Breakthrough Multichannel Fundraising 04 05-12

Breakthrough Multichannel Fundraising #12NTCfundrAnnalise Briggs, Mercy CorpsSarah DiJulio, M+R Strategic ServicesClinton O’Brien, Care2

Multichannel donors are valuable! 350 Annual Revenue Per Donor 300 250 200 150 100 50 0 Offline (no Offline (with Online Multichannel email) email) * Ratios from Target Analytics donorCentrics data for international relief organizations

So, what the heck is “multichannel fundraising,” anyways?

Multichannel Marketing What: Message When: Timing Where: Channel Who: Audience

Holistic, Supporter-Centric Approach Mail Email Your TelemarketingMobile Supporter Social Face-to-FaceNetworks Websites Television (DRTV)

Takeaways1. Methods to find and on-board donor leads for multichannel cultivation approaches. • Meh2. The latest and greatest multichannel approaches that are yielding donor conversions, including monthly sustainers, and producing strong fundraising results. • Yes!3. Methods for leveraging behavioral and demographic data to enhance targeting and results from multichannel campaigns. • Meh SESSION TITLE Slide 7

Multi-Channel Fundraising A Mercy Corps Case Study Annalise Briggs

Who We AreMercy Corps exists to alleviatesuffering, poverty and oppressionby helping people build secure,productive and just communities. BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 9

Is Multi-Channel Value a Myth?CY11 Revenue Per Donor Actuals BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 10

Multi-Channel Fundraising:A Case Study of Monthly Giving1. Identify the Obstacles2. Provide Three Takeaways3. Reveal the Results BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 11

Obstacles: Silos • Staff • Budgets • Fundraising Campaigns • Donor Experience • Monthly Giving Programs • Databases BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 12

Obstacles:Multiple Programs & One Channel 1. Give For Kids 2. Heroes Against Hunger 3. Partners In Mercy BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 13

The Journey:3 Methods of Migration Integration Cultivation Communication BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 14

Takeaway 1: Integration Reorganized Staff Budgets Fundraising Campaigns Donor Experience Monthly Giving Programs Databases BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 15

Takeaway 2: Cultivation BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 16

Takeaway 3: Communication BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 17

ResultsZERO Cancellations Changes in Communication Preferences BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 18

Two Multi-Channel Campaigns:Conversion & Upgrade BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 19

Results:Growth in All Metrics BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 20

Results: Testimonials “ Thank you for the little wool ram & note card about Elena. It has greatly personalized my sterile, monthly donation made through my credit card. I have the little ram hanging on my work cubicle wall to enjoy and to remind me of why I’m making a monthly donation. The world just became a little smaller. - Lynn “ BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 21

Results: Testimonials“Dear Dan, I love the name “Partners In Mercy” and thank you for your letter. Mercy Corp’s effort in keeping donors aware of the work you do and the way our donations are spent is well worth it. I wish I could give more and am so grateful that my small monthly donation is helping children around the world. Best wishes, Wilma “ BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 22

Multi-Channel Fundraising:A Mercy Corps Case Study1. Overcoming Silos2. Integration, Cultivation & Communication3. Growth in All Metrics BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 23

BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 24

Multi-Channel Fundraising Lessons from Care2 and Our Nonprofit ClientsClint O’BrienCare2

How Care2 and our 19 M MembersBenefit NonprofitsVISIBILITY & TRAFFIC• 16 M unique visitors/mo., ranked 115th in USA• 150 M additional citizens reached via our our network of media partnersVICTORIES for CAUSES• #1 petition site in the world, with 90 M petition signings over 12 years• 60K new petitions created each yearDONORS• Pioneer and leader in online, behaviorally targeted, permission based recruitment of multichannel donor leads for nonprofits• 750+ major nonprofits use Care2 as a trusted source to find new, prequalified donors Slide 26

