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masterworks
INNOVATIONH A N D B O O K
4.1 Overview
Please provide us with basic information about your organization’s history, ownership, mergers, etc.
Masterworks was founded in 1989 by Dr. Raymond Schenk as The Raymond Group. Ray was a former •
denominationalofficialwithTheChristianandMissionaryAlliance,seniorexecutivewithWorldConcernandVP
ofclientservicesatScreenCommunications.RayretiredfromMasterworksin1996.
In1992,SteveWoodworthjoinedasexecutivevicepresident;todayheispresidentofMasterworks.Steve•
wasVPofmarketingforWorldVision,leadingmostofitsmarketingprogramsthroughthe’80sandearly’90s.
DuringhistimeatWorldVision,Stevewasaclientoftwoleadingadvertisingagencies.
Intheearly1990s,withMasterworks’emphasisonefficiencyandinnovation,wepioneeredtheuseofshort-•
cycletimeprocessesandcontinuousprocessimprovementinanadvertisingagency.Ourturnaroundtimeon
projectsishalftheindustrynorm.
In1998,TheRaymondGrouphelpedfoundandlaunchHighPointSolutions,theinteractivesolutionsagencyof•
clientslikeFocusontheFamily,AmericanBibleSociety,WorldVision,Microsoft,Wal-MartandSafecoInsurance.
HighPointSolutionshasconductedmajoronlineinitiativesforWorldVision.
In2001,wechangedournamefromTheRaymondGrouptoMasterworkstoreflecttheKingdomemphasisof•
ouragency.
In2005,MasterworkspurchasedTouchPointSolutions,aleadingmajordonorconsultingfirm,tointegratethe•
vitalfunctionsofdirectmarketingandpersonalcontactfundraising.
Today,Masterworkscontinuestoleadtheindustryintheimplementationofbranding,CRMandintegrated•
multi-channelmarketing.
BuildingonthelegacybegunbySteveandRay,Masterworks’entireseniorteamconsistsofpeoplewhohave•
ledsuccessfulmarketingprogramsfornonprofitorganizations.
1
Describe your management hierarchy i.e., starting with the account managers that would be assigned to our account and next level positions, up to president.
Masterworksisrecognizedasananalytics-led,strategy-driven,andinnovation-focusedmarketing•
“ministry”consistingoffiveprimaryservicefunctions:clientservices,creativeservices,newmedia,
marketingintelligence(analytics),andinnovationdesign(R&D).Theseteamsfunctioninter-
dependentlywithoneanotherinourdailycommitmenttoprovideworld-classservicetoourministry
partners.
Eachclientwepartnerwithisassignedadedicatedcross-functionalagencyteam.Wedonot•
moveteammembersonandoffaccounts.That’sbeenaphilosophyfromourinception.Why?We
realizethatourpartnersaremakingasignificantinvestmentinusastheiragency,andourshared
commitmentistomaintaincontinuitywiththeaccountteamsomessaging,designandotherclient-
unique requests are honored.
2
if awarded wOrld visiOn’s 30 HOur famine, yOur agency team wOuld be:Account Supervisor: Dave Raney, SVP of Strategic DevelopmentTheaccountsupervisorroleisassignedtoanagencyprincipalwhohasultimateresponsibilityforthesuccessof
theaccount.Davehasbeenworkinginnonprofitmarketinganddevelopmentfornearly30years.Overthelast
8yearsatMasterworkshehassupervisedaccountssuchasFocusontheFamily,FoodfortheHungryandPrison
Fellowshipamongothers.PriortojoiningMasterworks,Daveserved18yearsattheRussReidCompanywhere
hespentmostofhisyearsmanagingtheWorldVisionaccount.
Account Executive: Heidi HenryTheaccountexecutivewillbeassignedtheday-to-daymanagementofyouraccount.Heidihasmorethan15
years’experienceinmarketingfrombothin-houseandagencyenvironments.Sheexcelsincreatingstrategies
andprocessesthatproduceresults.Heidihasapassiontoapplyhermanagementandcommunicationskillsin
thenonprofitworld.Shehasvolunteeredherservicesatchurchesandschools,andisanadjunctprofessorof
AdvertisingatSeattlePacificUniversity.
Project Manager: Heidi ColemanHeidiColeman’sexperience,energyandpassionforservicemakeheravaluableassettotheMasterworks
team.ForthepasttwoyearsshehasmanagedprojectsformajorclientssuchasCityTeamMinistriesandThe
QuietHour,ensuringon-timedeliveryworkingwithinouraggressiveschedule.Herstronginterpersonaland
organizationalskillsarekeytoclearcommunicationbetweenclients,businessmanagersandcreativeteams.
3
Creative Director: Rob Zawoysky, SVP of Creative ServicesRob’sbeenaround.With41yearsinmarketingandfundraising,heknowswhat
heknowsandwhathedoesn’t.Foryouthmarketprojects,helistenshardtohis
youngerstaff,encouragestheirfreshthinkingandchallengesideasthatneed
deeperthought.Mostimportant,afterallthoseyears,allthoseclientsandall
thoseprojects,he’sstillhavingfun.
New Media Strategist: Jacob SmithJacobhasbeenworkingtohelpnonprofitstelltheirstoryandexpandtheirreachwithNewMedia
forthepastfiveyears.Hebringsadeepexpertiseinonlineengagementandtechnologies.Asa
NewMediaStrategist,Jacobworkswithclientstocreateintegratedstrategiestoachievetheirgoals.
Componentsincludewebsites,eMail,socialnetworking,blogging,onlinevideo,wikisandmore.
Marketing Intelligence: Michael Fassnacht, Director of AnalysisFor20years,Michaelhashonedhisproblem-solvingskillsinavarietyofprofessions.Fromresearchingnuclear
powerplantsinthedesertsofIdaho,tothesuccessfuldevelopmentofastart-upInternetcompany,tocreatingan
extensiveforecastingandplanningmodelforaglobalcustomerservicenetwork,Michaelhasmastereddatarelations,
customerrelationsandbusinessdevelopment.PriortojoiningMasterworks,MichaelservedatAmazon.comwhere
hehelpedimplementthecompany’sfirstCRMsoftwareandledthewayindevelopingprogramsandproceduresthat
emphasizedcustomerrelationshipmanagement.
