The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value. Presented by Ken Kuhler, Interactive Strategy Manager, Blackbaud. Ken will discuss how to apply next generation trend data to your multi‐channel, multi‐generational fundraising and engagement efforts including practical tools and techniques, and real‐world case studies.

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Presented By:
Kenneth Kuhler
Online Solutions Consultant
Blackbaud
The Constituent Engagement Journey:

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AGENDA
• Current Landscape & Trends
• Constituent Engagement Fundamentals
• The Evolution of Nonprofit Operations

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The Nonprofit
Landscape

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Total Fundraising
$19.7 Billion*
* Adjusted for inflation giving has not grown since 2000 and giving as a percent of GDP is down 16% since 2006.
Competition for Awareness and Support

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# of Nonprofits
43% since 2001
Competition for Awareness and Support

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3000+ Messages
Targeting Supporters
Every Day
Competition for Awareness and Support

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New Donor Acquisition
23.4% since 2006
Competition for Awareness and Support
Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter
Results

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Renewals & Lifetime
Value Mostly Flat
Average Annual Gift/Attrition Rate = LTV
Competition for Awareness and Support

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Deepen Relationships
& Build Loyalty

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FUNDRAISING EMPHASIS: MATURES
Matures
Boomers
Gen X
Gen Y
1

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GENERATIONAL GIVING
$0.
$100.
$200.
$300.
$400.
$500.
$600.
$700.
$800.
$900.
$1,000.
$1,100.
$1,200.
30% 40% 50% 60% 70% 80% 90%
% Giving
Totalannualgiving
Boomers
Gen X
Matures
Gen Y
58% Give
35.9M donors
$796 yr/avg
4.2 charities
$35.9 B/yr
56% Give
28.5M donors
$341 yr/avg
3.6 charities
$9.7B/yr
67% Give
52.2M donors
$901 yr/avg
5.2 charities
$47.1 B/yr
79% Give
30.8M donors
$1066 yr/avg
6.3 charities
$32.7 B/yr

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GIVING AMOUNTS
% who say have donated in this way in last 2 years (total)
58%
41%
34%
33%
32%
27%
25%
21%
16%
16%
3%
Checkout Donation
Fundraising Event
Tribute Gift
Charity Gift Shop
Online via Website
Mailed Gift
Monthly Debit
In lieu of Gift
Phone
Third Party Vendor
SMS or Social Media
GEN Y GEN X BOOMERS MATURES
59% 64% 56% 58%
27% 43% 44% 44%
19% 28% 37% 50%
30% 34% 34% 30%
41% 37% 29% 24%
12% 17% 33% 38%
25% 28% 24% 24%
22% 23% 21% 20%
6% 14% 21% 19%
24% 21% 14% 12%
7% 4% 2% 0%
4.7% 2.8% 2.3% 1.3%

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Constituent
Expectations
Have
Changed.

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Constituents Want to Engage
on Their Terms & in Their Channels

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ONLINE FUNDRAISING CONTINUES TO GROW

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THE STATE OF ONLINE FUNDRAISING
ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT
More good news - Online giving increased 13.7% for the three months ending
January 2013 as compared to the same period in 2012
Even more good news – No matter what online benchmark study you look at,
revenue is growing, sustained giving is growing and housefile size is up

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ONLINE FUNDRAISING GROWTH HAS KEPT
PACE WITH RETAIL E-COMMERCE
Sources: Convio benchmark reports 2007-2012 and eMarketer.com

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.. BUT PERFORMANCE VARIES WIDELY
* Excludes major, corporate gifts, and planned giving.
Source: Convio/ Edge Research survey of integrated marketing practices, Q1 2011
5-20% Raised Online
>25% Raised
Online
<5% Raised
Online

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Peer Solicitation Is Broadly Accepted
52%
41%
28%
22%
15%
8%
Peer to Peer
Mail
Email
Social Media
Phone
Text
% say appropriate solicitation channel
(rank ordered by very important –blue)
Did you know?
Blackbaud clients raised 70% of event funds raised by the top 30 events in 2011.

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PEER TO PEER / SOCIAL FUNDRAISING

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ALZHEIMER’S ASSN:
THE LONGEST DAY
In Year 1,
200 Teams
Raised $236K

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Lifetime Donor ValueDonor Value 12 MonthsNew Donor Renewal Rate
VALUE OF MULTI-CHANNEL ENGAGEMENT
Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOne
Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use.
34.4%
50.9%
Mail
+48%
Multi-Channel
$96
$187
Mail
+95%
Multi-
Channel
$314
$694
Mail
+121%
Multi-Channel

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MULTI-CHANNEL GROWS TOTAL REVENUE
$28M $28M
$47M
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
1990 2000 2010
Millions
Online
Direct Mail

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Multi-Channel Strategy

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If You Could…
THE VISION: CONSTITUENT ENGAGEMENT
• Anticipate your
constituents’ needs
• Know their interests,
passions &
preferences
• Offer more relevant
interactions &
opportunities
to engage
You Would…
Improve acquisition
& referrals
Establish lifetime
relationships
Grow support &
fundraising

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Constituent Experience
• Disjointed constituent
experience
• Fragmented
messaging from a
variety of channels
• Less engagement
Current Landscape:

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• Unified constituent
experience
Goal:
Constituent Experience
• Integrated messaging
across a variety of
channels
• Optimized
engagement

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Better Engagement with Supporters =
Better Results for Your Organization

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Constituent
Engagement
Fundamentals

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• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals

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• Align processes and communication to
respect constituent preferences, needs and
interests
• Tailor channel mix, content and program
participation and message frequency
• Ask, “What matters to a constituent?”
CONSTITUENT CENTRICITY