Multi-Channel Fundraising: Some Actual Donor Conversion Results 800 Other 700 Telemarketing# Leads Converted to Donor, Per Month Direct Mail 600 Online 500 400 300 200 100 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Months Since Start of 22-Month Acquisition Campaign

Multi-Channel FundraisingCase Study Nature Conservancy Canada (NCC) is a leading environmental charity that conserves and protects areas of natural diversity BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 28

Case Study• Channels Used – Email, Direct Mail and Telemarketing• Goals: • Generate actions in support of NCC’s mission and to build loyalty • Generate new donors • Including new monthly sustainer donors

Online Acquisition & Welcome Email Series Most recent Survey newsletter8,000 new supporters acquired from Care2 in Feb-Mar 2011 0 2 wks 4 wks Donation appeal. Tested two versions: First welcome “Opportunity” email and “Threat”

Direct Mail and TelemarketingDirect Mail Prospecting pieces 4 wks 5 wks 6 wks Telemarketing calls

Case Study ResultsCost to acquire = $20,000Cost of DM and TM outreach = $34,284Total Cost = $54,284Total Revenue so far = $28,219 (as of 2/28/2012)Net Annualized Cost Per Donor Acquired: $35.39Net Annualized Cost Per Sustainer Acquired: $195.06Average Gifts:Single: $47.53Monthly: $16.28 / monthTelemarketing & DM6.1 % conversion rate•Includes single donors and monthly sustainers (≈10 gifts/yr)•There are 88 monthly sustainers so far

Parting Shot #1Speed (Recency)Matters• Human Rights Campaign reported donor pledge rates via telemarketing were more than 30 percent higher for newly acquired online leads if phone outreach took place within the first four months after acquisition. Source: 5700 phone contacts (over 12 mo.) with HRC supporters who were recruited by Care2 in April-May 2010. BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 33

Parting Shot #2Donors and Information from One ChannelCan Feed Another Channel•HRC’s acquisition campaign with Care2 included anoptional field for people to indicate if they were themselvesLGBT or not. This information enabled HRC to do targetedDirect Mail pieces Campaign Package Approach Response April 2010 Traditional 0.26% Targeted 0.61% September 2010 Traditional 0.35% Targeted 0.57% February 2011 Traditional 0.12% Grand Total 0.32%• DM packages with targeted (straight vs. LGBT) messaging strongly out-performed the non-targeted packages BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 34

Parting Shot #3 Adding an End-of-Funnel Fundraising Ask …to an Online Donor Lead Acquisition Campaign BREAKTHROUGH MULTI-CHANNEL FUNDRAISING Slide 35

Combined ListGrowth +FundraisingCampaign forHSI• Pledge campaign for HSI to identify and recruit Care2 members who are passionate about ocean conservation• Conducted Feb/Mar 2012

Combined List Growth + Fundraising Campaign • Screen after supporter signs up invites them to take extra step of donating to HSI, using secure donation form / widget Benefits:• Some “instant” donors• Faster payback on acquis’n campaign• Good donor cultivation • Sends signal to all newly acquired supporters: You should expect to Form and donation processing be asked for money sometimes via Engaging Networks partnership

ThanksClint O’BrienCare2202-785-7308clint@care2team.com

Multichannel HypothesesSarah DiJulio,M+R Strategic Services

Hypothesis #1New Prospect Conversion to Donor

Telemarketing Calls

Telemarketing Data Overlay* Response rates skewed due to small sample sizes! Not HRC’s data!

Telemarketing Data Overlay Not HRC’s data!

