Totally Integrated Fundraising


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  • E-Newsletters: Not mailing a PDF Not necessarily mailing the entire newsletter if more than 4 pages Use articles written in Word and import into e-mail either HTML or otherwise. Now you have content. Quarterly newsletter with 3 major articles in it = 12 monthly e-mails. Monthly newsletter with 4 major articles = weekly e-mail. Pull rather than Push – Use Direct Mail, PSAs, DRTV to drive traffic to the website or to unique URLs for “more information” and conversion and then leave the option to use inbound toll free for those nervous about the web.
  • Example of what some already do: DRTV uses inbound 800 and often outbound mail fulfillment – why not offer the web as an additional alternative CAP had been doing a high dollar videotape which was successful to 20,000 donors. Tested Mail-Phone-Mail and Phone-Mail-Phone and was able to mail to 75,000 donors at the same cost by losing the videotape and raise $1 million net income from that group. Emergencies work on web, why not using e-mail. Alternative from Web based donation is inbound toll-free Outbound telemarketing is annoying unless it is a thank you and an upgrade.
  • Summary of Integration possibilities
  • Don’t make your site an online brochure or press release. Talk in the voice of your organisation.
  • Don’t make your site an online brochure or press release. Talk in the voice of your organisation.
  • Conversion rates from site visitors stay stable so the key in increasing the number of visitors. GPA table of whales campaign donors come from. Screenshots of web site, banner, TVC etc. Search engines are most important-list properly Banners-cheap, low response rates, better at lead generation than direct solicitation, untargeted Direct mail-need to demo added value of using the web (more info, online incentive etc)
  • Can be a mirror of the same form but with distinct URL, so you know how the donor got to the donation page. Use web trends or some other web analysis tool to see how people move around your site. Survey online and offline donors.
  • Two Public Broadcasting examples of Integration between Mail and e-Mail or Web – this is e-mail
  • Integration with Web See two packages – one mail, one Web but using similar copy and art
  • Laura Blanchard who spoke at E-Philanthropy Expo uses this phrase to illustrate the need to experiment and learn. WAP Jupiter Research Point of Presence boxes – and ATMs
  • Viral Campaigns – great for legislative action and emergencies Useful information – Medical (London Hospital – eating disorders – patients report what they ate and get advice on-line – reduction in servicing costs) Other medical – advice on living with diabetes, or support group for living with someone who has Parkinson’s disease. Ask recipient to pass on to a friend who can use the information.
  • Imagine child sponsorship – your home page has pix of your sponsored child, the news headlines include news and weather from Guatamala or wherever you child is from. It personalizes and reinforces the relationship in a way that cannot be done in direct mail.
  • Suggestions regarding the use of the web
  • Totally Integrated Fundraising

    1. 1. Totally Integrated Fundraising . . . and as a bonus, rewards for questions Geoffrey W. Peters President Creative Direct Response
    2. 2. Corporate Partnerships Direct Mail Planned Giving Work Place Giving Telemarketing Advocacy Web Strategy Advertising Special Events In-Kind Sponsorships What is Totally Integrated Marketing? Your Charity
    3. 3. <ul><li>Remain focused on existing programs </li></ul>Benefits of Integration
    4. 4. <ul><li>Remain focused on existing programs </li></ul><ul><li>Try new concepts without taking big risks </li></ul>Benefits of Integration
    5. 5. <ul><li>Remain focused on existing programs </li></ul><ul><li>Try new concepts without taking big risks </li></ul><ul><li>Develop new “National Programs” </li></ul>Benefits of Integration
    6. 6. <ul><li>Remain focused on existing programs </li></ul><ul><li>Try new concepts without taking big risks </li></ul><ul><li>Develop new “National Programs” </li></ul><ul><li>Take advantage of what works for other charities </li></ul>Benefits of Integration
    7. 7. <ul><li>Remain focused on existing programs </li></ul><ul><li>Try new concepts without taking big risks </li></ul><ul><li>Develop new “National Programs” </li></ul><ul><li>Take advantage of what works for other charities </li></ul><ul><li>Create new ideas sculpted to fit your specific strengths </li></ul>Benefits of Integration
    8. 8. Why integrate already successful marketing programs? TO GENERATE NEW REVENUE! - Repair and revive existing programs - Establish new concepts for programs - Establish new fundraising channels But does $1 + $1 really equal $3?
