Convio hjc multi channel-evolution_webinar march 2012 mike and mike

Getting Your Organization Aligned For
Integrated Fundraising

©2011 Convio, Inc. | Page 1

Win A Multi-Channel
Consultation!
• At the end of the webinar, we’ll select 1 WINNER to
receive a complimentary 1-hour multi-channel
consulting session

• We will be selecting from those who participate in
the polls, so stay tuned

• http://www.surveymonkey.com/s/79MNPGL

Who Are We?

Mike Rogers Mike Johnston
Vice President of Strategy, Founder, HJC,
Convio Integrated Fundraising Consultants
Strategic Multi-Channel New Media
Marketing


Today’s Agenda
1) The Need
The New Benchmarking Study and More

2) Futurology
What’s the integrated donor going to be like?

3) The Value
What’s the value of being integrated?

4) Facilitation and the Balanced Scorecard
How do you get to an integrated plan?

5) Evidence – Put It All Together
What does integration look like in the real world?


The New Benchmarking Study
and more
• What have we found as differences and
similarities in the US and Canada
benchmark study?


Big Picture
1) We’re different in fundraising like we are in our
economies
US businesses (including nonprofit corporations) invest more in
technology and talent to improve productivity. We see overall higher
fundraising and advocacy numbers per capita with US charities in the
online space. Canadian nonprofit organizations are slower to invest in the
technology and talent to exploit this relatively new channel in the same
way as our US counterparts

2) Our Advocacy is less developed online
With the rise of online advocacy sites in Canada like CARE2, Change.org,
and Lead Now, Canadians are using online advocacy more and more
BUT we are still well behind our US brethern.

8% of the online files of Canadian nonprofits are made up of advocates
while 12% of US nonprofits online files are made up of advocates.
However, Canadian nonprofits saw an increase in 77% last year versus a
much smaller percentage increase in the US. We are catching up fast!

Advocacy Online and Conversion

• 30% open
rate on Care2
• 45% opt-in
rate from
those who
completed
action


Advocacy Online and Conversion

• 30% open
rate on
Care2
• 40% opt-in
rate from
those who
completed
the action


Telemarketing conversion benchmarks

Generally on an Acquisition campaign we see the following metrics:

Monthly OTG
Response Response Cost per
General Rate Avg Gift Rate Avg Gift Monthly
'Benchmark' 2.29% $13.00 5.00% $40.00 $408.00

cbm Conversion/Welcome Test Results:

Monthly OTG
Response Response Cost per
CBM Conversion/ Rate Avg Gift Rate Avg Gift Monthly
Welcome Test 4.60% $16.40 2.50% $34.40 $296.00
*Based on projected fulfillment


Overall

• $2.50 to acquire an online warm lead
• 14-18 month breakeven to acquire a monthly donor
• If future calling to convert warm leads online is done
alongside other call conversion then cost could
come close to 12 month breakeven

• Canadian nonprofits are integrating online and
offline


E-petition

More info:
legitimacy

Comments: priority for
Counter: social calls
proof

Phone number: Ask! Subscribe:
for cultivation


The different constituencies called…

20.00% 18.50%
18.00% Recent Lapsed
16.00% Monthly Donor
14.00% Online Petition Only
11%
12.00%
9%
10.00% 8% E-newsletter
8.00% Subscriber
6.00% Lapsed Single Gift
4.00% Donor
2.00%
0.00% CPMD $75


Big Picture
3) Lots of Traffic Going Nowhere
Canadian nonprofits have seen a 39% increase in web traffic vs. Only
11% for US nonprofits in the last year. But we haven’t seen the same
increase in online donors. Canadian nonprofits have invested in online
marketing to drive traffic BUT we see very little invest in conversion
strategies and tactics to find more donors. It’s the next step we need to
take.

4) A Less Cluttered Marketplace
The US has a much higher volume of marketing material being sent to
each citizen whether that is online or offline. When US nonprofits send
direct mail out the door, they can send 12 to 18 packages while Canadian
counterparts send 6 to 10. Similarly online, there is a higher volume of
email.

That reality shows itself in open rate differences. In Canada, nonprofits
reported a 29.4% open rate while in the US it was 18.4%. The opportunity
to email more in Canada is obvious!

Big Picture
5) Monthly Giving. Canadian nonprofits were found to have 100%
higher number of monthly donors. We are a more mature monthly giving
environment and the study shows this is true. However, it doesn’t mean
that we have less room to grow still. There was a 7.4% growth in monthly
giving last year – lots of healthy room to grow our online monthly files still!

6) In Conclusion
We are growing in all areas of online giving and advocacy but we are
starting from a point farther behind than our US nonprofit brothers and
sisters. However, we will not reach our full potential without investing in
the technology and talent to help us reach our true potential.

Historically, Canadian corporations, private or nonprofit, do NOT invest in
technology and people like US corporations do. Let’s change that.


