The fundraising future of digital media: a story of integration
Mike Johnston            Founder, HJC,Online and Integrated Fundraising Specialist,Aerobics Instructor, Computer Game Play...
Digital fundraising on it’s own can belike…                       “Best practice fundraising                       creates...
Examples from the World through this structure….  1) The Need     What is driving changes in how we fundraise?  2) The Val...
The Need
The Need (in many countries)1) Nonprofit offline donors are aging around the world2) Donor files and acquisition list sour...
Donors (direct       Staff                           mail)Event Fundraisers    (online)                                   ...
Donors        StaffEvent Fundraiser‟s                      Volunteers                     eNewsletter       Advocate      ...
Online donor retention of single gift donors can be terrible...Year Acquired   Number Acquired   Gave in Year 2    2006   ...
The Value
The Value: Qualitative• Integrated Marketing Benefits • Deepens constituent loyalty and increases lifetime value • Strengt...
Generational Giving                                                                65+ year old                           ...
One last group – the millennials… the GenZ…
Fundraising is profoundlymulti-channel              Proprietary & Confidential   Slide 15                 11/24/2011
Connect the pairs...Which Generation of givers isthe most prolific user of the following givingchannels?         Gen X    ...
Online and Integration• The Brady Campaign started with 38,000  email addresses   • 16,000 were Brady members   • 22,000 w...
Rapidly Growing An Email File•   Launched branded    campaign and microsite    NRAblacklist.com    supported by a print ad...
Sustaining Engagement• Growth of NRAblacklist.com was            Started a new branded  followed by urgent federal legisl...
Multi-Channel: Acquisition – BestPracticeAn online advocacy effort by the Brady Campaign grewtheir email file from 40K to1...
Onlne and Integrated Best Practice           Takeaways…• Don‟t Wait! Integrate online non donors into  online, direct mail...
What happens when you connect culture andfundraising?                                      22                Proprietary and
Online and another channel                                              Yoga In Motion                                    ...
Amnesty Denmark – digital includes mobile...• Amnesty Denmark has several ways of acquiring new  donors including Face 2 F...
Mobile is digital...and very valuable...Channel         Acq.   Avg.     Lifetime   Lifetime   Return on                Cos...
Online and Integrated Best Practice:Integration Increases Multi-ChannelLoyalty and Value                  Annual Donor Val...
Self-Assessment to be     Best PracticeWhere Are You in Your Online and Integrated          Fundraising Journey?
Where are You?    Single                    Silos               Coordinated              Integrated• Online Marketing     ...
Which Type of Organization Are You?Type A                                                               Type B Tension    ...
On A Scale of 1-5…• “1” = Type A, “5” = Type B• Where do you fall on the scale?
SolutionGetting people to change – to make online and offline                  connect together
Where to Begin? Release the Fear.• To create change – you need a process. • System • Input • Challenge• Three drivers of c...
Shared Reality• Your organization as it is today: • How you see it – your reality • How others see it – their reality • No...
Shared Future• Shift ahead & articulate a shared vision or desired state  of what you want (or think) your fundraising wil...
The Camembert   All the rest: Online 1%; Legacy 2%; Major 3%; Corporate 4%;   Government and Foundations 3%
The Camembert   All the rest: Online 25%; Legacy 12%; Major 3%; Corporate 8%;   Government and Foundation 3%
A Quick Exercise• Draw your fundraising pie charts:           NOW                        2021
Integration of all LEVELS         of giving   Legacies, Large Gifts and smaller gifts..
A great way to get started: An IntegratedSurvey  • The cultivation survey:   • Sent to 57,400 donors   • 3 key segments: M...
The goals of the survey1. Collect personal preferences of donors for targeted   marketing appeals2. Collect demographic da...
Social Media and personalization             proprietary and   41                11/24/2011
FacilitationGetting everyone on the same page
Integrated Planning: a full contact sport…
What do you do before you meet?Talk, and listen, to team membersReview the past, the current reality, and future plansAnal...
Sometimes a disaster forces people tomeet, plan and launch…               Proprietary & Confidential   Slide 45           ...
The Library Online11/24/2011     Proprietary & Confidential   46
Resultso 10,974 emails sent to City Council Memberso    Over 20,000 written letters sento    Gross revenue $50,058.68o    ...
Everyone in a room to create anonline and integrated schedule          Proprietary & Confidential   Slide 48             1...
The Balanced Scorecard The Dramatic Oversimplifcation of Integrated  Fundraising, Marketing, Communications and           ...
proprietary and   50   11/24/2011
How does it help Convio and its clients?   • Development and Peace – were sent a quick audit     (evaluation) by a Convio ...
The Evidence Putting It All Together
A Public Broadcaster• Brand is perceived as authentic• They have moved away from a past of innovation to a  current realit...
