Webinar: Converting Prospects to Multichannel Gold

For Audio Call: 1-408-792-6300 Event Number: 664 293 501

Presented By:Jeff Regen, M+R Strategic Services,

Adam Scruggs, Human Rights Campaign and Justin Perkins, Care2.com

April 19, 2011

Using WebEx• Chat & raise hand

• If you are having internet audio problems, you can dial in using a landline 1-408-792-6300 Event Number: 664 293 501

• If you lose your internet connection, reconnect using the link emailed to you.

• WebEx Support: 1-866-229-3239

For Audio: 1-408-792-6300 Event Number: 664 293 501

This Webinar is being Recorded• The webinar will be available on the Frogloop blog at

http://www.Frogloop.com

• You will receive a link to this presentation following the webinar.

• Tweeting the webinar? Use the Twitter hashtag: #Care2

For Audio: 1-408-792-6300 Event Number: 664 293 501

The problem Part 1: Anyone seen this

before?

It’s my name It’s my list

What year is your nonprofit structured for?

The Problem Part 2

1991?

Mail

Telemarketing

Television(no DRTV)

Face-to-Face

NonprofitSupporter

Or 2011?

Email

Mobile

Mail

Telemarketing

SocialNetworks

Website

Television(DRTV)

NonprofitSupporter

Face-to-Face

The Problem Part 3: Other big trends

Nonprofit offline donors are aging

Donor files are shrinking

Retention is falling (and online low already)

Direct mail costs are increasing / fundraising margins are shrinking

Nonprofits need (younger) more valuable donors

A multichannel approach can create “golden multichannel

donors”

• Age falls between online and offline donors

• Income about the same as online

How about revenue and retention?

Multichannel donor revenue* looks great…

Offline (no email)

Offline (with email)

Online Multichannel $-

$50

$100

$150

$200

$250

Annual Revenue Per Donor

* Target Analytics Internet donorCentrics data

…and retention does, too!*

Offline (no email)

Offline (with email)

Online Multichannel0%

10%

20%

30%

40%

50%

60%

70%

First Year Retention by Donor Type

* Target Analytics Internet donorCentrics data

Maximizing value of online recruitment…

1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435360

50

100

150

200

250

300

Revenue Per Online Supporter

TelemarketingDirect MailOnline

Months on File

…and growing sustainer files

DRTV Web and phone

Face-to-face Follow-up online and offline

Mail donors converted via telemarketing

Online / telemarketing / (limited mail) Great, largely untapped and lowest startup costs

Recapture Multichannel is key

Making Multichannel Work: Integrated Campaigns

1. Planned issue campaigns

2. Unplanned “hot issue” campaigns

3. Membership-oriented campaigns

…onboarding stream critical, too (HRC)

Multichannel: Planned Issue Campaign

Day of Campaign

Message type and description Targeted segments / other notes

1 Petition email. Land on a TAF page. 2-3 Facebook posts / Tweets. Mobile text

All online names

1 Homepage graphic, blog post Website traffic

4 Fundraising email #1 + 2-3 Facebook posts and Tweets. Mobile text

All online names

5-10 Mail piece arrives in-house Offline and online donors Deeper select of lapsed offline donors (eg,

taken action in the past 6 months) High-potential online non-donors

6-27 Telemarketing (sustainer) campaign begins on day 6 and continues for ~3 weeks

Same as for mail PLUS Petition signers to first email in campaign Donation email clickers

12 Fundraising email #3. 2-3 Facebook posts and Tweets

Online names who have not given (TY version to donors)

14 “Last call” fundraising email #4 on the day before deadline

Online names who have not given (TY version to donors)

Obstacles to multichannelOrganizational structure, culture,

processes

Data integration

Know-how

Organizational structures

Coordinating

Teams

1. Siloed

3. Centralized,integrated

2. Online, other coordinating

teams

Aligned goals and integrated processes

Organizational goalsGrow list; $$$; advocacy impact

BudgetsIncentives Single acquisition / investment budget?

Metrics: ROI

Culture: “What’s best for our organization” / highest ROIShare credit!

