multichannel strategies to convert online-acquired supporters into donors

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Multichannel Strategies to Convert Online-Acquired Supporters Into

Donors

Clint O’Brien September 10, 2013

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Clint O’Brien Vice President

Care2

Multichannel Strategies to Convert Online-Acquired Supporters Into Donors

Clint O’Brien

Stuff We’ll Cover •  Online Acquisition Methods

•  The Paid Acquisition Model

•  Multichannel Conversion

–  Why it matters, how it works, some case studies

–  Some caveats

•  Largest community of engaged people taking action daily to support causes they care about

Ranked among 150 most highly trafficked U.S. web networks, by Quantcast

•  Care2’s nonprofit clients also reach an additional 150 M people via Care2’s revenue-sharing media partner program, which includes Mother Jones, AlterNet, Ms. Magazine, eNature.com, The American Prospect, National Memo, VolunteerMatch, LeftAction, Democrats.com and 200+ more partners

• 23 million members •  75% Women •  Avg Age = 42 •  Educated •  High HH Income

•  Monthly unique audience of 16 M people

About Care2

Some of Care2’s 1000+ Nonprofit Clients�

Source: Target Analytics donorCentrics Q1 2013 Index of National Fundraising Performance

The Problem: Direct Mail Acquisition of New Donors Is Declining

Consistent decline since 2005

Nonprofits need new ways to find new donors

A Few Questions About YOU •  Poll Question 1: Which channel does your

organization use to acquire new donors and/or donor prospects? (Choose all that apply)

•  A) Direct Mail; B) Telemarke2ng; C) Face-‐to-‐Face Canvassing; D) Online (Email, websites, etc.); E) Social Media; F) Direct Response TV.

•  Poll Question 2: Which channel is your highest quantity source for acquiring new donors and/or donor prospects? (Choose only one)

•  A) Direct Mail; B) Telemarke2ng; C) Face-‐to-‐Face Canvassing; D) Online (Email, websites, etc.); E) Social Media; F) Direct Response TV.

Online Acquisition Methods

Online Donor Acquisi2on Strategies -‐-‐ Compared

PRICE

VOLU

ME

SEM Google Grants

SEO

Email List Sharing

Social Media

Email Append

Paid

Acquisi2on

Social Media ROI

Social Network ROI Calculator (by Jus2n Perkins) "   hPp://www.frogloop.com/social-‐network-‐calculator

•  Some2mes stuff that seems “free” …isn’t actually free at all

Online Acquisi2on Strategies Compared …Again

PRICE

VOLU

ME

SEM Google Grants

SEO

List Sharing

Social Media

Email Append

Paid

Acquisi2on

The Paid Acquisi2on Model

Paid Acquisition – of Warm Donor Leads •  Goal = Recruit multi-channel donor prospects and

supporters who are warm – i.e. “pre-qualified” to boost likelihood of conversion into actual donors

•  Only pay for actual captured leads – not for “branding,” “awareness,” impressions, exposure, advocacy, etc.

•  Tap existing communities of people who already care about my cause – preferably w/ good demographics, income, etc.

PLUSES

•  High volume. High quality. Fast. Proven model

•  No real work involved, until leads delivered

MINUSES

•  Upfront cost

•  You still must cultivate, convert leads into donors

Care2 DONOR ACQUISITION Model for Nonprofits�

+ =

•  No duplicates. All leads are new to the nonprofit, not supporters they had already

•  Cost per lead pricing. Nonprofit pays only for actual leads delivered

•  Multichannel leads. Nonprofit receives email address AND postal address. Sometimes phone numbers, too

Prequalified “Warm” Leads

Paid Acquisition Model (cont’d)

Behavioral Targeting

Permission Based

Marketing

Online Community of Engaged “Do Gooders” Who Take Action Every Day to Support Causes

Behavioral segment that cares about YOUR cause

Subset that takes YOUR branded action

Sub-subset that signs up for YOUR list

Multi-Channel Donor Leads, Asking to be in Relationship with YOUR Nonprofit


Age Distribution Community Member Profile

Gender 75% women

Age (Average) 39

Education 67% college+

Annual HH Income 65% >$75,000

Charitable Giving 62% donors

•  Demographics matter, too. •  But behavioral targeting

matters more -- to find good donors

•  The host of an online community sends email alerts to members, urging them to click through to take actions

•  Actions may be pledges,

petitions, surveys, polls, quizzes, photo contests

How it Works


The contact info captured includes full name, email, street address, state and zip code.

