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“OK, So Now What?”. 5.15.13 Tom Gaffny [email protected]. 3 THINGS WE NEED TO STOP THINKING, AND STOP DOING. You Don’t Have a Donor Base–. In fact, the opposite is true. You Belong to the Donor. 3 Things We Need to Stop Thinking and Stop Doing. - PowerPoint PPT Presentation
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Direct Marketing 2012
3 THINGS WE NEED TO
STOP THINKING,AND STOP DOING
Direct Marketing 2013
In fact, the opposite is true.You Belong to the Donor
You Don’t Have a Donor Base–
Direct Marketing 2014
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.
Direct Marketing 2015
- 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
Direct Marketing 2016
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
Direct Marketing 2017
BUT WE INSIST ON THINKING IT’S ABOUT US
• We ACQUIRE Donors …
Direct Marketing 2018
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
Direct Marketing 2019
The American Donor Public Is Suffering From
Battered Donor SyndromeCraving a relationship that’s more about them
Direct Marketing 20110
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)
Direct Marketing 20111
Proof the public craves a relationship that’s more about them?
Introducing one of the hottest new acquisition offers in the past 5 years…
Direct Marketing 20116
Interesting, huh?The Offer that explicitly promises
We Don’t Want a Relationship,Is Very Successful at
Starting a Relationship
Direct Marketing 20117
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
Direct Marketing 20118
Proof the public craves a relationship that’s more about them?
Direct Marketing 20125
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
Direct Marketing 20126
Proof the public craves a relationship that’s more about them?
Direct Marketing 20132
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
Direct Marketing 20133
Yes, even this is Proof….
The one tactic that lifts response every time.
Direct Marketing 20135
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%
Direct Marketing 20136
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
Direct Marketing 20137
The Nonprofits that Recognize the Donor OWNS THE RELATIONSHIP
Will be the Biggest Winners in the Decade Ahead.
Direct Marketing 20138
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
Direct Marketing 20139
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
Giving Profile• Recency• Frequency• Amount
Activity Profile• # of channels• Volunteer?• Special Events
Transaction and Action and Attributes Pyramid
Low Value
High Value
Giving Profile• Recency• Frequency• Amount
Activity Profile• # of channels• Volunteer?• Special Events
You Know How To Rank Her
Attributes • Age• Wealth• Health
Direct Marketing 20143
But Do You KnowHow She Ranks
You?
Direct Marketing 20144
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?
Direct Marketing 20145
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
Real World Example #2
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
Direct Marketing 20150
We Need to Have A Data Dialogue with Donors
CAMPAIGN VIEW
How We Rank the Donor
Direct Marketing 20151
DONOR VIEW
How They Rank You
CAMPAIGN VIEW
How We Rank the Donor
We Need to Have A Data Dialogue with Donors
Direct Marketing 20152
‘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.
Direct Marketing 20154
3 Things We Need to Stop Thinking and Stop Doing1. We need to stop thinking we own the
relationship… because we don’t
2. We Need to stop relying on the same old one-dimensional pyramid
3. We need to stop believing acquisition is the main key to growing our file
Direct Marketing 20155
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
Direct Marketing 20158
THE BIGGEST ISSUE TODAY ISN’T ACQUISITION
It’s FILE GROWTH.
And RETENTION is the key to file growth.
Direct Marketing 20159
The RETENTION Growth Case
IMAGINE IF 4 YEARS AGO…
Direct Marketing 20160
The RETENTION Growth Case
IMAGINE IF 4 YEARS AGO…
Option #1: - Invested heavily in acquisition- Status Quo in Multi-year retention rates
Direct Marketing 20161
The RETENTION Growth Case
IMAGINE IF 4 YEARS AGO…
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%
Direct Marketing 20162
ASSUMING …Your Program Matches Industry Standards
− First Year Retention rate of 25%
− Second Year Retention rate of 40%
− Multi-year Retention rate of 65%
Direct Marketing 20163
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
Direct Marketing 20164
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 20166
3 Things We Need to Stop Thinking and Stop Doing1. We need to stop thinking we own the
relationship… because we don’t
2. We Need to stop relying on the same old one-dimensional pyramid
3. We need to stop believing acquisition is the main key to growing our file
Direct Marketing 20169
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
Direct Marketing 20175
THE REALITY:The one tactic
that makes it easier for the donor,Is the one tactic
That makes the biggest difference.
Direct Marketing 20177
Proof the public craves a relationship that’s more about them?
Direct Marketing 20178
Dear Fundraiser,
Direct Marketing 20179
Dear Fundraiser,
“Don’t talk to me like that, OK?”
Sincerely,American Boomer
Direct Marketing 20180
Dear Fundraiser,
“Don’t talk to me like that, OK?”
Sincerely,American Boomer
P.S. I’m really getting to hate name labels.
Direct Marketing 20182
The ‘Winning’ Subject Line:
“Hey”
Direct Marketing 20183
“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?
Real World Example #1
Value Pyramid
Low Value
Passion Pyramid
Low Passion
• Mailed $25-49 high passion names• 150% higher response than w/o
segmentation
Real World Example #1
Direct Marketing 20189
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.