Understanding Digital Direct Marketing and Fundraising

Understanding the Value of Digital Direct Marketing Rachel Beer, Director, beautiful world 25 March 2010 March 25, 2010 www.hellobeautifulworld.com

Who is fundraising successfully online?

Who is doing this?

What is digital marketing? March 25, 2010 www.hellobeautifulworld.com

Digital marketing
Promotion using the Internet and other interactive channels
Many techniques are contained within the category of ‘Internet Marketing’
Other channels:
Mobile (SMS and MMS) and digital outdoor
Covers most traditional marketing areas, such as Direct Marketing and CRM
March 25, 2010 www.hellobeautifulworld.com

Why do charities need to do digital? March 25, 2010 www.hellobeautifulworld.com

“ Direct mail has had decades to be honed … smart organisations should devote an important proportion of their fundraising budgets to things that might become the mainstay of the future.” Anne-Marie Huby, Managing Director, JustGiving March 25, 2010 www.hellobeautifulworld.com

ABC figures 2000-2009 Source Guardian.co.uk/media Newspaper circulations in 2009

Internet usage
70% of households in UK with Internet access
18.3 million homes
45 million Internet users
35 million adults
10 million 7-14s
52% male, 48% female
Source: Nielsen, TGI, UK National Statistics

Something big happened in February 2004 March 25, 2010 www.hellobeautifulworld.com

March 25, 2010 www.hellobeautifulworld.com Facebook’s phenomenal growth

http://icanhaz.com/jgfb Facebook: biggest referrer to JustGiving

Around 26 million users in UK
400 million users internationally
Half of Global Top 100 websites have implemented Facebook Connect
Over 14.6 million unique users in the UK

We now have multi-channel lives [email_address] [email_address] www.facebook.com/me www.lifestream.com/me www.photos.com/me www.MyBlog.com Mobile: 07970 543321

And donors want us to use those channels March 25, 2010 www.hellobeautifulworld.com

When shown a list of communication tools and asked which charities should use more … only ‘social networking’ and ‘communication by email’ were chosen by the majority.
Sources: National Statistics, CommScore global, YouTube & Facebook Source: How to Connect with Donors, CAF, February 2010

“ Waste less funds on glossy reports and ‘magazines’”
“ Stop the endless mail outs, especially those with gifts”
“ Bring in e-mail only communications for regular supporters – will reduce costs”
“ Reduce physical mailings to reduce costs – more electronic mail”
“ I want to emphasise e-mail with weblink rather than post … would have just as great an impact on me”
“ Must reduce the amount of unsolicited mail they send. It must cost a fortune and is often very high quality.”
“ Make more of electronic mailings and social networking”
Source: How to Connect with Donors, CAF 2010

Summary case for investment
Print media no longer rule the world
Wide adoption of digital media
Mobile handsets increasing Internet usage
Response rates dropping
Cost per acquisition rising
Reliance on Face-to-Face
Too many eggs in one basket
Future proofing strategy

“ It makes sense to continue investing in online fundraising and testing what works, because if we invest only in the traditional side, the charity will fall behind the times.” Sharon Schofield, Deputy Director of Fundraising and Communications, The Brooke March 25, 2010 www.hellobeautifulworld.com

‘ About two-thirds of donors who give in response to direct response TV adverts do so online, and people who sign up online tend to stay with the charity for longer. Income raised online grew by 48 per cent in the past financial year.’ March 25, 2010 www.hellobeautifulworld.com

Benefits of Digital March 25, 2010 www.hellobeautifulworld.com

Benefits
Lead times can be shorter
Get results almost instantly
Optimise continually throughout campaigns
Test propositions discreetly and roll out quickly
Social media is a great way to test the water with a proposition without committing budget
If it’s not good enough to pass it on, it’s probably not good enough

How to measure the value? March 25, 2010 www.hellobeautifulworld.com

“ Fundraising directors are used to the reassuring return on investment numbers they get from face-to-face and direct mail – although these figures are falling dramatically…” March 25, 2010 www.hellobeautifulworld.com

“ These financial indicators are not necessarily appropriate for online fundraising because they don’t tell you how well you will do in future…” March 25, 2010 www.hellobeautifulworld.com

“ Charities need to start measuring more than just how much they can expect in the short term.” March 25, 2010 www.hellobeautifulworld.com Anne-Marie Huby, Managing Director, JustGiving

