stephen pidgeon - sandd masterclass

Three questions from you…

What are the primary reasons for people to give to charity

To what extent do premiums contribute in an older target group

What are the basic elements of a good fundraising mailing

Giving Behavior Model – Sargeant and Woodliffe (2008)

Perceptual Reaction

PortrayalStrength of Stimulus

Perceived Norms

Processing Determinants

Past ExperienceJudgmental Criteria

Outputs

‘Cash’Regular Gift

BequestsSize of Gift

Loyalty

Individual Characteristics

DemographicLifestyle

Geo-demographic

Motives

Self Esteem/Self InterestAltruismGuiltPitySocial /Distributive JusticeEmpathy/SympathyFearPrestige and making a difference

Source

BrandingMediaSeed money and refunds

Feedback

LabellingRecognition/Rewards

External Influences

Communities of Participation

Models/Experiences

Inhibitors

Financial ResourcesTimeOther Priorities

Environment Environment

In broad terms…Self-interest

They feel good

Reciprocation

Altruism

Sympathy

Empathy

Pity

Social justice

Fear

Guilt

It’s expected – social normsFamily

Community

Church

Recognition

But there are many other factors

Research by…

Sargeant and Shang, University of Indiana, working in Pulic Broadcasting fundraising,showed people were greatly influenced by issues to do with their IDENTITY

Social information increased giving from new members (Number of Callers = 317)

$86.58 $87.44

$96.98

$111.91

$80.00

$85.00

$90.00

$95.00

$100.00

$105.00

$110.00

$115.00

Control $75 $180 $300

Condition

Mea

n P

ledg

e A

mou

nt

($)

Boundaries?

Similarity Matters (Mary vs.Tom, she vs. he)

131.57

160.2

120

125

130

135

140

145

150

155

160

165

Mismatch Match

Condit ion

Mea

n C

ontr

ibu

tion

($)

Their social network mattersAmount Donated Based on Number of Acquaintances who Listen to StationX

101.83

119.19

113.74

122.02

132.31

$100.00

$110.00

$120.00

$130.00

$140.00

1 to 3 4 to 6 7 to 9 10 to 12 13 to 15

Number of people

Ave

rage

Am

ount

Don

ated

($)

A question to you…

What percentage of money comes into charities in the

US, through on-line compared to off-line?

On-line percentage of income…

2012 7.0%

2011 6.3%

2010 7.6%

* Blackbaud’s 2012 On-line Giving Report –2.025 charities, $4.8bn income

A definitive report…

28 US charities – figures are 2010

$1bn in revenue, over 15m donors

More than three-quarters of gifts are direct mail, only 10% are on-line.

Money from events and starter gifts over $250 is excluded

Distribution by age…

Value and retention…

Now, multichannel…

51% of on-line donors are using mail for

support three years later

Interesting research…

TGI report in 2010

10.9m people in UK hadn’t used the internet in last 12 months

59% of 65 year olds

Customers asking for mail not email (Ebiquity)Lloyds 52% v 13%, Churchill Insurance 50% v 20%, BT 46% v 22%, Virgin Media 44% v 21%

Paper not email?Research from Milward Brown at Bangor University*

MRI scanners showed brain activity – ads on screen v on cards

Paper – more integration of visual and spatial info, more ‘real’, better memory

More activity in the right retrosplenial cortex, therefore more EMOTION

* ‘Using neuroscience to understand the role of direct mail - 2011’

Further facts…2012 support campaign to Poppy Day

Over £8m

Ratio of money off-line : on-line

1000 : 1

But…multi-channel is more valuableIn 2012, median revenue per donor

multi-channel - $189, offline - $69, online - $130

First year retention multi-channel - 64%, offline 37%, online 32%

Multi-year donor retention multi-channel - 67%, offline 42%, online 32%

Reactivation rate (1-5 years lapsed) multi-channel - 28%, off-line 21%, on-line 20%

*2012 Trends from Target Analytics (Blackbaud) donorCentrics Internet Giving Benchmarking Group

Next break…

The next two questions answered

Interesting things happening in the UK market for

charities

Introducing 2-stage recruitment

Three questions from you…

What are the primary reasons for people to give to charity

To what extent do premiums contribute in an older target group

What are the basic elements of a good mailing

Three questions from you…

What are the primary reasons for people to give to charity

To what extent do premiums contribute in an older target group

What are the basic elements of a good mailing

Emotion

‘The essential difference between emotion and reason is that emotion leads to action and reason leads to conclusions’

Donald Calne, Consultant Neurologist

University of British Columbia

Emotion

Next break…

The next two questions answered

Interesting things happening in the UK market for

charities

Introducing 2-stage recruitment

2009

London tube…2012

Two-step information service

2 examples

Two-step donation

And a step back in time…

Fundraising marketing…

…is unlike any other marketing

…relies PURELY on emotion

The emotion must SATISFY the donor

…enough to make them give again

…and leave a gift in their will when they DIE!