquial language

A recap: what you must have • Emotion • A (human) story • Repetitive and personalized asks • Urgency • Target and deadline • As long as it needs to be • Colloquial language

A guide to personalization • Make the recipient feel like an individual • Apply the limited resources to where you will get the best return • Use survey information • Acknowledge previous giving • Recognize if they make monthly gifts or have included your charity in their Will

Using the data

Using the data, donor type

Using the data, area

Use transactional history

Using survey information

Creating emotional connections

Creative is more than pretty pictures

Creative execution: must haves • A brilliant letter

Creative execution: must haves • A brilliant letter • Lift devices support the letter

Creative execution: must haves • A brilliant letter • Lift devices support the letter • Authenticity

Creative execution: must haves • A brilliant letter • Lift devices support the letter • Authenticity • Follow up/reminder mailing for ‘larger’ mailings

The end result?

Heart Foundation

Ease of response • Eliminate barriers or distractions • Make sure the reply mechanism integrates with the letter • Include an involvement device where there is an opportunity to do so • Minimize response channels*

Getting the follow up right • Thanking • Measuring response • Feeding back – the impact on beneficiaries • Post campaign de-brief

Thanking • Develop an acknowledgement strategy • Thank promptly • Use of the words ‘thank you’ • Personalized response • Include handwritten notes and PS where possible • Don’t ask the donor to do anything else

Measuring response

Gift level versus ask 70.0% 61.8% HV PACK 60.0% STD PACK 50.0% 47.6% 40.0% 30.1% 30.0% 22.3% 19.6% 18.6% 20.0% 10.0% 0.0% <Ask1 Ask1 >Ask1

Impact of involvement devices 8% 16% Sent Letter only Sent Donation, no Letter Sent Letter AND Donation 75%

Measuring recency Net Mailed RR% Gross income Ave Gift ROI income Cash Appeal Donor 0-12 35,142 26.0 $ 1,192,133 $ 1,105,750 $ 130 13.8 Cash Appeal Donor 13-24 10,565 17.0 $ 210,445 $ 184,867 $ 117 8.2 Cash Appeal Donor 25-36 6,477 6.4 $ 59,425 $ 47,573 $ 143 6.5 Cash Appeal Donor 37+ 8,238 4.5 $ 46,751 $35,359 $ 127 4.1

Feeding back Responded to End of Year appeal You’ve already helped us get off to a great start with your gift to our recent appeal in support of our work in tackling dangerous climate change. Thanks to your< gift of $<don> – and the overwhelming response that I received from your fellow supporters – we’ve raised the $250,000 we need to double our climate change campaign this year.

Consider testing • Ask prompts (highest gift v last v average)

Consider testing • Ask prompts (highest gift v last v average) • Impact of lifts

Consider testing • Ask prompts (highest gift v last v average) • Impact of lifts • Impact of involvement pieces

Consider testing • Ask prompts (highest gift v last v average) • Impact of lifts • Impact of involvement pieces • Long term cohort tests

Consider testing • Ask prompts (highest gift v last v average) • Impact of lifts • Impact of involvement pieces • Long term cohort tests • Letter length

Some rules • Don't test for the sake of testing

Some rules • Don't test for the sake of testing • Test stuff that will have an impact, not because it seems like fun

Some rules • Don't test for the sake of testing • Test stuff that will have an impact, not because it seems like fun • Make sure the volumes are sufficient to make the results statistically valid

Some rules • Don't test for the sake of testing • Test stuff that will have an impact, not because it seems like fun • Make sure the volumes are sufficient to make the results statistically valid • Ensure you think through what the hypothesis of the test is

A recap: Uncovering the magical steps 1. Targeting the right people 2. Asking for the right thing 3. Getting the message right 4. Getting the letter right 5. Getting personal 6. Getting the execution right 7. Making it easy to respond 8. Getting the follow up right 9. Test, test and test again

“It won’t work in a recession”

MSF Canada Seasonal Appeal 2009

Did it work? • Net income increased from $1.0m to $1.7m • Response rate increased from 14% to 18% • Reactivated over 2,500 donors

Why did this work? • Brilliant, empowering copy that asked repetitively • We stretched people (HG in last 2 years x 1.25) • It was authentic • It was really easy to respond • We reminded donors of the importance (3 weeks later)

Starlight Foundation May Appeal 2009

Did it work? • Gross income $614,000 (AUD) • Net income $500,000 (AUD) • Doubled income from previous year • Most successful appeal ever

Why did this work? • Brutally honest • Genuinely urgent • It was personal (30 uses of the word 'I' and 20 uses of the word 'you' in a four page letter) • It pulled at the heart strings • Managed to maintain credibility despite crisis

