nonprofit fundraising: how to increase response rates through segmentation & personalisation

Jeff Shuck, President/CEO, Event 360

A Scientist in Your Communications Department:Segmenting MessagesCustomizing ContentDelivering Results

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Why Am I Here?

OBJECTIVE:Strengthen your effectiveness in your fundraising communications

OUTCOME:A few good ideas to testA case for data-driven communications

AGENDA:Descriptive analysisPredictive analysisHow to analyze the impact of your segmentation & targeting strategy

DOES THIS WORK?

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Situation

Problem: Using online communications to increase fundraising.

Hypothesis: Personalizing communications to generate results.

Procedure: Identify groups and talk to them based on their motivations.

Results: More meaningful connections and more money raised for your mission.

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How do I utilize online communications to generate real fundraising results?

PROBLEM:

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The first rule of fundraising is to ASK.

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The key is to ask in a personal way.

Directly affected by your cause, city-dweller.

New volunteer with your organization, parent.

“Likes” you on Facebook because a friend

participated in an event, lives abroad.

Participated in a different event with siblings, lives with parents at home.

Long-time major donor, milestone birthday approaching.

Board Member, married, no kids.

Team captain for top fundraising team,

thinking about retirement.

Lapsed participant, but consistent donor.

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Personalizing communications strategies and tactics through segmentation will increase your fundraising results.

HYPOTHESIS:

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What is segmentation?

Understand what makes your constituents tick.oGroup them together

based on similar characteristics.

o Identify your highest potential groups.

o Forecast future behavior based on information.

Speak to each group differently.

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What happens if I don’t segment?

Oversaturate people with information.

Hit or miss on your messaging = no constituent action.

Lose the opportunity to build a meaningful connection.

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What happens if I do segment?

Right message to the right person at the right time.

Create a connection and generate a response.

Deepen relationships with people who care about your mission.

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Identify groups with unique characteristics and talk to them based on what motivates them.

PROCEDURE:

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Step 1: Collecting Data

Start with why.Use the donor information you already have.Group based on basic information. Identify trends and adjust communications.Work towards standardizing your process.

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Case Study:Komen Global Race for the Cure, Year One

Existing database was inconsistent.

Added a question to registration form: “What is your connection to the cause?”

Focused on building our understanding of who was actually coming and why, instead of deciding we already knew.

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Step 2: Descriptive Analysis

Focus on donor characteristics.

Evaluate past behavior.

Segment based on characteristics and past activity.

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Went beyond fundraisers vs. non-fundraisers.Discovered clustering of fundraising around

specific levels.Combined cause information with amount

raised to create blended messages.Don’t forget donors!

Case Study: Komen Global Race for the Cure

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Final Segmentation

Segment Number Total Contributed

Approach

Attendees 31,902 $0 Education and contact

Beginning fundraisers 11,268 $793,000 Intense encouragement

High performers 2,393 $1,380,000 Affirmation and thanks

Ultra performers 82 $393,000 High personal touch

Team captains 2,000 “Every walker a fundraiser.”

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Online Communication

75 unique messages:

17 recruitment messages

46 fundraising messages

10 general updates

2 donor messages

Yielded over 850,000 e-mail impressions.

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Step 3: Predictive Analysis

Use your constituent knowledge and information about past activities as indicators of potential future activity.

Identify a predisposition towards a specific action, give them messaging and tools to get there faster.

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Registration time increases the likelihood of being a Pacesetter significantly.

Cause motivation raises the likelihood significantly.

Age raises the likelihood significantly.

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At registration asked: “Do you plan on fundraising?” “Are you interested in incentives?”

Received different messaging based on what they expected themselves to do, versus what they had already done.

Case Study:Komen Global Race for the Cure, Year Two

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Step 4: Building Strong Messaging

Build a clear case for your event.

NEED: What problem are you trying to solve?

IMPACT: What difference will you be making?

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Step 4: Lessons on Messaging

Make a specific ask. Be simple and concise. Focus on mission. Demonstrate impact. Say thank you.

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Case Study: Susan G. Komen 3-Day for the Cure

Acknowledgement ofpast participation.

Specific, realistic ask that is tied to event.

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More meaningful connections with your event participants and more money raised for your mission.

RESULTS:

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How do you measure results?

Evaluate click-through and open rates.

After your event or campaign is complete, review the median gift size.

Results provide important data for you to make adjustments and changes for campaigns in following years.

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Goal Performance

2008 2009 2010

Suggested Goal $250 $125 $125

Participants Raising $125 10% 12% 13%

Participants Raising $250 6.2% 6.4% 7.1%

Structure minimums and goals so that they are

attainable and motivational.

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Impact on Fundraising

2008 2009 2010 $-

$50

$100

$150

$200

$250

$300

$350

Per ParticipantPer Fundraiser

Median amount raised per fundraiser increased 20%,

from $100 to $120.

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2008 2009 2010$0

$10

$20

$30

$40

$50

$60

$70

AverageMedian

Impact on Gift Size

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Overall Impact

2007 2008 2009 2010$2,000,000

$2,250,000

$2,500,000

$2,750,000

$3,000,000

$3,250,000

$3,500,000

30,000

33,000

36,000

39,000

42,000

45,000

48,000

FundraisingParticipants

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Now what? The cheat sheet to take home.

Ask WHY people are supporting your organization’s mission.

GROUP people based on their interests.

PERSONALIZE your messages based on what you know about people’s motivations.

Build your CASE: Illustrate your NEED and the IMPACT a donation will make.

TEST and MEASURE the response to different messages.

THANK your donors.

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Directly affected by your cause, city-dweller.

New volunteer with your organization, parent.

“Likes” you on Facebook because a friend

participated in an event, lives abroad.

Participated in a different event with siblings, lives with parents at home.

Long-time major donor, milestone birthday approaching.

Board Member, married, no kids.

Team captain for top fundraising team,

thinking about retirement.

Lapsed participant, but consistent donor.

CONCLUSION: You have a diverse group of constituents.

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CONCLUSION: DATA + SEGMENTATION = INCREASED FUNDRAISING

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CONTACT

Event 360

205 N. Michigan Avenue, Suite 2640

Chicago, IL 60601

773.247.5360 | fundraising@event360.com

www.event360.com

www.facebook.com/EventFundraising

www.twitter.com/Event360

www.linkedin.com/company/Event-360

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