“A hanging in a fortnight concentratesthe mind wonderfully”• 2nd gift conversion dropped from 83% to 30%• Net loss of dono...
It would take an integrated solution…• Senior management support• Cross departmental cooperation• Create an integrated pla...
Online and offline integration
Launched Impact Report for DonorLoyalty
Launched Symbolic Giving
Launched online and integratedchannels• Highlighted 40th anniversary• Telemarketing• Integrated Telemarketing with DM stra...
Results - 2010• Q3 - Best end of year result since  2006, best result of 2010• Q3 - 26% increase over same quarter  previo...
Digital Games• $68 billion (bigger than music, books,  and the movie industry)• It‟s entertainment• 29% over 50• 55% play ...
The future of digital media•    Online can‟t be in a silo•    Integrate all channels, all departments and     all levels o...
Thank You!
IFC Holland november 24th session mike
IFC Holland november 24th session mike
IFC Holland november 24th session mike
IFC Holland november 24th session mike
IFC Holland november 24th session mike
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  • Organizations can maximize the value of donor relationships with the use of multi-channel strategies.
  • Mike
  • Mike
  • - An integrated approach to marketing & communications makes sense. Nonprofit leaders agree that integrated marketing is a logical approach, with myriad benefits.- This logic is not new. What is new and driving urgency is that audiences themselves are becoming increasingly multi-channel and it’s becoming harder and more expensive to raise every dollar.
  • MikeTo be donor centric – you have to understand who your donors are, how they come to you and how the want to interact with you
  • Mike
  • Mike
  • Categories from Convio/Edge Research Multi-Channel/Integrated Study, Spring 2011***This isn't a published piece, so we can't use the citation - but we can say that this is hot off the presses from a research piece we are about to publish and talk about who we surveyed in the notes***MB
  • Win a multi-channel consulting session
  • ***Content from HJC presentation***
  • ***Content from HJC presentation***
  • ***Content from HJC presentation***
  • ***Content from HJC presentation***
  • ***Content from HJC presentation***
  • ***Content from HJC presentation***
  • Mike
  • Win a multi-channel consulting session
  • IFC Holland november 24th session mike

    1. 1. The fundraising future of digital media: a story of integration
    2. 2. Mike Johnston Founder, HJC,Online and Integrated Fundraising Specialist,Aerobics Instructor, Computer Game Player, and Sports Fanatic
    3. 3. Digital fundraising on it’s own can belike… “Best practice fundraising creates results (statistics) that prove that fundraising integration of more channels and more areas of fundraising and non- fundraising – is indeed, best practice.”
    4. 4. Examples from the World through this structure…. 1) The Need What is driving changes in how we fundraise? 2) The Value What‟s the value of being integrated? 3) Self-Assessment Where are you as an organization? 4) Solution How do you align culture, staff, and technology? 5) Evidence – Put It All Together What does integration look like around the world (France, Canada, US)?
    5. 5. The Need
    6. 6. The Need (in many countries)1) Nonprofit offline donors are aging around the world2) Donor files and acquisition list sources are shrinking3) Revenues are flat and–in many cases–are falling4) Fundraising costs are increasing/ fundraising margins are shrinking5) Online fundraising – when kept in a silo - underperforms Nonprofits need (younger) more valuable donors in many parts of the world
    7. 7. Donors (direct Staff mail)Event Fundraisers (online) Volunteers E-Newsletter subscribers Advocates
    8. 8. Donors StaffEvent Fundraiser‟s Volunteers eNewsletter Advocate subscribers s
    9. 9. Online donor retention of single gift donors can be terrible...Year Acquired Number Acquired Gave in Year 2 2006 99 32.30% 2007 1736 24.20% 25.5% average 2008 3194 19.30% retention rate 2009 2913 26.40% Benchmark 28% 2010 7656 2011 7570 How can we improve this?
    10. 10. The Value
    11. 11. The Value: Qualitative• Integrated Marketing Benefits • Deepens constituent loyalty and increases lifetime value • Strengthens the brand • Engage new audiences, grow revenue, and maybe even save money.• Audiences are becoming increasingly multi-channel – in every country - and greater data intelligence is required to raise more money.