4
In addition to the core agency team, there are several other senior agency members who will play an active role:
Dave Raley, Director of New MediaDavefoundedhisfirstcompanyattheageof20andbuiltitthroughinnovativeonlinemarketingstrategies.
AsMasterworks’DirectorofNewMedia,DaveoverseestheNewMediadivision.Daveandhisteamdevelop
andconceptualizeintegratedNewMediastrategiesthatdrivegrowth,includingthedevelopmentofwebsites,
eMail,socialnetworking,blogging,onlinevideo,wikisandmore.
Kn Moy, SVP of Insight and InnovationKnMoyhasovertwodecadesofexperienceasamarketingstrategistandintegratedmarketingspecialist.Kn
leadstheMasterworksteamthatisresponsiblefordrivinginnovationinordertohelpclientsachievebetter,
faster,andmoresustainableresults.
AformerWorldVisionU.S.staffperson,KnjoinedMasterworksin1996andhelpedlaunchHighPointSolutions,
aleadinginteractivesolutionsfirm,whereheservedasChiefCreativeOfficerandSeniorStrategist.HighPoint
SolutionsledthedevelopmentofInternetstrategiesforFocusontheFamily,AmericanBibleSociety,World
VisionandahostofotherChristianorganizationsandwasalsoapreferredserviceproviderontheInternetfor
MicrosoftCorporation.
Kn’sindustryawardsincludetheprestigiousBenjaminFranklinAward(“TheBenny”),theEmmyintheprint
designindustry.KnalsoledtheInternetteamthatwontheWebby,theEmmyoftheInternetworld,aswellas
theprestigiousSmithsonianInstitutionComputerWorldAwardforinnovativeworkinonlineeCommerce.
5
If awarded World Vision’s 30 Hour Famine, we’ll schedule a series of key meetings to ensure our high level of service and ministry objectives. These include:
Astart-upmeetingwithMasterworks’accountteamandWorldVision’s30HourFamineteam.Thepurposeofthis•
meetingistomakeappropriateintroductions,gathercriticalinformationtoexecutetheplan,reviewworkflow
andapprovalprocessesandhavetimeforQ&A.
PriOrity
Steve Hanberg, VP of Marketing IntelligenceSteveservesasstrategicdirectorofMarketingIntelligencedivision.Hebeganhiscareermorethan30
yearsagoinChristianradio,transitioningtopublishingandthendirect-responsefundraising.Steve’s
experiencemanagingmagazinesubscriberlistsandanalyzingdirectresponseresultslaunchedhis
passionfordataanalysisandperformancemeasurementsoverthelast20years.
Steve Woodworth, PresidentServingaspresident,Steveprovidesauniqueblendofmarketing,managementandorganizational
developmentexperience.AsWorldVision’sVicePresidentofMarketing,Stevedirectedalldirect-marketing
programs,inadditiontochurchandvolunteerprogramsanddonorservices.Duringhis12yearsatWorldVision,
mediaincomealonegrewfrom$40millionto$130million.BeforejoiningMasterworks,Stevewasapartner
inTheThomasGroup,amanagementconsultingfirmhelpingFortune500companiesboostproductivityand
profitabilitythroughprocessreengineering.
6
Describe your core capabilities and experience, please tell us how these capabilities have evolved since we last engaged with you, and tell us why they changed.
Overthepast20years,thisintegratedsetofcoreagencycapabilitieshasevolvedtomeetthechallengesofthe
seismicshiftsthatareoccurringinourmarketplace.And,thesecapabilitieswereestablishedtoleveragethe
opportunitiesthatexisttodayinourmarketplace.
Tounderstandmorefullyhowandwhythesecapabilitieshaveevolved,pleaseseeourresponsetoyourrequest
onpage9(pleasetelluswhyyouareuniquelypositionedatthispresenttimetoengageus).
AweeklymeetingbetweentheAccountSupervisorandAccountExecutivetodiscussaccountactivityandmake•
surewemeetobjectives.Thisisinadditiontothedailyinteractionsthatwilltakeplaceamongtheaccount
team.
AweeklystatuscallwithMasterworks’AccountExecutive,ProjectManagerandidentifiedWorldVisioncontacts•
todiscussprojectwork.
AmonthlyaccountreviewmeetingconsistingoftheAccountSupervisor,AccountExecutive,ProjectManager•
andoneotheragencyprincipal.
ProposedquarterlymeetingswithWorldVisiontoreviewactivityandstrategizefutureplans.Masterworks’team•
wouldincludetheAccountSupervisor,AccountExecutive,ProjectManagerandanyotherappropriateaccount
teammembersgiventheagenda,alongwithWorldVision’steam.
Abiannualaccountreviewincludingallagencyprincipals(president,executivevicepresident,teamleaders),•
accountexecutivesandallmembersoftheassignedaccountteaminordertofullyreviewallaccountactivity.
7
masterwOrks PrOvides tHe fOllOwing services:
Brand Development and •Strategic Positioning
Strategic Planning •
New Media•
eMarketing
WebsiteStrategyDevelopment
and Implementation
WebsiteOptimization
eCommunication
OnlinePromotion
OfflineIntegration
MobileEngagement
Social Media Implementation
Innovation Design (R & D)•
Traditional Media•
Direct Mail
VideoandTelevision
Radio
Telemarketing
Integrated, Multi-channel •Marketing
Major Donor Consulting•
Analytics•
RevenueForecasts
TrendAnalysis
Segmentation
Modeling
CampaignPerformance
FullDonorFileAnalysis
DataWarehousing
CustomCRMStrategies
quality8
Please tell to us why you are uniquely positioned at this present time to engage with us.
