Understanding Digital Direct Marketing and Fundraising


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A presentation for the one-day Institute of Fundraising conference on Direct Marketing & Fundraising, 25 March 2010

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  • Hi Rachel, your presentation has some great ideas tips and classical principles. I give free help and training to NFP organisations now I'm retired. It would be great if I could have a copy of your presentation to show them. May I have download access please.
    Terry Savage terry_savage@ntlworld.com
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  • Hey guys,
    How can I download this presentation ? This is so useful and I wanna keep it reference.
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  • great resource
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  • Hi byrnie - thanks for your comments. Those tables were purely for illustrative purposes - they do contain real 1, 2, 3, 4 & 5 year figures for a particular charity and were used as a channel comparision between self-select online donors (where donation values are usually much higher) and another acquisition channel - print-based - I think. I was really just using them to show that charities should have a clear handle on their figures, whatever they may be, as they do vary widely between charities and causes and are influenced by factors including messaging, appeal of mission, how long the charity has been testing and rolling out, awareness of brand and work etc. That's why I wouldn't want anyone to hold them up as relevant to their charity/cause - they must be worked out by each charity to be accurate.
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  • thanks Rachel, very useful indeed. Sorry I cou;dn't be at IOFNC this year but now living in Cape Town :( Love your part about lifetime value - what were you comparing in that slide? offline vs online? which was which?
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  • Third Sector, 16 March 2010 http://www.thirdsector.co.uk/BigIssues/Details/81476/charity-fundraising-technology/Article/990473/Online-fundraising-working/
  • Response rates to direct mail are in continual decline and have been for some years. The postal service is in crisis. Will it survive? Perhaps only at the moment because online shopping has been keeping it afloat but many of those companies have moved to other suppliers after the recent strike action. We will eventually see the death of the huge volume direct mail industry we all know and love. Well, maybe love isn’t quite the right word, but direct mail has always been a huge source of fundraising income for charities, so this presents the sector with quite a challenge.
  • If you need more proof, or help to make the case to your director or board, just look at what the circulations of the most popular newspapers in the UK did over the past year. Daily national newspaper market monthly year-on-year drop comparing December 2008 to December 2007 was 4.5%. That compares with 2% (2007-6), 3.2% (2006-5), 1.7% (2005-4), 3.2% (2004-3) and 3.8% (2003-2). Clearly, the downward trend is accelerating.’ Source: Guardian Jan 2009
  • Kindle sales are soaring. This surely means the demise of printed books? Perhaps not for a while, but It will happen.
  • ‘ Chuggers’ aren’t getting any more popular
  • The mobile revolution means we can surf the web on our phones, whenever and wherever we are.
  • Source: Facebook Site is now ranked 2 nd in the world, only behind Google.com (Source: Alexa) and, in early March 2010, actually overtook Google.com for a short time in the US (Source: Hitwise)
  • JustGiving, June 2009
  • If Facebook was a country, it would be the 4 th largest nation in the world: http://www.facebook.com/note.php?note_id=194473890746&comments&ref=mf
  • The world has moved on. We have a proliferation of social media available to us. These just a few of them – and for each one shown on here, there are several more alternatives and more in development(!). They allow us to create our own content, share information, resources, photos, videos and points of view, collaborate on documents and projects – with anyone, anywhere in the world. This is not just with people we know, but complete strangers too (or, rather, people we didn’t know, and wouldn’t have had the opportunity to connect with, before!). The degree with which we are able to connect with others is unprecedented in history - and we are much more empowered as a result.
