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Turbo-charge your Online Fundraising: How online and telephone can make a killer combination for fundraising

For Audio Call: 1-408-792-6300 Event Number: 665 795 542

Presented By:Leslie Karp of Defenders of Wildlife, Deanna Bickford of Stratcom,

Michael Johnston, President & CEO, HJC New Media, and Eric Rardin, Care2

April 6, 2010

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: 665 795 542

• 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: 665 795 542

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


http://www.Frogloop.com/


Nonprofits use Care2 for:

• Online Advocacy

• Email list growth

• Donor lead acquisition

• Driving traffic to website

• Advertising and branding

• Surveys and research

• Education and outreach

What is Care2?

Citizens use Care2 for:

• Starting or signing petitions

• Volunteering

• Donating $

• Spreading news

• Commenting on blogs

• Starting groups (organizing)

• Joining nonprofits

• The largest online community of people “making a difference”

• 13 million “do-gooders”

Leslie Karp, Defenders of Wildlife


About Defenders of Wildlife Founded in 1947

Mission - Defenders works to protect imperiled wildlife and habitat in North America and around the world.

Staff - 160 total:10-person Membership team (includes Member Services)9-person Online Marketing & Communications Department manages all

fundraising/activism emails, websites, online activity

Membership and Online Statistics~500,000 members (donors)~750,000 e-supporters (including members)

Also includes Defenders of Wildlife Action Fund – our 501(c)4 sister organization


Why convert online activists to donors through telemarketing:

Because Online Activists are warm prospects already invested in your organization’s mission they more likely to become valuable donors!

Multi-channel communications = higher value

Value from least to most: Offline donors without email Offline donors with email/Online donors Online/offline donors Online/Offline Donors

Penetrate younger, more affluent audience (online donors tend to be younger (average age 49 vs. 62)

and have a higher average income)

Tap into a donor’s preferred channel

Often more satisfied and engaged supporters, too!

Providing more opportunities to give!


Average Annual Revenue Per Donor by Channel

Multi-channel donors nearly 3x more valuable than single channel donors. Source: Defenders of Wildlife Jul08-Jun09

Offline w/ No Email

Offline w/ Email Online Only Online/Offline

Value/Donor $43 $54 $57 $156

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Value/Donor


Defenders donors are migrating from online to offline, but not vice-versa First-year donors—made only offline donations in 2006 (who gave in 2007):

97.7% gave offline only in 2007

2.3% gave online (and in some cases offline) in 2007

Problem: Often no email addresses for offline only donors

First-year donors—made online donation in 2006 (who gave in 2007):

47% gave offline only in 2007

53% gave online (and in some cases offline) in 2007

Online donors converting to offline

Direct mail (DM)/telemarketing (TM) critical for retaining online-acquired donors


Online Activist Telemarketing Goal: To convert online activists to our Wildlife Guardian (monthly

giving) program, third ask is a one time gift ask

Approach: Telemarketing - 12 campaigns per year (monthly)

Since 2006, the Online Activist program has generated almost 5000 sustaining donors If only half of these donors have remained in the program, that

translates to more than $1.2mm since 2006!

The Online Activist Invite TM program is projected to yield 3,500 new sustaining donors during 2010 with a projected 12 month value of $350,000 in the billing program alone.


Defenders’ Wildlife Guardian program

Monthly giving program with multiple invite channels: Member Telemarketing Invite Online Activist Telemarketing Invite Direct Mail Invite Web Invite

Has grown from ~16,000 members to ~24,000 members since 2006 – a growth of 50%

Generates $3 million net per year for Defenders of Wildlife


Segmentation Solutions

Don’t get lost in the details! Focus on passing the best data Keep it simple

Identify key metrics for your organization, they might be: Age on File Recency of actions Number of Actions Origin Issue Donor’s Age Donor to other NPOs Email status—valid-email, hard-bounced, unsubscribed, etc.

Each organization is different, find the best criteria to segment on for you!


DOW – Online Activist TM Invite Segmentation

Most Recent Action Date (MRAD)Creation Date Number of Actions0-30 days 0-3 months 1 action

4-6 months 2-3 actions7-12 months 4-6 actions

7-9 actions 10+ actions

31-90 days 0-3 months 1 action4-6 months 2-3 actions7-12 months 4-6 actions


91-150 days 0-3 months 1 action4-6 months 2-3 actions7-12 months 4-6 actions


0 Actions 0-1 months not applicable1-2 months2-3 months


DOW’s March Online Activist Results

* Please note this call is still in progress

• Despite the fact that this graph is hard to read, if you imagine that more recent creation dates, more recent action dates and lower number of actions are closer to the top of each segment, the key take away is:

The closer to inception date, the

more likely to convert to becoming a donor!