    12. 12. Generational Giving 65+ year old 47-65 year old 20-30 year old 31-46 year old11/24/2011 Proprietary & Confidential 13
    13. 13. One last group – the millennials… the GenZ…
    14. 14. Fundraising is profoundlymulti-channel Proprietary & Confidential Slide 15 11/24/2011
    15. 15. Connect the pairs...Which Generation of givers isthe most prolific user of the following givingchannels? Gen X Tribute Giving Civic (Mature) Web Giving Gen Y Telephone Boomer Retail Check Out Proprietary & Confidential Slide 16 11/24/2011
    16. 16. Online and Integration• The Brady Campaign started with 38,000 email addresses • 16,000 were Brady members • 22,000 were non-donor activists
    17. 17. Rapidly Growing An Email File• Launched branded campaign and microsite NRAblacklist.com supported by a print ad campaign• The site had a visitor to “signer” conversion rate of 40%• Grew email list from 38,000 to 101,257 in under 3 months
    18. 18. Sustaining Engagement• Growth of NRAblacklist.com was  Started a new branded followed by urgent federal legislative campaign: stoptheNRA.com battles
    19. 19. Multi-Channel: Acquisition – BestPracticeAn online advocacy effort by the Brady Campaign grewtheir email file from 40K to140K. The vast majority werenew prospects.Email Solicitation Direct Mail Solicitation Phone Solicitation0.37%; $46 avg. gift 1.26%; $24 avg. gift 21%; $27 avg. gift
    20. 20. Onlne and Integrated Best Practice Takeaways…• Don‟t Wait! Integrate online non donors into online, direct mail, and telephone conversion as soon as you have enough for a good test. Remember: younger donors ACCEPT more channels for solicitation!• Online Flanker Brand Campaigns. Need constant campaigns (like NRAblacklist.com) to grow your online non donor list.• Online Petitions. Build campaigns around online petitions so that you get full address.
    21. 21. What happens when you connect culture andfundraising? 22 Proprietary and
    22. 22. Online and another channel Yoga In Motion Impact of Calling Participants $1,000 $920.09 $900 $800 $722.18 Average Revenue ($) $700 $600 Up 27.4% $500 $400 $300 Avg. Revenue $200 Per Participant $100 $- Not Called Called Action Taken
    23. 23. Amnesty Denmark – digital includes mobile...• Amnesty Denmark has several ways of acquiring new donors including Face 2 Face, Cold TM and calling their SMS network• The SMS network is kept engaged through texts whereas F2F and Cold TM prospects are not engaged before they get an ask
    24. 24. Mobile is digital...and very valuable...Channel Acq. Avg. Lifetime Lifetime Return on Cost Amount (months) value Investme ntFace2Face €549 €60 30 €1,800 3.28Telemarketing €842 €62 31 €2,542 3.02Calling SMS €420 €74 60 €4,465 10.63network
    25. 25. Online and Integrated Best Practice:Integration Increases Multi-ChannelLoyalty and Value Annual Donor Value1 Retention Rate2 $255.74 82.3% $191.35 70.1% 62.3% $102.64Sources:1. Convio / Strategic One White Paper: Integrating Online Marketing (eCRM) with Direct Mail Fundraising: Adding a New Communication and Donation Channel Increases Donations; total contributions over 12 month period, excluding $10k+ gifts for SPCA of Texas2. Ibid. Comparison of retention rates for multi-year donors, SPCA of Texas
    26. 26. Self-Assessment to be Best PracticeWhere Are You in Your Online and Integrated Fundraising Journey?
    27. 27. Where are You? Single Silos Coordinated Integrated• Online Marketing • Separate Metrics & • Thematically • Unified Strategy & Full Makes Minimal Team for Online Integrated Integration Across Contribution Marketing Channel Managers • Coordinated Appeals• Calendar-Based • No Calendar / • Measures Success Campaigning Campaign • Integrated Calendar Across Channels, Not• Not Financially Coordination • Shared Metrics By Channel Committed to Second • Online Constitutes 5- • More Stuff, More • Seamlessly Integrates Channel 25% Direct Response Channels New Media Revenue • Shared success, budget and goals
    28. 28. Which Type of Organization Are You?Type A Type B Tension Behavior Outcome Tension Behavior Outcome Burnout, Innovation Cooperation Achieve Goals Fear Blaming Detachment Shared Stagnation, Creativity Teamwork Anxiety Self-interest Success Isolation Productive Rewards Political DowngradingSource: Mark Climie-Elliott, HJC Senior Consultant, “Turning Point” Webinar, April 15, 2010.
    29. 29. On A Scale of 1-5…• “1” = Type A, “5” = Type B• Where do you fall on the scale?
