digital relationship building - bwf...engagement, retain top talent, and stay relevant in an...

An Age of High AdventureWe live in a distinctive and remarkable time. Never in the history of the world has there been such a pace of technological innovation. Many innovations are empowering and accelerating the important work of nonprofits. From mail to telephones to transistors to televisions to computers to the Internet and now to mobile and social technologies, the advances in communications technology are truly staggering.

Relationships that used to require face-to-face interactions bound and defined by geography now can be created, enhanced, and amplified from anywhere there is an Internet-connected device and access to the social web. Messages that used to require days, weeks, and months to send and receive now can be communicated around the world instantaneously.

Copyright © 2017 Bentz Whaley Flessner

Digital Relationship Building: How Technology Accelerates FundraisingBy Barett T. Christensen

February 2017

I am naturally an optimist and drawn to adventure and exploration. I truly am in awe of the tools we have at our disposal and the trends that are propelling us inevitably forward. I also recognize that this rapid pace of change creates significant challenges for resource-strapped and elite organizations alike. I am aware of the extreme pressure fundraising professionals face to raise more money, increase donor engagement, retain top talent, and stay relevant in an increasingly noisy environment.

Ultimately, I see high adventure ahead, but I also see safe passages. This Points of Practice briefly outlines current digital trends, the challenges these trends create, and a model designed to help organizations chart a successful course.

BENTZ WHALEY FLESSNER2

Current Trends

There are at least three categories of digital trends that are accelerating change in nonprofit fundraising. One, the proliferation of communications technology and the tools that facilitate relationship building. Two, the datafication and quantification of our profession and the lives of our donors. Three, private sector conditioning and how that impacts our donors view of philanthropy.

Communications Technology GrowthConsider Internet connectivity for a moment. The ITU’s most recent study of Internet connectivity estimates that worldwide internet connectivity is now at 43.4 percent. The developed world sits at 82.2 percent, while the developing world is at 35.3 percent. It is incredible to consider these connectivity rates.1 Furthermore, Facebook recently announced their ambitious plan to increase Internet coverage in the developing world through a network of high-altitude drones, towers, and satellites working together to beam down the Internet.2 It is the wonders of Internet connectivity that break down borders and geography to deliver messaging instantaneously almost anywhere in the world.

Equally impressive has been the growth in mobile device usage. Desktop computers had been the primary method of accessing the Internet. Now, connected mobile device penetration has reached critical mass. According to Smart Insights, 80 percent of Internet users own and access the Internet through a smartphone.3 Our donors are online while they are on the move.

While connectivity and device type have grown rapidly, so, too, has the number of channels through which organizations can communicate with donors. We are familiar with face-to-face, direct mail, phone, website, TV, radio, print, and email channels. Add now to the mix a constantly growing number of digital channels, networks, and apps. By the end of 2016, there were 21 social networks with audiences of more than 100 million.4 How can you possibly keep up with the growth, let alone consider having a presence on even half of them? App growth is even more staggering. By the end of 2016, Google Play offered 2.2 million apps, the Apple App Store offered 2 million, the Windows Store offered

Alexis P. Barber Joshua M. BirkholzJason S. BoleyKate H. ButlerJanet B. CadyBarett T. ChristensenChristopher A. ClarkJames P. DanielBruce W. FlessnerAllison J. Gannon Annie M. HarmEmma L. HinkeJamie L. HunteJudith M. JobbittJudy Y. KirkKatrina A. KlaprothAnne L. KvingeBond T. LammeyMark J. Marshall John S. McConnellJennifer A. McDonoughMerrell A. MilanoKarl MillerMarisa E. OntkoDennis A. PrescottAndrew C. SchultzJennifer A. SvihusBruce J. Wenger

7251 Ohms Lane Minneapolis, MN 55439 (952) 921-0111

2461 South Clark Street Suite 910 Arlington, VA 22202 (703) 413-5505

www.bwf.com

BENTZ WHALEY FLESSNER 3

669K apps, and the Amazon Appstore had 600K apps.5 While some apps are clearly more popular than others, there is no doubt that donors are spending an increasing amount of time on their mobile devices connected to the Internet and interacting with apps.

Finally, to “help” us communicate with all these connected donors on all their devices in each of these channels, there has been an explosion in marketing software and tools. Chiefmartec.com has been keeping a running tally on its website for the last few years. By the end of 2016, it had listed and categorized 3,874 marketing and communications technology solutions.6 From CRMs to SEO, DAMs, CMSs, and SEM, the cacophony of acronyms in the digital space is mind numbing. Good luck trying to keep up with the proliferation, let alone integrate anything.

