“OK, So Now What?”

Direct Marketing 201

“OK, So Now What?”

5.15.13

Tom Gaffny

[email protected]


3 THINGS WE NEED TO

STOP THINKING,AND STOP DOING


In fact, the opposite is true.You Belong to the Donor

You Don’t Have a Donor Base–


3 Things We Need to Stop Thinking and Stop Doing

1. We need to stop thinking we own the relationship with ‘our donors’ … because we don’t.


- What you send- When you send it- Which channel

- Whether to open- When to open- Whether to read- Whether to respond- When to respond- How much to give- Which channel to use

The Fundraising Dialogue

Sender Receiver


You’re in Charge, Huh?

• This month … the average donor is going to be awake 29,000 minutes

• During that time she’ll get over 50,000 marketing messages

• If she pays attention to your communication, she might give you 5 of those minutes

• 17% of people even open their emails• Direct mail … oftentimes less


BUT WE INSIST ON THINKING IT’S ABOUT US

• We ACQUIRE Donors …


BUT WE INSIST ON THINKING IT’S ABOUT US

• We ACQUIRE Donors … ‘hostage-taking’ phase

• We RECAPTURE them, if they lapse ‘Why Have You Foresaken Us?’ letter

• Put them through a CONVERSION program Our language reflects our attitude


The American Donor Public Is Suffering From

Battered Donor SyndromeCraving a relationship that’s more about them


The American Donor Public Is Suffering From

Battered Donor SyndromeCraving a relationship that’s more about them

(and unless we embrace their feelings, we’re screwed)


Proof the public craves a relationship that’s more about them?

Introducing one of the hottest new acquisition offers in the past 5 years…


Interesting, huh?The Offer that explicitly promises

We Don’t Want a Relationship,Is Very Successful at

Starting a Relationship


Why Does This Work?

- Because this offer tells the donor ‘you’re in charge of this relationship’

The donor’s need for control is that deep




Making it all About the Donor:

• Food for the Poor contacted thousands of donors in and around Boston area. But that’s nothing new…

• Hurricane Sandy: Called more than 11,000 donors – followed up with prayer option

• Sandy Hook in CT: Contacted more than 25,000 donors




The Results:

• More than 25% of people responded

• Generated more that $171,000

• Giving from 20 year+ donor core has been increasing for the first time in years


Yes, even this is Proof….

The one tactic that lifts response every time.


Three Recent Examples

• Charity A – Multiple stamps lifted net revenue 92%

• Charity B – Multiple stamps lifted net revenue 51%

• Charity C – Multiple stamps lifted net revenue 44%


This Isn’t Just About Tactics. And It’s Not Just About Postage.

• This works because it’s one of the few things we ever do for the donor

• It’s about their convenience, their ease, their pocketbook

• Outgoing 1st class = for us• Return 1st class = for the donor


The Nonprofits that Recognize the Donor OWNS THE RELATIONSHIP

Will be the Biggest Winners in the Decade Ahead.


A PROFOUND ATTITUDINAL SHIFT:

• Identify the people who really matter

• Commit to a true donor-centric approach

• Focus on engagement and donor service

• A zealous commitment to nurturing the relationship


3 Things We Need to Stop Thinking and Stop Doing1. We need to stop thinking we own the

relationship with ‘our donors’… because we don’t

2. We Need to stop relying on the same old one-dimensional pyramid

Transaction Pyramid

Low Value

High Value

Giving Profile• Recency• Frequency• Amount

Transaction and Action Pyramid

Low Value

High Value


Activity Profile• # of channels• Volunteer?• Special Events

Transaction and Action and Attributes Pyramid

Low Value

High Value


Activity Profile• # of channels• Volunteer?• Special Events

You Know How To Rank Her

Attributes • Age• Wealth• Health


But Do You KnowHow She Ranks

You?


How Do You Rank in Her Pyramid?

• Are you a Priority in her life?… or just one of many?

• Does she give you more than she gives to other charities … or less?

• Is it unusual for her to support you?… or does she throw a few dollars at everyone?


How She SupportsOther CharitiesAlso Tells You How MuchShe Values You

How You Rank.

Passion Pyramid

Low Passion

High Passion

MRS. JONESMRS. SMITH• Gives to only 2-3

charities

• Gives you twice as much as she gives to others

• Gives to lots of organizations

• Gives more to others than you

Who’s More Passionate About You?

