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Integrated Tactics hjc and avalon consulting March 2012

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First Part of Excellence in Integrated Fundraising Webinar - March 29, 2012

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Integrated Tactics hjc and avalon consulting March 2012

  1. 1. Implementing Integrated Fundraising Techniques. Page 1
  2. 2. Who Are We? Allison Porter Mike Johnston CEO, Avalon Consulting Founder, HJC, Strategic Multi-Level and Integrated Fundraising Specialist, Multi-Channel Fundraiser for Aerobics Instructor, Game Player, Charities and Politics and Sports Fanatic. Page 2
  3. 3. Take our survey at the end of the session! At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 1 WINNER to receive complimentary 1-hour integrated fundraising consulting session http://www.surveymonkey.com/s/KX8MM6J. Page 3
  4. 4. Learning Outcomes1) Be better at planning and executing cross channel and integrated fundraising and communications2) Understand that this will lead to improved cooperation between ―competing‖ departments within your nonprofit organization3) Look at different channel combinations and help you decide which are best for you4) Look at how you can use integrated fundraising to help better connect ALL levels of fundraising. Page 4
  5. 5. Today‘s Agenda1) Our ‗take‘ on Integrated Fundraising A personal interpretation from Alison and Mike2) Integration – up, down and across What’s the value of being integrated and what are the basics?3) Evidence – Put It All Together What does integration look like in the real world?. Page 5
  6. 6. Our ‗take‘ on Integrated Fundraising. Page 6
  7. 7. Allison: What‘s Integrated Marketing mean to me • It leads to more diverse audiences • More effective education and cultivation • Broader PR • More comprehensive reach • More seamless donor experience • And… fundamentally, raising more money!. Page 7
  8. 8. Mike: What‘s Integrated Marketing mean to me • It gets more attention in a busy environment • Donors are already integrated consumer – why not in their philanthropic consumerism? • It can give a more complete picture of who you are as an organization. Page 8
  9. 9. Integration – a definition. Page 9
  10. 10. Integration• Definition:• Integrate:1) Make into a whole, complete, 2) bring together (parts) into a whole.. Page 10
  11. 11. Integration• ― The whole is greater than the sum of the parts‖• A planned marketing mix is more effective than a random selection of distribution channels• The ―Halo‖ effect. Page 11
  12. 12. Integration – ‗up, down, and across‘. Page 12
  13. 13. Integrationneeds to take place in more than one direction• Horizontally – Theme, message & style• Vertically • Acquisition • Donor Development • RenewalIn a chronological customer contact flow. Page 13
  14. 14. The three tactical levers in integratedfundraising • Acquisition • Donor Development • Renewal. Page 14
  15. 15. Horizontal & vertical integration TV DM Phone Acquisition Internet F2F Radio 1. Donor Acquired Welcome DM Email 2. Donor update development and 3. donor renewal DM Newsletter Phone upgrade call. Page 15
  16. 16. Principals of integration• Understand the donor/prospect • Research & observation• Communicate • Relevant consistent messages, • through the right media• Sequence your approach• Plan, test, analyse and revise. Page 17
  17. 17. Integration in direct marketingfundraising• Synchronise media to deploy a cohesive, personalised, sustained message rather than a fragmented scattergun approach• Personalise your appeal to the needs of the donor prospect over multiple media and recruitment channels to work together for maximum effect. Page 18
  18. 18. Integration for maximum effect• Increase No of qualified enquiries• Improve fulfilment (conversion) rate• Improve media /return on investment• Improve donor satisfaction and lifetime value• Improve the ―Appeal‖ of your cause. Page 19
  19. 19. Integration to Grow Your Pyramid Wills Major Wills Pledge Major Pledge One-off One-off Prospects Prospect. Page 20
  20. 20. Integration for the Whole Pyramid• 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 • 143 middle and major donor leads! • Key: shared budgeting! . Page 21
  21. 21. Cross departmental sharing, learning and lead generation…. Page 22
  22. 22. The goals of the survey 1. Collect personal preferences of donors for targeted marketing appeals 2. 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 heard 4. Uncover leads for other forms of giving – including legacies, middle gifts, and major donor gifts. Page 23
