microsoft powerpoint - phonathon strategies (00067352)
TRANSCRIPT
PhonathonStrategies
Introducing…
Gordon Dowell
Today’s Agenda
1. Various approaches to telemarketing—in-house versus outsourcing.
2. Volunteer versus paid callers.
3. Staffing for the phonathon—professional versus student management.
4. Environmental factors impacting phonathonproductivity.
5. The phonathon as an integral part of the annual giving program.
GettingDonors toGive Every
Year
GettingProspects
To Give
GettingDonors toIncreasetheir gifts
Annual Giving is about three steps:
Face to face calls
Direct Mail
Internet/philanthropy
Phone
Events/Mass Marketing
• Phoning large lists of prospects• Phoning special targeted audiences• Phone a single person
Face to face callsVolunteers, officers/staff, or development staffTarget messagesDirect and immediate feedback from donorVery personalizedDifficult to reach large numbers of donors
PhoneVolunteers, officers/staff, or development staffTarget messagesDirect and immediate feedback from donorRelatively personalizedEasier to reach large numbers of donors
Direct MailAble to reach almost 100% of the listCan customize appeal by individual, by group, or use common appealUnsure of donor response to message
PhoneCan reach a large percentage of the prospect listCan customize appeal by individual, by group, or use common appealRegular feedback from donors; know who was reached.
ePhilanthropyRequires either donor initiated (web-sites) or response to appeal (email)Ability to customize message, but normally a generic appealCan track donor actions, but requires donor action to initiate effortsCreative opportunities
PhonePro-active solicitation effortCan customize message, but unfortunately often a generic appealFeedback and tracking of donorsPerson to person approach
Events/MediaLess pressure by many for making asksAble to attract new prospectsCan be expensive cost to raise a dollarBest for community/ regional donor bases
PhoneMust be able to make an askConfined to known prospectsShould be cost effectiveCan be regional or nationalFits many causes and organizations
In-house versus outsourcing
In-house normally refers to phoning done on your campus or site. – Run by your staff– Run by an outside firm on your site
Outsourcing is for a firm with a phone bank to make calls on your behalf.
Partial list of firmsAria CommunicationsDirect Line TechnologyIDCLester IncRuffaloCODYTelecomp, Inc
Number of prospects– 30 per hour or 100 per night
Quality of data base– Good phone numbers– Good addresses and email addresses
History of program– Donor relationships; nature of appeal– Past solicitation history
Space, phone lines, and security issues
Key factors to consider in determining your strategy
AdvantagesEase of starting; flexibilityControl over phoners and messageLow initial cost for limited sized programs.Message from campus
In-house: Advantages/Disadvantages
In-house: Advantages/Disadvantages
DisadvantagesNeed for space and phonesChallenges of managing activity, especially evening activitiesFinding phonersLimits on timing and strategy
Outsourcing: Advantages/Disadvantages
AdvantagesEase of management—though not hands offScalableProfessionalism of operations and follow through systemsFlexibility of dates and times
Outsourcing: Advantages/Disadvantages
DisadvantagesRelationship with some donors is lessenedDoes not build internal skills or ownershipFull costs are accounted for and, therefore, seem steep
Best Practices:Kansas State University
Personal and PassionateEconomy and efficiency
Shared histories
Career advise
Course/faculty pointers
Hometown/home state matches
Pride
Best Practices:Kansas State University
http://www.found.ksu.edu/telefund/index.htm
Attitudes and opinions of President / board / leadershipSize of your development operation
InstitutionalFactors
How should you decide?
In-house or external data baseQuality of dataPast linkages to prospects/donors
– How did they become donors?
InstitutionalFactors
How should you decide?
ProspectData Base
Dollar targets for upcoming year– New dollars– Dollar retention targets– Upgraded gifts
Donor targets for upcoming year– New donors– Retention targets– Upgrades
Budget for annual giving– Total budget– Cost to raise a dollar for one year– Three- to five-year targets
InstitutionalFactors
How should you decide?
ProspectData Base
Goals andPlans
Beyond annual giving– Competition for budget or
management talent– Other efforts underway
Direct Mail
ePhilanthropy
Volunteer driven
Staff calls on key prospects
InstitutionalFactors
How should you decide?
ProspectData Base
Goals andPlans
Other Programs/Strategies
Volunteer versus paid callers
First paid phoners from the 1970s at the University of Minnesota. First major paid phoner firm was IDC’s Phone/Mail in the early 1980s.Automated phoning emerged from US Telemarketing and RuffaloCODY in the early 1990s.