  • Some relative newbies
  • … and huge amount of opportunity to tailor our information sources and experiences our own needs. This is evidenced by the way business cards are starting to look…
  • Source: How to Connect with Donors, CAF, February 2010
  • Third Sector, 16 March 2010
  • Third Sector, 16 March 2010
  • Third Sector, 16 March 2010
  • Third Sector, 16 March 2010
  • Third Sector, 16 March 2010
  • Digital donor development far less costly and wasteful
  • Test printed welcome packs vs online, and combinations of these
  • Over £105,000 raised – almost 20 times the original target 6,680 donors, donating an average of £14.27 (£17.38 with Gift Aid) 370 donors donated more than once – that’s 5% One person even donated 56 times! 430,000 page views , from almost 250,000 unique visitors People from a total of 152 countries accessed the page
  • Source: JustGiving 2009 And the overall growth in online donations correlates with increase of Internet usage
  • Source: JustGiving 2009 Users of social media are more likely to use email, more often
  • Source: JustGiving 2009
  • Jakob Nielsen, March 2009
  • Jakob Nielsen, March 22, 2010
  • By Janelle Estes and Jakob Nielsen , 2009
  • Happening tonight: #twestival
  • Understanding Digital Direct Marketing and Fundraising

    1. 1. Understanding the Value of Digital Direct Marketing Rachel Beer, Director, beautiful world 25 March 2010 March 25, 2010 www.hellobeautifulworld.com
    2. 2. <ul><li>Who is fundraising successfully online? </li></ul>
    3. 3. Who is doing this?
    4. 4. What is digital marketing? March 25, 2010 www.hellobeautifulworld.com
    5. 5. Digital marketing <ul><li>Promotion using the Internet and other interactive channels </li></ul><ul><li>Many techniques are contained within the category of ‘Internet Marketing’ </li></ul><ul><li>Other channels: </li></ul><ul><ul><li>Mobile (SMS and MMS) and digital outdoor </li></ul></ul><ul><li>Covers most traditional marketing areas, such as Direct Marketing and CRM </li></ul>March 25, 2010 www.hellobeautifulworld.com
    6. 6. Why do charities need to do digital? March 25, 2010 www.hellobeautifulworld.com
    7. 7. “ Direct mail has had decades to be honed … smart organisations should devote an important proportion of their fundraising budgets to things that might become the mainstay of the future.” Anne-Marie Huby, Managing Director, JustGiving March 25, 2010 www.hellobeautifulworld.com
    8. 9. ABC figures 2000-2009 Source Guardian.co.uk/media Newspaper circulations in 2009
    9. 15. Internet usage <ul><li>70% of households in UK with Internet access </li></ul><ul><ul><li>18.3 million homes </li></ul></ul><ul><ul><li>45 million Internet users </li></ul></ul><ul><ul><ul><li>35 million adults </li></ul></ul></ul><ul><ul><ul><li>10 million 7-14s </li></ul></ul></ul><ul><ul><ul><li>52% male, 48% female </li></ul></ul></ul>Source: Nielsen, TGI, UK National Statistics
    10. 16. Something big happened in February 2004 March 25, 2010 www.hellobeautifulworld.com
    11. 17. March 25, 2010 www.hellobeautifulworld.com
    12. 18. March 25, 2010 www.hellobeautifulworld.com
    13. 19. March 25, 2010 www.hellobeautifulworld.com Facebook’s phenomenal growth
    14. 20. http://icanhaz.com/jgfb Facebook: biggest referrer to JustGiving
    15. 21. <ul><li>Around 26 million users in UK </li></ul><ul><ul><li>400 million users internationally </li></ul></ul><ul><ul><li>Half of Global Top 100 websites have implemented Facebook Connect </li></ul></ul><ul><li>Over 14.6 million unique users in the UK </li></ul>
    16. 23. March 25, 2010 www.hellobeautifulworld.com
    17. 24. We now have multi-channel lives [email_address] [email_address] www.facebook.com/me www.lifestream.com/me www.photos.com/me www.MyBlog.com Mobile: 07970 543321
    18. 25. And donors want us to use those channels March 25, 2010 www.hellobeautifulworld.com
    19. 26. <ul><li>When shown a list of communication tools and asked which charities should use more … only ‘social networking’ and ‘communication by email’ were chosen by the majority. </li></ul>Sources: National Statistics, CommScore global, YouTube & Facebook Source: How to Connect with Donors, CAF, February 2010
