This document discusses how higher education institutions can transition to a "subscription economy" model focused on donor relationships and experiences. It outlines how the OSU Foundation partnered with EverTrue to launch a "Donor Experience Program" using donor experience officers and technology to provide personalized outreach to donors. Early results showed improved donor retention rates, reactivation of lapsed donors, and increased fundraising revenues compared to traditional mass marketing models. The presentation encourages other universities to adopt this new approach of ongoing donor engagement and value.

1. Advancement in the
Subscription Economy

2. Brent Grinna
Founder and CEO,
EverTrue
@brentgrinna
brent@evertrue.com
Mark Koenig
AVP of Advancement Services,
Analytics and Digital Strategy,
OSU Foundation
mark.koenig@osufoundation.org

3. We partner with Oregon State University, a public
land-grant institution with over 200k alumni, to engage our
community, inspire investment, and steward resources to
enhance the university’s excellence and impact.

4. Our mission is to build relationships
in pursuit of a better world.

5. #1
Highest-rated advancement software
500+
Higher Ed Partners
51
Of the Top 100 US News & World
Report Universities

7. Live poll time!
Raise your hands

8. Over the last five years...

9. Have total fundraising dollars increased
at your institution?

10. Has alumni participation decreased?

11. If donor counts are down but dollars
are up, are you OK with that?

12. Who feels pressure to build next
generation donor pipeline to combat
fatigue and competition among
longstanding major donors?

13. The Status Quo

14. Overall giving to higher ed
$47B in
FY18

15. 1. CASE voluntary support of Education 2017
However, alumni participation is declining

16. 6:43 PM 7:17 PM

17. We call at the worst time possible...

18. We rely on “pledges”
>30%
of Phonathon Pledges
are never fulfilled.*
*Jesuit Advancement Association Study, 2016

19. And then we never hear from that
student caller again...

20. Until they want more money!

21. Is this a good experience?

22. In 2011, for every eight people who
answered our calls and made gifts,
only one said, "Never call me again."
By 2015, the ratio was 3-to-1.
Stanford University, CASE CURRENTS

23. # Donors*
Illustrative data from anonymous EverTrue customer.
Telefund results are falling off a cliff

24. The world has moved to a
customer-driven economy

25. This is the era of
the Subscription Economy

26. Focusing on relationships requires a new way of thinking.
Rather than placing your focus on the product or the
transaction, Subscription Economy companies live and die
by their ability to focus on the customer. The formula for
growth lies in delivering multi-channel experiences and
services (that get better over time).
So as a business in the Subscription Economy, your focus is
on retaining existing subscribers, monitoring usage,
accounting for recurring revenue, finding new ways to
deliver ongoing value to your customers that will build
long-term loyalty.

27. The Customer Journey
Marketing/Sales
Tuition Upgrade
Awareness Consideration Tuition Retention Upsell Advocacy
Customer Success/Sales
Brand & Process Value & Outcomes

28. What’s the advancement version?

29. The Subscription
Advancement organization
Ongoing
Value
Memorable
Experiences
On-Demand
Fulfillment
Anywhere,
Real-time
Personalized
Service

30. Focusing on relationships requires a new way of thinking.
Rather than placing your focus on the institution or the gift,
Subscription Economy universities live and die by their
ability to focus on the alumni. The formula for growth lies in
delivering multi-channel experiences and services (that get
better over time).
So as a university in the Subscription Economy, your focus
is on retaining existing donors, monitoring engagement,
accounting for recurring revenue, finding new ways to
deliver ongoing value to your alumni that will build
long-term loyalty.

31. The Alumni Journey
Enrollment
Tuition Upgrade
Awareness Consideration Tuition Retention Upgrade Advocacy
Donor Experience
Brand & Process Value & Outcomes

32. Winning companies treat
you like they know you.

33. Those who don’t act
will be left behind
79%
of U.S. consumers aged
18-65 say brands must
actively demonstrate
"they understand and care
about me" before a
consumer will consider
making a purchase.

