fundraising today and tomorrow: the next generation of giving - the constituent engagement journey:...
DESCRIPTION
Ken Kuhler, Interactive Strategy Manager, Blackbaud, discussed how to apply next generation trend data to your multi-channel, multi-generational fundraising and engagement efforts including practical tools and techniques, and real-world case studies.TRANSCRIPT
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GROWING CONSTITUENT ENGAGEMENT LOYALTY, AND LIFETIME VALUE
Constituent Engagement Journey:
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• Current Landscape & Trends
• Constituent Engagement Fundamentals
• The Evolution of Nonprofit Operations
AGENDA
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The Nonprofit Landscape
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Total Fundraising 13%*
In Canada from 2011
Competition for Awareness and Support
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# of Nonprofits
161,000 in Canada
Competition for Awareness and Support
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3000+ MessagesTargeting Supporters
Every Day
Competition for Awareness and Support
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New Donor Acquisition
23.4% since 2006
Competition for Awareness and Support
Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter Results
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Renewals & Lifetime Value Mostly Flat
Average Annual Gift/Attrition Rate = LTV
Competition for Awareness and Support
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Deepen Relationships& Build Loyalty
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FUNDRAISING EMPHASIS: MATURES
Matures
BoomersGen X
Gen Y
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GENERATIONAL GIVING
30% 40% 50% 60% 70% 80% 90%$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
% Giving
Tota
l ann
ual g
ivin
g
Boomers
Gen X
Matures
Gen Y
79% Give5.8 M donors$831 yr/avg4.5 charities$4.8 B/yr 62% Give
4.5M donors$639 yr/avg4.0 charities$2.9 B/yr
78% Give6.9 M donors$942 yr/avg4.9 charities$6.5 B/yr
87% Give3.1 M donors$1507 yr/avg7.0 charities$4.7 B/yr
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GEN Y GEN X BOOMERS MATURES
55% 54% 58% 55%
45% 55% 35% 31%
21% 35% 47% 56%
36% 39% 38% 30%
29% 33% 40% 37%
11% 23% 36% 58%
22% 29% 37% 34%
22% 24% 29% 29%
24% 20% 25% 20%
25% 19% 11% 9%
15% 14% 12% 14%
5% 9% 15% 18%
7% 5% 4% 9%
4% 9% 4% 4%
5% 8% 4% 3%
12% 4% 2% -
6% 4% 3% 2%
1% 2% 3% 2%
Checkout Donation
Honor/Tribute
Pledge at Event
Door to Door*
Street Canvassing*
Email*
Radio/TV*
Will/Planned Gift
Social Networking Site
56%41%41%
36%35%
32%32%
26%22%
15%13%12%
6%5%5%4%4%
2%
GIVING AMOUNTS
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Constituent Expectations Have Changed.
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Constituents Want to Engageon Their Terms & in Their Channels
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ONLINE FUNDRAISING CONTINUES TO GROW
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THE STATE OF ONLINE FUNDRAISING ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT
More good news - Online giving increased 13.7% for the three months ending January 2013 as compared to the same period in 2012
Even more good news – No matter what online benchmark study you look at, revenue is growing, sustained giving is growing and housefile size is up
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ONLINE FUNDRAISING GROWTH HAS KEPT PACE WITH RETAIL E-COMMERCE
Sources: Convio benchmark reports 2007-2012 and eMarketer.com
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.. BUT PERFORMANCE VARIES WIDELY
* Excludes major, corporate gifts, and planned giving. Source: Convio/ Edge Research survey of integrated marketing practices, Q1 2011
5-20% Raised Online
>25% Raised Online
<5% Raised Online
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Peer Solicitation Is Broadly Accepted
Peer to Peer
Social Media
Phone
Text
52%
41%
28%
22%
15%
8%
% say appropriate solicitation channel (rank ordered by very important –blue)
Did you know?Blackbaud clients raised 70% of event funds raised by the top 30 events in 2011.
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04/11/2023 Blackbaud Confidential 20
PEER TO PEER / SOCIAL FUNDRAISING
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Lifetime Donor ValueDonor Value 12
MonthsNew Donor Renewal
Rate
VALUE OF MULTI-CHANNEL ENGAGEMENT
Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOneTraditional defined as offline use. Internet Enabled defined as both offline and eCRM use.
34.4%50.9%
+48%
Multi-Channel
$96
$187
+95%
Multi-Channel
$314
$694
+121%
Multi-Channel
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MULTI-CHANNEL GROWS TOTAL REVENUE
1990 2000 2010$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
$28M $28M
$47M
OnlineDirect Mail
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Multi-Channel Strategy
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If You Could…
THE VISION: CONSTITUENT ENGAGEMENT
• Anticipate your constituents’ needs
• Know their interests, passions & preferences
• Offer more relevant interactions & opportunities to engage
You Would…Improve acquisition
& referralsEstablish lifetime
relationshipsGrow support &
fundraising
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Constituent Experience
• Disjointed constituent experience
• Fragmented messaging from a variety of channels
• Less engagement
Current Landscape:
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• Unified constituent experience
Goal:
Constituent Experience
• Integrated messaging across a variety of channels
• Optimized engagement
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Better Engagement with Supporters = Better Results for Your Organization
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ConstituentEngagement
Fundamentals
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• Constituent Centricity
• Presence in Multiple Channels
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals
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CONSTITUENT CENTRICITY
• Align processes and communication to respect constituent preferences, needs and interests
• Tailor channel mix, content and program participation and message frequency
• Ask, “What matters to a constituent?”