    20. 27. <ul><li>“ Waste less funds on glossy reports and ‘magazines’” </li></ul><ul><li>“ Stop the endless mail outs, especially those with gifts” </li></ul><ul><li>“ Bring in e-mail only communications for regular supporters – will reduce costs” </li></ul><ul><li>“ Reduce physical mailings to reduce costs – more electronic mail” </li></ul><ul><li>“ I want to emphasise e-mail with weblink rather than post … would have just as great an impact on me” </li></ul><ul><li>“ Must reduce the amount of unsolicited mail they send. It must cost a fortune and is often very high quality.” </li></ul><ul><li>“ Make more of electronic mailings and social networking” </li></ul>Source: How to Connect with Donors, CAF 2010
    21. 28. Summary case for investment <ul><li>Print media no longer rule the world </li></ul><ul><li>Wide adoption of digital media </li></ul><ul><ul><li>Mobile handsets increasing Internet usage </li></ul></ul><ul><li>Response rates dropping </li></ul><ul><ul><li>Cost per acquisition rising </li></ul></ul><ul><li>Reliance on Face-to-Face </li></ul><ul><ul><li>Too many eggs in one basket </li></ul></ul><ul><li>Future proofing strategy </li></ul>March 25, 2010 www.hellobeautifulworld.com
    22. 29. “ It makes sense to continue investing in online fundraising and testing what works, because if we invest only in the traditional side, the charity will fall behind the times.” Sharon Schofield, Deputy Director of Fundraising and Communications, The Brooke March 25, 2010 www.hellobeautifulworld.com
    23. 30. ‘ About two-thirds of donors who give in response to direct response TV adverts do so online, and people who sign up online tend to stay with the charity for longer. Income raised online grew by 48 per cent in the past financial year.’ March 25, 2010 www.hellobeautifulworld.com
    24. 31. Benefits of Digital March 25, 2010 www.hellobeautifulworld.com
    25. 32. Benefits <ul><li>Lead times can be shorter </li></ul><ul><li>Get results almost instantly </li></ul><ul><li>Optimise continually throughout campaigns </li></ul><ul><li>Test propositions discreetly and roll out quickly </li></ul><ul><li>Social media is a great way to test the water with a proposition without committing budget </li></ul><ul><ul><li>If it’s not good enough to pass it on, it’s probably not good enough </li></ul></ul>March 25, 2010 www.hellobeautifulworld.com
    26. 33. How to measure the value? March 25, 2010 www.hellobeautifulworld.com
    27. 34. “ Fundraising directors are used to the reassuring return on investment numbers they get from face-to-face and direct mail – although these figures are falling dramatically…” March 25, 2010 www.hellobeautifulworld.com
    28. 35. “ These financial indicators are not necessarily appropriate for online fundraising because they don’t tell you how well you will do in future…” March 25, 2010 www.hellobeautifulworld.com
    29. 36. “ Charities need to start measuring more than just how much they can expect in the short term.” March 25, 2010 www.hellobeautifulworld.com Anne-Marie Huby, Managing Director, JustGiving
    30. 37. Cost per acquisition? <ul><li>Cost per acquisition is important </li></ul><ul><li>Can’t expect new activity to equal tried and tested traditional activity </li></ul><ul><ul><li>A t least not initially </li></ul></ul><ul><li>But traditional activity should be used as a benchmark </li></ul>March 25, 2010 www.hellobeautifulworld.com
    31. 38. True value <ul><li>The only true measure is net lifetime value </li></ul><ul><ul><li>Or at least one, two, three, four and five-year net value </li></ul></ul><ul><li>Understand, and make decisions, based on the ongoing value of the donors you recruit, not just the ROI at point of acquisition </li></ul>March 25, 2010 www.hellobeautifulworld.com
    32. 39. March 25, 2010 www.hellobeautifulworld.com