Inourworldtoday,powerfulandoftencounterintuitivetrendsarechangingtheworldandchangingthewayin
whichourconstituentsrespondtomarketingcommunications.Thesetrendsareshapingtomorrowrightbefore
us.Noorganizationcankeepdoingwhatit’salwaysdone,andexpecttogetthesameresults.
Theconsumerhasneverhadmore
individualchoices,andthereasons
andpatternsforthosechoiceshave
neverbeenhardertounderstand
andanalyze.Constituentshave
neverbeenmoresophisticated,
moreindividualistic,ormore
knowledgeableaboutthechoices
theymakeintheirdailylives.Theskillofengagingconstituentsaroundtheirindividualneedsandwantshas
neverbeenmorecriticalinmarketingcommunications.
Inthis“bravenewworld”ofmarketing,Masterworks,whichcelebratesits20thyearin2009,isuniquelyableto
addressthisexponentiallygrowingchallenge.Throughouranalytics-led,strategy-drivenandinnovation-centric
approach,wearedeliveringworld-classresultsforourclients—despitethehistoricdownturnintheeconomy.
In2008,70%ofourclientswereabovebudgetprojections,15%wererightattheirbudgetprojections,and15%
werebelowtheirprojections.Ofthosebelowtheirprojections,two-thirdsarenewclientswhocametousin
2008becausetheiragencywasnotperforming.
because masterwOrks is structured tO drive and sustain client results tHrOugH innOvatiOn, we are uniquely POsitiOned tO HelP tHe 30 HOur famine mOve tO tHe next level.
9
Thekeytodrivingconsistentsuccessforourclientsisthis:weareconstantlyinnovatingtooptimizeresults
inourconstantly-changingmarketplace.Acommitmenttoinnovationis,accordingtotheHarvardBusiness
Review,thesinglemostimportantdifferentiatorbetweenmoreeffectiveorganizationsandlesseffectiveones.
accelerating sustained results tHrOugH innOvatiOnMasterworksdoesmorethanjusttalkaboutinnovation.Masterworksistheonlymarketingagencyworking
withfaith-basedorganizationstohaveadedicatedteam,ledbyourSeniorVicePresidentofInsightand
Innovation,whosejobitistodriveinnovationinordertocreatefaster,betterandmoresustainablerevenue
results for our clients.
Some of our innovative marketplace initiatives include:
Directmailintegratedonlinevideoleveragingthestrengthsofmail,videoandInternettosignificantlydrive•
up results.
Our“GivingTogether”socialmediagivingapplicationconceptthatallowsagroupofpeopletoconnectand•
stayconnectedaroundgivingtimeandmoney.
Re-engineeringdirectmailtogetittoworkmoreeffectivelyinaworldthatnolonger“reads.”Thisprojectis•
ledbyaJohnsHopkinsUniversityPh.D.inHumanFactorsEngineeringwhodesignsinterfacesforsoftware
andwebsites.Sheisnowturningherattentiontooptimizingthedirectmailinterface.
Crackingthecodeonthemediamixwithinintegrated,multi-channelmarketing.WeareworkingwithaPh.D.•
fromUSCwhohasworkedwithMicrosoftinoptimizingitsmarketingspendinintegrated,multi-channel
marketing.
Our Donors for Life® constituent experience management strategy is a breakthrough •
approach for connecting and staying connected with your constituents.
10
Driving Innovation Through Better InformationOurDNAhasalwaysbeenaboutinnovation—longbeforewebroughttogetherourInsightandInnovation
team.Today,15%ofourstaffofnearly80peopleareinvolvedinanalyzingdatathatleadstomarketinginsights
thatdriveasteadystreamofinnovationforourclients.Nootheragencyhascommittedsuchalargepercentage
ofitshumanresourcestoanalyticsandmarketplaceinsight.Together,theteamthatuncoversinsightandthe
teamthatintegratesitmakesupnearlyone-thirdofourcompany.That’sacommitmenttoinnovationnotseen
anywhere else in our industry.
We Are The State Of The IndustryMasterworksistheleadingintegrated,all-mediadirectmarketingagencyintheU.S.providingservicesto
faith-basedorganizations.Throughitsprovenanalytics-led,strategy-drivenandinnovation-focusedapproach,
Masterworkshelpsclientsbuildandsustaineffectivedonorexperiencesthathaveonesimplegoal:tomaximize
ROIwhiledeliveringsustainableresultsandcreatinglong-termconstituentloyalty.
Throughthetransformationalapproachofconnectingwithconstituentsaroundtheconstituentexperience
managementframework,Masterworks’abilitytodeliverfully-integrateddirectmarketingprogramsfar
exceedsthatoftraditionaldirectmarketingagencies.Inadditiontoconventionalagencyserviceslikestrategy
development,creative,interactive,databasemanagement,production,media,listresearchandbrokerage
solutions,completeproductionandmailingservicesaswellasresultsanalysis,Masterworks’directmarketing
solutionsaredesignedtoenhanceandextendyourprogram’sbrandinordertocreatelastingbrandadvantage.
11
4.2 direct mail acquisitiOn
Please tell us about your agency’s success and experience in this area over the past 24 months and contrastthiswhereyourorganizationwasfiveyearsago.Pleaseprovidegrowthratesthatvalidateyour information.
Directmailacquisitionhasbeenacoreagencyservicesinceourinception20yearsago.Infact,someofour
principleshave30+yearsofdirectmailexperience.Historically,it’sbeenaprovendirectresponsemedium
andyet,inandofitself,iscontinuingtoshowagradualdeclineineffectivenessasrentallistuniversesshrink,
postageratesincreaseandconsumersbecomemoreempoweredtodeterminewhatarrivesintheirmailbox.
Fiveyearsagomanyofourclientswereconductingdirectmailacquisitioncampaignsinthefallseason,at
year-endandinthespring.Thecampaignsincludedcontrolandtestpackagesbasedonthestrongestoffers
mailedindonorcultivation.Buttheprimarydistinctivebetweenthenandtodaywasthattheyweremailedas
“standalone”strategieslackingintegrationwithothermarketingchannels.