Data integration

HRC and Care2 - Overview• 4 year relationship

• 100k activists recruited

• 30k in the last 12 months

• Case studies to follow show performance of Care2 recruits within broader campaigns

The On-Boarding Process• First communication:

“Welcome Action” – our most popular recent action/email

• 6-10% perform the action on average

• Acclimates new recruits to our list and issues, gives them an immediate opportunity, and facilitates collection of additional data

The Marketing Process• Multichannel approach: Telemarketing, Direct Mail,

Email, Text

• Several goals:• Generate actions in support of our mission and to build

loyalty• Generate membership gifts• Generate new sustainers

The Marketing Process• No silos, shared goals

• Online constituent data is immediately fed into our membership database and ALL of that data is available for all channels of communication

• Weekly all-vendor calls, 100% data sharing

• Still room for improvement: embarking on a new project with M+R to better integrate our approach

Case Study: Telemarketing• Campaign conducted April-May 2010

• Audience consisted of new activists recruited over the last 12 months

• 5,700 contacts with Care2 recruits

• Care2 Recruits Performance:• 14.4% Pledge Rate• $30 Average Gift• Donor LTV at 1 year $42

Case Study: Telemarketing• Messaging dependent on which of our issues are hot at

the moment. These frequently mirror the actions our recruits saw on Care2 or in their Welcome Action.

• Data about online actions sent to the telemarketing firm.

• Script recognizes their role as advocates for HRC.

Case Study: Telemarketing• First lesson: recency is important. Campaigns should

be timed to coincide with large influxes of recruits

First 120 Days

Beyond0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%16.00%18.00%20.00%

Pledge Rate

Case Study: Telemarketing• Second lesson: patience is important. The campaign is

an investment; it’s hard to be excited about a 14% pledge rate without this understanding (and organizational buy-in)

• It’s a process – Some pledge immediately. 2% of refusals went on to become members over the next year. 3% of those who did give are now sustainers.

• Of everyone eligible for this call, more than 5% are now paid members of HRC.

Case Study: Direct Mail• Donors and information from one channel can feed

another. Remember this?

We developed some new package ideas (copy and back-end premium) to use the data our recruits had provided us.

Case Study: Direct Mail• Recognizing the importance of straight allies in our

work (who they are)

• Recognizing that activists form a core part of our mission (what they do)

• Establishing that the next step is to become a member to marry their passion with our expertise (what they need to do next)

• Broad themes – “Be the One”, “The Right Side of History”

Case Study: Direct MailCampaign Package Approach Response

April 2010 Traditional 0.26%

September 2010Targeted 0.61%

Traditional 0.35%

February 2011Targeted 0.57%

Traditional 0.12%

Grand Total   0.32%

• Targeted messaging substantially out-performed our standard messaging. Note: February results are still coming in.

Final Notes: Text Messaging• Donors and information from one channel can feed

another. Remember this?

We use our web campaigns to gather cell phone numbers for use in both advocacy and fundraising

Final Notes: Text Messaging• Split test of names in the mobile action network: half

received only a membership drive email, half received a text as well.

• Little/no direct revenue from the text, but…

• Recipients of the text message responded to the concurrent email campaign at a 25% higher rate.

Final Notes: Sustainers• Care2 recruits who convert to donors are excellent

sustainer prospects.

• 6.45% of all these donors have joined as sustainers, compared to an average of 1.4% for other donor sources.

• We target these new donors using a multi-channel approach: TM Sustainer Invite Calling and Rolling Sustainer Invite Emails

Putting It All Together• A multichannel approach to recruitment can nearly

double your success compared to online-only efforts.

Conversion Channel % Of Donors Converted

Online 54.74%

Telemarketing 22.41%

Direct Mail 6.45%

Other 6.07%

Merchandise 5.76%

Sustainer 3.21%

Events 1.35%

Putting It All Together• Patience, a multichannel approach, and a focus on

sustainer conversion can push the value per name recruited past $2 at 16 months and up over $11 over 4 years.

46.531.4

23.521.5

19.418.4

16.415.4

13.5 9.7 8.4 6.6 6.2$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

Revenue/Name

Months Since Recruitment

Q&A• Jeff Regen, M+R Strategic Services

Tel: (202) 478-6140jregen@mrss.com

• Adam Scruggs, Human Rights CampaignTel: (202) 572-8939Adam.Scruggs@hrc.org