•  Landing page features action that member is being urged to take

•  It includes the nonprofit’s branding and approved content

•  After taking action, the person is invited to take the extra step of signing up for the nonprofit’s email list

•  The invitation to subscribe includes the nonprofit’s logo and a sentence or two describing the content that the person will receive


Welcome Email

Message to Online-

Acquired Supporter

•  Timeliness counts. Should be sent out within 24 hours of the new supporter’s having signed up for your list

Trying to Shortcut the 2-Step Fundraising Process: “End-of-Funnel” Donation Ask

•  Petition action – good for advocacy, acquisition

“End-of-Funnel” Donation Ask (cont’d)

•  Shown AFTER supporter signs up for list – so lead captured already •  Avoids recruiting least likely prospects – prompts them to unsubscribe •  Good cultivation for ALL prospects to see – not just those who donate •  But typically very few prospects are ready to donate yet, at this point

Question for YOU •  Poll Question 3: If your nonprofit organization

engages in advocacy activities (e.g. petitions, calls to lawmakers, public comments), do you ask your donors to take action – and ask your advocacy supporters to donate? Or do you treat donors and advocacy supporters differently?

A.  Yes we ask donors to take action, and action-takers to donate.

B.  No, we treat them separately C.  Our organization does not engage in advocacy

at all

A Key Principle

•  A recent study proves what we have long suspected:

Online advocacy and fundraising activities

complement -- and reinforce -- each other

SOURCE: Charitable Memberships, Volunteering and Discounts: Evidence from a Large-Scale Online Field Experiment. May 2009, National Bureau of Economic Research, A. Lange, A. Stocking. Sample size = > 700,000 subjects.

They are seven (7) times more likely to donate, compared to supporters who did not previously take an online action for the organization

•  What is special about supporters who take online actions for a nonprofit – such as via pledge or petition campaigns?

Online Action Campaigns Fuel Fundraising

Multichannel Conversion Strategies

•  The welcome series (multi-channel)

Why Multichannel Conversion Matters

0

100

200

300

400

500

600

700

800

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Other

Telemarke2ng

Direct Mail

Online

•  Many online-acquired leads convert online; others via DM or telemarketing •  Vendor helps make multi-channel conversion possible by providing

mailing addresses, along with email addresses, for leads recruited

Don

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Multi-Channel Fundraising Case Study #1

Nature Conservancy Canada (NCC) is a leading environmental charity that conserves and protects areas of natural diversity

•  Channels Used –  Email, Direct Mail and Telemarketing

•  Goals:

•  Generate actions in support of NCC’s mission and to build loyalty

•  Generate new donors •  Including new monthly sustainer donors

Case Study

First welcome email

Online Acquisition & Welcome Email Series

8,000 new supporters acquired from

Care2

!

Teva Harrison

From: TEST MESSAGE FROM: Nature Conservancy of Canada [[email protected]]

Sent: March-26-2012 2:07 PMTo: Teva HarrisonSubject: Thank you for taking action to protect the Burrowing Owl

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Teva Harrison

From: TEST MESSAGE FROM: The Nature Conservancy of Canada [[email protected]]

Sent: March-26-2012 2:37 PMTo: Teva HarrisonSubject: The Leaflet, March 2011 - A ssstartling discovery, Old-growth forests 101, and more!

!!!

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March 2011

In this issue

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A ssstartling discovery in the badlands of Alberta

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Old-growth forests 101

The badlands of Alberta, where the team set out on their expedition (Photo by MULTISAR)

Most recent newsletter

!

Teva Harrison

From: TEST MESSAGE FROM: Nature Conservancy of Canada [[email protected]]

Sent: March-26-2012 2:16 PMTo: Teva HarrisonSubject: Teva: Make a Difference for Nature

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Donation appeal. Tested two

versions: “Opportunity” and “Threat”

Survey

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Direct Mail and Telemarketing

4 wks 6 wks

Direct Mail Prospecting pieces

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I prefer to give through my credit card. Please charge my:

Charitable registration # 11924-6544-RR0001. We are happy to issue an official tax receipt for donations of $10 or more — others on request.

PLEASE RETURN THIS FORM WITH YOUR GIFT. DETACH FORM AT PERFORATIONS AND PLACEIN RETURN ENVELOPE SUPPLIED. DO NOT PEEL APART. THANK YOU FOR YOUR SUPPORT.

