ifc holland november 24th session mike

The fundraising future of digital media: a story of integration

Mike JohnstonFounder, HJC,

Online and Integrated Fundraising Specialist, Aerobics Instructor, Computer Game Player,

and Sports Fanatic

Digital fundraising on it’s own can be like…

“Best practice fundraising creates results (statistics) that prove that fundraising integration of more channels and more areas of fundraising and non-fundraising – is indeed, best practice.”

1) The NeedWhat is driving changes in how we fundraise?

2) The ValueWhat’s the value of being integrated?

3) Self-AssessmentWhere are you as an organization?

4) SolutionHow do you align culture, staff, and technology?

5) Evidence – Put It All TogetherWhat does integration look like around the world (France, Canada, US)?

Examples from the World through this structure….

The Need

1) Nonprofit offline donors are aging around the world

2) Donor files and acquisition list sources are shrinking

3) Revenues are flat and–in many cases–are falling

4) Fundraising costs are increasing/ fundraising margins are shrinking

5) Online fundraising – when kept in a silo - underperforms

Nonprofits need (younger) more valuable donors in many parts of the world

The Need (in many countries)

Creating silos...

Event Fundraisers (online)

E-Newsletter subscribers

Donors (direct mail)

Volunteers

Advocates

Staff

The pie is bigger when we get to this...

Event Fundraiser’s

eNewsletter subscribers

Donors

Volunteers

Advocates

Staff

Online donor retention of single gift donors can be terrible...

Year Acquired Number Acquired Gave in Year 22006 99 32.30%2007 1736 24.20%2008 3194 19.30%2009 2913 26.40%2010 76562011 7570

25.5% average retention rate

Benchmark 28%

How can we improve this?

The Value

• Integrated Marketing Benefits• Deepens constituent loyalty and increases lifetime value

• Strengthens the brand

• Engage new audiences, grow revenue, and maybe even save money.

• Audiences are becoming increasingly multi-channel – in every country - and greater data intelligence is required to raise more money.

The Value: Qualitative

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Generational Giving

Boomers

Civics

Gen X

Gen Y55% Give2.7M donors$325 yr/avg3.5 charities$.8 B/yr

61% Give4.2M donors$549 yr/avg4.1 charities$2.3 B/yr



20-30 year old

31-46 year old

47-65 year old65+ year old

One last group – the millennials… the Gen Z…

Fundraising is profoundly multi-channel

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Connect the pairs...Which Generation of givers is the most prolific user of the following giving channels?


Gen X Tribute Giving

Civic (Mature) Web Giving

Gen Y Telephone

Boomer Retail Check Out

Online and Integration

• The Brady Campaign started with 38,000 email addresses

• 16,000 were Brady members

• 22,000 were non-donor activists

Rapidly Growing An Email File

• Launched branded campaign and microsite NRAblacklist.com supported by a print ad campaign

• The site had a visitor to “signer” conversion rate of 40%

• Grew email list from 38,000 to 101,257 in under 3 months

Sustaining Engagement

• Growth of NRAblacklist.com was followed by urgent federal legislative battles

Started a new branded campaign: stoptheNRA.com

An online advocacy effort by the Brady Campaign grew their email file from 40K to140K. The vast majority were new prospects.

Multi-Channel: Acquisition – Best Practice

0.37%; $46 avg. gift

Email Solicitation

1.26%; $24 avg. gift

Direct Mail Solicitation

21%; $27 avg. gift

Phone Solicitation

Onlne and Integrated Best Practice Takeaways…

• Don’t Wait! Integrate online non donors into online, direct mail, and telephone conversion as soon as you have enough for a good test. Remember: younger donors ACCEPT more channels for solicitation!

• Online Flanker Brand Campaigns. Need constant campaigns (like NRAblacklist.com) to grow your online non donor list.

• Online Petitions. Build campaigns around online petitions so that you get full address.

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What happens when you connect culture and fundraising?

Online and another channel

Not Called Called $-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$722.18

$920.09

Yoga In MotionImpact of Calling Partic-

ipants

Avg. Revenue Per Participant

Action Taken

Ave

rag

e R

even

ue

($)

Up 27.4%

Amnesty Denmark – digital includes mobile...

• Amnesty Denmark has several ways of acquiring new donors including Face 2 Face, Cold TM and calling their SMS network

• The SMS network is kept engaged through texts whereas F2F and Cold TM prospects are not engaged before they get an ask

Mobile is digital...and very valuable...

Channel Acq. Cost

Avg. Amount

Lifetime (months)

Lifetime value

Return on Investment

Face2Face €549 €60 30 €1,800 3.28

Telemarketing €842 €62 31 €2,542 3.02

Calling SMS network

€420 €74 60 €4,465 10.63

Online and Integrated Best Practice: Integration Increases Multi-Channel Loyalty and Value

Retention Rate2Annual Donor Value1

Sources: 1. Convio / Strategic One White Paper: Integrating Online Marketing (eCRM) with Direct Mail Fundraising: Adding a New Communication

and Donation Channel Increases Donations; total contributions over 12 month period, excluding $10k+ gifts for SPCA of Texas2. Ibid. Comparison of retention rates for multi-year donors, SPCA of Texas

82.3%

70.1%62.3%

$102.64

$191.35

$255.74

Self-Assessment to be Best Practice

Where Are You in Your Online and Integrated Fundraising Journey?

Where are You?