    9. 9. Stimulus - Response <ul><li>Postage and mail costs continue to rise </li></ul><ul><li>Too much competition and too much clutter </li></ul><ul><li>Negative reactions to banners and spam </li></ul><ul><li>Outbound phones viewed as intrusive </li></ul><ul><li>DRTV too expensive and segmented </li></ul><ul><li>Conversions to e-mail and e-newsletters </li></ul><ul><li>Consistent reinforcing messaging </li></ul><ul><li>Use other media to pull rather than push </li></ul><ul><li>Inbound phones driven by mail and internet </li></ul><ul><li>Changed formats and use of URLs for more info. </li></ul>
    10. 10. Mixing Media <ul><li>Child Sponsorship and Disasters/Emergencies </li></ul><ul><ul><li>DRTV – inbound 800 – mail fulfillment </li></ul></ul><ul><li>High Dollar Campaigns </li></ul><ul><ul><li>Mail-Phone-Mail or Phone-Mail-Phone </li></ul></ul><ul><li>Emergency e-mails </li></ul><ul><ul><li>Electronic transfer – inbound 800 – reply address </li></ul></ul><ul><li>Outbound telemarketing Thanks-Yous & Upgrades </li></ul>
    11. 11. <ul><li>Membership survey to undergrad and dual degree holders </li></ul><ul><li>Objective to understand e-newsletter as communication tool for awareness, promoting resources, encouraging giving </li></ul><ul><li>49% of e-newsletter recipients donated in that year vs. 34% of non-recipients </li></ul><ul><li>78% who made gift in that year renewed vs. 73% of non-recipients </li></ul>Examples of Integration Stanford University Alumni Newsletter
    12. 12. <ul><li>32% of lapsed donors (no giving in prior year) but who received e-newsletter gave vs. 22% of non-recipients </li></ul><ul><li>Of total e-newsletter recipients who never donated, 13% did so vs 5% of non-recipients </li></ul><ul><li>Ultimately 2x response of direct mail only </li></ul>Examples of Integration Stanford University Alumni Newsletter
    13. 13. Telephone Thank You Integration <ul><li>Question: Does personally thanking a donor by telephone cause them to give more? </li></ul><ul><li>Theory: thank you calls and notes will: </li></ul><ul><ul><li>Build rapport </li></ul></ul><ul><ul><li>Strengthen affinity </li></ul></ul><ul><ul><li>Cause donors to give more </li></ul></ul>
    14. 14. The Test… <ul><li>6,225 Total Donors: </li></ul><ul><li>2,131 designated as control group ~ no acknowledgment, just ongoing mail. </li></ul><ul><li>2,094 designated as thank you call test. </li></ul><ul><li>2,000 designated as thank you note test. </li></ul><ul><li>Audience: </li></ul><ul><li>$50-$249.99, one-time and multi-donors </li></ul><ul><li>Had given one gift to a disaster appeal within the previous twelve months. </li></ul>  
    15. 15. Timing <ul><li>Control group received regularly scheduled mailings for 11 months following the initial gift. </li></ul><ul><li>Thank you call test group received their call in January and then received regularly scheduled mailings for the next 11 months. </li></ul><ul><li>Thank you note group received their note in January and then received regularly scheduled mailings for the next 11 months. </li></ul>  
    16. 16. CONTROL GROUP RESULTS (No Acknowledgements) <ul><li>277 gifts over the course of the following year, a 13% subsequent gift rate. </li></ul><ul><li>$15,323 total dollars fulfilled </li></ul><ul><li>An average gift of $55.32. </li></ul><ul><li>Gross revenue of $7.19 per donor. </li></ul><ul><li>Net revenue of $7.19 per donor. </li></ul>
    17. 17. Thank You Call Test Group Results  +  <ul><li>400 gifts over the course of the following year ~ a 19.1% subsequent gift rate. </li></ul><ul><li>$23,984 total dollars fulfilled. </li></ul><ul><li>An average gift of $59.96. </li></ul><ul><li>Gross revenue of $11.45 per initial donor. </li></ul><ul><li>Net revenue of $9.70 per initial donor. </li></ul>
    18. 18. Thank You Note Test Group Results  +  <ul><li>312 gifts over the course of the following year ~ a 15.6% subsequent gift rate. </li></ul><ul><li>$18,061 total dollars fulfilled. </li></ul><ul><li>An average gift of $57.89. </li></ul><ul><li>Gross revenue of $9.03 per donor. </li></ul><ul><li>Net revenue of $7.53 per donor. </li></ul>
    19. 19. Test Conclusions <ul><li>Thank you calls increase subsequent giving! </li></ul><ul><ul><li>Subsequent gift rate for donors who were called was 47% higher than those who received no thank you call , and 22% higher than those who received the thank you note. </li></ul></ul><ul><li>The thank you call increased the average size of the subsequent gifts. </li></ul><ul><ul><li>The average gift for donors who were called was 8.3% higher than those who received no acknowledgment and 3.5% higher than those who received the thank you note. </li></ul></ul><ul><li>The donors who received the phone call generated an additional $8,661 in gross revenue at a 2.4:1 ROI. </li></ul>