    33. 40. How to calculate this? <ul><li>Factor in: </li></ul><ul><ul><li>Donor development costs </li></ul></ul><ul><ul><li>Subsequent income: further donations </li></ul></ul><ul><ul><li>Attrition </li></ul></ul><ul><li>Analyse and understand: </li></ul><ul><ul><li>Propensity to upgrade & respond to cross-selling </li></ul></ul><ul><ul><li>Propensity to respond to other media </li></ul></ul><ul><ul><li>How to nurture optimum net value </li></ul></ul>March 25, 2010 www.hellobeautifulworld.com
    34. 41. March 25, 2010 www.hellobeautifulworld.com
    35. 42. As ever… March 25, 2010 www.hellobeautifulworld.com
    36. 43. Donor development is vital Long-term ROI is dependent on what you do after the first gift
    37. 44. Donor development is vital Long-term ROI is dependent on what you do after the first gift
    38. 45. The Role of Digital March 25, 2010 www.hellobeautifulworld.com
    39. 46. The role of digital <ul><ul><li>Outreach and engagement with prospects </li></ul></ul><ul><li>Deepening relationships with supporters </li></ul><ul><ul><li>A vital set of tools to stem attrition </li></ul></ul><ul><ul><li>Rich content provides a richer experience </li></ul></ul><ul><ul><li>Opportunity for dialogue </li></ul></ul><ul><ul><li>Opportunity to work together </li></ul></ul><ul><li>Emergency fundraising </li></ul><ul><ul><li>Quick, instant and very flexible </li></ul></ul>March 25, 2010 www.hellobeautifulworld.com
    40. 47. The role of digital <ul><li>Not just a set of tools for you </li></ul><ul><ul><li>Your donors are also empowered to fundraise and spread messages via them </li></ul></ul><ul><ul><ul><li>Emergencies </li></ul></ul></ul><ul><ul><ul><li>Events fundraising </li></ul></ul></ul><ul><ul><ul><li>Personal appeals </li></ul></ul></ul><ul><li>Self-selecting donors </li></ul><ul><ul><li>Have a higher lifetime value if you value them </li></ul></ul>March 25, 2010 www.hellobeautifulworld.com
    41. 48. Integration March 25, 2010 www.hellobeautifulworld.com
    42. 49. Integrating digital <ul><li>Much more than trying to drive existing donors to give online, by including URL in mail packs </li></ul><ul><ul><li>This will have limited impact </li></ul></ul><ul><li>All acquisition, using any medium, should be accompanied by </li></ul><ul><ul><li>Paid search </li></ul></ul><ul><ul><li>SEO </li></ul></ul><ul><ul><li>Online content </li></ul></ul>March 25, 2010 www.hellobeautifulworld.com
    43. 50. Taking an integrated approach Initial advertising results gained with best site. Multiplied in future campaign typically 3 to 5 times
    44. 51. Integrating digital <ul><li>Must have an appropriate donor development programme in place for digital donors </li></ul><ul><li>You must test and refine it, just like you’ve been doing for years for donors recruited through traditional media </li></ul><ul><li>Email is a vital tool </li></ul><ul><li>As are social media </li></ul>March 25, 2010 www.hellobeautifulworld.com
    45. 52. A word about print <ul><li>Don’t totally discount it </li></ul><ul><li>Make sure it’s good </li></ul><ul><li>And not too frequent </li></ul><ul><li>Quality not quantity </li></ul>March 25, 2010 www.hellobeautifulworld.com
    46. 53. Getting Results March 25, 2010 www.hellobeautifulworld.com
    47. 54. The social web has changed us <ul><li>It’s the user’s web more than ever before </li></ul><ul><li>They self-select from a wide range of options </li></ul><ul><li>Push and interruption marketing doesn’t work as well as it used to </li></ul><ul><li>Pull and engagement techniques taking over </li></ul>March 25, 2010 www.hellobeautifulworld.com
    48. 55. Our role? March 25, 2010 www.hellobeautifulworld.com
    49. 56. Be found easily March 25, 2010 www.hellobeautifulworld.com Be understood easily Provide tools to help people help us Be responsive
    50. 57. The evidence? March 25, 2010 www.hellobeautifulworld.com
    51. 58. The atheist bus phenomenon http://justgiving.wordpress.com/2008/10/24/atheist-bus-rides-again
    52. 59. Growth in user created events
    53. 60. Who is giving online? March 25, 2010 www.hellobeautifulworld.com
    54. 61. Is this your first online donation?