The Datafication and Quantification of Our WorldAs we lean on computers, the Internet, and a whole array of connected devices and apps, a significant amount of data is produced. Almost anything you do online or with your devices is tracked somewhere by someone. You know that handy mobile device you have with the cool navigation app that “magically” knows where the current traffic is? You

know why it is magical? Data and analysis. It is constantly sending data back to the “mothership.” Your data joins with other’s data to produce current traffic patterns and route suggestions. It is incredible and a little scary, and yet we love it!

The more we use our devices, social networks, and apps, the more we teach them what we like and dislike, what we prefer, what we are searching for, what we have purchased, and where we are right now. Here are some more stats for you. According to Vouchercloud, there are 2.5 quintillion bytes of data created every day.7 I have no idea what that means. All I know is that is a lot of data, and those who have and control data are the winners in our current and future economy. Why? Because data can be quantified, analyzed, and deployed to produce value for us. Business intelligence and portfolio management are only possible through large amounts of data.

An outgrowth of the datafication and quantification of our world is the rise of marketing automation and donor journeys designed to deliver content to a donor. These messages can be premade, held in cue, and released at the right time based on digital actions taken at predefined stages in the donor journey. Email automation is the most

Changing DonorExpectations

The Datafication and Quantification

of Our World

CommunicationsTechnology

Growth

1 2 3

Three digital trends accelerating change in nonprofit fundraising.


developed tool in this space, but web content management systems like Adobe’s Experience Manager offer the same promise for websites. More recently social channels have begun offering automation features based on donor behavior and information.

Finally, there has been a continued growth in the artificial intelligence space. Again, the technology is based on machines learning from the data we produce. Chat bots in WeChat and Facebook Messenger are the most recent examples of consumers interacting with brands to receive information.

Changing Donor ExpectationsThere are a number of trends among consumers today that seem to be increasing. One of the more stark trends is what Stanford researchers have described as consumers’ increased ability to determine “the absolute value of things.”8 Historically it was challenging for consumers to determine the quality of a product before buying. There weren’t good ways to do independent research; and so, consumers tended to trust marketing or a salesman. Today, however, the quality of online information combined with consumers’ ability to mine that information privately has helped them determine the value of a product more quickly.

In 2011 Google released research they had been conducting on this topic. In what they called “The Zero Moment of Truth”9 they determined that consumers had undergone a significant shift. A full 80 percent of consumers were doing research online before making a purchase. Further, they determined that consumers were getting 60–70 percent

of the way to the purchase decision before engaging a retail location or speaking with a salesman. Do you think the fundraising industry is immune from this behavior? How many of your potential donors are researching you? What are they finding? Is the share of online voice about your brand the kind of information that brings them along?

We all prefer relationships with those who care about us, know us, and remember what we last talked about. With the increase in communications technology tools and the increasing quality of the communication transfer, there is an increasing expectation from donors that organizations treat them in a personalized way. In Deloitte’s 2015 Consumer Review, they found the following among their nationwide sample.

“Empowered by social networks and their digital devices, consumers are increasingly dictating what they want, when and where they want it. They have become both critics and creators, demanding a more personalized service and expecting to be given the opportunity to shape the products and services they consume. The majority of consumers are willing to pay more for a customized product or service.”10

Donors are also increasingly impatient. They are conditioned to expect things to be done quickly, such as one-click shopping and overnight delivery. They ask questions of Google, and they get answers. They post on Facebook, and they get answers. When they talk about you online, are you listening? Are you responding?


Finally, for consumers to gain access to much of the digital value that is out there, they are willingly giving up their data. They are increasingly comfortable with being transparent. They do, however, expect brands to do the same. They expect brands to be transparent and good stewards not only of the donations but also of their data.

It is increasing difficult to avoid the fact that donors today (they are, after all, the same consumers referenced in the research above) are much more likely to have engaged with your brand digitally and judged you based on what they found and experienced.

The Challenges These Trends Introduce

There are several obvious challenges that these trends are creating for nonprofit professionals. One, it is difficult to keep up with the pace of change. Two, the analytical skills needed and technical talent shortage is real. Three, the danger of getting so caught up in data is that we lose track of strategy and the art of relationship building.

Keeping UpThe need to invest in professional development has never been greater. The rate of innovation has only been increasing. The number of options and solutions is also increasing. Investing in getting your staff up to speed and current is critical. Current organizational structure may not be conducive to emerging digital opportunities. The rate of change is increasing. Some development professionals thrive in this environment and jump right in. Other development professionals are more conservative and watch partner institutions before making a move. Still, others are paralyzed by the speed of change, the options before them, and their own lack of knowledge. Development professionals will need to be engaged in continuous learning, testing, and agile development to keep up.

Talent BattleAs the “professionalization” of fundraising continues, there will be an increasing premium placed on those who have analytical and technology capabilities. Unfortunately, the private sector highly values analytics skill sets and is also experiencing a labor shortage. As a result, demand and competition will remain high for skilled analyst and technologist talent. It will be even more challenging to find professionals with a balance of analytical and creative skills.