Overthelast24months,wehavelearnedthatfordirectmailacquisitiontoworkeffectivelyandtrulybe
optimizeditmustbeintegratedwithothermarketingchannelsandbeseenasalargermovementofsome
kind...likethe“OneMealOneHope”campaignwerecentlycompletedforSeattle’sUnionGospelMission
(UGM).
Thiscampaignincorporateddirectmailtomultipleaudiences,telemarketing,promotionandevents,volunteer
recruitment,collateral(posters,pressreleases,etc.),newmedia(website,landingpage,onlinevideo,banner
ads,searchads),eMarketinginnovations(suchasaneCardcampaign,FlickrandFacebookapplications,aswell
astraditionaleMailefforts),radio(spotsandon-airpledgedrives),andprintmedia(freestandinginserts,etc.).
12
“One Meal One Hope” was presented to the broader public as a movement with direct mail being a natural
response trigger in addition to the website. And despite the suffering economic times and fall election, the
campaign was extremely successful both in terms of brand exposure as well as response. For example:
1.6 million pieces mailed•
New donors up by 3,000 over prior year•
63,577 website visits•
Web income up by $100,000 over prior year which is substantial for this client•
61,870 emails•
4.4 million banner ads•
7.4 million total impressions•
It’simportanttorememberthatthepreviousyearUGM’sfallcampaignconsistedprimarilyofdirectmail(we
testedalternativemediainanticipationofacampaignthisyear).Ourclientbelievesthatwithoutthisyear’s
campaignapproach,theywouldhavebeendowninrevenueduringthefinalquarterofcalendaryear2008.
Instead,theywereupnearly3%.
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Documentforustheoverallaverageresponserateandfulfillmentrateyouhaverealizedindirectmailacquisitionoverthepast24months.Identifythetypesofcampaigns,ifaveragefulfillmentratesvarybycategories or type. Please describe your capabilities and experience in youth creative.
Herearethecompileddirectmailacquisitionresultsachievedacrossallclientssince2005:
YearTotal
MailedTotal
Responses%
ResponseAverage
GiftTotal
Income TotalCost ROI
2005 5,169,807 41,719 .81% $30.21 $1,260,360 $2,026,772 .62
2006 6,305,264 57,834 .92% $34.58 $1,999,649 $2,939,126 .68
2007 6,616,467 50,613 .76% $40.88 $2,068,906 $2,960,719 .70
2008 10,078,252 60,742 .60% $32.50 $2,138,182 $4,691,836 .46
Masterworksapproachtodonoracquisitionisalwaysbasedonlong-termdonorvalueanalysis–notupfront
results.Weconductextensivelong-termanalysistodeterminewhichacquisitionstrategies,kits,lists,first
giftsizeandzipsyieldthestrongestlong-termdonorfortheorganization,andthenwebaseouracquisition
strategyandbudgetallocationrecommendationsfromthatanalysis.
Forexample,ouranalysishasshownthatanewdonorwhogivesagiftof$50comparedtoanewdonorwho
givesafirstgiftof$25(thusafactorof2),hasanexponentiallyhigherlong-termvalueovertime.Thatiswhy
we’recontinuallytestingoffersandgifthandles,whichiswhyouraveragegiftandROIreflecteda3-year
increase up until this last year.
In2008,twonewlargeministrieshiredMasterworkstohelpthemturnaroundsufferingacquisitionprograms.In
thosecases,significanttestingwasdonetoidentifypotentialnewoffersandlists,whichnegativelyinfluenceda
3-yearupwardtrendinaveragegiftandROI.
14
Finally,nearlyallofthedirectmailacquisitioncampaignswe’vemanageddidnothaveasecondaryfulfillment
componenttothem.However,wehaveproducedandcoordinatedmanypledgeprogramsforclientsoverthe
years(similartoWorldVisions’childsponsorshipprogram)wheremonthlyfulfillmentresultsweretypicallyin
the70-80%range.
Creative for Youth . . . by Youth
Adecadeago,creatingapersonalwebpagewasconsideredanactoftechnicalandcreativevirtuosity;today,the
comparablepracticeofcreatingaMySpaceprofileisanunremarkableachievementforthemajorityofyoung
peopleintheU.S.Itisbecomingcommonplaceforpeopletobothpostandviewpersonalandamateurvideos
andphotosonlineaspartoftheireverydaymediapractice.Inturn,thesepracticesarereshapingourprocesses
forself-expression,creativity,learning,andsociality.
Tothatend,MasterworksCreativeServicesisayouthculture.Seephoto.Thisdepartmentiscomprisedof5
graphicdesignersand5productionartists,eachofwhomareprofessionally-trainedgraphicartists.Anumber
ofthemareunder30.Wealsohaveateamof5writersand
asmanyproofreaders.Therearepeopleunder30onthis
team.Our3creativedirectorsareover30—theyhavea
combinedyearsofcreativeexperienceofalmost90years
—butknowhowtoconnectwiththeyouthculture.
Young people todaY innatelY know how to engage and connect with other Young people .. . production of Youth creative is best performed bY those who also consume Youth creative.
turn
Pag
e w
itH
caut
iOn
Documentforusthemostsuccessfulfulfillmentratesyouhaverealizedindirectmailacquisition.Telluswhatcampaignsorprogramsthesesuccesseswererealizedinandwhatyoubelievespecificallycausedtheir success.
Asacknowledgedabove,thesuccessfactorsofnearlyallofthedirectmailacquisitioncampaignswe’ve•
producedwerebasedoninitialupfrontresults(numberofdonorsacquiredanditscorrelatedpercentresponse,
averagefirstgiftsizeandROI)andlong-termdonorvalueovertime.Becauseouracquisitionrecommendations
arebasedonlong-termvalue,ourministryclientsareacquiringmoregenerousdonorsthatareyieldinggreater
long-termreturnsfortheiracquisitioninvestment.