The Need


The Need
1) Nonprofit offline donors are aging
2) Donor files and acquisition list sources are shrinking
3) Revenues are flat and–in many cases–are falling
4) Direct mail costs are increasing/ fundraising margins
are shrinking

Nonprofits need (younger) more valuable donors


The Donor Reality


Canadian Generational Giving
66% Give 73% Give
5.7M donors Civics 3.2M donors
$725 yr/avg $833 yr/avg
4.9 charities 5.3 charities
$4.1 B/yr Boomers $2.6 B/yr

Gen X
61% Give
4.2M donors
$549 yr/avg
4.1 charities
55% Give Gen Y $2.3 B/yr
2.7M donors
$325 yr/avg
3.5 charities
$.8 B/yr


What channels are donors using in North
America?


Let’s look a little more closely at Canada
% donated this way in last 2 years (total)


Futurology as a way to
plan for integrated
fundraising success


The Future Integrated Donor

• Ego philanthropy – feeling the need to start their own organization

• Tribute Mania – the need to tell the world about your parents and
friends and family

• Hyper-adventure giving – feeling young and having fun while
giving

• Hyper-choice – the death of unrestricted giving

• Workplace giving – the last opportunity in the 21st century?


Boomers: 55-75

Mid-aged Donors and
Ego Philanthropy

Slide 24

Slide 25

• How boomers act – compared to civics and how this
makes sense for online social network fundraising…

Slide 26

Slide 27

Slide 28

Hyper-adventure giving

feeling young and having fun
while giving

Slide 29

Stretch goals…

Slide 30

Stretch Goals…

Slide 31

Hyper-Choice
the death of unrestricted giving


Kiva – LOAN/GIVE
Oxfam Canada populates the back
end
people can choose country, theme,
project and then give money, make
a loan, make a team or personal
page…

Slide 33

Slide 34

The workplace may become one of the last places that
people gather for common purpose…

And it may be one of the last
places where you won’t need to
get permission to ask them to
get involved financially…

And what is the average cost
to raise a Euro for workplace
giving:

7 cents to raise a Euro


Matching
gift
component
Automated
counter –
demonstrat
es impact

3/29/2012 Slide 36

Your own
personal
campaign
page –
celebrates
your work
and your
staff!

Slide 37

Depts &
Individuals
can create
their own
fundraising
webpages

Nothing like some
friendly competition!

Slide 38

The Metrics


Multi-channel Adoption
% of donors say appropriate solicitation channel

Peer to Peer

Mail

Email

Social Media

Text

Sources: Convio Next Generation of American Giving Report;


Value of Multi-Channel: Loyalty

Annual Donor Value1 Retention Rate2

$255.74

82.3%
$191.35
70.1%
62.3%

$102.64

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 Texas
2. Ibid. Comparison of retention rates for multi-year donors, SPCA of Texas


Multi-Channel Evolution


Practical Steps


Campaign & Donor Optimization
• Creating Personas
• Step 1
• Occurs with 3rd party data to remove imposed biases
• Limit to 10 – 15 unique personas
• A donor can be associated with only 1 persona


Creating Personas
Individual Donors

Persona 3

Persona 1

Persona 2

Persona 4
Persona 5


• Create Personas
• Step 1
• Step 2
• Create value metrics by persona (identify high-value clusters)
• Overlay dimensions on personas (e.g. acquisition channel)


Measuring Personas

$19.84/gift
4.2 gifts/yr
Persona 1 41% eNewsletter
31% event sourced
68% renewal rate

$191.79/gift
1.4 gifts/yr
47% eNewsletter Persona 4
8% event sourced
65% renewal rate


• Creating Personas
• Step 1
• Step 2
• Create value metrics by persona (identify high-value clusters)
• Overlay dimensions on persona (e.g. acquisition channel)

• Campaign Optimization
• Overlay personas on RFM cells and measure profitability
• Hone message, package and channel mix using persona
knowledge

• Migration Pathways
• Determine the high-value migration pathways (e.g. sustainers,
multi-channel donors, middle & major donor prospects, etc.)
• Analyze likely pathways across each persona
• Prioritize pathways per persona


Pathway Example
New DM Donor
Persona #4

Which path will donor
travel?
New Donor
Welcome Series
Send Likely Unlikely to give
Sustainers Invite again. Reduce
6 weeks contact 41%

Advocacy Action
sent to donor No Did donor respond to invite?

Did donor respond to action?