    20. 20. Integration <ul><li>Common Themes and Common Timing Direct mail packages – copy and photos </li></ul><ul><li>Inbound Telemarketing </li></ul><ul><li>Special Events Sign-up and Ticket Sales </li></ul><ul><li>Planned Giving and Corporate Sponsorships </li></ul><ul><li>URL as part of identity – on everything! </li></ul>
    21. 21. <ul><li>Advantages of the WEB for Greenpeace </li></ul><ul><ul><li>EFT/CC gifts </li></ul></ul><ul><ul><li>Unsolicited major gifts </li></ul></ul><ul><ul><li>Reduced response handling cost </li></ul></ul><ul><ul><li>Personalisation and customization </li></ul></ul><ul><ul><li>Immediacy and urgency (ask and response) </li></ul></ul><ul><ul><li>Instant donor acknowledgement </li></ul></ul>Example of Integration
    22. 22. <ul><li>Opportunities of the WEB - Greenpeace </li></ul><ul><ul><li>Online supporter servicing (reduced cost) </li></ul></ul><ul><ul><li>Increased donor expectations </li></ul></ul><ul><ul><li>Changing demographics </li></ul></ul><ul><ul><li>Unmediated voice </li></ul></ul><ul><ul><li>Added value (stickiness) </li></ul></ul><ul><ul><li>Community building (THEN ASK!) </li></ul></ul>Example of Integration
    23. 23. <ul><li>Integrated on and offline marketing campaign </li></ul><ul><ul><li>DRTV, Billboards, Press ad’s, Mail </li></ul></ul><ul><ul><li>Hotlinks, Banners, Mini-site </li></ul></ul><ul><ul><li>Thank you email and letter </li></ul></ul><ul><ul><li>On/offline supporter servicing </li></ul></ul>Example of Integration
    24. 24. <ul><li>Link each appeal to a unique URL (donation form) </li></ul><ul><li>Use web analysis software to see how people use your site </li></ul><ul><li>Survey online and offline donors </li></ul><ul><li>Track income before and after you added the internet to your Fundraising mix </li></ul>Measuring Outcomes
    25. 25. <ul><li>70% of donors driven to website by offline marketing </li></ul><ul><li>Online average gift is 20%+ higher </li></ul><ul><li>Conversion rate of site visitors to donors remains constant (0.7-1.3%) </li></ul><ul><li>Increased giving $8,000 - $140,000 USD </li></ul><ul><li>Activists are better donors by 2:1 </li></ul><ul><li>Response handling costs reduced by 40% </li></ul><ul><li>Servicing costs reduced by 60% </li></ul>Results
    26. 26. Examples of Integration WXPN-FM (McPherson) <ul><li>Integration model: e-mail, direct mail, & on-air </li></ul><ul><li>Targeted to Renewing/Lapsed Members </li></ul><ul><li>Sent 1 day before One Day On-Air Fund Drive </li></ul><ul><li>Results: </li></ul><ul><ul><li>2% of e-mails converted immediately </li></ul></ul><ul><ul><li>20% of pledges made came from the lapsed members (twice the norm) </li></ul></ul>
    27. 27. Examples of Integration WTVS Public TV (McPherson) <ul><li>Mirrored e-mail appeal with direct mail </li></ul><ul><ul><li>List #1: Non-members/Donors received an e-newsletter (Result: click through rate of 6.9%) </li></ul></ul><ul><ul><li>List #2: Members/Donors w/e-mail addresses (Result: click through of 2%) </li></ul></ul>
    28. 28. Examples of Integration - Mail
    29. 29. Examples of Integration - WEB
    30. 30. <ul><li>Problems with Outbound Telemarketing </li></ul><ul><li>Cost $12+ to acquire new TM donor, yet only $1.73 to acquire DM donor </li></ul><ul><li>Cost of Fundraising very high for TM program </li></ul><ul><li>Lifetime value for direct mail donors 23% better than TM donors due to longer life </li></ul><ul><li>MADD decided to consider phasing out the TM program. MADD conducted a series of tests in the fall (October and November) and spring (March) to determine if the telemarketing donors could be successfully incorporated into the direct mail program. </li></ul>Telephone and Mail Segregation NOT Integration
    31. 31. October Test Results Program Mail Count Response Dollar Average DM File 200,000 5.80% $13.26 TM File 200,000 4.25% $12.79 November Test Results Program Mail Count Response Dollar Average DM File 200,000 5.57% $13.75 TM File 200,000 5.02% $12.79 Results
    32. 32. March Rollout Results Program Mail Count Response Dollar Average DM File 635,816 7.22% $11.67 TM File 1,147,818 4.79% $12.57 Because of the above results… MADD decided to phase out TM program In first full year of mailing TM donors in DM program, MADD more than doubled overall net revenue! In subsequent years, revenue from combined campaign remained high, as MADD replaced lapsed telemarketing donors with direct mail donors (greater lifetime value). Multi-channel doesn’t always work – Would integration have worked?
