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Fundr.Strategy

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Fundraising Strategy Training - Presentation

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Fundr.Strategy

  1. 1. Today's Ideas for Tomorrow’s Voluntary Organisations Enabling Your Fundraising Strategy
  2. 2. WELCOME to Messrs G Owen & Co Enabling your Fundraising Strategy <ul><li>TRAINER: </li></ul><ul><li>VOLUNTARY SECTOR & FUNDRAISING CONSULTANT </li></ul>Please turn off or put on silent/vibration all mobiles.
  3. 3. Agenda <ul><li>Introductions </li></ul><ul><li>Safety Information </li></ul><ul><ul><li>Fire alarms and exits </li></ul></ul><ul><li>Relationship Fundraising </li></ul><ul><ul><li>The need for one to one communications </li></ul></ul><ul><li>Making the Transition </li></ul><ul><ul><li>Insight into the strategic decisions involved in making such a transition </li></ul></ul><ul><li>Coffee & Networking Break </li></ul><ul><li>Combining your fundraising strategy with your IT strategy </li></ul><ul><li>Process driven examples of personalised multi-channel communications </li></ul><ul><li>Seminar close </li></ul><ul><li>Lunch & Networking </li></ul>
  4. 4. Relationship Fundraising The need for one to one communications
  5. 5. The need for 1 to 1 communications <ul><li>Agenda </li></ul><ul><ul><li>Challenges for fundraising professionals </li></ul></ul><ul><ul><li>Donor Market Issues </li></ul></ul><ul><ul><li>Multi-channel marketing and the rise of personalisation </li></ul></ul><ul><ul><ul><li>Relationship Marketing </li></ul></ul></ul>
  6. 6. Challenges to Fundraising <ul><li>Statistical Facts </li></ul><ul><ul><li>25% decrease in giving over the last 10 years as a proportion of GDP </li></ul></ul><ul><ul><li>The number of people giving to charity has remained static at ~67% </li></ul></ul><ul><ul><li>Less than 3% actually give more than £600.00 a year. </li></ul></ul><ul><ul><li>Poorest 10% of the population give 3% of their household expenditure, but the richest 20% give just 0.7% </li></ul></ul><ul><li>The Charities Bill & Self-regulation </li></ul><ul><ul><li>Changing the way you conduct and report on Fundraising - [SIR - Standard Information Report] </li></ul></ul>
  7. 7. What the Papers Say!
  8. 8. Challenges : Donor Attrition Donor attrition over time 0 10 20 30 40 50 60 70 80 90 100 1 2 3 4 5 6 7 8 9 10 Years Attrition %
  9. 9. Pressures : Resource Constraints Donor pyramid Your interaction effort
  10. 10. Problem : Acknowledgements • 1
  11. 11. Problems : Acknowledgements • 2
  12. 12. Research : What Supporters Want <ul><li>Whilst supporters appreciate the acknowledgement and recognition they really wanted something else. They wanted information; the more information they received the more they would give, and the more loyal they became. </li></ul><ul><li>What they want is: </li></ul><ul><ul><li>Prompt acknowledgement of their gift </li></ul></ul><ul><ul><li>Reassurance that their gift was being used as intended </li></ul></ul><ul><ul><li>To know that the program where the gift had been directed was having an effect. </li></ul></ul>
  13. 13. Problems : Resource Constraints • 1 Donor pyramid The difficult to reach mid-band Area of untapped potential : Where do all your legacies come from? The mass-affluent are not responding If we could deliver personalisation to all supporters we would be able to realise far more potential. Your interaction effort
  14. 14. Problems : Competition Pot 2 Social value Pot 1 Safety Pot 3 Discretionary (Self actualisation) Essential Mortgage/Rent Utility Bills Travel Variable - Social Holidays Birthdays/Xmas House Repair Discretionary Going Out Treats “ Rewards” Hierarchy of Needs Most people prioritise their finance in this way with charitable giving most likely to come from pot 3. Most competition for discretionary spend comes from commercial companies who use segmentation and personalisation to develop affinity and brand loyalty.
  15. 15. Problems : Reaching the Audience X X X X Mail Preference Service Telephone Preference Service Directive on privacy & electronic communications Negative media, self-regulation, Central & Local Government
  16. 16. The Same Issues Face Commercial & Voluntary / Not-for-Profit Sector Organisations Commercial Market Issues