Low Passion

High Passion

MRS. JONES• Gives to lots of

organizations

• Gives more to others than you

MRS. SMITH• Gives to only 2-3

charities

• Gives you twice as much as she gives to others

• National organization launched a Planned Giving campaign

• Selected ‘High Passion’ names who did NOT meet their longstanding planned giving select criteria

Real World Example #1

48

ValuePyramid

Low Value

Passion Pyramid

Low Passion

% RESPONSE FROM THAT SEGMENT – 3 TIMES OVERALL CAMPAIGN

MRS. SMITH MRS. JONES MRS. YOWZA

$25 $25 $25


Gives to othersBut never upgrades

2 times as much toyou as other orgs

OVERLAY HISTORY WITH OTHER CHARITIES

Gives once to othersBut never again

18 Times More Net

30 Times More Net


We Need to Have A Data Dialogue with Donors

CAMPAIGN VIEW

How We Rank the Donor


DONOR VIEW

How They Rank You

CAMPAIGN VIEW

How We Rank the Donor

We Need to Have A Data Dialogue with Donors


‘You-centered’ Modeling and Analysis Will Be the ‘Dividing Line’ Tool

• Will separate the winning charities from the losers in the decade ahead

• Historically focused on ‘saving money’ – needs to shift more to optimizing relationships

• “We can’t afford to invest in this”??? You can’t afford NOT to invest in it.



relationship… because we don’t


3. We need to stop believing acquisition is the main key to growing our file


We may be theONLY INDUSTRY

In the worldThat doesn’t view

RETENTIONas the key to growth

The most important goals for nonprofit communications strategies in 2013

All Other Responses

Retaining Current Participants

Acquiring New Volunteers

Building Print or Email List

Acquiring New Program Partipants

Creating Website Traffic

Thought Leadership / Positioning as an Expert

Retaining Current Donors

General Brand Awareness

Engaging Our Community

Acquiring New Donors

0% 10% 20% 30% 40% 50% 60%

4%

7%

12%

18%

20%

22%

22%

30%

45%

52%

57%

NonprofitMarketingGuide.com survey

The most important goals for nonprofit communications strategies in 2013

All Other Responses

Retaining Current Participants

Acquiring New Volunteers

Building Print or Email List

Acquiring New Program Partipants

Creating Website Traffic

Thought Leadership / Positioning as an Expert

Retaining Current Donors

General Brand Awareness

Engaging Our Community

Acquiring New Donors

0% 5% 10% 15% 20% 25% 30% 35%

7%

30%

NonprofitMarketingGuide.com survey


THE BIGGEST ISSUE TODAY ISN’T ACQUISITION

It’s FILE GROWTH.

And RETENTION is the key to file growth.


The RETENTION Growth Case

IMAGINE IF 4 YEARS AGO…




Option #1: - Invested heavily in acquisition- Status Quo in Multi-year retention rates




Option #1: - Invested heavily in acquisition- Status Quo in Multi-year retention rates

Option #2: - Cut acquisition 25%- Invested in multi-year retention; increased rate 2%


ASSUMING …Your Program Matches Industry Standards

− First Year Retention rate of 25%

− Second Year Retention rate of 40%

− Multi-year Retention rate of 65%


For Most Files I See:

OPTION #2 would:

- Give you as many (or even more) donors

- Result in more ‘multi-year’ donors

- Result in far more net revenue


KEYS TO RETENTION:

Commit to Greater investment, focused on:

• Truly knowing your best supporters; their interests, their needs

• Using the Whole pyramid: Transactions, Actions, Attributes … and Passion

• Nurturing true relationships through superior donor service

Direct Marketing 201Direct Marketing 201

Thank You!

Tom Gaffny

[email protected]



relationship… because we don’t


3. We need to stop believing acquisition is the main key to growing our file


But aren’t all the old donors dying?(Don’t tell them)

Life Expectancy:8587889092

Age:6570758085

Profile Data

Low Value

High Value

How You Rank Her

Low Passion

High Passion

How She Ranks You

Passion Ranking

Profile Data

Low Passion

High Passion

Low Value

High Value

How She Ranks YouHow You Rank Her

Passion Ranking

Profile Data

Low Passion

High Passion

Low Value

High Value

How She Ranks YouHow You Rank Her

Passion Ranking


THE REALITY:The one tactic

that makes it easier for the donor,Is the one tactic

That makes the biggest difference.




Dear Fundraiser,


Dear Fundraiser,

“Don’t talk to me like that, OK?”

Sincerely,American Boomer


Dear Fundraiser,

“Don’t talk to me like that, OK?”

Sincerely,American Boomer

P.S. I’m really getting to hate name labels.


The ‘Winning’ Subject Line:

“Hey”


“It quickly became clear that a casual tone was usually most effective. The subject lines that worked best were things you might see in your in-box from other people,” Fallsgraff says. “‘Hey’ was probably the best one we had over the duration.”

• National Health organization• Important mailing to ‘higher dollar’ audience• What if they expand audience –target people

with low-tier RFA … but high passion?


Value Pyramid

Low Value

Passion Pyramid

Low Passion

• Mailed $25-49 high passion names• 150% higher response than w/o

segmentation



The Reality:

Your donor doesn’t belong to you.You belong to her.

And unless we do more to embrace this mindset, we’re screwed.

92% lift in NET income.

Documents

“OK, So Now What?”