    30. 30. SolutionGetting people to change – to make online and offline connect together
    31. 31. Where to Begin? Release the Fear.• To create change – you need a process. • System • Input • Challenge• Three drivers of change for a more integrated organization: • People • Knowledge • Technology
    32. 32. Shared Reality• Your organization as it is today: • How you see it – your reality • How others see it – their reality • No right or wrong – simply respected observations• Collectively, this becomes your “shared” reality. Reality is something you rise above. Liza Minelli
    33. 33. Shared Future• Shift ahead & articulate a shared vision or desired state of what you want (or think) your fundraising will look like in 3-5 years• Can be applied to any time frame • Short-, Mid-, Long-Term
    34. 34. The Camembert All the rest: Online 1%; Legacy 2%; Major 3%; Corporate 4%; Government and Foundations 3%
    35. 35. The Camembert All the rest: Online 25%; Legacy 12%; Major 3%; Corporate 8%; Government and Foundation 3%
    36. 36. A Quick Exercise• Draw your fundraising pie charts: NOW 2021
    37. 37. Integration of all LEVELS of giving Legacies, Large Gifts and smaller gifts..
    38. 38. A great way to get started: An IntegratedSurvey • The cultivation survey: • Sent to 57,400 donors • 3 key segments: Monthly, Active & Lapsed • 5,530 responses (response rate of 11%) • Raised $17,574 – a bonus! • Reactivated 30 donors • Found 85 expectances and 292 legacy leads and 143 middle and major donor leads! • Key: shared budgeting!
    39. 39. The goals of the survey1. Collect personal preferences of donors for targeted marketing appeals2. Collect demographic data for marketing purposes – and connect it automatically to the database!3. Build a deeper relationship with donors – give them a platform to be heard4. Uncover leads for other forms of giving – including legacies, middle gifts, and major donor gifts proprietary and 40 11/24/2011
    40. 40. Social Media and personalization proprietary and 41 11/24/2011
    41. 41. FacilitationGetting everyone on the same page
    42. 42. Integrated Planning: a full contact sport…
    43. 43. What do you do before you meet?Talk, and listen, to team membersReview the past, the current reality, and future plansAnalyze the dataPrepare for a face to face session that willpush, pull, cajole, challenge and team build.
    44. 44. Sometimes a disaster forces people tomeet, plan and launch… Proprietary & Confidential Slide 45 11/24/2011
    45. 45. The Library Online11/24/2011 Proprietary & Confidential 46
    46. 46. Resultso 10,974 emails sent to City Council Memberso Over 20,000 written letters sento Gross revenue $50,058.68o 1,000 donorso 584 new donors (a few from social media) “The main reason we stopped the cuts was this online campaign. I would be the first to say otherwise, but its true.” Proprietary & Confidential Slide 47 11/24/2011
    47. 47. Everyone in a room to create anonline and integrated schedule Proprietary & Confidential Slide 48 11/24/2011
    48. 48. The Balanced Scorecard The Dramatic Oversimplifcation of Integrated Fundraising, Marketing, Communications and Campaigning
    49. 49. proprietary and 50 11/24/2011
    50. 50. How does it help Convio and its clients? • Development and Peace – were sent a quick audit (evaluation) by a Convio staff person • HJC followed up with a more hands-on, facilitative, and integrated engagement • It led to a plan that has made implementation easier and more successful with buy in (and understanding from senior leadership across the organization, including the CEO) proprietary and 51 11/24/2011
    51. 51. The Evidence Putting It All Together
    52. 52. A Public Broadcaster• Brand is perceived as authentic• They have moved away from a past of innovation to a current reality of „bureaucracy and silos‟
    53. 53. “A hanging in a fortnight concentratesthe mind wonderfully”• 2nd gift conversion dropped from 83% to 30%• Net loss of donors since 2005.• LTV of donors decreasing significantly since 2001• Magazine, which was the primary stewardship vehicle, stopped in 2007.• Share of voice, i.e. number of times donors hear from TVO in a year, has decreased.
    54. 54. It would take an integrated solution…• Senior management support• Cross departmental cooperation• Create an integrated plan and stick to it
    55. 55. Online and offline integration
    56. 56. Launched Impact Report for DonorLoyalty
    57. 57. Launched Symbolic Giving
    58. 58. Launched online and integratedchannels• Highlighted 40th anniversary• Telemarketing• Integrated Telemarketing with DM strategy• Follow-up post direct mail appeal• In-bound support• Brought in industry-leading call centre to handle inbound fundraising calls outside of regular hours (weekends/holidays etc.)• Introduced integrated (mail, phone, online) renewal strategy
    59. 59. Results - 2010• Q3 - Best end of year result since 2006, best result of 2010• Q3 - 26% increase over same quarter previous year• Q4 - 40% increase over same quarter previous year (over $1 million additional income)
    60. 60. Digital Games• $68 billion (bigger than music, books, and the movie industry)• It‟s entertainment• 29% over 50• 55% play on their mobile phones• Are you ready?
    61. 61. The future of digital media• Online can‟t be in a silo• Integrate all channels, all departments and all levels of giving• Get over attribution!• Remember, all generations, use online and all channels• Make an integrated plan and a lifecycle plan• And digital includes mobile phones and computer games!
    62. 62. Thank You!

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