many have npo-experience switzerland, austria, netherlands ... · tagline and logo. brand identity...

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Development Education Partnership Fair Oct.2006

from Privatefrom PrivateRaising Funds Raising Funds

SourcesSources

Marion Zednicek, Hans Krieger, Georg Duit

SAZ Marketing

- International 500 workers many have NPO-experience

- International network & know how (Germany, Switzerland, Austria, Netherlands, UK, USA, Poland, Hungary, Czech Republic, etc.)

- Specialists in Fundraising since 1977- Cooperation with 120 NPOs

InstrumentsDirect Mailing

Suppositions

Strategy

Telemarketing

Online Fundraising

Direct Dialogue

Suppositions

Recognise any of these?

No charity is too small No charity is too small to develop a brand to develop a brand identity!identity!

Brand name is name, Brand name is name, tagline and logo.tagline and logo.

Brand identity Brand identity –– What What comes to the minds of comes to the minds of donors/members donors/members when they hear your when they hear your name?name?

Branding

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Keep the message Keep the message simplesimple and and repeatrepeat the message over the message over and over again, i.e., slogans, mottos.and over again, i.e., slogans, mottos.

Present The organizationPresent The organization’’s mission statement in a way s mission statement in a way that can be that can be immediately communicated and easily immediately communicated and easily understoodunderstood..

Is your clientIs your client’’s website clever and creative vs. broad & s website clever and creative vs. broad & long winded? Does it immediately communicate the long winded? Does it immediately communicate the message?message?

Be consistentBe consistent in the use of image in the use of image -- logo and name logo and name -- across across all media: direct mail, telemarketing, planned giving, all media: direct mail, telemarketing, planned giving, websites, ewebsites, e--mail, DRTV, radio, etc.mail, DRTV, radio, etc.

Nonprofits Can Learn a Lot From For-Profit Experience:

Branding

Traditional Customer Lifecycle

MarketBroad Audience

SuspectTargeted Audience

Prospect

Possible customers/donors

Customer/Donor

Users of our ProductsOr Service

High-ValueCustomer/Donor

Most valuedcustomers/donors

The Direct Marketer‘s Plan

Target Group

LAI

- Linkage to theorganisation or cause

- Ability to give

- Interest in theorganisaton

Target Group – Who donates?

- Gender: female

- Age: 55+- Middle

Class- Well-

educated

1. They have an emotional tie with a charity or a cause based on family or personal experience.

People donate because

2. They feel that their contributions will make a difference.


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3. They want to be associated or belong to a particular group.


4. The message is meaningful to them or it arouses feelings of compassion.


5. They wish to receive recognition.


6. They feel obligated to reciprocate for a gift they receive from a charity.


7. They share the charity’s values and beliefs.


8. They identify with the plight of the individual in the direct mail piece.


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9. They send money to alleviate a critical problem.


10. They are asked to give.


What do NPO‘s get from donors?

- Money- Time (volunteerism)- Trust- Image- Social relations- Influence- Advocacy- Grants

Functions of Fundraising

- Generating Donations- Informing the public - Targeted Public Relations- Lobbying – affect politics - Cause reactions

A Donation is the biggest act of trust

„Institutional Readiness“

Criteria for Success

- Clear commitment toward fundraising of theentire NPO (CEO,Board, Staff, Employees, Volunteers);

- Internal communication about fundraising

- Handling of feedback and complaints

- Continuity: 6 to 10 appeals (direct mailing) per year

- Projects for emotional appeals

Instruments

Suppositions

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Individual Fundraising – The Instruments

- The most important: Direct mailing- Telephone-Marketing- Direct dialogue- E-mailings, Web-site- Events- Lotteries- Collections- ………….- ………….

The Donor Pyramid

2ndDonation

New Donor Aquisition

Commitment/Upgrading



Single Donors

Prospects

Multiple-Donors

CommitedDonors

LargeDonors

Top

Reactivation

Lapsed Donors

LapsedDonors


Suppositions

Direct Mailing

- In terms of Fundraising Direct Mailingmeans:

- Personalised mail-packages

- including letter, leaflet, etc.

- the possibility to respond

- the ask for money

- a specific topic where money is needed

- Sent to selected people

Mailing: Envelope

Personal address

Return-Mail-Code

A „stamp“ makesit more personal

Hint to thepremium

Who is writing to me?

Mailing: Letter

Personal address

Emotional start

Personal salutation

Teaser

Who is writing to me

Hint to thepremium

Important thingsin the PS

Tipp: Write your letter to ONE person

Signature

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Mailing: Premiums

Premium to say„Thank You“

e.g.:Calender,

Bookmark,Address, Labels,

Key Chain ...

Mailing: Payment Form

personalized

What do I support

Codes to track thedonations (who,

what for,..)

- Prospect Mailing

- Goes to potential new donors (so called „coldlists“).

- Prospecting / Finding new donors is an investment and part of a strategic program.