Please name any third parties you presently work with, or are considering that would assist you in providing services that are incorporated into what you might offer World Vision. Describe their core competencies,andspecificallytheirroleifthiscanbeprojectedatthistime.
[SeediscussionofHighPointSolutions/Brand:Wallopunder“InteractiveAcquisition.”]
Masterworks’mobilemarketingpartner,Mo7,conceives,implementsandmanagesuniquemobile-basedmarketing
campaignsfororganizationsofallsizes.Mo7helpsorganizationsreachtherightperson,attherighttime,withthe
rightofferusingoneofthemostpowerfulengagementtoolsavailable,theubiquitouscellphone.Mo7’scapabilities
include:mobileresearchandconsumertargeting,mobilemediachannelplanningandbuying,mobileadcreation,
mobilewebsitedevelopmentandmanagement,mobileapplicationdevelopment,customSMStoolsandcampaigns,
securedatabasemanagementandbackendanalytics—and24/7technicalsupportduringacampaign.
Mo7wasfoundedbyScottForrest,aformerWorldVisionstaffperson.Mo7clientsincludeOnTheBorderrestaurants
18
(aBrinkerInternationalbrand),Chick-fil-A,theU.S.Army,Gold’sGym,theMSSocietyandConocoPhillips,among
others.ThescopeofMo7’sworkrangesfromcustomlead-generatingandCRMsolutionsutilizingSMSandthe
mobileweb,tothedevelopmentofcutting-edge,brandedmobileapplications.Mo7iscurrentlydevelopingacell
phonebasedlocationfinderforConocoPhillipsthatutilizesGPStriangulationtechniquesalongwithGoogleMaps
andMicrosoftVirtualEarth.
4.3 interactive acquisitiOn
Please note: For some of the answers below, we are not able to disclose information about specific online acquisition strategies and approaches that our clients perceive as valuable and proprietary as well as information that clients believe may degrade their competitive advantage in the marketplace. In some cases, we are legally bound by nondisclosure agreements (NDAs). This is, in part, because NDAs, also known as “Silicon Valley Handshakes” have become ubiquitous in the interactive world and, as such, are almost
standard operating procedure.
Please tell us about your agency’s success and experience in this area over the past 24 months and contrastthiswhereyourorganizationwasfiveyearsago.Pleaseprovidegrowthratesthatvalidateyourinformation.
Fiveyearsago,notoneofourclientswasspendinganymoneydoingonlinedonoracquisition.Today,ourlargest
onlineclientspendsupto$150,000amonthdirectlythroughMasterworksdoingonline-onlydonoracquisition.
They are committed in partnership with Masterworks to “crack the code” of online donor acquisition.
Forthatclient,thefocusisoninnovatingandbuildinganinfrastructurefocusedondigitalmarketingandusing
integrated,multi-channelmarketing,includingmail,tosupportthat.Aswe’vefine-tunedouronlineacquisition
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strategiesforthisclient,onlineengagementbringsthemintorelationshipwiththeorganization,andintegrated,
multi-channelmarketingsustainstherelationshipanddrivesuplong-termdonorvalue.Multi-channeldonors
givealmosttwiceasmuchassingle-channeldonors.Soitisalwaysourobjectivewithclientstooptimizethe
conversionofonlinedonorstomulti-channeldonors.
Documentforustheoverallaveragefulfillmentrateyouhaverealizedininteractiveacquisitionoverthepast24months.Identifythetypesofcampaigns,ifaveragefulfillmentratesvarybycategoriesortype.
Itisnotpossibletoextrapolatean“averagefulfillmentrate”becausetoomanyvariablesdefinehowwell
interactiveacquisitioncampaignswork.Forexample,whenclientshaveinsistedthatwetargetabroadly-
definedaudiencegrouping,fulfillmentratesaregenerallylowwhencomparedtoclientsthathaveallowedusto
targetanarrowly-definedaudiencesegment.Drivingtargetedtraffictoanofferingorproductalwaysproduces
betterfulfillmentrates.Clientswithbetterofferswillhavebetterfulfillmentratesthanclientswithweakoffers.
Clientsthathaveleveraged“wordofmouth”havebetterfulfillmentratesthanclientswhohaven’tleveraged
socialmediatechnologies.And,whentheInternetisacomponentofanintegrated,multi-channelcampaign,
fulfillmentratesarealwayshigher,thanwhentheInternetisthesoleengagementchannel.
Documentforusthemostsuccessfulfulfillmentratesyouhaverealizedininteractiveoverthepast24months.Describethecampaignsorprogramsthesewererealizedinandwhatyoubelievespecificallycaused their success.
Theneedtomaintainconfidentialitydoesnotallowustospeakinspecificdetailsaboutsomeofthekey
strategiesthatledtothesuccessofourtopcampaignsoverthepast24months.
But,pleaseallowustospeakgenerallyaboutourprovenstrategiesforcreatingfaster,betterandmore
sustainable results in online acquisition.
20
Webelievethatthecurrentonlineacquisitionmodelaspracticedbythemajorityofdirectmarketingagencies—
acquireand/orbuildprospectlistsandacquireasmanydonorsaspossiblethrougheMail—isatbestastopgap.It
isnotalong-term,bestpracticessolution.Itwillnotbesustainablegiventhecurrenttrendinginonlinebehavior.
Whilewehavedemonstratedinthepast2yearsthattheeMailacquisitionapproachis,infact,workingsuccessfully
alotofthetimewithourclients,thereare4reasonsthatresultsfornewconstituentand/ordonoracquisition
onlinewillcontinuetofall.Infact,decliningsuccessratesinonlineacquisitionareofficiallyatrendnowaccording
tothemostrecentonlineresearchbyTargetAnalysis.
tHe 4 reasOns tHe current mOdel Of Online acquisitiOn is nOt wOrking:Onlineacquisitionisnotabletofillthegapleftbythedeclineindirectmailacquisition.Longterm“customer”1.
valueofdonorsacquiredonlineisnotcertain.