Yes
No Yes

2 weeks

Action Drives Sustainer
Offer
Send
Renewal Respond to offer? Yes Monthly Givers
Series 25% 34%


Technology


Infrastructure Challenge

Support Business Units

Track Performance

Understand Data

Coordinate Departments

Add New Channels

Integrate Systems


Common Enterprise System Challenges
• Usability prevents enterprise-wide adoption
• Reporting & analytics limited, difficult to use
• Flexibility to adapt to unique business processes
• Either good at DM or Major Giving but not both
• Data silos prevent 360º view
• Audience-centric communications
• Optimized multi-channel marketing
• Cross-program marketing


“Next Gen” Systems
Traditional Next-Generation

On-premise On-demand

Complex Easy-to-use 1 2 3

Manage Manage All
Donors Single channel Relationships Multi-Channel

Expensive Cost-effective

Closed Open


Structure


Organizational Structure

Traditional

IT
Communications

Separate Metrics & Team
for Online Marketing Development

Disparate (Sometimes
Conflicting) Goals Government Others (?)
Affairs

Inconsistent Voices
Representing Organization



Coordinated

Communications Development

Shared Metrics
Coordinating
Teams
Thematically Integrated

Coordinated Appeals Government IT
Affairs



Optimized
Coordinating
Teams

Unified Strategy & Full
Integration Across
Channel Managers

Development Online Communications Marketing


On A Scale of 1 to 10…

• “1” = Traditional, “5” = Coordinated, and
“10” = Optimized
• Where do you fall on the scale?


Facilitation
Getting everyone on the same page

Slide 60

Integrated Planning is a full contact sport…

Slide 61

What does a face-to-face have to do
to be successful?

Bring senior management e.g. VP, CEO level staff into the
planning of an online and integrated plan

Slide 62

What do you do before you meet?

Analyze the data

Prepare two days that will
push, pull, cajole, challenge
and team build.

Slide 63

• Development and Peace –
brought staff together in a
facilitated session (after listening,
gathering, preparing)

• 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)

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)

65

The Balanced Scorecard
The Dramatic Oversimplifcation of Integrated
Fundraising, Marketing, Communications and
Campaigning or

Putting Your Organization on One Sheet of Paper


The Integrated Fundraising Balanced
Scorecard


Good balanced scorecard maps can tell the story of
your integrated advancement strategy:

“If we provide Towson University employees with
the necessary training, technology, and culture then
they will be able to develop the necessary internal
processes that will provide alumni the preferred
number of channels choices and improved alumni
(brand, giving, engagement) experience that in turn
will result in achieving our financial and alumni
relations and marketing objectives, allowing us to
better execute on our mission.”


You choose measurements that let
you execute in a way that is strategy-
future driven.

The measurements (if met) mean that
you are moving towards a strategic
goal: an integrated advancement
program


Your Mission

Alumni Relations
Measurements: % of contact
information for different alumni Marketing Measurements:
cohorts (per channel); % who Branding perception
cross attend events; % of recent
channel stewardship and
statistics,
grads who give (mobile,
cultivation business rules monthly, etc)

Internal Perspective Measurements: internal cooperation
(culture, structure, reporting);

Learning and Growth Measurements: Courses, Qualifications,
Proven Application of New Knowledge

The Evidence
Putting It All Together


A Public Broadcaster

• Brand is perceived as authentic
• No integrated fundraising execution


Things needed to be improved
• 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.


How Do They Do It?
Team Optimization
Multi Channel Integration
Culture Committed to Service


It would take an integrated solution…
• Senior management support
• Cross departmental cooperation
• Create an integrated plan and stick to it


Online and offline integration


Launched Impact Report for Donor Loyalty


Launched Symbolic Giving
• Promoted online and through web

• Donor direct mail piece

• Householder

• Brochure in Impact Report

• Focused direct response TV advertisements

• Streamlined online fundraising

• Launched new microsite with focused campaign feel

• Built email list through “pledge sign-up”

• Ran focused e-mail conversion strategy

• End of year e-mail appeals

Launched Symbolic Giving


Launched cultivation mailings
• 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


Reality
• Cost to Acquire a DRTV Donor increasing
• Small List Universe for DM Acquisition
• Response Rates Dropping

• Online showing growth over past years
• Limited Phone
• Strong Conversion to Monthly from DM


Results – 2010 and 2011


Canadian Cancer Society Saskatchewan
• A variety of fundraising channels: including online,
signature events (Relay for Life), third party events, door
to door canvassing and limited email and direct mail.
• There is no use of the telephone. In order to maximize
CCS SK fundraising capabilities, there needed to be an
over arching communication plan that integrates all
fundraising channels, including more extensive use of
the mail and usage of the telephone.


Reality

• Limited Phone


Integrated Improvements
• Make the Integrated Schedule
• Bring Back Direct Mail
• Add the Telephone
• Improve stewardship multi-channel
• Improve Monthly Giving online and offline


Multi-Channel Stewardship

• Limited Phone


Integrated Improvements
• Higher retention
• Increase in donor acquistion
• Higher average gift
• More gifts per donor


Win A Multi-Channel
Consultation!
• At the end of the webinar, we’ll select 1 WINNER to
receive a complimentary 1-hour multi-channel
consulting session

• We will be selecting from those who participate in
the polls, so stay tuned

• http://www.surveymonkey.com/s/79MNPGL


Convio hjc multi channel-evolution_webinar march 2012 mike and mike

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