GROWING CONSTITUENT ENGAGEMENT
LOYALTY, AND LIFETIME VALUE
Constituent Engagement Journey:
• Current Landscape & Trends
• Constituent Engagement Fundamentals
• The Evolution of Nonprofit Operations
AGENDA
The Nonprofit
Landscape
Total Fundraising
13%*
In Canada from 2011
Competition for Awareness and Support
# of Nonprofits
161,000 in Canada
Competition for Awareness and Support
3000+ Messages
Targeting Supporters
Every Day
Competition for Awareness and Support
New Donor Acquisition
23.4% since 2006
Competition for Awareness and Support
Source: Target Analytics Donor Centrics Index...
Renewals & Lifetime
Value Mostly Flat
Average Annual Gift/Attrition Rate = LTV
Competition for Awareness and Support
Deepen Relationships
& Build Loyalty
FUNDRAISING EMPHASIS: MATURES
Matures
Boomers
Gen X
Gen Y
GENERATIONAL GIVING
$0.
$100.
$200.
$300.
$400.
$500.
$600.
$700.
$800.
$900.
$1,000.
$1,100.
$1,200.
30% 40% 50% 60% 70% ...
GEN Y GEN X BOOMERS MATURES
55% 54% 58% 55%
45% 55% 35% 31%
21% 35% 47% 56%
36% 39% 38% 30%
29% 33% 40% 37%
11% 23% 36% 58...
Constituent
Expectations
Have
Changed.
Constituents Want to Engage
on Their Terms & in Their Channels
ONLINE FUNDRAISING CONTINUES TO
GROW
THE STATE OF ONLINE FUNDRAISING
ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT
More good news - Online giving increased...
ONLINE FUNDRAISING GROWTH HAS
KEPT PACE WITH RETAIL E-COMMERCE
Sources: Convio benchmark reports 2007-2012 and eMarketer.c...
.. BUT PERFORMANCE VARIES WIDELY
* Excludes major, corporate gifts, and planned giving.
Source: Convio/ Edge Research surv...
Peer Solicitation Is Broadly Accepted
52%
41%
28%
22%
15%
8%
Peer to Peer
Mail
Email
Social Media
Phone
Text
% say appropr...
9/4/2013 Blackbaud Confidential 20
PEER TO PEER / SOCIAL FUNDRAISING
Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate
VALUE OF MULTI-CHANNEL ENGAGEMENT
Sources: Study entitled ...
MULTI-CHANNEL GROWS TOTAL
REVENUE
$28M $28M
$47M
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
1990 2000 2010
Millions
Online
...
Multi-Channel Strategy
If You Could…
THE VISION: CONSTITUENT
ENGAGEMENT
• Anticipate your
constituents’ needs
• Know their
interests, passions &
...
Constituent Experience
• Disjointed constituent
experience
• Fragmented
messaging from a
variety of channels
• Less engage...
• Unified constituent
experience
Goal:
Constituent Experience
• Integrated messaging
across a variety of
channels
• Optimi...
Better Engagement with Supporters =
Better Results for Your Organization
Constituent
Engagement
Fundamentals
• Constituent Centricity
• Presence in Multiple Channels
• Consistent Branding
• Integrated Process
• Integrated Measureme...
CONSTITUENT CENTRICITY
• Align processes and communication to respect
constituent preferences, needs and interests
• Tailo...
A Single Email with
Conditional Content
Donor Version
Survivor Version
CONSTITUENT CENTRICITY
CONSTITUENT CENTRICITY
Direct Mail
Email
Web Page
PRESENCE IN MULTIPLE CHANNELS
PRESENCE IN MULTIPLE CHANNELS
• Get the right message in front of the right person
at the right moment.
CONSISTENT BRANDING
Envelope back
Integrated tiger appeal results
show 40% better response rate
Offline
Appeal &
Envelope
...
YEAR OF THE TIGER
A MULTIMEDIA YEAR LONG EFFORT
WWF: For 1st time
ever, heads of state
convene 2 try 2 save
tigers. Tell t...
INTEGRATED PROCESS
Frequency Target
Q2week1
Q2week2
Q2week3
Q2week4
Q2week5
Q2week6
Q2week7
Q2week8
Q2week9
Q2week10
Q2wee...
• Establish metrics that:
• Measure donor
behavior and
campaign
performance across
channels
• Focus on long-term
value
• C...
CROSS-CHANNEL CONTACT
INFORMATION
KEY ACQUISITION METRICS TRACKED
DONOR CHANNEL MIGRATION
TRACKED
Constituent Engagement Fundamentals –
Difficult Without Organizational Alignment
• Constituent Centricity
• Presence in Mu...
The Evolution
of Nonprofit
Operations
• Minimal Online
Marketing
• Calendar-Based
Campaigning
• Not Financially
Committed to Second
Channel
• Thematically Integ...