34. Those who don’t act
will be left behind
Colleges

35. Setting the Scene...

36. FY19 results
$144.5MM
raised
beating goal
of $142MM
$28.5MM
For student success
initiative
beating goal
of $25MM
$117M
in cash from
outright gifts
Best year ever!
Record-setting year for the OSU Foundation, College of Agricultural
Sciences and the College of Earth, Ocean, and Atmospheric Sciences

38. Fundraising is flat
$ in Millions, donors labeled alumni in EverTrue,
Giving <$10,000 per year

39. Donor count & participation are decreasing
Donors labeled alumni in EverTrue,
Giving <$10,000 per year

40. Trailing three year average alumni retention rate
A common challenge
OSU
69%

41. It’s hard to fill a leaky bucket
3.7k
4.4k
2015
2.8k
4.1k
2016
2.0k
4.4k
2017

42. 55%
FY 2018 donors
Total unique donors 2015-2018

43. Trustees and Presidents
demand higher alumni
participation
Call center Return
On Investment is
declining
Multi-channel
engagement not
integrated with call
center/outreach
The problem
Mass outreach &
minimal stewardship
for <$10k annual fund
supporters

44. Bottom 98%
2%
The old model
Telefund and direct marketing
- Mass marketing
- Minimal personalized outreach
- Sporadic, inconsistent volunteer outreach
- “Hail Mary” year-end messaging
- Minimal post-engagement “closing” activities
Frontline fundraising
- Clear vision and personal outreach unlocks major donor potential

45. “Donor Experience Program”
- Focus on the “Next 10%”
- Renew Leadership/Annual Fund Donors
- Reactivate Key Lapsed Donors
- Upgrade donors into BLC range
The new model
2%
Middle
Bottom
Frontline fundraising
Telefund and direct marketing

46. “Inside sales reduces
cost-of-sales by 40-90% relative
to field sales, while revenues may
be maintained or even grow.”
Stanford University, CASE CURRENTS

47. Designing The EverTrue + OSU
Donor Experience Program

48. Our approach
TechnologyStrategy People

49. Provide
tangible value
1:1 conversations
that offer value
to donors
Focus on
retention
90% retention target
within designated
portfolio
Reactivate
lapsed donors
Reactivation target
for recently-
lapsed donors
Build major
gift pipeline
ID qualified and
engaged major
giving prospects
Strategy

50. Meet the Donor Experience Officer (DXO)
People
Heather Jordan Joslyn

51. Technology

52. Technology
Rapid
qualification
Improved
insights:
Interests, Wealth,
Engagement
Scalable
outreach

53. Program Goals

54. Target
50 touches
per day
Maintain
high-level
personalization
Manage
engagement
cadence
The DXO approach
Share relevant,
interest-based
content

55. Reactivated
donors
Revenue
retention rate
The DXO metrics
90%
Donor
retention rate
100% 33%

56. A Day in the Life
of a DXO

58. Who needs to
be warmed up
before an appeal?
Who’s recently
raised their hand
via social media?
Getting to 50 touches per day
Who’s made a
recent gift and
needs some love?

59. Story sourcing

60. Engagement insights,
enriched data
Personalized video Modern messaging
Use technology to scale

61. Early Lessons
& Returns

62. Day 1: First Call

63. Personalized emails = 65% open rate
Improved
250%

64. What’s next?

65. Creating a talent pipeline
Today:
Donor Experience
Offers
Tomorrow:
Seasoned advancement
professionals

67. Engage
Qualify
Assign
Solicit Target 2-3 institutional priorities that align with prospect's
demonstrated interests.
Identify potential donor interests based on engagement
insights and assign for annual fund or major gift outreach.
Monitor digital engagement with targeted content and
research prospect capacity and inclination.
Produce compelling video and social content that
aligns with institutional priorities.
Provide targeted, tangible, ongoing value to build strength of
relationship and grow philanthropic support over time.
Retain
The Giving Funnel

68. Learn more:
The Giving Funnel
Just open your camera, point
it here, and tap the link

69. Q & A
@brentgrinna
brent@evertrue.com
mark.koenig@osufoundation.org