Card #

Expiry Date

Email

I prefer to give by cheque (made payable to theNature Conservancy of Canada).Become a Monthly Donor!Please see over...

DDoonnaattee oonnlliinnee aatt wwwwww..nnaattuurreeccoonnsseerrvvaannccyy..ccaa

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Signature

Please fill in your email address so we can keep you up-to-date with the latest NCC news electronically.

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Please use theselabels for CD's,books, gifts, mason jars, etc...

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I support the Nature Conservancy of Canada I support the Nature Conservancy of Canada I support the Nature Conservancy of Canada I support the Nature Conservancy of Canada

36 Eglinton Avenue West, Suite 400, Toronto, ON M4R 1A1Toll Free: 1-800-465-8005

Email: [email protected] do not forward cash.

wwwwww..nnaattuurreeccoonnsseerrvvaannccyy..ccaa

Mr. John SampleWyers Direct1128 Kingston RoadPickering, ON L1V 1B4






































$35 $50 $100 I prefer to give: $__________




999999999-09 P1B 685-DW-T

Telemarketing calls

Dear fellow Canadian,

Let me paint a scene for you.

A Grizzly paces back and forth, several metres from the busy road. He isagitated and frustrated, wanting to move forward to new feeding grounds on theother side of the highway but is disturbed by the cars and noise. He snorts hisirritation and slowly turns back to return the way he came.

This Grizzly’s situation is not unique. Roads, habitat destruction and otherhuman impacts are seriously fragmenting and reducing the remaining habitat forCanada’s Grizzly Bear population. In fact, the Grizzly has already disappeared fromthe prairies. And we have no viable options left today for reintroduction.

Did you know that Grizzlies have been wiped out from an estimated 50percent of their previous range globally, and they’ve lost 98 percent of their rangein the lower 48 United States?

Grizzlies are a symbol of our great wilderness. And as Canadians, we arelucky that we still have the opportunity to protect our native wild animals —an opportunity that has been lost in many other countries around the world.But only if we act now!

That’s where the Nature Conservancy of Canada (NCC) comes in. We areCanada’s leading national charity dedicated to the direct protection of significant,threatened habitat across the country. We work on private land with willing sellers,securing the land by purchase, through donation or by putting conservationagreements in place that will protect the land – and the species it supports.

Since 1962, with the support of our partners, NCC has helped to protectmore than 2 million acres of ecologically significant land nationwide.

If we want the Grizzly to survive, it’s crucial that we protect the naturalspaces where it ranges. That’s why I’m writing to you now. Please, will you senda donation of $35, $50 or $100 today to help protect Grizzlies and other speciesat risk? The land we conserve will give these amazing animals a chance to recovertheir dwindling population and help to protect these Canadian treasures for usand for our children.

The fragmentation of Grizzly habitat and their population is a major threat.Grizzlies require vast tracts of land to survive and thrive as a species — the home

Will North America’s Grizzliestake their last stand here in Canada?

Over, please…

36 Eglinton Avenue West, Suite 400 • Toronto, ON M4R 1A1Toll Free: 1-800-465-8005

Email: [email protected] • Website: www.natureconservancy.ca S

5 wks

Cost to acquire = $20,000 Cost of DM and TM outreach = $34,284 Total Cost = $54,284

Total Revenue = $28,219

Net Annualized Cost Per Donor Acquired: $35.39 Net Annualized Cost Per Sustainer Acquired: $195.06

Average Gifts: One-Time: $47.53 Monthly: $16.28 / month

Telemarketing & DM 6.1 % conversion rate •  Including one-time donors and monthly sustainers (≈10 gifts/yr) •  Converted 88 to monthly sustainers so far

Case Study Results Results 11 Months After Acquisition

Multi-Channel Fundraising Case Study #2

Covenant House provides loving care and vital services to homeless, abandoned, abused, trafficked, and exploited youth.

•  Channels Used –  Email and Telemarketing

•  Goals:

•  Add new one-time donors

•  Add new monthly sustainer donors

Case Study

Online Acquisition & Welcome Series

0 4 wks 2 wks

2 Video Stories

1st Welcome Email

54,000 new supporters acquired from Care2

Donation Appeal

Telemarketing

4 wks 8 wks 6 wks

Advocacy + Bed/Blanket Appeal

Calls occurred during Oct – Dec 2013. In the end, only 30% of planned calls were made due to time constraints and strategy.