  17. 17. Problems : Donor Loyalty <ul><li>Changes in society have had an impact upon donor loyalty </li></ul><ul><li>In 1985 the average consumers was exposed to 650 commercial marketing messages a day, it is now estimated at 3,000, let alone appeals. </li></ul><ul><li>In 1980 there were 35 million direct mailings, by 1999 this had reached 86 million </li></ul><ul><li>Potential donors are increasingly sophisticated about what, where and how they spend their money. </li></ul>
  18. 18. Problems : Campaign Delays <ul><li>On average it takes an organisations 2.5 months to develop and execute a campaign </li></ul><ul><li>Over 50% of organisations take more than 2 months to create, plan and execute a campaign </li></ul><ul><li>Nearly 20% of organisations take more than 4 months. </li></ul><ul><li>In a world used to Internet Time, taking more than a few weeks means the message is no longer as relevant </li></ul><ul><li>Information erodes over time </li></ul>
  19. 19. Commercial Market Issues <ul><li>Commercial companies face the same problems </li></ul><ul><ul><li>Credit card companies report a fall in response rates from 2.8% in 1992 to 0.6% in 2000 </li></ul></ul><ul><ul><li>Customer attrition on average across industry runs at 15-20% per year, in certain sectors it can run as high as 50% </li></ul></ul>
  20. 20. What to do? Multi-channel marketing and the rise of personalisation
  21. 21. Multi-channel Marketing • 1 <ul><li>Not a new concept, origins in the “media mix” idea </li></ul><ul><li>Important developments have taken place to evolve media-mix into multi-channel marketing: </li></ul><ul><ul><li>A transition by marketing professional in the at 1990’s towards integrated communications. Marking the shift away from transactions to customer relationships. </li></ul></ul><ul><ul><li>Power shifted to the consumer </li></ul></ul><ul><ul><li>Competition increased, whilst the cost of new customer acquisition soared, </li></ul></ul><ul><ul><li>Customer retention based on quality of relationship became the driving factor </li></ul></ul><ul><ul><li>Privacy concerns and governmental actions placed greater focus on establishing true relationships rather than “hit or miss” tactics </li></ul></ul><ul><li>The results of a well executed personalised communication are impressive – an increase of 5 to 10 fold in response and conversion rates. When print, e-mail, web and telemarketing are combined the results are even greater. </li></ul>
  22. 22. Multi-channel Marketing • 2 <ul><li>e-Mail is not a replacement for direct mail and e-mail without personalisation is an irritant </li></ul><ul><li>Well executed permission based email positively affects brand attitudes, Queris survey of 2002 found that 67% of respondents liked the organisations they received mail from; 58% regularly opened messages and 54% expressed a preference for those organisations </li></ul><ul><li>The quality of e-mail affects brand perceptions; 56% believe the quality of the e-mail influences their opinions about the organisations that sent the e-mail </li></ul>
  23. 23. Multi-channel Marketing • 3 <ul><li>Two critical components to effective multi-channel marketing: </li></ul><ul><ul><li>Creating relevant offers via personalisation </li></ul></ul><ul><ul><li>Co-ordination and management of multiple techniques </li></ul></ul><ul><li>Personalisation means using profiles to segment, create, customise and deliver a message in the right format in the right time. </li></ul><ul><li>The number of personalisation elements has a direct impact upon the response rate </li></ul><ul><li>Following up e-mail with direct communication increases response rates 5-10%: the “multiplier effect” of multi-channel marketing </li></ul>
  24. 24. The Process Campaign Tactic Event Package Templates e-Mail Web EndPoints Contacts Audience Execution Includes and Excludes Conditions
  25. 25. Intelligent & Automatic Profiling Relationship Database Campaign Package Using a Database to input and process requirements to Donors Supporters get a personalised message delivered in their preferred media with the right connection between profile, preference and approach.
  26. 26. Questions & Answers
  27. 27. Thank you for attending Feedback Forms & Lunch
  28. 28. Where to Get More Information  Help  Support <ul><li>Gordon Owen </li></ul><ul><li>e-Mail: [email_address] </li></ul><ul><li>Web Site: www.gowenandco.co.uk </li></ul><ul><li>[Striving to Create Provisions for </li></ul><ul><li>Tomorrow’s Organisations] </li></ul>

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