Mostonline“customers”arenotcominginthefrontdoorofeMailsolicitation.Theyarecomingintheside2.
door.Thatsidedooristheresultofmediatriggers,integratedmarketingcampaigns,ortheattentionthatan
organizationgarnerswhentheircurrentcustomersletothersintheirnetworkknowthattheyarepassionate
abouttheorganizationanditsproductsorservices.
It’snotcurrentlyasustainablemodel.Whenweapplytheconventionalshout-in-your-face,compel-and-sell3.
directmailapproachestoeMail,webuildaresistancetoopeningeMailwithpeoplewhoareaccustomedto
beingtreatedinmorerelationalwaysonline.
ItisfareasierfororganizationstoquicklywearouttheireMailwelcomewithdonorsonline.Onlineacquisition4.
isburningoutpeoplemorequicklythandirectmailacquisitioneverdid.cOng
ruit
y
21
Onlineacquisitionisnotjustaboutdirectresponse.Ultimately,webelieveitisaboutonlinerelationship
building.Webelievethatitiscriticaltostoptreatingpeoplelikecashmachines.Itistimetostopalienating90%
ofpeoplejusttogeta10%returnoneMailcampaigns.
Weneedtostartengagingpeoplepersonallyandinmorerelevantandmeaningfulwaysthanever.(Thisiswhy
70%ofCRMinstallationshavefailedaccordingtoGartner.)CRMinsistsoncategorizingindividualsas“donors”or
“accounts”anddoesnotallowforunderstandingwhypeoplegive,howtheyprefertobetreatedandhowthey
prefertogive(includinggivingtime),understandinghowtheycanbeleveragedtofurthertheorganization’s
mission,etc.
Online,relationshipsaretheonlythingthatmatter.Muchmoretimehastobespentcreating,building,and
sustainingrelationships.Wedothisintheframeworkofcreatingmeaningful,onlineexperiencesforpeople.
ThatisMasterworks’uniqueapproachtoonlineacquisition.
Webuildanddeepenrelationshipbeforeweeventhinkaboutaskingformoney.Weengagetheminapersonal
wayandinahumanway,byshowingyourorganization’shumanface.Itisaboutengagingpeopleonlinein
waysthatarerelevantandmeaningfultothem.It’snotjustabouthittingthemupformoney.Thiswillmean
engagingpeopleinnewways,encouragingthemtonetwork,toconnectwitheachotheroveryourmission.
Webelievethatonlineacquisitionwillincreasinglyleveragenewonlinemedia:blogging,twitteringtomeet
peopleyouwouldneverhavemetotherwise,learningmoreaboutthem,connectingthemtoothersandtoyour
offerings,offeringrelevantonlinevideo,engagingthemthroughtheirmobiledevices,aswellasothertoolsto
makeiteasierforpeopletoengagewithyouinthewaysandtimesoftheirchoosing,whetherit’svolunteering,
spreadingtheword,orspreadingthewealth.
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in general, Our strategic aPPrOacHes fOr OPtimizing Online acquisitiOn fOllOw tHis fOrmula:
Sincenearly39%ofWebsitevisitorsoriginatefromsearchengines,itisimportanttoleveragebothSEOand•
SEMbestpracticesanddrivetraffictoaWebsiteoptimizedforconvertingvisitorstoparticipants.Weare
expertsatoptimizingWebsitestoconvertvisitorstoparticipants.Wecandemonstratethisfromimpressive
resultsachievedforWorldVision.
Since33%ofWebsitevisitorsoriginatefromexternallinks,itisimportanttoinvestinsocialmedia•
technologiesandstrategiesthatcreatebuzz-worthinessaroundthe30HourFamine,resultinginmore
peoplelinkingtothe30HourFamineWebsite.The30HourFamineneedsmorepresenceinthesocialmedia
spaceinordertomoreeffectivelypenetratethemarketplace.Wewilldevelopandimplementstrategiesfor
creatingbuzzandpassionforyourcauseandofferings.
Since27%ofWebsitevisitorsaccessthesitedirectly,weneedtobuildandimplementastrategytoadvertise•
thesitebothonlineandoffline,drivingtraffictoaWebsiteoptimizedforconvertingvisitorstoparticipants.
Eachofthesestrategiesabovewillhavetobeoptimizedaround30HourFamine’s3coreaudiences:youth,•
youthleaders,anddonors.
Sinceconsumers,ingeneral,nowexpectto“haveanexperience”notjustreceiveaproductorservice,itis•
alsoimperativethatwemapoutandimplementatotalonlineexperiencethatnotonlycreatesbuzz,helps
peoplefindrelevanceandmeaning,andfacilitatestheirbeing30HourFamineAmbassadorstohelpsellyour
causeandprogramstotheirnetworkthattruststhem.Thisonlineexperiencewouldspanthedigitalworld
andwouldeventouchtheirmobiledevices,whichisfastbecomingoneofthemosteffectivewaysofstaying
connected with customers.
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Documentyouraverageimpressionrates,clickthrough,andotherfulfillmentmetricsforSearchandDisplay media.
Again,webelievethatextrapolating“averages”isnotmeaningful.Onetangibledemonstrationofwhatthe30
HourFaminecouldseeinbothsearchanddisplayisourworkrecentlywithCampusCrusade’sAthletesinAction
2009NationalBCSFootballChampionshipsCampaign.Indisplayadvertising,withnearly15millionimpressions
wesawanaverageCTRof0.41%.Insearch,morethan12millionimpressionshadanaverageCTRof0.07%.
FortheseresultsthispastJanuary,theclientspentjust28%ofwhattheyspent2yearsagoforthesame
campaign,withcomparablereachandimpact.Webelievethatsiteinteractionwouldhavebeenmuchhigher
hadtheclienthadtimetoimplementourusabilityrecommendationsforoptimizingtheonlineexperience.CTR
andotherfulfillmentmetricsareverymuchafunctionofWebsiteusability.Inthisnationalonlinecampaign,the
clientdidnothavetimetofinetunetheonlineuserexperience.