Advocacy + Bed/Blanket Appeal

Hurricane Sandy Appeal

Hurricane Sandy Appeal

December Email Appeals

Emails were sent throughout December 2013

8 wks 10 wks

Holiday Appeal

Bed & Blanket Appeal Kevin’s Letter

Gift Catalog Year-End Appeal 1

Year-End Appeal 2

12 wks

•  With $24K in revenue after three months, Covenant House had already recovered 1/3 of the cost to acquire the online donor prospects

•  624 of the prospects (1.6%) had already converted into donors within the first three months, and 11 of these donors were monthly sustainers with a higher value –  It seems likely that they would have had even more

donor conversions if the organization used Direct Mail as part of its mix.

•  Roughly 80% of the Hurricane Sandy donors made a subsequent donation during the year-end appeals

•  Covenant House still has more than 30,000 donor prospects on which to try telemarketing

Case Study – Key Results and Lessons Learned

Tip: Speed (Recency) Matters •  LGBT advocacy

organization Human Rights Campaign reported donor pledge rates via telemarketing were >30 percent higher for newly acquired online leads if phone outreach took place within first four months after acquisition.

Source: 5700 phone contacts (over 12 mo.) with HRC supporters who were recruited by Care2.

•  HRC’s acquisition campaign with Care2 included an optional field for people to indicate if they were themselves LGBT or not. This information enabled HRC to do targeted Direct Mail pieces

Campaign Package Approach Response Traditional 0.26%

September 2010 Targeted 0.61% Traditional 0.35%

February 2011 Targeted 0.57% Traditional 0.12%

Grand Total 0.32%

•  DM packages with targeted (straight vs. LGBT) messaging strongly out-performed the non-targeted packages

Tip: Donors and Information from One Channel Can Feed Another Channel

Caveats About Multi-channel Fundraising

•  “Multi-channel donors are not always more valuable than single-channel donors” •  Among donors to CARE making two or more gifts,

multi-channel donors were only $19 more valuable ($187 vs. $168)

•  Among CARE donors with highest previous gids between $500 and $999, single-‐channel donors were actually worth slightly more

•  SOURCE: M+R’s Sarah DiJulio and Steve Daigneault, from presentation Bridge 2013 conference

Ø Another Caveat •  It’s not magic; and there is no free lunch.

•  Patience, effort and trial-and-error testing are all required!

Question for YOU

•  Poll Question 4: How many donations appeals do you send (via all channels) to your donors and supporters each year?

A.  Zero to Six times per year B.  Seven to 12 times per year C.  13 to 18 times per year D.  19 to 24 times per year E.  25 or more times per year

“How many fundraising emails should you send per year?” (Hint: A lot) “Email marketing is mainly a numbers game.”

“…You typically have a huge advantage in the long term if you own the email list, as opposed to renting a Direct Mail list for acquiring new supporters. This is mainly because owning a list of opted-in supporters gives you the opportunity to develop a deeper relationship over time with these people – and to be a lot more aggressive with the frequency of your donation appeals because you've already established brand recognition and trust…”

“In short, more good emails = more revenue.”

“If you look at the latest M+R Benchmark study, the number of donation appeals sent per year to nonprofit supporters averages about 24. If you break that down, it's two per month, on average.”

--Justin Perkins (Care2), from 8/28/13 Frogloop.com blog post “How many fundraising emails should you send per year?”

Thanks!

Clint O’Brien [email protected] @care2team 202-785-7308 Website: www.care2team.com

Resources Online Marketing Benchmark Study for Nonprofits (by Blackbaud) •  www.blackbaud.com/nonprofit-resources/onlinemarketingstudy

2013 eNonprofit Benchmarks Study (by M+R and NTEN) •  www.e-benchmarksstudy.com

Frogloop – blog for nonprofit fundraising pro’s (by Care2) •  www.frogloop.com

Justin Perkins’ Frogloop post “How many fundraising emails should you send per year?” •  http://www.frogloop.com/care2blog/2013/8/28/how-many-

fundraising-emails-should-you-send-a-year.html

Justin Perkins’ ROI calculator •  http://www.frogloop.com/breakeven-roi-calculator

multichannel strategies to convert online-acquired supporters into donors

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