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A Single Email with
Conditional Content
Donor Version
Survivor Version
CONSTITUENT CENTRICITY

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CONSTITUENT CENTRICITY - WELCOME SERIES
2-Part Series

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Direct Mail
Email
Web Page
PRESENCE IN MULTIPLE CHANNELS

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• Get the right message in front of the right person at the right moment.
PRESENCE IN MULTIPLE CHANNELS

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• 125,000 born each year
• 6.5 million people
• 10% of American families
• 25 time more common than blindness
• Over 250 causes discovered
EFFECTIVE STORYTELLING – INTELLECTUAL
DISABILITY STATISTICS

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EFFECTIVE STORYTELLING – APPEAL TO THE HEART
NOT THE HEAD

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EFFECTIVE STORYTELLING - DIAGNOSED WITH
CHRONIC LYMPHOCYTIC LEUKEMIA

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EFFECTIVE STORYTELLING – PICKED HIMSELF BACK
UP AND ACHIEVED GREATNESS

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CONSISTENT BRANDING
21
Envelope back
Integrated tiger appeal results
show 40% better response rate
Offline
Appeal &
Envelope
Online
Appeal,
Included
Envelope
Image

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YEAR OF THE TIGER
A MULTIMEDIA YEAR LONG EFFORT
WWF: For 1st time
ever, heads of state
convene 2 try 2 save
tigers. Tell the US 2
commit to global tiger
conservation.
http://bit.ly/dp0ovd
(reply STOP 2 unsub)
Direct Mail Email Social Media TV (Custom Web)
Outdoor Ads
Mobile
Web
Celebrity Leadership

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INTEGRATED PROCESS
Frequency Target
Q2week1
Q2week2
Q2week3
Q2week4
Q2week5
Q2week6
Q2week7
Q2week8
Q2week9
Q2week
10
Q2week
11
Q2week
12
General Communications
eNewsletter Weekly - Fridays Subscribers
Quarterly Update mailer 2nd Week / Quarter $50+ donors
Gala Promotion
Email Biweekly - Tuesday General
Direct Mail Once $100+ Donors
Telemarketing $200+ Donors
Mother's Day Campaign
Email ~Biweekly - Thursday
Direct Mail Once Prospects, Donors
Telemarketing Select targets
Inbox / Received Send Event

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• Establish metrics that:
• Measure donor behavior and campaign
performance across channels
• Focus on long-term value
• Collect and aggregate constituent data
to correlate and extract meaningful
information
INTEGRATED MEASUREMENT

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CROSS-CHANNEL CONTACT INFORMATION

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KEY ACQUISITION METRICS TRACKED

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DONOR CHANNEL MIGRATION TRACKED

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• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals –
Difficult Without Organizational Alignment

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The Evolution
of Nonprofit
Operations

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• Minimal Online
Marketing
• Calendar-Based
Campaigning
• Not Financially
Committed to Second
Channel
• Thematically
Integrated
• Limited sensitivity to
solicitation frequency
• Decisioning beyond
RFM
• Shared Metrics
• Some consolidation of
data across channels
Coordinated OptimizedTraditional
• Separate Metrics &
Team for Online
Marketing
• No Calendar /
Campaign
Coordination
• 2nd channel constitutes
5-20% Direct
Response Revenue
• Separate databases
for online/offline
• Unified Strategy &
Real-time data
integration
• Measures Success
Across Channels, Not
By Channel
• Donors’ behaviors and
interests drives
communication stream
• Shared budget and
resources
Early Stage
WHERE ARE YOU?

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• Integrated marketing sophistication and size don’t closely correlate.
WHERE ARE YOU?

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THE TRAJECTORY OF NP EVOLUTION
Aggregate
and improve
constituent
data
Consistent
messages
across
channels
Increased
personalization
& relevance
Dynamic
response to
interactions
Optimize
channel mix
& message
cadence
Aggregate and
improve
constituent data

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• Organizational Alignment
• Technology / Infrastructure
Keys to Evolution

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Traditional
• Separate Metrics & Team
for Online Marketing
• No Calendar / Campaign
Coordination
• 2nd channel constitutes 5-
20% Direct Response
Revenue
• Separate databases for
online/offline
Communications
Development
IT
Others (?)Government
Affairs
Traditional
ORGANIZATIONAL ALIGNMENT

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Coordinated
Coordinating
Teams
Communications Development
Government
Affairs
IT
Coordinated
• Thematically Integrated
• Limited sensitivity to
solicitation frequency
• Decisioning beyond RFM
• Shared Metrics
• Some consolidation of data
across channels
ORGANIZATIONAL ALIGNMENT

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Optimized
Coordinating
Teams
Development Online Communications Marketing
Optimized
• Unified Strategy & Real-
time data integration
• Measures Success Across
Channels, Not By Channel
• Donors’ behaviors and
interests drives
communication stream
• Shared budget and
resources
ORGANIZATIONAL ALIGNMENT

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Support Business Units
Infrastructure Challenge
Track Performance
Add New Channels
Coordinate Departments
Integrate Systems
Understand Data

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• Identify where you are and map your key 2013 steps
now…today, while you’re thinking about it!
• Every step toward Constituent Engagement will have
an impact on your bottom line.
• Start with fundamentals.
• Evolving understanding of metrics can drive you
forward faster.
• Be aware of opportunities to evolve the operational
structure – shared goals, team alignment,
technology
REMEMBER: IT IS AN EVOLUTION.

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IN CONCLUSION –
• More donors does not mean more engagement or
revenue but more engaged donors will mean more
revenue/LTV.
• Donors feel more engaged and more inclined to give
if they are hit up on multiple channels with consistent
messages
• Therefore, your organization needs to be organized
to ensure a consistent and integrated experience on
multiple channels. No silo’s.

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