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A Single Email with Conditional Content
Donor Version
Survivor Version
CONSTITUENT CENTRICITY
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CONSTITUENT CENTRICITY
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Direct Mail
EmailWeb Page
PRESENCE IN MULTIPLE CHANNELS
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PRESENCE IN MULTIPLE CHANNELS
• Get the right message in front of the right person at the right moment.
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CONSISTENT BRANDING
Envelope back
Integrated tiger appeal results show 40% better response rate
Offline Appeal
&Envelop
e Online Appeal,Included Envelop
eImage
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YEAR OF THE TIGER A MULTIMEDIA YEAR LONG EFFORT
WWF: For 1st time ever, heads of state convene 2 try 2 save tigers. Tell the US 2 commit to global tiger conservation. http://bit.ly/dp0ovd (reply STOP 2 unsub)
Direct Mail Email Social Media TV (Custom Web)
Outdoor Ads
Mobile Web
Celebrity Leadership
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INTEGRATED PROCESS
Frequency Target
Q2 wee
k 1
Q2 wee
k 2
Q2 wee
k 3
Q2 wee
k 4
Q2 wee
k 5
Q2 wee
k 6
Q2 wee
k 7
Q2 wee
k 8
Q2 wee
k 9
Q2 week 10
Q2 week 11
Q2 week 12
General Communications
eNewsletter Weekly - Fridays Subscribers
Quarterly Update mailer 2nd Week / Quarter $50+ donors
Gala Promotion
Email Biweekly - Tuesday General
Direct Mail Once $100+ Donors
Telemarketing $200+ Donors
Mother's Day Campaign
Email ~Biweekly - Thursday
Direct Mail Once Prospects, Donors
Telemarketing Select targets
Inbox / Received Send Event
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• Establish metrics that: • Measure donor
behavior and campaign performance across channels
• Focus on long-term value
• Collect and aggregate constituent data to correlate and extract meaningful information
INTEGRATED MEASUREMENT
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CROSS-CHANNEL CONTACT INFORMATION
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KEY ACQUISITION METRICS TRACKED
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DONOR CHANNEL MIGRATION TRACKED
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Constituent Engagement Fundamentals – Difficult Without Organizational Alignment
• Constituent Centricity
• Presence in Multiple Channels
• Consistent Branding
• Integrated Process
• Integrated Measurement
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The Evolution of Nonprofit Operations
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• Minimal Online Marketing
• Calendar-Based Campaigning
• Not Financially Committed to Second Channel
• Thematically Integrated
• Limited sensitivity to solicitation frequency
• Decisioning beyond RFM
• Shared Metrics
• Some consolidation of data across channels
Coordinated OptimizedTraditional
• Separate Metrics & Team for Online Marketing
• No Calendar / Campaign Coordination
• 2nd channel constitutes 5-20% Direct Response Revenue
• Separate databases for online/offline
• Unified Strategy & Real-time data integration
• Measures Success Across Channels, Not By Channel
• Donors’ behaviors and interests drives communication stream
• Shared budget and resources
Early Stage
WHERE ARE YOU?
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• Integrated marketing sophistication and size don’t closely correlate.
WHERE ARE YOU?
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Aggregate and improve constituent data
Consistent messages across channels
Increased personalization & relevance
Dynamic response to interactions
Optimize channel mix & message cadence
THE TRAJECTORY OF NP EVOLUTION
Aggregate and improve constituent data
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Keys to Evolution
• Organizational Alignment
• Technology / Infrastructure
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Traditional
• Separate Metrics & Team for Online Marketing
• No Calendar / Campaign Coordination
• 2nd channel constitutes 5-20% Direct Response Revenue
• Separate databases for online/offline
Communications
Development
IT
Others (?)Government Affairs
Traditional
ORGANIZATIONAL ALIGNMENT
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Coordinated
Coordinating Teams
Communications Development
Government Affairs
IT
Coordinated
• Thematically Integrated
• Limited sensitivity to solicitation frequency
• Decisioning beyond RFM
• Shared Metrics
• Some consolidation of data across channels
ORGANIZATIONAL ALIGNMENT
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OptimizedCoordinating
Teams
Development Online Communications Marketing
Optimized
• Unified Strategy & Real-time data integration
• Measures Success Across Channels, Not By Channel
• Donors’ behaviors and interests drives communication stream
• Shared budget and resources
ORGANIZATIONAL ALIGNMENT
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Support Business Units
Infrastructure Challenge
Track Performance
Add New Channels
Coordinate Departments
Integrate Systems
Understand Data
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REMEMBER: IT IS AN EVOLUTION.
• Identify where you are and map your key 2013 steps now…today, while you’re thinking about it!
• Every step toward Constituent Engagement will have an impact on your bottom line.
• Start with fundamentals.• Evolving understanding of metrics can drive you forward
faster.• Be aware of opportunities to evolve the operational
structure – shared goals, team alignment, technology
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IN CONCLUSION
• More donors does not mean more engagement or revenue but more engaged donors will mean more revenue/LTV.
• Donors feel more engaged and more inclined to give if they are hit up on multiple channels with consistent messages
• Therefore, your organization needs to be organized to ensure a consistent and integrated experience on multiple channels. No silo’s.
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