• Integrated marketing sophistication and size
don’t closely correlate.
WHERE ARE YOU?
Aggregate and
improve
constituent
data
Consistent
messages across
channels
Increased
personalization
& relevance
Dynamic
r...
Keys to Evolution
• Organizational Alignment
• Technology / Infrastructure
Traditional
• Separate Metrics & Team
for Online Marketing
• No Calendar / Campaign
Coordination
• 2nd channel constitutes...
Coordinated
Coordinating
Teams
Communications Development
Government
Affairs
IT
Coordinated
• Thematically Integrated
• Li...
Optimized
Coordinating
Teams
Development Online Communications Marketing
Optimized
• Unified Strategy & Real-time
data int...
Support Business Units
Infrastructure Challenge
Track Performance
Add New Channels
Coordinate Departments
Integrate System...
REMEMBER: IT IS AN EVOLUTION.
• Identify where you are and map your key 2013 steps
now…today, while you’re thinking about ...
IN CONCLUSION
• More donors does not mean more engagement or
revenue but more engaged donors will mean more
revenue/LTV.
•...
WANT MORE? DOWNLOAD OUR
RESEARCH.
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Fundraising Today and Tomorrow: The Next Generation of Giving - The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value

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Ken Kuhler, Interactive Strategy Manager, Blackbaud, discussed how to apply next generation trend data to your multi-channel, multi-generational fundraising and engagement efforts including practical tools and techniques, and real-world case studies.

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  • Dennis
  • Increased competition for mindshare / share of wallet Fundraising down from 2007 – Giving USA 2011, The Center for Philanthropy at Indiana University, 2011
  • Q18: Which of the following charitable giving methods have you used in the past two years? Please select all that apply.
  • The power of the platform is evident in the results. Luminate is the unchallenged leader in digital communications and fundraising for nonprofits. In 2011 Luminate clients used Luminate software and services to raise more than $1.35 billion online, send more than 4 billion email communications, power more than 32 million advocacy actions and manage relationships with more than 248 million constituents.In fact, Luminate’s online fundraising tools raised 3x what any other single tool or company raised in 2011.
  • Released February 2013, Data from over 3,144 NPOs,24 months of overall giving data Want to download? Sign up for NP Engage and download the report Online giving was up close to 11% in 2012 compared to 2011
  • Smaller organization based in Canada, whose mission is to provide clean drinking water to African Communities
  • Examples of getting attention in a multi-channel world: it’s about having great content in the right channels and with all the hooks to get it disseminated broadly. It’s also about usability that will drive longer and deeper engagement on your digital properties – something we offer as a service to our clients.HSUS – Does a fantastic job using Luminate CMS. They found that using Luminate CMS they were able to double their mobile traffic in just a few short months. They also do an incredible job of interweaving content through a variety of social media so users can share it and engage in whatever channel they are in.UNICEF USA – UNICEF worked with our User Experience team on a number of projects including a virtual gift store and their mobile site. Their mobile optimized site won best in class this year from the Interactive Media Awards. Another thing to point out on Unicef is how they use content to drive response in a disaster – they’ve got a great “emergency” version of their site that they can literally launch in minutes for any disaster – Tsunami, Earthquake, anything – and it points to donation forms that are preconfigured to accept funds for those emergencies. You may not be in the disaster relief business, but having the ability to make changes like this on the fly is important for any organization because your cause could become headline news tomorrow.