  23. 23. Online and Planned Gifts. Page 24
  24. 24. Phone and Planned Gifts. Page 25
  25. 25. Our Current Reality. Page 26
  26. 26. Current Reality1) Nonprofit offline donors are aging2) Donor files and acquisition list sources are shrinking3) Donor Fatigue is evident4) Revenues are flat and – in many cases – are falling5) Direct mail costs are increasing/ fundraising margins are shrinking6) Online – when kept in a silo - underperforms Nonprofits need younger more valuable donors More personal relationships with loyal donors Investment in a multi-channel approach Nonprofits need to work better together. Page 27
  27. 27. Silos can lead to fundraising deficiencies… 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% 2010 7656 2011 7570. Page 28
  28. 28. The Case for Multi-Channel Giving$120 81%$100 80% 79% $80 78% $60 77% $40 76% 75% $20 74% $0 73% Income/Member Average Gift Retention. Page 29 29
  29. 29. Diversifying and optimizing all available outreach channels is important— especially during challenging economic times Subsequent income by channel for website joinsAvalon’s analysis showsthat donors don’t alwaysstick to the channel theyjoined with—but migrate to FY10 isdifferent channels. incompleteThis graph shows how―web joins‖ for one clientactually gave more throughmail and phone insubsequent gifts. . Page 30 30
  30. 30. The Donor Media Mix. Page 31
  31. 31. Integration The Market Reality and The Value. Page 32
  32. 32. Canadian Generational Giving 66% Give 73% Give 5.7M donors Civics 3.2M donors $725 yr/avg $833 yr/avg 4.9 charities 5.3 charities $4.1 B/yr Boomers $2.6 B/yr Gen X 61% Give 4.2M donors $549 yr/avg 4.1 charities 55% Give Gen Y $2.3 B/yr 2.7M donors $325 yr/avg 3.5 charities $.8 B/yr. Page 33
  33. 33. Future Giving Donations plans to top charity next year. Page 34
  34. 34. More on Gen Y Defining Values Social Media Habits (% doing regularly) Time to give back What’s in it for me? Online connection Value 70% 49% 25% 16% • Size • Lifetime value Mobile Habits • Lower cost appeals 49% Mobile ONLY phone • Active supporters/promoters 32% Mobile primary BUT 42% Facebook Mobile app • Require multichannel appeals • Tracking difficult 53% Texters. Page 35
  35. 35. MoreDefining Values on Gen X Peer-motivated Social Media Habits (% doing regularly) Support random, emotional Time vs. money Online connection Value 56% 30% 13% 11% 11% • Size of gifts to top charities • Lifetime value Mobile Habits • Lower-cost appeals 28% Mobile ONLY phone • More than dollars 37% Mobile is primary • Viral promoters 27% Facebook mobile app • Most Educated, Higher Income 40% Texters BUT • Harder to secure. Page 36
  36. 36. More on Boomers Defining Values Giving more planned Tech/Media Profile Efficiency/overhead concerns 29% Facebook (reg) 2-in-10 retired (60% Total) Value 17% Texters • Largest cohort 47% E-newsletters • Size and dollars 55% Bank online • Income 33% Shop online. Page 37
  37. 37. More on Matures Defining Values Pre-meditated giving Loyal But guarded Scrutiny Tech/Media Profile 17% Facebook (reg) Value (50% Total) • Largest annual contributions 5% Texters • Greater # of groups 48% E-newsletters • Tracking/Direct mail responsive 57% Bank online BUT 34% Shop online • Smallest cohort and shrinking • Less open to new appeals. Page 38
  38. 38. And then there is Gen Z… • Do you have an integrated plan for supporters under 15?. Page 39
  39. 39. Increasingly Multi-Channel Behavior % Who Agree, Appropriate Solicitation Channel GEN Y GEN X BOOMER MATURE MAIL 71% 71% 75% 64% EMAIL 67% 60% 51% 40% SOCIAL MEDIA 59% 30% 15% 13% PHONE 38% 38% 39% 35% TEXT 23% 14% 9% 9%Source: Next Generation of Canadian Giving, Convio, hjc, Stratcom 2010. Page 40
  40. 40. Evidence – Put It All Together What does integration look like in the real world?. Page 41
  41. 41. The House of Glass: An Integrated Case Study. Page 42
  42. 42. Proving Integration Makes aDifference in Fundraising• Radio 3FM - Public broadcast• 1 week (Xmas week)• House of glass on a public square in Utrecht• 3 radio DJs• 24 hours life radio for 5 days• No food. Page 43
  43. 43. Marketing Tools• Radio announcement• TV commercials• TV news coverage• Newspaper articles• Text bar on the TV screen• Internet• Word of mouth. Page 44
  44. 44. Fundraising Tools• How to make a song request and pay 1. Internet - www.3fm.nl 2. Telephone – 0909-1336 3. Postcard with bank authorisation• Not related to the song request 4. Auction 5. SMS 6. Cash donations 7. Company of the day. Page 45