New donor recruitment

- What is the most important factor, of a direct mail package, to attract newdonors?

- Topic / offer

- Design / graphics

- Adresses

- Format

- Copy / text

New donors recruitment

?

Elements of direct marketing

Address45%

Offer22%

Format11%

Copy11%

Design11%

Direct Mailing

Address Sources

- People with a direct relationship to the organisation(board, volunteers,...)

- People who are well known (friends, suppliers,...)

- Ex-members / ex-staff / officials who‘ve hadcontact

- Visitors of Events, People who signed a petition, people who asked for information,...

- Lists for rent

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ListsTypes of (commercial) lists of direct mail responders:

• Subscribers: people who have a subscription to some sort of magazine or newspaper.

• Mail-order buyers: people who have bought certain products by mail.

Direct mail – Adresses & Lists

Selections

Selections to fine-tune the target audience:• age• gender• last purchase• quantity of orders (multi-buyers)• geographical

Lists

Direct mail – Adresses & Lists

- House Mailing

- Mailing to donors or people who are still supporting your organisation

- Each house mailing generates profit !

- Sent out regulary

House Mailing House Mailing (Hungary)

House Mailings (Hungary) X-Mas Mailing: Involvement (France)

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Premiums (Netherlands)

Kreation

Examples of Premiums:Key Chain Calendar

Direct mail – Premiums

Premium vs. Non-Premium

Who uses premiums and why?

• Higher response rate compared to those mailings withoutpremiums.

• Builds a donor file quickly.

• Total net income is higher than those mailings without premiums.

Direct mail – Premiums House Mailing – Thank You Letter

- What is the most important thing when you get a donation ?

- To say THANK YOU !

- Welcome package- Best package for the first house mailing- Same topic which generated the first donation

Thank you letter Donor Relationship Management (DRM)

DRM is a strategy, which is supporting the organisation, to recruit new donors effectively and transform them into long lasting friends. Focusing on the donor increases the efficiency, profit and donor satisfaction.

The systematic management of existing donors and the optimal identification of new donors, secures the income and increases the value of the donor.

A powerful, specialised database is needed!

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Targeted selection

Topic kids

Christmas donors

Inactive donors

Topic international help

Not one message to everybody

Goal

It should fit to the target group

Package design should assist in attaining your goals.Pretty is not necessarily the best design for Direct Mail.

Direct Mail Techniques

7 Seconds

On average, you have 7 seconds to grab the reader’s attention, so that they open the envelope and examine the contents.


11Seconds

It takes 11 seconds for the donor to glance at the letter and enclosures – this time is crucial for them to decide if they go back and spend more time to read the mailing.


18Seconds

total

So we have just 18 seconds in which to engross the reader and get him or her to donate.


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Frequency of Appeals

“How often can I ask for money?”

“Why mail the donors 7 to 10 times per year?”

“Isn’t that too much? Won’t we wear them out?”

Direct Mail – Frequency

Frequency of Appeals

• Donors need to be treated like part of the charity’s family; therefore, regular communication is necessary.

• The donor mailing / newsletter’s job is to secure donations, whilst keeping the donors up to date.

Direct Mail – Frequency

- The three main motivating factors to donate are:

- Self Interest- Fear- Guilt

Motivations to give

Self Interest - Donors want to feel needed.- Donors want to feel good

about themselves when helping others.

- Donors may wish to chalk up bonus points for heaven.

- Donors may wish to have problem (disease, poverty, public issue) solved before it affects them personally.

Motivations to give

Fear - My mother may get Alzheimer’s disease.

- I may get Alzheimer’s Disease.

- What if an earthquake struck here?

- What if I could not feed my child?

- What if no one remembers WW II?

Motivations to give

Guilt - They sent me these name labels - the least I can do is donate.

- I have so much, yet little children are starving.

- I’m healthy and enjoying my life while others are devastated by: illness, poverty, malnutrition, disability, earthquake, floods, locusts, violence, civil war, prejudice, hate, pollution, …

Motivation to give

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Suppositions

Telemarketing

Telemarketing

- Calling donors is involving, direct and personal

- I just call to say,....

- To say THANK YOU

- To welcome you

- To ask you for a one-time-donation or a direct debit

- To reactivate you

- To upgrade you (asking for more support)

Experiences with Telemarketing

- 95% say the telephone-call was nice, friendlyand they liked it.

- 80 % of the called donors say yes to a directdebit or an additional donation.

- The total income per donor rises enormously

1,19

1,23

1

4,86

0 1 2 3 4 5

Faktor

TM no don.

TM yes to giroTM with direct debit

no TM

Source: Integral & SAZ Studie 2001

Total volume of donations - 4 years

Success via Telefonmarketing


Suppositions

Telemarketing

Online Fundraising

Useful for:

e-mailings for very quick action. Personalized!

- Invitations to events, ....- Asking for donations online- Campaigning- Emergency-appeals- Regular newsletters to inform donors

Collect e-mail-addresses!