    33. 33. Organization: Issues: Advantages: World USO War approaching Only known for “celebrity shows” Wanted to expand image/brand Local USOs with limited resources/fragmented Perceived as a World War II organization War approaching: Increased media exposure Recognizable brand Excellent relationship with the Armed Services DoD implemented new tighter security procedures New board and World USO president Strong USO DC chapter Example of an Integrated Campaign
    34. 34. Program Overview: Fulfillment: Care Packages of the requested items are given to members of the Armed Forces deployed overseas Program was designed to facilitate a one-to-one gift Included notes from individuals who sponsored Care Packages Establish DC warehouse where USO DC oversees volunteers stuffing packages Distribute packages through in-kind sponsor (FedEx) to international USO Mobile Canteens and local USO points of departure Operation USO Care Package
    35. 35. Fundraising Opportunity: Donations to sponsor Care Packages ($25/Package) In-kind donations from manufacturers for items Corporate sponsorship levels Various special events Workplace giving projects Even a small donation of $25 can make a difference Donor can include a personal message in Package In-kind sponsors can put logos on items Donor Benefits: Operation USO Care Package
    36. 36. Web Strategy: Developed E-mercials used to create emotional bond Linked to most major news web sites Implemented Kintera infrastructure Conducted local Operation USO Care Package (OUCP) fundraising events Special Events: Operation USO Care Package
    37. 37. Anatomy of a Project Operation USO Care Package
    38. 38. Work Place Giving: Developed “Cares for the Troops” campaign Web-based co-branded program E-mail ask from CEO to customized web site Co-branded note cards Customized reports to corporation Customized tracking system for matching gifts Example: Marketing Techniques Used Operation USO Care Package
    39. 39. Anatomy of a Project Marketing Techniques Used
    40. 40. In-kind: Done by another agency but reportedly results increased due to increased visibility of charity Solicited product donations Solicited warehouse facility Web site design and web hosting Developed co-branded commercial with sponsor (Lowe’s) Developed the USO NASCAR Advertising: Marketing Techniques Used Operation USO Care Package Mail:
    41. 41. PR: Sent out announcement two (2) times per week during the war Secured spots for USO executive on major networks Used local media Joint release program with Department of Defense endorsing program Developed corporate sponsorship programs Corporate Sponsors: Marketing Techniques Used Operation USO Care Package
    42. 42. Financial Success: Individual gifts off-line on-line Cares For The Troops (online) Matching gifts for CFT General on-line USO Corporate sponsorship Measurable in-kind Totals $12,950,000 $925,000 $403,000 $105,000 $125,000 $720,000 $8,250,000 $23,478,000 Results Operation USO Care Package
    43. 43. Example of an Integrated Campaign “ It’s not about Fundraising or Brandraising, but about integrating” The story of WWF Netherlands Brandraising & Fundraising
    44. 44. Situation at the end of nineties <ul><li>At the first glimpse : </li></ul><ul><ul><li>Very strong position </li></ul></ul><ul><li>Looking more deeply: </li></ul><ul><ul><li>Well known brand </li></ul></ul><ul><ul><li>Seen as arrogant and far away </li></ul></ul><ul><ul><li>Old fashioned </li></ul></ul><ul><ul><li>Membership going down </li></ul></ul><ul><ul><li>Poor financial results </li></ul></ul>
    45. 45. Change was needed and achieved: <ul><li>Right people in right places. </li></ul><ul><li>An “impossible” dream. </li></ul><ul><li>Changing paradigms. </li></ul><ul><li>The mentality of a small business combined with the vision of big brands (long term investment but with focus on short term profit!). </li></ul><ul><li>Building brand awareness. </li></ul><ul><li>But above all: integration of Communications & Marketing (approach – multichanneling – sharing, learning, looking outside). </li></ul><ul><li>Not only improvement in figures but also in position. Bringing the brand into daily life. </li></ul>