  • Fundraising Today and Tomorrow: The Next Generation of Giving - The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value

    1. 1. GROWING CONSTITUENT ENGAGEMENT LOYALTY, AND LIFETIME VALUE Constituent Engagement Journey:
    2. 2. • Current Landscape & Trends • Constituent Engagement Fundamentals • The Evolution of Nonprofit Operations AGENDA
    3. 3. The Nonprofit Landscape
    4. 4. Total Fundraising 13%* In Canada from 2011 Competition for Awareness and Support
    5. 5. # of Nonprofits 161,000 in Canada Competition for Awareness and Support
    6. 6. 3000+ Messages Targeting Supporters Every Day Competition for Awareness and Support
    7. 7. New Donor Acquisition 23.4% since 2006 Competition for Awareness and Support Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter Results
    8. 8. Renewals & Lifetime Value Mostly Flat Average Annual Gift/Attrition Rate = LTV Competition for Awareness and Support
    9. 9. Deepen Relationships & Build Loyalty
    10. 10. FUNDRAISING EMPHASIS: MATURES Matures Boomers Gen X Gen Y
    11. 11. GENERATIONAL GIVING $0. $100. $200. $300. $400. $500. $600. $700. $800. $900. $1,000. $1,100. $1,200. 30% 40% 50% 60% 70% 80% 90% % Giving Totalannualgiving Boomers Gen X Matures Gen Y 79% Give 5.8 M donors $831 yr/avg 4.5 charities $4.8 B/yr62% Give 4.5M donors $639 yr/avg 4.0 charities $2.9 B/yr 78% Give 6.9 M donors $942 yr/avg 4.9 charities $6.5 B/yr 87% Give 3.1 M donors $1507 yr/avg 7.0 charities $4.7 B/yr
    12. 12. GEN Y GEN X BOOMERS MATURES 55% 54% 58% 55% 45% 55% 35% 31% 21% 35% 47% 56% 36% 39% 38% 30% 29% 33% 40% 37% 11% 23% 36% 58% 22% 29% 37% 34% 22% 24% 29% 29% 24% 20% 25% 20% 25% 19% 11% 9% 15% 14% 12% 14% 5% 9% 15% 18% 7% 5% 4% 9% 4% 9% 4% 4% 5% 8% 4% 3% 12% 4% 2% - 6% 4% 3% 2% 1% 2% 3% 2% 56% 41% 41% 36% 35% 32% 32% 26% 22% 15% 13% 12% 6% 5% 5% 4% 4% 2% Checkout Donation Honor/Tribute Pledge at Event Door to Door* Street Canvassing* Email* Radio/TV* Will/Planned Gift Social Networking Site GIVING AMOUNTS
    13. 13. Constituent Expectations Have Changed.
    14. 14. Constituents Want to Engage on Their Terms & in Their Channels
    15. 15. ONLINE FUNDRAISING CONTINUES TO GROW
    16. 16. THE STATE OF ONLINE FUNDRAISING ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT More good news - Online giving increased 13.7% for the three months ending January 2013 as compared to the same period in 2012 Even more good news – No matter what online benchmark study you look at, revenue is growing, sustained giving is growing and housefile size is up
    17. 17. ONLINE FUNDRAISING GROWTH HAS KEPT PACE WITH RETAIL E-COMMERCE Sources: Convio benchmark reports 2007-2012 and eMarketer.com
    18. 18. .. BUT PERFORMANCE VARIES WIDELY * Excludes major, corporate gifts, and planned giving. Source: Convio/ Edge Research survey of integrated marketing practices, Q1 2011 5-20% Raised Online >25% Raised Online <5% Raised Online
    19. 19. Peer Solicitation Is Broadly Accepted 52% 41% 28% 22% 15% 8% Peer to Peer Mail Email Social Media Phone Text % say appropriate solicitation channel (rank ordered by very important –blue) Did you know? Blackbaud clients raised 70% of event funds raised by the top 30 events in 2011.
    20. 20. 9/4/2013 Blackbaud Confidential 20 PEER TO PEER / SOCIAL FUNDRAISING
    21. 21. Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate VALUE OF MULTI-CHANNEL ENGAGEMENT Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOne Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use. 34.4% 50.9% Mail +48% Multi-Channel $96 $187 Mail +95% Multi- Channel $314 $694 Mail +121% Multi-Channel
    22. 22. MULTI-CHANNEL GROWS TOTAL REVENUE $28M $28M $47M $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 1990 2000 2010 Millions Online Direct Mail
    23. 23. Multi-Channel Strategy
    24. 24. If You Could… THE VISION: CONSTITUENT ENGAGEMENT • Anticipate your constituents’ needs • Know their interests, passions & preferences • Offer more relevant interactions & opportunities to engage You Would… Improve acquisition & referrals Establish lifetime relationships Grow support & fundraising
    25. 25. Constituent Experience • Disjointed constituent experience • Fragmented messaging from a variety of channels • Less engagement Current Landscape:
    26. 26. • Unified constituent experience Goal: Constituent Experience • Integrated messaging across a variety of channels • Optimized engagement
    27. 27. Better Engagement with Supporters = Better Results for Your Organization
    28. 28. Constituent Engagement Fundamentals
    29. 29. • Constituent Centricity • Presence in Multiple Channels • Consistent Branding • Integrated Process • Integrated Measurement Constituent Engagement Fundamentals
    30. 30. CONSTITUENT CENTRICITY • Align processes and communication to respect constituent preferences, needs and interests • Tailor channel mix, content and program participation and message frequency • Ask, “What matters to a constituent?”
    31. 31. A Single Email with Conditional Content Donor Version Survivor Version CONSTITUENT CENTRICITY
    32. 32. CONSTITUENT CENTRICITY
    33. 33. Direct Mail Email Web Page PRESENCE IN MULTIPLE CHANNELS
    34. 34. PRESENCE IN MULTIPLE CHANNELS • Get the right message in front of the right person at the right moment.
