How to Knock Down a Silo With a Hammer: An Easy-to-Follow Roadmap to Execute FLAWLESS Cross-Channel,...

transcript

How to Knock Down a Silo with a Hammer

an easy-to-follow roadmap to execute FLAWLESS cross-channel,

integrated fundraising

1) Integration: Some quick definitions and perspective

2) Futurology: What’s your integrated donor going to be like?

3) The Need: The Integrated (multi-channel) Benchmarking and Analysis

4) The Value: What’s the value of being integrated?

5) The Structure: How are you set up internally for integrated success?

6) Facilitation and the Balanced Scorecard: How do you get to an integrated plan?

7) Evidence – Put It All Together: What does integration look like in the real world?

Today’s Journey

Integration – a definition

Integration

“ The whole is greater than the

sum of the parts”

“ The whole is greater than the

sum of the parts”

A planned marketing mix is more effective than a random

selection of distribution channels

A planned marketing mix is more effective than a random

selection of distribution channels

The “Halo” effect

Integration – ‘up, down, and across’

Integration needs to take place in more than one direction

HorizontallyHorizontally

StyleStyleMessagingMessagingThemeTheme

RenewalRenewal

Donor Development

AcquisitionAcquisition

lly In a

chronological customer

contact flow

Acquisition

Donor DevelopmentRenewal

The three tactical levers in integrated fundraising

Integration to Grow Your Pyramid

Prospects

One-off

Monthly

One-off

Prospect

Monthly

•The cultivation survey:

• Sent to 57,400 donors

• 3 key segments: Monthly, Active & Lapsed

• 5,530 responses (response rate of 11%)

• Raised $17,574 – a bonus!

• Reactivated 30 donors

• Found 85 expectances and 292 legacy leads

• 143 middle and major donor leads!

• Key: shared budgeting!

Integration for the Whole Pyramid

Online – planned gifts and major gifts…

A recent online survey found

THE FIRST TRIUMVIRATE

THE FUNDRAISING TRIUMVIRATE

Self-Identification

Surveys

Propensity Modeling and

Wealth Screening

A fourth?

Accessing all data sources on your mobile…

Task #1: How will you build an integrated

fundraising pipeline?

Futurology as a way to plan for your integrated

fundraising success

Ego-philanthropy

Feeling the need to be their own

fundraising brand

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

Customized Workplace

giving

The last opportunity in the 21st century?

The Future Integrated Donor

Proprietary & Confidential04/12/23 Slide 17

Mid-aged Donors: Ego-Philanthropy and

Tribute Mania

•How boomers act – compared to civics and how this makes sense for online social network fundraising…

Peer to Peer and milestone giving

HYPER-ADVENTURE GIVING

FEELING YOUNG AND HAVING FUN WHILE GIVING

78 million boomers in the US are beginning to retire… one survey found ½ want to have a positive

social impact*…why not give them something to do…

* NYTimes, Nicolas Kristof

As one boomer says on helping charities: “It wasn’t a matter of being a Mother Teresa. It was a matter of, ‘Boy, that sounds like

fun!”…

* NYTimes, Nicolas Kristof

Stretch goals…

Stretch Goals…

Extreme Fundraisers…

HYPER-CHOICE

THE DEATH OF UNRESTRICTED GIVING

Kiva – LOAN/GIVEOxfam Canada populates the back

endpeople can choose country, theme, project and then give money, make

a loan, make a team or personal page…

The last physical place of 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…

Executive Question: What is the average cost to raise a dollar

for workplace giving?

7 cents to raise a Dollar

Automated counter –

demonstrates impact

Matching gift

component

Your own personal campaign

page – celebrates your work and your

staff!

Depts & Individuals can create their own

fundraising webpages

Nothing like some

friendly competition!

Task #2: on a scale of 1 to 5 (with 5 being completely prepared), score your

organization on:

• Ego-philanthropy

• Tribute Mania

• Hyper-adventure giving

• Hyper-choice

• Customized Workplace giving

The Need

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 Integrated Need

Matures65+ year

Generational Giving

Giving (%)

58% Give35.9M donors$796 yr/avg4.2 charities$35.9 B/yr

56% Give28.5M donors$341 yr/avg3.6 charities$9.7B/yr

$1,000

0% 20% 40% 60% 80% 100%

Percent Giving

Canadian Generational Giving

Boomers

Civics

Gen Y55% Give2.7M donors$325 yr/avg3.5 charities$.8 B/yr

20-30 year old

31-46 year old

47-65 year old

65+ year old

And then there is Gen Z…

•3 of the top 10 fundraisers for an organization that raises over $90 million a year are under 15

•Executive Question: Do you have an integrated plan for supporters under 15?

