Ken Kuhler, Interactive Strategy Manager, Blackbaud, discussed 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.

1. GROWING CONSTITUENT ENGAGEMENT
LOYALTY, AND LIFETIME VALUE
Constituent Engagement Journey:

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

3. The Nonprofit
Landscape

4. Total Fundraising
13%*
In Canada from 2011
Competition for Awareness and Support

5. # of Nonprofits
161,000 in Canada
Competition for Awareness and Support

6. 3000+ Messages
Targeting Supporters
Every Day
Competition for Awareness and Support

7. 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

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

9. Deepen Relationships
& Build Loyalty

10. FUNDRAISING EMPHASIS: MATURES
Matures
Boomers
Gen X
Gen Y

11. 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
79% Give
5.8 M donors
$831 yr/avg
4.5 charities
$4.8 B/yr62% Give
4.5M donors
$639 yr/avg
4.0 charities
$2.9 B/yr
78% Give
6.9 M donors
$942 yr/avg
4.9 charities
$6.5 B/yr
87% Give
3.1 M donors
$1507 yr/avg
7.0 charities
$4.7 B/yr

12. GEN Y GEN X BOOMERS MATURES
55% 54% 58% 55%
45% 55% 35% 31%
21% 35% 47% 56%
36% 39% 38% 30%
29% 33% 40% 37%
11% 23% 36% 58%
22% 29% 37% 34%
22% 24% 29% 29%
24% 20% 25% 20%
25% 19% 11% 9%
15% 14% 12% 14%
5% 9% 15% 18%
7% 5% 4% 9%
4% 9% 4% 4%
5% 8% 4% 3%
12% 4% 2% -
6% 4% 3% 2%
1% 2% 3% 2%
56%
41%
41%
36%
35%
32%
32%
26%
22%
15%
13%
12%
6%
5%
5%
4%
4%
2%
Checkout Donation
Honor/Tribute
Pledge at Event
Door to Door*
Street Canvassing*
Email*
Radio/TV*
Will/Planned Gift
Social Networking Site
GIVING AMOUNTS

13. Constituent
Expectations
Have
Changed.

14. Constituents Want to Engage
on Their Terms & in Their Channels

15. ONLINE FUNDRAISING CONTINUES TO
GROW

16. 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

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

18. .. 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

19. 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.

20. 9/4/2013 Blackbaud Confidential 20
PEER TO PEER / SOCIAL FUNDRAISING

21. 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

22. 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

23. Multi-Channel Strategy

24. 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

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

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

27. Better Engagement with Supporters =
Better Results for Your Organization

28. Constituent
Engagement
Fundamentals

29. • Constituent Centricity
• Presence in Multiple Channels
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals

30. CONSTITUENT CENTRICITY
• 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?”

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

32. CONSTITUENT CENTRICITY

33. Direct Mail
Email
Web Page
PRESENCE IN MULTIPLE CHANNELS

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

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

36. 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

37. INTEGRATED PROCESS
Frequency Target
Q2week1
Q2week2
Q2week3
Q2week4
Q2week5
Q2week6
Q2week7
Q2week8
Q2week9
Q2week10
Q2week11
Q2week12
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

38. • 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

39. CROSS-CHANNEL CONTACT
INFORMATION

40. KEY ACQUISITION METRICS TRACKED

41. DONOR CHANNEL MIGRATION
TRACKED

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

43. The Evolution
of Nonprofit
Operations

44. • 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?

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

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

47. Keys to Evolution
• Organizational Alignment
• Technology / Infrastructure

48. 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

49. 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

50. 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

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

52. REMEMBER: IT IS AN EVOLUTION.
• 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

53. 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.

54. WANT MORE? DOWNLOAD OUR
RESEARCH.