    55. 62. Where else is the growth? <ul><li>Paid for search </li></ul><ul><li>Classified advertising </li></ul><ul><li>Video </li></ul><ul><li>Social media </li></ul>March 25, 2010 www.hellobeautifulworld.com
    56. 63. Make the most of rich media <ul><li>Video and audio can have greater cut through </li></ul><ul><li>Rich content hubs increase </li></ul><ul><ul><li>Engagement </li></ul></ul><ul><ul><li>D well time </li></ul></ul><ul><ul><li>C onversion to donation </li></ul></ul><ul><li>Show evidence </li></ul><ul><li>Give feedback </li></ul><ul><li>Deliver an experience </li></ul>March 25, 2010 www.hellobeautifulworld.com
    57. 64. Understand the media mix Source of donation ask
    58. 65. Choose the right media for the audience Do tools used depend on age?
    59. 66. The many roles of social media March 25, 2010 www.hellobeautifulworld.com
    60. 67. Optimise social media for fundraising
    61. 68. Using campaign insights to enhance future advertising
    62. 69. And stop good people giving! March 25, 2010 www.hellobeautifulworld.com Bad websites kill online donations
    63. 70. Why charity websites lose donations Increasing Online Giving to Non-Profits and Charities (US study), Jakob Nielsen, March 2009
    64. 71. Why charity websites lose donations <ul><li>Usability problems: page and site design </li></ul><ul><ul><li>unintuitive information architecture </li></ul></ul><ul><ul><li>cluttered pages </li></ul></ul><ul><ul><li>confusing workflow </li></ul></ul><ul><ul><li>banner-blindness </li></ul></ul><ul><ul><li>over-formatting </li></ul></ul><ul><li>Content issues: writing for the web </li></ul><ul><ul><li>unclear or missing information </li></ul></ul><ul><ul><li>confusing terms </li></ul></ul>March 25, 2010 www.hellobeautifulworld.com
    65. 72. Users spend 80.3% of their time on web pages above the fold. March 25, 2010 www.hellobeautifulworld.com So put the important stuff there!
    66. 73. Information donors need to know March 25, 2010 www.hellobeautifulworld.com Once they have made the decision that they want to donate, what do they need evidence of before they do donate?
    67. 74. If you take one thing away… March 25, 2010 www.hellobeautifulworld.com
    68. 75. … it should be this: <ul><li>Digital media are continually evolving </li></ul><ul><li>They have changed: </li></ul><ul><ul><li>How people behave & communicate </li></ul></ul><ul><ul><li>How we relate to brands – including charities </li></ul></ul><ul><ul><li>How we make decisions </li></ul></ul><ul><ul><li>Our expectations </li></ul></ul><ul><li>And this is all going to keep changing! </li></ul>
    69. 76. Finally, no presentation on digital would be complete without… March 25, 2010 www.hellobeautifulworld.com
    70. 77. March 25, 2010 www.hellobeautifulworld.com
    71. 78. March 25, 2010 www.hellobeautifulworld.com
    72. 79. Connect with me: <ul><li>Twitter: www.twitter.com/rachelbeer </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>On most social media as ‘rachelbeer’ </li></ul><ul><li>Slides: www.slideshare.net/rachelbeer </li></ul>March 25, 2010 www.hellobeautifulworld.com