    46. 46. Financial results + 19.2 % 17,113 18,284 20,386 21,184 Total fundraising 21 15 13 12 Miscellaneous 824 944 1,401 1,674 Fundraising campaigns business & industry 2,756 2,807 3,594 3,533 Fundraising campaigns on consumer market 750 856 1,061 1,199 Membership fees Rangers (children) 12,762 13,662 14,317 14,765 Membership fees adults FY 2000 FY 2001 FY 2002 FY 2003 (in thousands of Euros)
    47. 47. Marketing costs - 13.1 % <22.5% 22.8% 21.9% 22.8% 19.8% Marketing costs in % of income own fundraising activities (legacies, lottery etc. not included) Target FY 2000 FY 2001 FY 2002 FY 2003
    48. 48. Total donors (incl. members) + 13.3 % 806,349 860,560 905,458 930,015 FY 2000 FY 2001 FY 2002 FY 2003
    49. 49. <ul><li>Top 10 Brand in the Country </li></ul><ul><li>Top 3 Charity Brand in the Country </li></ul><ul><li>#1 Green Brand in the Country </li></ul><ul><li>Not finished yet. PandaVision. </li></ul>Results
    50. 50. The 3 C’s of the Web <ul><li>Content </li></ul><ul><ul><li>“ Content is King” – Forrester Research </li></ul></ul><ul><li>Community </li></ul><ul><ul><li>Community = Affinity = Loyalty </li></ul></ul><ul><li>Communication </li></ul><ul><ul><li>What the web is all about </li></ul></ul>
    51. 51. Some Other Views <ul><li>“ Direct mail is the best place to learn the techniques that work best in electronic media.” Leslie Laredo, Director of Advertising Development for Ziff-Davis Interactive </li></ul><ul><li>“ The Net…is the finest direct-marketing mechanism in the history of mankind. It is direct mail with free stamps.” Seth Godin, VP of Direct Marketing for Yahoo! </li></ul>
    52. 52. Experimenting with Technology <ul><li>“ Ready, Fire, Aim” </li></ul><ul><ul><li>Things are moving fast and often experimentation is the only way to “know” anything </li></ul></ul><ul><li>WAP Technology in Japan and Finland – Save the Children looking at emergency opportunity </li></ul><ul><li>European Union will account for more than 50% of the world’s Internet users by the end of this year. </li></ul><ul><li>UCP looking into ATM machines </li></ul><ul><ul><li>No difference between this and POP boxes </li></ul></ul>
    53. 53. Driving Traffic to the Web <ul><li>Best traffic driver in commercial use is mail </li></ul><ul><ul><li>Mixed results in fundraising </li></ul></ul><ul><ul><li>Promotions work – premiums, prizes, sweeps </li></ul></ul><ul><li>Site must be integrated with other efforts </li></ul><ul><ul><li>Not technology but marketing </li></ul></ul><ul><ul><li>Not just fundraising but PR and branding </li></ul></ul><ul><li>Opportunities to communicate electronically </li></ul><ul><ul><li>E-newsletters – not PDFs </li></ul></ul><ul><ul><li>Viral Campaigns – disasters, breaking news </li></ul></ul>
    54. 54. Internet vs. Integrated <ul><li>Spam – outbound unsolicited e-mail </li></ul><ul><li>This is who we are – please send money </li></ul><ul><li>Advertising </li></ul><ul><li>Single medium of communication </li></ul><ul><li>Credit card donations </li></ul><ul><li>Opt-in, other media or soft invitation by e-mail </li></ul><ul><li>Database and content driven, informative </li></ul><ul><li>Direct marketinG </li></ul><ul><li>Options, interests and alternatives </li></ul><ul><li>Multiple methods of participation </li></ul>
    55. 55. Web do - Web don’t <ul><li>Donation page no more than 2 clicks from home </li></ul><ul><li>FAQ </li></ul><ul><li>E-newsletter and e-mail opt-in (save a tree) </li></ul><ul><li>Secured donation engine </li></ul><ul><li>Alternatives </li></ul><ul><li>Simple Navigation </li></ul><ul><li>Shopping with multi-charity links </li></ul><ul><li>Multi-charity portals </li></ul><ul><li>Failure to adhere to privacy standards </li></ul><ul><li>Failure to acknowledge gifts or activities </li></ul><ul><li>Complex Navigation </li></ul>
    56. 56. Closing thoughts from Disney <ul><li>Disney’s Credo: </li></ul><ul><li>Dream </li></ul><ul><li> Believe </li></ul><ul><li> Dare </li></ul><ul><li> Do…………. </li></ul>
    57. 57. Thank You Copies of this PowerPoint available for your use – just leave me your business card with an e-mail address Geoff Peters