Barett Christensen is a senior associate at Bentz Whaley Flessner specializing in digital and social media engagement. With 11 years in digital, he has helped organizations raise millions of dollars using social media. He is a recognized expert in social advertising and campaign strategy, multivariate audience segmentation and wealth targeting, message and channel selection, and real-time campaign analysis and optimization.


Yes, knowing the “art” of fundraising will remain important, but those who know only the art will not be in as big of a shortage as those who know both the art and the science. Additionally, I believe those who have a balanced skill set are best suited for orchestrating the integration of both creative and technical fundraising operations.

Becoming Too Focused on Data and TechnologyData and technology are mostly agnostic. Creativity, messaging, branding, storytelling, and relationship building are still your secret sauce. Innovations in communications technology are merely accelerants. Knowing who you are as an organization and expressing a clear vision is more important than data or technology. Data can offer suggestions; technology can help you accelerate; but they do not replace a truly passionate organization. Those who only chase the latest shiny object may find they are not as effective as those who begin with their vision and mission. The speed of acceleration is a combination of great messaging, smart data, and good technology.

Embracing Our Opportunities

It is a fortuitous coincidence that the rate of innovation in communications technology is increasing even as societal needs are increasing. Funding pressure is increasing but so, too, are the quality of tools to get the word out. With so many digital media resources at our disposal, sharing the mission of our organization is easier and the effects more far-reaching than ever before. The Internet and communications technology has dramatically changed the way people share information.

I told you at the beginning of this article that I am an optimist, and I choose to believe that the highest purpose of digital and social technologies is to accelerate the amazing work our sector is engaged in. These tools are here to help us take our organizations to the next level and to share our mission in ways that are beyond past generations’ wildest imaginations. Where past generations influenced their neighbors and their town, today’s generation has the power through the Internet and social media to reach beyond borders and influence the whole world. n

___________________________________________________________________________

1http://www.itu.int/en/ITU-D/Statistics/Pages/stat/default.aspx

2https://www.wired.com/2016/01/facebook-zuckerberg-internet-org/

3http://www.smartinsights.com/mobile-marketing/mobile-marketing-analytics/mobile-marketing-statistics/

4http://www.smartinsights.com/social-media-marketing/social-media-strategy/new-global-social-media-research/

5https://www.statista.com/statistics/276623/number-of-apps-available-in-leading-app-stores/

6http://chiefmartec.com/2016/03/marketing-technology-landscape-supergraphic-2016/

7http://www.vcloudnews.com/every-day-big-data-statistics-2-5-quintillion-bytes-of-data-created-daily/

8https://www.gsb.stanford.edu/insights/how-digital-age-rewrites-rule-book-consumer-behavior

9https://www.thinkwithgoogle.com/collections/zero-moment-truth.html

10https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/consumer-business/ch-en-consumer-business-made-to-order-consumer-review.pdf


Introducing BWF Digital

DigitalFundraising

Model

Digital Vision

Digital Donor

Digital Message

Digital Channel

Digital Systems

Digital Campaign

Digital Engage

Digital Report

Digital Analysis

AlumniRelations

AnnualGiving

MajorGiving

PlannedGiving

Events

Stewardship

Determining KPIs, metrics, and report

dashboards.

Report

Using data to assess current state, discover underlying

programs drivers, and opportunities.

Analysis

Planning, launching, promoting and driving

digital campaigns.

Campaign

Determining content strategies, technologies, and

media that will resonate.

MessageDatabase analysis,

digital wealth identification, interviews, and exercises to define

donor personas.

DonorBranding, positioning,

and campaign/organizational

values guidance.

Vision

Listening, scoring, and engaging

audiences in two-way

conversations.

EngageScoping, vetting, and

determining technology infrastructure to deliver

digital strategy.

SystemsFundraising channel

mix analysis, selection, planning,

and strategy.

Channel

BWF is pleased to announce an enhanced service line focused on digital and social media. Our services are based on a Digital Fundraising Model. This model was developed as a stable and logical engagement framework on which a digital strategy can be built. Whether you need help with taking advantage of the current trends in crowdfunding, giving days, and online ambassadors or you want help deploying digital more effectively in alumni relations, annual giving, major giving, planned giving, stewardship or events our model and associated services will act as a guide.

From assessing your current digital strategy, filling in gaps or helping you build a complete strategy, BWF Digital is your ideal partner. Contact us today to bring digital to your fundraising business.

www.bwf.com (952) 921-0111

7251 Ohms Lane Minneapolis, MN 55439

INSIDE:Digital Relationship Building: How Technology Accelerates Fundraising