  45. 45. Channel Team Work! Donations 20 40 Online SMS 30 Telephone Walk Up 10. Page 46
  46. 46. The Halo Effect! Donations 1,000,000 915,000 900,000 800,000 700,000 600,000 500,000 Donations 400,000 300,000 220,000 240,000 200,000 100,000 0 Year 1 Year 2 Year 3. Page 47
  47. 47. . Page 48 Daryl Upsall Consulting International SL
  48. 48. . Page 49 Daryl Upsall Consulting International SL
  49. 49. CASE STUDY: Farm Sanctuary Multi-Channel Year-End Appeal The Problem: Farm Sanctuary wanted to increase the number of animals it would save inthe upcoming year, which meant getting donors on board to generate the additional fundingneeded. The Response: Farm Sanctuary’s year end appeal Campaign Strategy allowed FarmSanctuary to alert members, raise money, and secure a matching gift challenge with a year-end deadline. The Campaign: Avalon worked with Farm Sanctuary to implement a multi-channelcampaign that included: • Multiple E-Fundraising emails • Direct mail • Online The Results: The multi-channel, multi-phase approach hit the mark as we hoped. The finalemail effort generated 37% of the total email revenue in just 24 hours! Overall, the campaignproduced a 17% higher response rate and 42% more net revenue than the previous year-endeffort. . Page 50
  50. 50. CASE STUDY: Farm Sanctuary Components of a Multi-Channel Campaign Year-End Direct Mail Mail December 16th E-Appeal resend to E-Appeal Last chance E-Appeal non-respondersEmail December 16th December 22nd December 30th. Page 51
  51. 51. CASE STUDY: Farm Sanctuary E-Fundraising Emails E-Fundraising Emails Three fundraising emails were sent to the full Farm Sanctuary email list. While respondents to the first email were suppressed from the second email, we added them back into the third email effort. The third email effort was dropped the day before the December 31 matching gift deadline and included a compelling video clip from Farm Sanctuary’s President and Co-Founder, Gene Baur. As a result, we were able to encourage Farm Sanctuary’s best donors to make an additional gift to the campaign - taking advantage of both the tax deductibility and matching gift.. Page 52
  52. 52. CASE STUDY: Farm Sanctuary Direct Mail Avalon worked with Farm Sanctuary to time the direct mail appeal and the first email appeal to arrive at the same time. Avalon’s year end strategy was three-fold: increase contact frequency, maximize multi- channel communications, and emphasize urgency. Farm Sanctuary was able to secure a matching gift challenge with a year-end deadline, which we were able to leverage for added urgency.. Page 53
  53. 53. Results and Learnings Efforts Qty Gifts Gross Revenue RR AG FY10 DM 1 52531 2553 $ 163,887.00 4.86% $ 64.19 FY10 Online 3 158120 1850 $ 162,468.00 1.17% $ 85.63 TOTAL FY10 210651 4403 $ 326,355.00 2.09% $ 74.12 FY09 DM 1 61893 2092 $ 108,790.00 3.38% $ 52.00 FY09 Online 1 39200 294 $ 40,354.00 0.75% $ 137.26 TOTAL FY09 101093 2386 $ 149,144.00 2.36% $ 62.51. Page 54
  54. 54. A Public Broadcaster• Brand is perceived as authentic• No integrated fundraising execution. Page 55
  55. 55. Things needed to be improved• 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.. Page 56
  56. 56. How Do They Do It? Team Optimization Multi Channel Integration Culture Committed to Service. Page 57
  57. 57. It would take an integrated solution…• Senior management support• Cross departmental cooperation• Create an integrated plan and stick to it. Page 58
  58. 58. Online and offline integration. Page 59
  59. 59. Online and offline integration. Page 60
  60. 60. Launched Impact Report for Donor Loyalty. Page 61
  61. 61. Launched Symbolic Giving• Promoted online and through web• Donor direct mail piece• Householder• Brochure in Impact Report• Focused direct response TV advertisements• Streamlined online fundraising• Launched new microsite with focused campaign feel• Built email list through ―pledge sign-up‖• Ran focused e-mail conversion strategy• End of year e-mail appeals. Page 62
  62. 62. Launched Symbolic Giving. Page 63
  63. 63. Launched cultivation mailings • 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. Page 64
  64. 64. Reality• Cost to Acquire a DRTV Donor increasing• Small List Universe for DM Acquisition • Response Rates Dropping• Online showing growth over past years• Limited Phone• Strong Conversion to Monthly from DM. Page 65
  65. 65. Results – 2010 and 2011. Page 66