E-Mailing

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personalized E-Mailing withOnline-donation-possibilities, landing-pages, reminder, thank-you e-mails etc.

E-Mailing

- Lower response rates than DirectMailing but higher average donations

€ 10

€ 30

€ 45

€ 0€ 5

€ 10€ 15€ 20€ 25€ 30€ 35€ 40€ 45€ 50

Printmailing E-Mailings Homepage

E-Mailing

- Who donates online?- Average age: 33,1 years

Unter 208%

20er38%

30er30%

40er13%

80er0%

70er1%

50er8% 60er

2%

E-Mailing


Suppositions

Telemarketing

Online Fundraising

Direct Dialogue

Direct Dialogue

Example of Direct Dialogue: Infostand Example of Direct Dialogue: Street Campaigning

Direct Dialogue

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Example of Direct Dialogue material

Direct Dialogue

Example of Direct Dialogue agreement

Direct Dialogue

When integrating direct mail, e-mail, Internet, telemarketing, direct dialogue, the sum is greater than the whole of the parts.

Integration


Suppositions

Strategy

Telemarketing

Online Fundraising

Direct Dialogue

Are things really so different in different countries?

International Direct Marketing

It looks the same


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• Donors tend to respond to the same message and the same appeal.

• While language is an issue, often the marketing problems are the same across countries.

• While the markets vary – causes that do well in one country tend to do well around the world.

International Direct Marketing Direct Mailing per person and year

1

4

8

9

12

14

20

79

81

0 20 40 60 80 100

Ukraine

Russia

Poland

Slovakia

Slovenia

Czech Republic

Hungary

Germany

Austria

Quantity of received Direct Mailings per year

Source: Austrian Post AG

Mailing-response rates in CEE

low

medium

high

Response Rates in CEE Countries

Source: Austrian Post AG

Europe and USA

Country

BelgiumCzech Rep.NetherlandsGermanyUKUSSlovak Rep.PolandHungaryAustriaSwitzerland

TypicalProspect

ResponseRates

3.5%5.0%3.0%2.5%2.3%2.0%4.0%4.5%5.0%3.0%2.5%

TypicalHouse FileResponse

Rates

12.0%25.0%14.0%13.0%11.0%7.0%

23.0%20.0%20.0%15.0%15.0%

TypicalAverage

Gift

EUR 14CZK 200EUR 10EUR 14GBP 10USD 14

SKK 200PLN 25

HUF 1.900EUR 10CHF 26

TypicalAverage

Giftin Euro

EUR 14EUR 7EUR 10EUR 14EUR 14EUR 13EUR 5EUR 6

EUR 8EUR 10EUR 17


1. Test – Prospect Mailing (Circ. 50.000 pcs.)

- Is there fundraising potential for the specific cause / topic (emotional appeal)

- Different address-lists

- Different packages (e.g. Premiums, Teaser, etc.)

Decisive factor for the following strategy

Strategy Test – Direct Mailing

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Engel auf Pfoten (A) PM

Test: Magnifying glass

Control: Greeting Cards

Make sure you only test ONE (1) variable at a time

!!!!

Test, Test, Test

Testing is important to find the right mail package for the right person

Strategy

What to test:- Acceptance in the public for the cause - Address lists - Topics- Packages- Creation - Timing…

Strategy

2. Prospect-Mailings: New Donor Aquisition

- Use of the most successful test-package

- Involvement of a big audience (total of 500.000 to 750.000 mailings)

- Investment

Establishes a long lasting donor database

Strategy

2. House Mailings

- Regular contact to the donors

- Emotional information about projects in the pastand future

- Commitment & involvement

- Ask for a donation

Every House-Mailing pays back a part of theinvestment.

Strategy

1st House Mailing:- “thank you” for the donation

- Appeal for a very attractive project

- strong premium

Following House Mailings:- Integration in a regular program (8 Mailings/Year)

- Letters to a respected friend of the organisation

Strategy

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Strategy Hilfsgemeinschaft

Hilfsgemeinschaft

4. „Thank You“ letters

- Appreciation of the donor

- Confirmation: „My Donation arrived“

- Motivation for a new donation

Commitment und increase of donationmotivation (loyality)

Strategy

5. Telemarketing

- Personal contact to the donors

- Commitment

- Significant increase of the average donation per year

- Direct debit – long lasting income

Direct commincation: strong commitment –larger donations

Strategy

Goal

- Aquisition of ca. 25.000 new donors

- Information about the topics of the NPO

- Long-term source for project financing

- Break-even after ca. 12 to 24 months

Strategy

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To take away

Thank YouMarion Zednicek:

[email protected] Tel: +36 (1) 235 09 75

Hans Krieger:[email protected] Tel: +43 (1) 602 39 12

Georg Duit: [email protected] Tel: +43 (1) 602 39 12

mailto:[email protected]



many have npo-experience switzerland, austria, netherlands ... · tagline and logo. brand identity...

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