Volunteer Programs:• Students, alumni, friends group• Volunteers are not free
Paid Callers:• Emerged as the dominate approach for large donor bases
• Base pay, often with bonuses• On-campus versus outsiders
Paid phoners as a resource for your development office
Potential future leadersPotential future development staff
Ability to keep phoners for many nights. Experience creates stronger callers.Ability to find more phoners. Pay them.Ability to monitor phoners and make sure they are good representatives.
Sources of callers: students, local labor force
Best Practices:Kansas State University
http://www.found.ksu.edu/telefund/movie.htm
Best Practices:Kansas State University
Why Student Volunteers?Create a culture of philanthropy
Telemagic
Academic links
Create advocates
What else can students give?
K State—Telecar
Staffing the phonathon
Mature, disciplined managementAbility to handle important questions or issuesAdjustments from donor feedbackLong hours for staff
Annual GivingStaff
StudentManagement
Rewards for great callers; pipeline for future development staffPeer to peer training; feedback from someone who has been on the phonesEnthusiasm to phoners; better balance for annual giving staff
Phonathon environment
No call listState laws and regulationsLess legislative action at this time
Legal/Legislation
Phonathon environment
No call listState laws and regulationsLess legislative action at this time
Legal/Legislation
Technology
Answering machinesPhone IDsCell Phones
Phonathon environment
No call listState laws and regulationsLess legislative action at this time
Legal/Legislation
Technology
Reactions
Answering machinesPhone IDsCell Phones
End of novelty; different reactions by ageMonitor what they do, not just what they say
Projecting results
Poor approachesLast year’s results plus some number or percentageNo projections from annual giving staff, just use number from senior advancement staff or othersSet a single goal—dollars or donors—and track few details
Projects take time and dataAnalysis of last year’s phoning effortAnalysis of donor baseSolid research on prospect attitudesReview of approaches and alternatives
Sample Telefund Tracking Chart
17.21% Cost per $ Raised
12.49% Cost per $ Raised
12.11% Cost per $ Raised
13.26% Cost per $ Raised
12.87% Cost per $ Raised
12.86% Cost per $ Raised
12.83% Cost per $ Raised
$213,106.38Expenses
$186,934.25Expenses
$180,827.19Expenses
$210,082.65Expenses
$201,611.66Expenses
$207,425.46Expenses
$224,925.48Expenses
$67.41 Average Gift Received
$48.66 Average Gift Received
$69.62 Average Gift Received
$73.81 Average Gift Received
$78.81 Average Gift Received
$84.60 Average Gift Received
$95.38 Average Gift Received
$1,238,596.22Revenue
$1,496,107.44Revenue
$1,493,126.08Revenue
$1,583,974.98Revenue
$1,566,138.12Revenue
$1,612,532.59Revenue
$1,753,060.12Revenue
20.99% Return
34.79% Return
25.47% Return
25.22% Return
24.04% Return
23.81% Return
24.86% Return
18,375 Forms Returned
30,748 Forms Returned
21,447 Forms Returned
21,460 Forms Returned
19,873 Forms Returned
19,060 Forms Returned
18,379 Forms Returned
87,524 Forms Printed
88,393 Forms Printed
84,199 Forms Printed
85,107 Forms Printed
82,651 Forms Printed
80,054 Forms Printed
73,934 Forms Printed
Telefund2001 as of 6/30/2001
Telefund2002 as of 5/31/2002
Telefund2003 as of 5/31/2003
Telefund2004 as of 5/31/2004
Telefund2005 as of 5/31/2005
Telefund2006 as of 5/31/2006
Telefund2007 as of 5/31/2007
Size of your prospect base– LYBUNTs
• Under $50• $50 to $100• $101 to $499• Over $500
– SYBUNTs– Never givers– Responded to phone, mail, or other
solicitation
Quality of data base:– Good phone numbers– System to update phone numbers– Other data
How manycan youreach?
History of phoning results– Calls per hour average– Dollars raised per hour– Calls per hour for acquisition,
retention, upgrading
Phones and names– Number of phones– Automated or manual system– List procedure
Callers– Number that can be recruited– Drop out rate
How manycan youreach?
How many calls are needed?
Calls placed
Calls placed good phone numbers
People reached
Percentage of yeses
Percentage collected
How manycan youreach?
How many calls are needed?
EstimatingTargets
Breakdown for acquisitionBreakdown for retentionBreakdown for upgrades
Questions?
See you next month for…
© 2007 Bentz Whaley Flessner
Managing a PhonathonAugust 8, 2007