“It only works for big charities”

“It only works for big charities” • Australian charity with small individual database • Attended a Pareto Fundraising workshop • Interviewed service workers for a story • Segmented database by RFV and tailored ask • Wrote a 3 page letter and separate response mechanism – CEO said: ‘No one will read this’ • Created a sense of urgency and emotion

From this

To this

The impact Samaritians Appeals (Before and After) $160,000 $140,000 $120,000 $138,000 $100,000 $80,000 $89,000 $60,000 $40,000 $20,000 $0 Winter 2004 Winter 2005

“Don’t send appeals to monthly givers” $138,000 $89,000

“Don’t send appeals to monthly givers” Response Rate Recency Prev gifts Value 26.13% Monthly Givers 0-12 Multi $100+ 17.43% Cash only 0-12 Multi $100+ $138,000 4.14% Monthly Givers 0-12 Single $100+ 2.38% Cash only 0-12 Single $100+ $89,000 48.66% Monthly Givers 0-12 Multi $50-$99.99 20.44% Cash only 0-12 Multi $50-$99.99 6.73% Monthly Givers 0-12 Single $50-$99.99 5.93% Cash only 0-12 Single $50-$99.99

“Don’t send appeals to monthly givers” Response Rate Recency Prev gifts Value 26.13% Monthly Givers 0-12 Multi $100+ 17.43% Cash only 0-12 Multi $100+ $138,000 4.14% 2.38% Monthlies rock! Monthly Givers Cash only 0-12 0-12 Single Single $100+ $100+ $89,000 48.66% Monthly Givers 0-12 Multi $50-$99.99 20.44% Cash only 0-12 Multi $50-$99.99 6.73% Monthly Givers 0-12 Single $50-$99.99 5.93% Cash only 0-12 Single $50-$99.99

BUT, there is an exception.. $138,000 $89,000

Street recruits don’t respond Recruited straight to Cash Given (ie have Response Rate regular giving by… they given a one off donation since recruited?) $138,000 Other No 11.40% $89,000 Face to Face No 1.10% Other Yes 23.80% Face to Face Yes 7.10%

“No one will read a long letter” Resp Mailed Cost Resp Avg Gift Income ROI Net Income Rate $138,000 $89,000 4 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769 2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129

“No one will read a long letter” Resp Mailed Cost Resp Avg Gift Income ROI Net Income Rate $138,000 4 pages beats 2 pages $89,000 4 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769 2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129

“No one will read a long letter” Mailed Resp Rate $138,000 Gross Income Average Gift Net Income ROI $89,000 4 page letter 4,083 11.6% $21,624 $46 $19,056 0.89 6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98

“No one will read a long letter” Mailed Resp Rate Gross Income Average Gift $138,000 Net Income ROI 4 page letter 6 pages beats 4 pages $89,000 4,083 11.6% $21,624 $46 $19,056 0.89 6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98

“ROI is the most important measure” 10.00 $300,000 Real charity - change in ROI 9.00 $250,000 8.00 ROI 7.00 $200,000 6.00 ROI 5.00 $150,000 4.00 $100,000 3.00 2.00 $50,000 1.00 0.00 $0

“ROI is the most important measure” 10.00 $300,000 Real charity change in ROI and Net income 9.00 $250,000 8.00 Net 7.00 ROI $200,000 6.00 ROI 5.00 $150,000 4.00 $100,000 3.00 2.00 $50,000 1.00 0.00 $0

Final takeaways • Ask when you need the money, feedback and care

Final takeaways • Ask when you need the money, feedback and care • Always remember you are mailing real people – think about your own relationships

Final takeaways • Ask when you need the money, feedback and care • Always remember you are mailing real people – think about your own relationships • Be disciplined with your direct marketing

Final takeaways • Ask when you need the money, feedback and care • Always remember you are mailing real people – think about your own relationships • Be disciplined with your direct marketing • Scan what’s happening around you, including abroad

Final takeaways • Ask when you need the money, feedback and care • Always remember you are mailing real people – think about your own relationships • Be disciplined with your direct marketing • Scan what’s happening around you, including abroad • Apply the Pareto Principle

The Pareto Group exists to make the world a better place, by expanding the not-for-profit sector's capacity worldwide to ensure as many beneficiaries are helped as possible. jonathon.grapsas@paretofundraising.com www.jonathongrapsas.blogspot.com 416 915 4114 www.paretofundraising.com

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Doubling Your Christmas Appeal Appeal Income July 2009 Toronto V1 Jg

by Pareto Group on Jul 28, 2009

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