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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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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
  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
  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
  6. 6. Why do charities need to do digital? March 25, 2010
  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
  8. 9. ABC figures 2000-2009 Source 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
  11. 17. March 25, 2010
  12. 18. March 25, 2010
  13. 19. March 25, 2010 Facebook’s phenomenal growth
  14. 20. 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
  17. 24. We now have multi-channel lives [email_address] [email_address] Mobile: 07970 543321
  18. 25. And donors want us to use those channels March 25, 2010
  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
  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
  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
  24. 31. Benefits of Digital March 25, 2010
  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
  26. 33. How to measure the value? March 25, 2010
  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
  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
  29. 36. “ Charities need to start measuring more than just how much they can expect in the short term.” March 25, 2010 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
  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
  32. 39. March 25, 2010
  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
  34. 41. March 25, 2010
  35. 42. As ever… March 25, 2010
  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
  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
  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
  41. 48. Integration March 25, 2010
  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
  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
  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
  46. 53. Getting Results March 25, 2010
  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
  48. 55. Our role? March 25, 2010
  49. 56. Be found easily March 25, 2010 Be understood easily Provide tools to help people help us Be responsive
  50. 57. The evidence? March 25, 2010
  51. 58. The atheist bus phenomenon
  52. 59. Growth in user created events
  53. 60. Who is giving online? March 25, 2010
  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
  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
  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
  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 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
  65. 72. Users spend 80.3% of their time on web pages above the fold. March 25, 2010 So put the important stuff there!
  66. 73. Information donors need to know March 25, 2010 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
  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
  70. 77. March 25, 2010
  71. 78. March 25, 2010
  72. 79. Connect with me: <ul><li>Twitter: </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>On most social media as ‘rachelbeer’ </li></ul><ul><li>Slides: </li></ul>March 25, 2010