Task #3: draw your generational giving circles

for your organization

GEN Y GEN X BOOMERS MATURES

48% 57% 52% 48%

26% 43% 54% 77%

28% 35% 32% 30%

29% 35% 31% 25%

22% 28% 28% 31%

22% 22% 27% 35%

25% 27% 17% 12%

8% 10% 16% 25%

11% 17% 14% 11%

14% 13% 4% 2%

9% 6% 4% 2%

% donated this way in last 2 years (total)

Giving Channels and generations…

Emerging Channel

Your donors are – fundamentally…

The Value

Value of Multi-Channel: Loyalty – and this is missing larger gifts…

Retention Rate2Annual 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 Texas2. Ibid. Comparison of retention rates for multi-year donors, SPCA of Texas

70.1%62.3%

$102.64

$191.35

$255.74

Structure

Traditional

Organizational Structure

Separate Metrics & Team for Online Marketing

Disparate (Sometimes Conflicting) Goals

Inconsistent Voices Representing Organization

Communications

Development

Others (?)Government

Affairs

Coordinated

Shared Metrics

Thematically Integrated

Coordinated Appeals

Communications

CoordinatingTeams

DevelopmentGovernment

Affairs

Optimized

Unified Strategy & Full Integration Across Channel Managers

Communications MarketingDevelopment Online

CoordinatingTeams

Task #4: on a scale of 1 to 10… with 1 being traditional; 5 being

coordinated; and 10 being Optimized…

Where do you fall on the integrated structure spectrum?

The Balanced ScorecardThe Dramatic Oversimplifcation of Integrated Fundraising, Marketing, Communications and

Campaigning or

Putting Your Organization on One Sheet of Paper

Your Mission

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,

Facilitation

Getting everyone on the same page for integrated marketing excellence

Proprietary & Confidential Slide 59

Integrated Planning is a full contact sport

What do you do before you meet?

Analyze the data

Prepare two days that will

push, pull, cajole, challenge

and team build.

Culture

Greenpeace – love em or hate em…

They have created a culture, and

structure, of integrated fundraising

innovation...

Brand is perceived as authentic

“Set up to nurture real innovations or completely new projects and ideas

Innovation Fund @ Greenpeace

“Keep the fund small, keep the money moving fast”

One million text “votes” in 51 days.

A multi-channel campaign…

Knock Down a Wall!

9.65% conversion to

monthly giving: 15,388

170,658 called on their mobile

phones

50% converted 50% converted to monthly to monthly

givinggiving7.6 million

dollars LTV (over 5 years)

Average gift 3.28

dollars/month

Internal Innovation

External Innovation

A Big Table in the Big State of Texas…

Integration is also between departments…

Gen YMainstream media 27%Word of mouth 22%School 18%Peer to peer event 14%

Gen XMainstream media 24%Word of mouth 18%Mail 16%Peer to peer event 11% Work/job 11%Product purchase 11%

BoomersMainstream media 28%Mail 19%Word of mouth 16%Work/job 11%

CivicsMail 35%Mainstream media 24%Word of mouth 18%

Why did it make sense for MADD?

Who is this?

1.attitude;

2.manners;

3.ability to problem solve;

4.to engage with the customer

Customer Service

They NEVER looked for past experience for non-executive positions. They looked for:

IS THIS YOUR CRITERIA FOR YOUR INTEGRATED FUNDRAISERS?

To create an excellent, integrated marketing organization, you need:

Culture that is not resistant to

change

Innovation structures

internally that spur change, testing and integrated

cooperation

Culture that can ‘train’ service

excellence

Culture that is open to external

innovation

1 2 3 4

The EvidencePutting It All Together

A Public Broadcaster

•Brand is perceived as authentic

•No integrated fundraising execution

•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

•Senior management support

•Cross departmental cooperation

•Create an integrated plan and stick to it

It would take an integrated solution…

Online and offline integration

Launched Impact Report for Donor Loyalty

Launched Symbolic Giving

•Made the Integrated Schedule

•Brought Back More Targeted, and Aggressive, Direct Mail

•Added the Telephone

•Improved stewardship multi-channel

•Improved Monthly Giving online and offline

•60% increase in revenue in Q4 of 2010 – first integrated year

Integrated Improvements

Results – 2010 and 2011

80% increase in average gift over

2 years

15% increase in number of gifts

per donor over 2 years

Wrap Up

Questions, thoughts or reflections…

How to Knock Down a Silo With a Hammer: An Easy-to-Follow Roadmap to Execute FLAWLESS Cross-Channel,...

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