Cost per acquisition?
Cost per acquisition is important
Can’t expect new activity to equal tried and tested traditional activity
A t least not initially
But traditional activity should be used as a benchmark

True value
The only true measure is net lifetime value
Or at least one, two, three, four and five-year net value
Understand, and make decisions, based on the ongoing value of the donors you recruit, not just the ROI at point of acquisition

How to calculate this?
Factor in:
Donor development costs
Subsequent income: further donations
Attrition
Analyse and understand:
Propensity to upgrade & respond to cross-selling
Propensity to respond to other media
How to nurture optimum net value

As ever… March 25, 2010 www.hellobeautifulworld.com

Donor development is vital Long-term ROI is dependent on what you do after the first gift

The Role of Digital March 25, 2010 www.hellobeautifulworld.com

The role of digital
Outreach and engagement with prospects
Deepening relationships with supporters
A vital set of tools to stem attrition
Rich content provides a richer experience
Opportunity for dialogue
Opportunity to work together
Emergency fundraising
Quick, instant and very flexible

The role of digital
Not just a set of tools for you
Your donors are also empowered to fundraise and spread messages via them
Emergencies
Events fundraising
Personal appeals
Self-selecting donors
Have a higher lifetime value if you value them

Integration March 25, 2010 www.hellobeautifulworld.com

Integrating digital
Much more than trying to drive existing donors to give online, by including URL in mail packs
This will have limited impact
All acquisition, using any medium, should be accompanied by
Paid search
SEO
Online content

Taking an integrated approach Initial advertising results gained with best site. Multiplied in future campaign typically 3 to 5 times

Integrating digital
Must have an appropriate donor development programme in place for digital donors
You must test and refine it, just like you’ve been doing for years for donors recruited through traditional media
Email is a vital tool
As are social media

A word about print
Don’t totally discount it
Make sure it’s good
And not too frequent
Quality not quantity

Getting Results March 25, 2010 www.hellobeautifulworld.com

The social web has changed us
It’s the user’s web more than ever before
They self-select from a wide range of options
Push and interruption marketing doesn’t work as well as it used to
Pull and engagement techniques taking over

Our role? March 25, 2010 www.hellobeautifulworld.com

Be found easily March 25, 2010 www.hellobeautifulworld.com Be understood easily Provide tools to help people help us Be responsive

The evidence? March 25, 2010 www.hellobeautifulworld.com

The atheist bus phenomenon http://justgiving.wordpress.com/2008/10/24/atheist-bus-rides-again

Growth in user created events

Who is giving online? March 25, 2010 www.hellobeautifulworld.com

Is this your first online donation?

Where else is the growth?
Paid for search
Classified advertising
Video
Social media

Make the most of rich media
Video and audio can have greater cut through
Rich content hubs increase
Engagement
D well time
C onversion to donation
Show evidence
Give feedback
Deliver an experience

Understand the media mix Source of donation ask

Choose the right media for the audience Do tools used depend on age?

The many roles of social media March 25, 2010 www.hellobeautifulworld.com

Optimise social media for fundraising

Using campaign insights to enhance future advertising

And stop good people giving! March 25, 2010 www.hellobeautifulworld.com Bad websites kill online donations

Why charity websites lose donations Increasing Online Giving to Non-Profits and Charities (US study), Jakob Nielsen, March 2009

Why charity websites lose donations
Usability problems: page and site design
unintuitive information architecture
cluttered pages
confusing workflow
banner-blindness
over-formatting
Content issues: writing for the web
unclear or missing information
confusing terms

Users spend 80.3% of their time on web pages above the fold. March 25, 2010 www.hellobeautifulworld.com So put the important stuff there!

Information donors need to know March 25, 2010 www.hellobeautifulworld.com Once they have made the decision that they want to donate, what do they need evidence of before they do donate?

If you take one thing away… March 25, 2010 www.hellobeautifulworld.com

… it should be this:
Digital media are continually evolving
They have changed:
How people behave & communicate
How we relate to brands – including charities
How we make decisions
Our expectations
And this is all going to keep changing!

Finally, no presentation on digital would be complete without… March 25, 2010 www.hellobeautifulworld.com

Connect with me:
Twitter: www.twitter.com/rachelbeer
Email: [email_address]
On most social media as ‘rachelbeer’
Slides: www.slideshare.net/rachelbeer

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Understanding Digital Direct Marketing and Fundraising

by Rachel Beer on Mar 25, 2010

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