Please contrast your capabilities in Display vs. Search media.
Inbothonlinedisplaymarketingandonlinesearchmarketing,Masterworkshasover10yearsofinteractive
marketingexperience.
Intheareaofonlinedisplaymarketing,wethink“beyondthebanner(ad).”Tostayaheadinacontinuously
evolvingonlinedisplaymarket,webelieveorganizationsneedto:
Find(andbuy)sitesthatworkharderforthemtodriveawarenessandconversion.•
Thinkbeyondthebanner:utilizingnewsletters,eMails,text,socialmediatechnologies,mobilestrategies,•
andevenprint.Wearefindingthatalargenumberofpeoplerequestinformationinthemail.Imaginethat!
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Createlinksforhighestefficiencyandbetterresults.•
Utilizesocialnetworksforbroaderreachandcosteffectiveness.•
Wecanhelpineachoftheseareasofdisplaymarketing.
Wehaveextensiveexperiencedevelopingandcoordinatingcampaignsonadnetworks,inadditionto
individualsitebuys.We’vetestedandarecapableofproducingbothrichmedia-andstaticimage-basedads,
andthecorrespondingexperiencefromclick-throughtoconversion.
Intermsofsearchmarketing,wedevelopandplaceads,primarilyonthebigthreesearchnetworks—Google,
Yahoo!,andMSN.Aswithdisplayads,we’vearchitectedtheuserexperiencefromclick-throughtoconversion.
Please name any third parties you presently work with, or are considering that would assist you in providing services that are incorporated into what you might offer World Vision. Describe their core competencies,andspecificallytheirroleifthiscanbeprojectedatthistime.
[SeediscussionofMo7MobileMarketingunder“DirectMailAcquisition.”]
InMay1998,MasterworkshelpedfoundandlaunchtheinteractivesolutionsagencyHighPointSolutions(HPS).
MasterworksPresident,CFOandSeniorVicePresidentwerethreeofthefoundingpartnersofHPS.
HPSquicklybecameoneoftheleadingInternetagenciesintheworldofChristianorganizations,workingwith
clientslikeFocusontheFamily,AmericanBibleSociety,andWorldVision.IntheearlyyearsoftheInternet,HPS
evenbecameastrategicInternetpartnertoagencieslikeKMA,RussReid,andGrizzardCommunications.
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AtthedawnoftheageofInternetmarketing,MasterworksandHPSinnovatedabreakthroughmembership
fulfillmentstrategyforColumbiaHouseRecords.Additionally,HPSbecameapreferredserviceprovideronthe
InternetforMicrosoftfor4years,andhasworkedwithFortune500clientslikeWal-MartandSafecoInsurance.
HPShasworkedwithWorldVisionforovertenyearsincludingtheirworkwithredesigningthe30HourFamine
Websiteforfourofthoseyears.Morerecently,HPShasworkedextensivelyonimprovingtheuserexperience
ofthemainWorldVisionsite,notonlyprovidingthenewarchitectureforthemainsitebutmostrecently,
completelyredesigningiStoreandtheonlinedonationandmerchandisingprocess.Theresultshavebeena
muchmoreintegratedexperienceforusersbetweeniStoreandthemainsitebutmoreimportant,thisworkhas
resultedinincreaseddonationstotheministry.HPSalsorecentlycompletedworkontheredesignofboththe
publicandbackend/administrativeaspectsoftheWorldVisionExperience:AIDSWebsite.
Attheendof2008,HPSdecidedtoreorganizetofurtheritsstudiomodelofbringinginspecificexpertiseas
neededforgivenprojects.ThisorganizationalreengineeringalsoallowedHPStopartnermorestrategicallywith
MasterworksinternalNewMediadivision,ledbyDaveRaley.
ThisledtoclosingHPSandthecreationofBrand:Walloptofocusmoreoncorecompetenciesintheareas
ofbrandingandcreatingemotionallycompellingexperiencesforusers,particularlyinlightofnewformsof
community(onlineandoffline)andsocialnetworking.Thisrefinedapproachhelpsorganizationsconnectto
theiraudiencesbetterbydefiningtheorganization’sbrandinwaysthatmatterdeeplytoitsaudiencesandthen
tolivethatoutconsistentlythroughalltouchpoints(face-to-facecontact,print,mail,eMail,Internet,mobile,
etc.).Thisincreasinglymeanshelpingorganizationstodevelopmorethandirectresponseoffers.Itmeansthe
creationofprogramsoractualinteractiveexperiencesthatengageaudiencesandmoreimportant,providethe
contextforthemtostayengagedovertime.We’vefoundthatmanyorganizationscanacquirenewconstituents,
butinthiscrowdedmarketplace,gettingthemtocomebackandmoreimportant,becomeloyaldonorsand
participants is what matters most.
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Inthelastyearalone,inpartnershipwithMasterworks’SeniorVicePresidentofInsightandInnovation,Brand:Wallop
developedaninteractiveenvironmentalexperienceforHiltonGrandVacationsthatresultedinabreakthrough20%
increaseinsaleswithintheinitialtwo-monthperiodalone.Inaddition,HPShasworkedwithFocusontheFamilyto
createParentingCompass,aninteractiveassessmentforparentsandyouthtocreatetheirownfamilysuccessplan.As
partofthisparentinginitiative,Focushasexperiencedextraordinarygrowthintheironlineforumparticipationand
onlinecommunities.Similarly,HPSiscurrentlyworkingwithSearchInstituteontheredesignofMVParents.com,asite
withsignificantcorporatesponsorshipthatwill,whencompletedlaterthisyear,beoneofthemostimportantresources
forparentsontheInternet.Ineachofthesecases,thesecrettosuccesswasn’tinjustbuildingaWebsiteoramarketing
campaign,butincreatinganoverarchingprogramorenvironmentthatconnectsemotionally,providesareasonfor
engagementandmostofall,givesparticipantsaframeworkorcontextforstayingengagedovertime.
