convio hjc multi channel-evolution_webinar march 2012 mike and mike
DESCRIPTION
Part 2 Presentation from Excellence in Integrated Fundraising Webinar March 29, 2012TRANSCRIPT
1 ©2011 Convio, Inc. | Page
Getting Your Organization Aligned For
Integrated Fundraising
2 ©2011 Convio, Inc. | Page
• 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!
3 ©2011 Convio, Inc. | Page
Who Are We?
Mike Johnston
Founder, HJC,
Integrated Fundraising Consultants
New Media
Mike Rogers
Vice President of Strategy,
Convio
Strategic Multi-Channel
Marketing
4 ©2011 Convio, Inc. | Page
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
5 ©2011 Convio, Inc. | Page
• What have we found as differences and
similarities in the US and Canada
benchmark study?
The New Benchmarking Study
and more
6 ©2011 Convio, Inc. | Page
7 ©2011 Convio, Inc. | Page
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
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Advocacy Online and Conversion
• 30% open rate on Care2
• 45% opt-in rate from those who completed action
9 ©2011 Convio, Inc. | Page
Advocacy Online and Conversion
• 30% open rate on Care2
• 40% opt-in rate from those who completed the action
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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
11 ©2011 Convio, Inc. | Page
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
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E-petition
Phone number: Ask!
Counter: social
proof
Comments: priority for
calls
Subscribe:
for cultivation
More info:
legitimacy
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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
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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
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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
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The Need
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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
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The Donor Reality
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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
66% Give 5.7M donors
$725 yr/avg
4.9 charities
$4.1 B/yr
73% Give 3.2M donors
$833 yr/avg
5.3 charities
$2.6 B/yr
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What channels are donors using in North
America?
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% donated this way in last 2 years (total)
Let’s look a little more closely at Canada
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Futurology as a way to
plan for integrated
fundraising success
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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?
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Boomers: 55-75
Mid-aged Donors and
Ego Philanthropy
Slide 24
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Slide 25
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• How boomers act – compared to civics and how this makes sense for online social network fundraising…
Slide 26
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Slide 27
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Slide 28
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Hyper-adventure giving
feeling young and having fun while giving
Slide 29
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Stretch goals…
Slide 30
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Stretch Goals…
Slide 31
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Hyper-Choice
the death of unrestricted giving
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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
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Slide 34
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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
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Automated
counter –
demonstrat
es impact
Matching
gift
component
3/29/2012 Slide 36
37 ©2011 Convio, Inc. | Page
Your own
personal
campaign
page –
celebrates
your work
and your
staff!
Slide 37
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Depts &
Individuals
can create
their own
fundraising
webpages
Nothing like some
friendly competition!
Slide 38
39 ©2011 Convio, Inc. | Page
The Metrics
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Multi-channel Adoption
Sources: Convio Next Generation of American Giving Report;
% of donors say appropriate solicitation channel
Peer to Peer
Social Media
Text
41 ©2011 Convio, Inc. | Page
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
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Multi-Channel Evolution
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Practical Steps
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• 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
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Creating Personas
Persona 1
Persona 2
Persona 3
Persona 4
Persona 5
Individual Donors
46 ©2011 Convio, Inc. | Page
• Create 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
• Step 2
• Create value metrics by persona (identify high-value clusters)
• Overlay dimensions on personas (e.g. acquisition channel)
Campaign & Donor Optimization
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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
48 ©2011 Convio, Inc. | Page
• 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
• 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
Campaign & Donor Optimization
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• 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
Campaign & Donor Optimization
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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
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Technology
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Support Business Units
Infrastructure Challenge
Track Performance
Add New Channels
Coordinate Departments
Integrate Systems
Understand Data
53 ©2011 Convio, Inc. | Page
• 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
54 ©2011 Convio, Inc. | Page
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
55 ©2011 Convio, Inc. | Page
Structure
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Traditional
Organizational Structure
Separate Metrics & Team
for Online Marketing
Disparate (Sometimes
Conflicting) Goals
Inconsistent Voices
Representing Organization
Communications
Development
IT
Others (?) Government
Affairs
57 ©2011 Convio, Inc. | Page
Coordinated
Organizational Structure
Coordinating
Teams
Communications Development
Government
Affairs
IT
Shared Metrics
Thematically Integrated
Coordinated Appeals
58 ©2011 Convio, Inc. | Page
Optimized
Organizational Structure
Coordinating
Teams
Development Online Communications Marketing
Unified Strategy & Full
Integration Across
Channel Managers
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• “1” = Traditional, “5” = Coordinated, and
“10” = Optimized
• Where do you fall on the scale?
On A Scale of 1 to 10…
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Getting everyone on the same page
Facilitation
Slide 60
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Slide 61
Integrated Planning is a full contact sport…
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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
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Analyze the data
Prepare two days that will
push, pull, cajole, challenge
and team build.
What do you do before you meet?
Slide 63
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• 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)
65 ©2011 Convio, Inc. | Page
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
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The Dramatic Oversimplifcation of Integrated Fundraising, Marketing, Communications and
Campaigning or
Putting Your Organization on One Sheet of Paper
The Balanced Scorecard
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The Integrated Fundraising Balanced
Scorecard
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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.”
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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
70 ©2011 Convio, Inc. | Page
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,
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The Evidence Putting It All Together
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• Brand is perceived as authentic
• No integrated fundraising execution
A Public Broadcaster
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• 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
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How Do They Do It?
Team Optimization
Multi Channel Integration
Culture Committed to Service
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• Senior management support
• Cross departmental cooperation
• Create an integrated plan and stick to it
It would take an integrated solution…
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Online and offline integration
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Online and offline integration
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Launched Impact Report for Donor Loyalty
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• 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
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Launched Symbolic Giving
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• 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
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• 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
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Results – 2010 and 2011
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• 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
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• 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
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• Make the Integrated Schedule
• Bring Back Direct Mail
• Add the Telephone
• Improve stewardship multi-channel
• Improve Monthly Giving online and offline
Integrated Improvements
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• 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
Multi-Channel Stewardship
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• 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
Multi-Channel Stewardship
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• Higher retention
• Increase in donor acquistion
• Higher average gift
• More gifts per donor
Integrated Improvements
91 ©2011 Convio, Inc. | Page
• 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!