Convio hjc multi channel-evolution_webinar march 2012 mike and mike

1 ©2011 Convio, Inc. | Page

Getting Your Organization Aligned For

Integrated Fundraising


• 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

Win A Multi-Channel

Consultation!


Who Are We?

Mike Johnston

Founder, HJC,

Integrated Fundraising Consultants

New Media

Mike Rogers

Vice President of Strategy,

Convio

Strategic Multi-Channel

Marketing


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?

Today’s Agenda


• What have we found as differences and

similarities in the US and Canada

benchmark study?

The New Benchmarking Study

and more



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!

Big Picture


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:

General

Monthly

Response

Rate Avg Gift

OTG

Response

Rate Avg Gift Cost per

Monthly

'Benchmark' 2.29% $13.00 5.00% $40.00 $408.00

cbm Conversion/Welcome Test Results:

CBM Conversion/

Monthly

Response

Rate Avg Gift

OTG

Response

Rate Avg Gift Cost per

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

Phone number: Ask!

Counter: social

proof

Comments: priority for

calls

Subscribe:

for cultivation

More info:

legitimacy


The different constituencies called…

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%18.50%

8% 9%

11%

Recent LapsedMonthly Donor

Online Petition Only

E-newsletterSubscriber

Lapsed Single GiftDonor

CPMD $75


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.

Big Picture


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 Need


The Donor Reality


Canadian Generational Giving

Boomers

Civics

Gen X

Gen Y 55% Give 2.7M donors

$325 yr/avg

3.5 charities

$.8 B/yr

61% Give 4.2M donors

$549 yr/avg

4.1 charities

$2.3 B/yr


$725 yr/avg

4.9 charities

$4.1 B/yr


$833 yr/avg

5.3 charities

$2.6 B/yr


What channels are donors using in North

America?


% donated this way in last 2 years (total)

Let’s look a little more closely at Canada


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

http://boomers.typepad.com/.shared/image.html?/photos/uncategorized/2008/09/23/moses_znaimer_zoomers.jpg


• 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


Automated

counter –

demonstrat

es impact

Matching

gift

component

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

Sources: Convio Next Generation of American Giving Report;

% of donors say appropriate solicitation channel

Peer to Peer

Mail

Email

Social Media

Text


Value of Multi-Channel: Loyalty

Retention Rate2 Annual Donor Value1

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

82.3%

70.1% 62.3%

$102.64

$191.35

$255.74


Multi-Channel Evolution


Practical Steps


• 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

Campaign & Donor Optimization


Creating Personas

Persona 1

Persona 2

Persona 3

Persona 4

Persona 5

Individual Donors


• Create Personas

• Step 1




• Step 2

• Create value metrics by persona (identify high-value clusters)

• Overlay dimensions on personas (e.g. acquisition channel)



Persona 1

Persona 4

Measuring Personas

$19.84/gift

4.2 gifts/yr

41% eNewsletter

31% event sourced

68% renewal rate

$191.79/gift

1.4 gifts/yr

47% eNewsletter

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

New Donor

Welcome Series Unlikely to give

again. Reduce

contact

Which path will donor

travel?

Did donor respond to invite?

Yes

Monthly Givers

Did donor respond to action?

Send Likely

Sustainers Invite

Advocacy Action

sent to donor

Action Drives Sustainer

Offer

Respond to offer? Send

Renewal

Series

No

2 weeks

6 weeks

No Yes

Yes

41%

25% 34%

Persona #4


Technology


Support Business Units

Infrastructure Challenge

Track Performance

Add New Channels

Coordinate Departments

Integrate Systems

Understand Data


• 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

Common Enterprise System Challenges


Traditional

Expensive

Closed

Single channel

On-premise

“Next Gen” Systems

Complex

Manage

Donors

Next-Generation

Multi-Channel

Cost-effective

On-demand

Open

Easy-to-use 3 1 2

Manage All

Relationships


Structure


Traditional

Organizational Structure

Separate Metrics & Team

for Online Marketing

Disparate (Sometimes

Conflicting) Goals

Inconsistent Voices

Representing Organization

Communications

Development

IT

Others (?) Government

Affairs


Coordinated


Coordinating

Teams

Communications Development

Government

Affairs

IT

Shared Metrics

Thematically Integrated

Coordinated Appeals


Optimized


Coordinating

Teams

Development Online Communications Marketing

Unified Strategy & Full

Integration Across

Channel Managers


• “1” = Traditional, “5” = Coordinated, and

“10” = Optimized

• Where do you fall on the scale?

On A Scale of 1 to 10…


Getting everyone on the same page

Facilitation

Slide 60


Slide 61

Integrated Planning is a full contact sport…


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

What does a face-to-face have to do

to be successful?

Slide 62


Analyze the data

Prepare two days that will

push, pull, cajole, challenge

and team build.

What do you do before you meet?

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 Dramatic Oversimplifcation of Integrated Fundraising, Marketing, Communications and

Campaigning or

Putting Your Organization on One Sheet of Paper

The Balanced Scorecard


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

cross

channel stewardship and

cultivation business rules

Alumni Relations Measurements: % of contact

information for different alumni

cohorts (per channel); % who

attend events; % of recent

grads who give (mobile,

monthly, etc)

Internal Perspective Measurements: internal cooperation

(culture, structure, reporting);

Learning and Growth Measurements: Courses, Qualifications,

Proven Application of New Knowledge

Marketing Measurements:

Branding perception

statistics,



The Evidence Putting It All Together


• Brand is perceived as authentic

• No integrated fundraising execution

A Public Broadcaster


• 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.

Things needed to be improved


How Do They Do It?

Team Optimization

Multi Channel Integration

Culture Committed to Service


• Senior management support

• Cross departmental cooperation

• Create an integrated plan and stick to it

It would take an integrated solution…


Online and offline integration


Online and offline integration


Launched Impact Report for Donor Loyalty


• 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 Symbolic Giving


• 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

Launched cultivation mailings


• 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

Reality


Results – 2010 and 2011


• 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.

Canadian Cancer Society Saskatchewan






• Limited Phone


Reality


• Make the Integrated Schedule

• Bring Back Direct Mail

• Add the Telephone

• Improve stewardship multi-channel

• Improve Monthly Giving online and offline

Integrated Improvements






• Limited Phone


Multi-Channel Stewardship






• Limited Phone


Multi-Channel Stewardship


• Higher retention

• Increase in donor acquistion

• Higher average gift

• More gifts per donor

Integrated Improvements


• 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

Win A Multi-Channel

Consultation!

Education

Convio hjc multi channel-evolution_webinar march 2012 mike and mike