• Online Marketing Makes Minimal Contribution

• Calendar-Based Campaigning

• Not Financially Committed to Second Channel

• Thematically Integrated

• Coordinated Appeals

• Integrated Calendar

• Shared Metrics

• More Stuff, More Channels

Coordinated IntegratedSilos

• Separate Metrics & Team for Online Marketing

• No Calendar / Campaign Coordination

• Online Constitutes 5-25% Direct Response Revenue

• Unified Strategy & Full Integration Across Channel Managers

• Measures Success Across Channels, Not By Channel

• Seamlessly Integrates New Media

• Shared success, budget and goals

Single

Which Type of Organization Are You?

Type A

Tension Behavior Outcome

Fear BlamingBurnout, Detachment

Anxiety Self-interestStagnation, Isolation

Political Downgrading

Tension Behavior Outcome

Innovation Cooperation Achieve Goals

Creativity TeamworkShared Success

Productive Rewards

Type B

Source: Mark Climie-Elliott, HJC Senior Consultant, “Turning Point” Webinar, April 15, 2010.

• “1” = Type A, “5” = Type B

• Where do you fall on the scale?

On A Scale of 1-5…

SolutionGetting people to change – to make online and offline

connect together

• To create change – you need a process.• System

• Input

• Challenge

• Three drivers of change for a more integrated organization:

• People

• Knowledge

• Technology

Where to Begin? Release the Fear.

Shared Reality

• Your organization as it is today:• How you see it – your reality

• How others see it – their reality

• No right or wrong – simply respected observations

• Collectively, this becomes your “shared” reality.

Reality is something you rise above.Liza Minelli

• Shift ahead & articulate a shared vision or desired state of what you want (or think) your fundraising will look like in 3-5 years

• Can be applied to any time frame• Short-, Mid-, Long-Term

Shared Future

The Camembert

All the rest: Online 1%; Legacy 2%; Major 3%; Corporate 4%; Government and Foundations 3%

The Camembert

All the rest: Online 25%; Legacy 12%; Major 3%; Corporate 8%; Government and Foundation 3%

• Draw your fundraising pie charts:

A Quick Exercise

NOW 2021

Integration of all LEVELS of giving

Legacies, Large Gifts and smaller gifts..

A great way to get started: An Integrated Survey

• The cultivation survey:

• Sent to 57,400 donors

• 3 key segments: Monthly, Active & Lapsed

• 5,530 responses (response rate of 11%)

• Raised $17,574 – a bonus!

• Reactivated 30 donors

• Found 85 expectances and 292 legacy leads and 143 middle and major donor leads!

• Key: shared budgeting!

The goals of the survey

1. Collect personal preferences of donors for targeted marketing appeals

2. Collect demographic data for marketing purposes – and connect it automatically to the database!

3. Build a deeper relationship with donors – give them a platform to be heard

4. Uncover leads for other forms of giving – including legacies, middle gifts, and major donor gifts

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Social Media and personalization

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FacilitationGetting everyone on the same page

Integrated Planning: a full contact sport…

What do you do before you meet?

Talk, and listen, to team members

Review the past, the current reality, and future plans

Analyze the data

Prepare for a face to face session that will push, pull, cajole, challenge and team build.

Sometimes a disaster forces people to meet, plan and launch…


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The Library Online

o 10,974 emails sent to City Council Memberso Over 20,000 written letters sento Gross revenue $50,058.68 o 1,000 donorso 584 new donors (a few from social media)

“The main reason we stopped the cuts was this online campaign. I would be the first to say otherwise, but it's true.”

Results


Everyone in a room to create an online and integrated schedule


The Balanced ScorecardThe Dramatic Oversimplifcation of Integrated Fundraising, Marketing, Communications and

Campaigning

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How does it help Convio and its clients?

• Development and Peace – were sent a quick audit (evaluation) by a Convio staff person

• HJC followed up with a more hands-on, facilitative, and integrated engagement

• It led to a plan that has made implementation easier and more successful with buy in (and understanding from senior leadership across the organization, including the CEO)

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The EvidencePutting It All Together

• Brand is perceived as authentic

• They have moved away from a past of innovation to a current reality of ‘bureaucracy and silos’

A Public Broadcaster

• 2nd gift conversion dropped from 83% to 30%

• Net loss of donors since 2005.

• LTV of donors decreasing significantly since 2001

• Magazine, which was the primary stewardship vehicle, stopped in 2007.

• Share of voice, i.e. number of times donors hear from TVO in a year, has decreased.

“A hanging in a fortnight concentrates the mind wonderfully”

• Senior management support

• Cross departmental cooperation

• Create an integrated plan and stick to it

It would take an integrated solution…

Online and offline integration

Launched Impact Report for Donor Loyalty

Launched Symbolic Giving

• Highlighted 40th anniversary

• Telemarketing

• Integrated Telemarketing with DM strategy

• Follow-up post direct mail appeal

• In-bound support

• Brought in industry-leading call centre to handle inbound fundraising calls outside of regular hours (weekends/holidays etc.)

• Introduced integrated (mail, phone, online) renewal strategy

Launched online and integrated channels

• Q3 - Best end of year result since 2006, best result of 2010

• Q3 - 26% increase over same quarter previous year

• Q4 - 40% increase over same quarter previous year (over $1 million additional income)

Results - 2010

Digital Games

• $68 billion (bigger than music, books, and the movie industry)

• It’s entertainment• 29% over 50• 55% play on their mobile phones

• Are you ready?

The future of digital media

• Online can’t be in a silo

• Integrate all channels, all departments and all levels of giving

• Get over attribution!

• Remember, all generations, use online and all channels

• Make an integrated plan and a lifecycle plan

• And digital includes mobile phones and computer games!

Thank You!