Results?We piloted this strategy with three nonprofit clients:• Human Rights Campaign• Mercy Corps• OceanaFor Online Acquired Prospects• Email Welcome Series – THUMBS UP!• Telemarketing – Thumbs Down / Meh• Direct Mail – Double Thumbs DownFor Face-to-Face Acquired Prospects (HRC only)• Email Welcome Series – Thumbs Down (may be warm-up effect?)• Telemarketing – THUMBS UP!• Direct Mail – Double Thumbs Down Breakthrough Multichannel Fundraising Slide 52

What we learnedEmail prospects are valuable• Even without the multichannel conversion, acquisition of new email prospects from sources like Care2, Change.org, and other vendors is paying off for many nonprofits, within 12-24 months.• The email “welcome series” works, but is very labor intensive. Only worth it if you are acquiring large volumes of new recruits OR you can automate it!If your constituency has a festival or face-to-face opportunities, collect names and test telemarketing those people.We can still convert to multichannel donor on the followup, once we’ve got their first online gift.This strategy may still pay off if you have puppies, an emergency, and/or a huge brand name. Breakthrough Multichannel Fundraising Slide 53

Hypothesis #2Direct Mail “Chasers”

Results & LearningsResults• Referencing DM piece in the email had little to no effect on the performance of the email.• We don’t know what the impact was on the performance of the mail.• It’s hard to track the impact of multichannel marketing!What We Learned• If you are sending email and DM at the same time, there’s certainly no harm in referencing the mail piece, but this IS extra work.• Get your tracking in place before you test this! Breakthrough Multichannel Fundraising Slide 57

Hypothesis #3 Post-TM Email toPledgers, Hedgers and Refusals

Pledgers Sample EmailDear <first-name>,Thank you so taking the time to speakwith us on the phone, and for pledging agenerous monthly gift of $X.Please fulfill your pledge here usingour secure website.

Hedgers Sample EmailDear <first-name>,Thank you so taking the time to speak with us on thephone, and for considering making a monthly donation.Here at Nonprofit X, we rely on the support of membersof our monthly giving program to provide criticalassistance to families and children in desperatecircumstances around the world – including families whorely on our help to survive the brutal hunger crisis in theHorn of Africa.Please help rush critical aid to people who urgentlyneed help in Horn of Africa and around the world –make a monthly gift now on our secure website.

Refusals Sample EmailDear <first-name>,Thank you so taking the time to speak with us on the phone. We deeply appreciate your support for ourmission and your commitment to helping children and families in most desperate need around the world.Here at Nonprofit X, we rely on our supporters to help provide critical assistance to families around theworld – including families who rely on our help to survive the brutal hunger crisis in the Horn of Africa.Supporters like you are making a crucial difference by helping send food, clean water, medicine, andmuch more to people fighting for survival in Somalia, Ethiopia, and Kenya, where 12 million people are atrisk after a devastating drought.We’ve been able to help over 1 million people in drought-affected areas. But the needs are great, andchildren are continuing to starve to death each day. We will continue to keep you updated on the situationas it progresses, and as we continue to rush aid to the people who need it most.Again, thank you so much for your support during this critical time.Sincerely,SignerPS – If you’d like to make a gift in the future, you can help save lives of people in the Horn of Africaand other desperate places around the world by making your monthly gift on our secure website.

11 Sustainers 15 Donations 10 Sustainers 37 DonationsResults for sustainer revenue assume 24 lifetime gifts per sustainer.

What We LearnedThis works! Produces a 3.5% lift on sustainer revenue and 6.5% lift on one- time revenue from the TM calls.But it’s a lot of work.If your TM vendor can do this easily, highly recommended.If it’s not easy to implement, though, probably not worth it! Breakthrough Multichannel Fundraising Slide 64

In ConclusionNo reason NOT to do multichannel marketing when it’s easy. Shared visual, message, timing.When it’s hard, really evaluate the potential ROI. If you spend $5,000 in staff time to implement a strategy that nets an additional $3,000 in revenue, it’s not worth it. Do the math before you start. Breakthrough Multichannel Fundraising Slide 65

Evaluate This Session!Online using #12NTCfundr at www.nten.org/ntc/eval

Breakthrough Multichannel Fundraising 04 05-12

by sarahdijulio on Apr 05, 2012

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Breakthrough Multichannel Fundraising 04 05-12 Presentation Transcript