  66. 66. Holiday 2011 Campaign The campaign featured a landing page, which displayed ―messages of hope‖, left by constituents when they were making donations. The landing page also featured a video with a brief explanation of what the BC Cancer Foundation is, a campaign thermometer and a promotion of the ability to send eCards.. Page 67
  67. 67. Holiday 2011 Campaign The campaign was active for about three weeks, ending on December 31, 2011. It included: 1. Google AdWords Search Network (Paid Account) 2. Google AdWords Display Network 3. Google AdWords Search Network (Google Grant Account) 4. Email. Page 68
  68. 68. . Page 69
  69. 69. Wrap Up. Page 70
  70. 70. Wrap Up Questions, thoughts or reflections…. Page 71
  71. 71. Results and Learnings Overall Revenue: 1,272 gifts, $275,003, $216.20 average gift 1. Big Breakthrough #1: Google Search, Adwords - $2,500 spent with a return of $58,000. 2. Big Breakthrough #2: Larger Gift array led to larger gifts 3. Big Breakthrough #3: More emails, with personalization and e-cards, led to more money online. Page 72
  72. 72. CASE STUDY: League of Women Voters Multi-Channel Urgentgram Appeal The Problem: The League was under attack by a bogus organization. The Response: The League’s September/October 2009 Emergency UrgentgramCampaign allowed the League to alert members, raise money, and highlight the League’sposition on health care during the nation’s health care debate. The Campaign: Avalon worked with the League to implement a multi-channel campaignthat included: • Multiple E-Fundraising emails • E-Engagement email • Telemarketing • Direct mail • Online and social networking strategy The Results: The Emergency E-Appeals were by far the most successful the League hadever seen, raising more than double the online fundraising budget for the entire fiscal yearfrom just one campaign! The unbudgeted direct mail effort brought in significant additionalincome on top of their traditional mail schedule. . Page 73
  73. 73. CASE STUDY: League of Women Voters Components of a Multi-Channel Campaign Urgentgram MailMail Appeal Telemarketing TM E-Appeal resend to E-Newsletter E=Engagement piece E-Appeal Follow-up non-responders E-Engagement piece Email Day 1 Day 2 Day 6 Day 10 Day 12 Day 14 Homepage Social networks Press releaseWeb. Page 74
  74. 74. CASE STUDY: League of Women Voters E-Fundraising and E-Engagement EmailsE-Fundraising Emails E-Engagement Emails Two fundraising emails were sent to the full Regularly scheduled E-Newsletter sent inLeague email list addition to two E-Engagement emails Second E-Fundraising email was sent to non- E-Engagement emails highlighted ways forresponders; used preview pane language to citizens to get involved as well as a Leagueconvey urgency PSA, which was funded by revenue raised Landing page matched look and feel of from the E-Fundraising emailsemails E-Engagement emails boosted fundraising by including soft asks . Page 75
  75. 75. CASE STUDY: League of Women Voters Telemarketing The League was already on the phones with sustainer, reinstatement, and appeal telemarketing campaigns. Avalon worked to change copy in each of the three scripts to reach as many people as possible. Changes were made to scripts within days of the issue first arising; message matched online communications. Donors responded very generously on the phones to this tangible threat; health care – an issue dominating the news also resonated with donors.. Page 76
  76. 76. CASE STUDY: League of Women Voters Direct Mail Avalon worked with the League to get an unbudgeted direct mail appeal out the door within two weeks. A simple format and very strong teaser conveyed urgency.. Page 77
  77. 77. CASE STUDY: League of Women Voters Website and Social Networking Messaging was also coordinated on the League’s website and through their social networking profiles. Homepage included a fundraising ask, which provided extra collateral income. Facebook status alerted fans to the situation, sparking a discussion online, and driving traffic to the League’s website.. Page 78
  78. 78. Results and Learnings Efforts Qty Gifts Gross Revenue RR AG Standard e- Appeal 2 28884 55 $ 2,275 0.19% $ 42.13 LAV e-Appeal 4 242,489 1915 $ 102,910 0.89% $ 53.35. Page 79
  79. 79. Wrap Up Questions, thoughts or reflections…. Page 80
  80. 80. Remember to fill out the online survey to win FREE consulting session! http://www.surveymonkey.com/s/KX8MM6J. Page 81

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