Butitisonlysustainedthroughconsistentapplicationofthebrandateachdetailed
implementationtouchpointandacompellingrationalethatmakespeoplefeelasif
theyarepartofsomethingbiggerthanthemselves.Withouttheoverarchingvision
ANDthedetailedexecution,youwilllosedonorswhoareofftothenextexperience
or cause.
WhatMasterworksandBrand:Wallopoffersthe30HourFamineisthismethodology
ofstartingwithastrategythatrefinestheprogramitselfandtakesadvantageof
newformsofcommunity.Thismeansextendingthereachoftheexperienceitselfonlinetoleveragesocialmediatools
andnetworksmoreeffectively.Mostimportant,itmeansunderstandingwhataspectsofthe30HourFaminecanbe
leveragedtoconnectemotionallywithparticipants,youthleadersanddonorssothattheyallhave,eitherinpersonor
throughsocialnetworks,apieceofthe“experience.”
Thegoalistobegintheintentionalprocessofcreating“tribes”whopassionatelyengagewiththe30HourFamineand
loYaltY starts with an “emotional wallop” that gets attention and captures hearts.
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inviteotherstojoinin,expandthetribeandcreatetheirownformsofparticipation.Theironyintoday’sworldis
thatthemoreyoutrytocontrolyourbrand,thelesscontrolyouhaveoverit.Weclearlyrealizetheimportance
ofhavingpeopleconnectbacktoWorldVisionanddonate—and,evensponsorachild.Butthe30HourFamine
hastheopportunitytoreachfarmorepeoplethanitcurrentlydoesbylettingpeopleleveragetheirowntribes
andnetworksandthengivethemareasontoconnectbacktoWorldVisionandthe30HourFamine.
Youthdon’tneedopportunitiesforcommunitytoday.ThisiswhyorganizationssuchasYoungLifeareseeing
amarkeddecreaseincertainareasintermsofyouthparticipationintheiractualgroupmeetings.Youthare
connectingthroughtextingandIM’ingallthetime,anongoingvirtualanddynamiccommunity.
Butwhattheydon’tfindinthisformofcommunityisanopportunityforengagement,serviceandmeaning.And
that’swhatthey“hunger”for.The30HourFamineprovidestheframeworkforthisengagementandpurpose,
butitneedstoberelevanttotheircontextandneeds.ThisiswhywebelievethatFamineshouldstartwithan
overarchingstrategythatincludesastrongprogramdevelopmentpiece.It’snotsomuchthatthemediaisthe
messageasmuchasthattheprogramitselfprovidesthecontextforengagement.Withoutthatcontext,without
thatreasonforcomingandstayingandtellingothersaboutwhythereisnothingelseouttherelikethe30Hour
Famine,theFaminewon’tgrow.Butidentifyingthatcorepointofrelevancyandthenleveragingthatthrough
thechannelsthattoday’syouthareusing,willgiveyouanopportunitytoconnectandsustaintherelationship
overtime.
Together,MasterworksandBrand:WalloparereadytotaketheFaminetothenextlevel.
cOngruity28
4.4 cHristian culture
Please tell us if you believe past experience with Christian organizations is not a prerequisite to working with World Vision. Regardless if you have experience working with Christian organizations or not, please tell us why you think this.
AllMasterworksclientsareChristianorganizations.Thisisbydesignasourcoreemphasisasanagency—we
defineourselvesasaministry—isadvancingtheKingdomofGodbyassistingourclientsinacceleratingtheir
growthandministryactivity.Webelievethatyoucan’tmanufacturebiblicallanguageandspeakthetruthabout
ChristasiftheChristianmarketwerethesameasanyothermarket.Allourleadershipandcreativeteamare
Christians.
Please describe to us what hurdles you might encounter with your staff and third parties in partnering with World Vision because of our strong Christ centered position.
None.
Please tell us if you believe you have recently had or currently have relationships with customers, thirdparties,orothergroupsthatyousensemightbeinconflictwithourstrongChristianposition.
Wehavenotbeeninvolvedwithanyclients,thirdpartiesorothergroupswhowouldbeinconflictwithWorld
Vision’sstrongChristianposition.
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4.5 accOuntability and transParency
Pleaseprovideanyfeedbackinregardtotheprocessimprovementorfinancialelementswehavepresentedhere.IfanylooktobeinconflictwithhowyouwouldbeabletoconductbusinesswithWorld Vision, please describe this and help us understand your position.
ThereareanumberofcomponentstoMasterworks’businessmodelthatwouldbeofinteresttoyou:
Masterworks operates on a • fixedfeebasis.Forexample,ifaclientaskedustodevelopadirectmailpackage,
wewouldquotethepriceforcreative(artandcopy)andthatpriceisfixed.Thisapproachappliestoall
componentsofanannualmarketingplan.Asaresult,therecanneverbesurprisesinrelationtothecostof
ourservices.
Masterworks • does notchargecommissionsonmediabuysandwedonotmark upprintingandmailing
costs.Webelievethatwhenanagency’sprofitistiedtotheamountofmediaboughtoraclient’smail
volume,thereisaninherentconflictofinterest.
Masterworks is committed to • continuousimprovementwithregardtoourinternalprocessesandinour
workforclients.Overadecadeagoweestablishedaprocessimprovementteam.Oneofthepractical
outcomesproducedbythisteamwastoreducethecycletimeforcreatingandmailingadirectmailpiece
fromtheindustrystandard120daysto60days.Wealsohaveaprocedureinplacetocreateandmail
emergencyappealsinfourdays.
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If not presently working with World Vision, please execute our NDA (attached) and submit this with your written response.
Seeattachedsigneddocument.
Please identify any of our standard terms and conditions (attached) that you cannot accept. Suggest any revisions at this time and submit them with your response.
Nonedenied;wecomplywithWorldVision’sstandardtermsandconditions.
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your mission • our innovation • His purpose
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