    35. 35. CONSISTENT BRANDING Envelope back Integrated tiger appeal results show 40% better response rate Offline Appeal & Envelope Online Appeal, Included Envelope Image
    36. 36. YEAR OF THE TIGER A MULTIMEDIA YEAR LONG EFFORT WWF: For 1st time ever, heads of state convene 2 try 2 save tigers. Tell the US 2 commit to global tiger conservation. http://bit.ly/dp0ovd (reply STOP 2 unsub) Direct Mail Email Social Media TV (Custom Web) Outdoor Ads Mobile Web Celebrity Leadership
    37. 37. INTEGRATED PROCESS Frequency Target Q2week1 Q2week2 Q2week3 Q2week4 Q2week5 Q2week6 Q2week7 Q2week8 Q2week9 Q2week10 Q2week11 Q2week12 General Communications eNewsletter Weekly - Fridays Subscribers Quarterly Update mailer 2nd Week / Quarter $50+ donors Gala Promotion Email Biweekly - Tuesday General Direct Mail Once $100+ Donors Telemarketing $200+ Donors Mother's Day Campaign Email ~Biweekly - Thursday Direct Mail Once Prospects, Donors Telemarketing Select targets Inbox / Received Send Event
    38. 38. • Establish metrics that: • Measure donor behavior and campaign performance across channels • Focus on long-term value • Collect and aggregate constituent data to correlate and extract meaningful information INTEGRATED MEASUREMENT
    39. 39. CROSS-CHANNEL CONTACT INFORMATION
    40. 40. KEY ACQUISITION METRICS TRACKED
    41. 41. DONOR CHANNEL MIGRATION TRACKED
    42. 42. Constituent Engagement Fundamentals – Difficult Without Organizational Alignment • Constituent Centricity • Presence in Multiple Channels • Consistent Branding • Integrated Process • Integrated Measurement
    43. 43. The Evolution of Nonprofit Operations
    44. 44. • Minimal Online Marketing • Calendar-Based Campaigning • Not Financially Committed to Second Channel • Thematically Integrated • Limited sensitivity to solicitation frequency • Decisioning beyond RFM • Shared Metrics • Some consolidation of data across channels Coordinated OptimizedTraditional • Separate Metrics & Team for Online Marketing • No Calendar / Campaign Coordination • 2nd channel constitutes 5-20% Direct Response Revenue • Separate databases for online/offline • Unified Strategy & Real- time data integration • Measures Success Across Channels, Not By Channel • Donors’ behaviors and interests drives communication stream • Shared budget and resources Early Stage WHERE ARE YOU?
    45. 45. • Integrated marketing sophistication and size don’t closely correlate. WHERE ARE YOU?
    46. 46. Aggregate and improve constituent data Consistent messages across channels Increased personalization & relevance Dynamic response to interactions Optimize channel mix & message cadence THE TRAJECTORY OF NP EVOLUTION Aggregate and improve constituent data
    47. 47. Keys to Evolution • Organizational Alignment • Technology / Infrastructure
    48. 48. Traditional • Separate Metrics & Team for Online Marketing • No Calendar / Campaign Coordination • 2nd channel constitutes 5- 20% Direct Response Revenue • Separate databases for online/offline Communications Development IT Others (?)Government Affairs Traditional ORGANIZATIONAL ALIGNMENT
    49. 49. Coordinated Coordinating Teams Communications Development Government Affairs IT Coordinated • Thematically Integrated • Limited sensitivity to solicitation frequency • Decisioning beyond RFM • Shared Metrics • Some consolidation of data across channels ORGANIZATIONAL ALIGNMENT
    50. 50. Optimized Coordinating Teams Development Online Communications Marketing Optimized • Unified Strategy & Real-time data integration • Measures Success Across Channels, Not By Channel • Donors’ behaviors and interests drives communication stream • Shared budget and resources ORGANIZATIONAL ALIGNMENT
    51. 51. Support Business Units Infrastructure Challenge Track Performance Add New Channels Coordinate Departments Integrate Systems Understand Data
    52. 52. REMEMBER: IT IS AN EVOLUTION. • Identify where you are and map your key 2013 steps now…today, while you’re thinking about it! • Every step toward Constituent Engagement will have an impact on your bottom line. • Start with fundamentals. • Evolving understanding of metrics can drive you forward faster. • Be aware of opportunities to evolve the operational structure – shared goals, team alignment, technology
    53. 53. IN CONCLUSION • More donors does not mean more engagement or revenue but more engaged donors will mean more revenue/LTV. • Donors feel more engaged and more inclined to give if they are hit up on multiple channels with consistent messages • Therefore, your organization needs to be organized to ensure a consistent and integrated experience on multiple channels. No silo’s.
    54. 54. WANT MORE? DOWNLOAD OUR RESEARCH.

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