Creation Date Most Recent Action Number of Actions Actual Qty Contact Rate Sus. Pledge Rate Sus. Avg. Gift One Time Pledge Rate One Time Avg. Gift0-3 Months 0-30 days 1 action 4,079 25.40% 9.65% $10.48 4.92% $24.900-3 Months 0-30 days 2-3 actions 668 31.74% 11.32% $10.46 3.30% $22.140-3 Months 0-30 days 4-6 actions 47 34.04% 12.50% $8.00 0.00% $0.000-3 Months 0-30 days 7-9 actions 2 50.00% 0.00% $0.00 0.00% $0.000-3 Months 0-30 days 10+ actions 3 33.33% 0.00% $0.00 0.00% $0.00

0-3 Months 31-90 days 1 action 477 25.79% 6.50% $11.00 4.88% $25.000-3 Months 31-90 days 2-3 actions 26 26.92% 14.29% $6.00 14.29% $20.000-3 Months 31-90 days 4-6 actions 2 50.00% 0.00% $0.00 0.00% $0.000-3 Months 31-90 days 7-9 actions 0 0.00% 0.00% $0.00 0.00% $0.000-3 Months 31-90 days 10+ actions 3 33.33% 0.00% $0.00 0.00% $0.00






7-12 Months 31-90 days 1 action 1,746 22.62% 4.05% $10.81 6.58% $33.277-12 Months 31-90 days 2-3 actions 528 31.06% 8.54% $11.07 1.83% $30.007-12 Months 31-90 days 4-6 actions 247 29.96% 4.05% $9.67 6.76% $16.007-12 Months 31-90 days 7-9 actions 123 23.58% 3.45% $10.00 0.00% $0.007-12 Months 31-90 days 10+ actions 136 35.29% 0.00% $0.00 4.17% $32.50


0-1 Month n/a 0 actions 6,374 19.25% 6.03% $10.70 3.67% $22.111-2 Months n/a 0 actions 7,631 21.05% 5.23% $10.48 3.05% $28.222-3 Months n/a 0 actions 596 21.31% 6.30% $9.88 1.57% $37.50


DOW’s March Online Activist Results

ProjectionThis campaign is still in progress, but to put the

numbers into perspective, if the call ended today:

392 new monthly donors with an average gift of $10.57

That is a 12 month gross revenue of $49,721!

235 one time gifts for a total of $4,993 gross revenue


Things to Keep in Mind:Online Activist TM Long-term Statistics


Online Activist TM generally has a lower pledge rate, credit card rate and fulfillment rate than Member Invitations. We usually see:Sustainers – pledge rate around 6%, credit card rate

around 25-30% and fulfillment around 60%One Time Gifts – pledge rate around 4%, credit card rate

around 40% and fulfillment around 65%

Online Activist telemarketing generally pays for itself within 5-7 months

Thank you!Please feel free to contact me with any questions

[email protected]


Deanna Bickford,Strategic Communications


The Opportunity

“There is a huge opportunity to expand cross-pollination between advocacy and fundraising.”

-- Online Marketing Benchmark Index Study, Convio, 2009


The Opportunity


The Opportunity

• There are now solid figures to justify online + phone engagement and conversion strategies

• Conversion breaks through the “show me the money” factor with social media marketing…

• Return on Investment will be greater the sooner you develop a comprehensive strategy for conversion and act on it


Start simple…• Be sure to capture email addresses, street addresses, zip code - and

include phone

• Get permission to contact them in future

• Follow up to online actions with thank-you page, and thank-you email with an ask option (can also add direct mail or voice mail)

• Continue to engage supporters via various channels

• Phone through the entire list to convert your online activists into donors


The Fear: Our donors hate being phoned!


The Reality:

Calling your online activists is the most effective way to convert them to donors.


Conversion – DM vs. Phone


Other benefits

It’s a great way to update and engage online activists – has the informality of email but the personal touch of face-to-face


Other benefits…

Using the phone is a low investment risk, because programs can be started and stopped at any time

Cleans up your list so that you have the most up-to-date contact info about your supporters


Post-campaign conversion phone appeal:

New advocates who took an online action on a series of campaigns to support public broadcasting were called 6-12 months after registering their contact info.

Case Study – Advocacy Org


Primary ask Single gift

Number contacted = 5527 New donors gained: 857

Conversion rate: 15.5% (incl.1.3%

monthly)

Average gift: $43.01 $9.05 monthly

Year 1 ROI: .8



Net cost to acquire a new donor = $11

LTV = $165



Post-campaign conversion phone appeal:

Online advocates who took part in an online Call to Action were called within 12 months after they signed up. They were also sent a voice message to tell them of the upcoming call one week prior.

Case Study – Environmental Org


Primary ask Monthly gift

Number contacted = 4180

New donors gained: 484

Conversion rate: 11.6% (9.2% monthly!)

Ave. gift: $11.26 monthly $42.46 single

Year 1 ROI: .98



Net cost to acquire a new donor = $3

LTV = $430



In summary…

Convert direct to monthly giving, with fall-back single gift option.

Return on investment high

Long term value high


Just remember…

• Sooner is better to launch your phone conversion

program – preferably within 3 months after the online

action

• Larger lists are more cost-effective, best if 8000 +

• Be sure to do phone number verification and look-up

for those records without phone numbers


As always,“Thank You” is key!

Hi, Susan…

I just wanted to thank you for your recent action…

Thanks to you, we’ve been able to…


For more info, or to receive our newsletter:

[email protected]


mailto:[email protected]

Michael Johnston, HJC New Media


The phone can be irritating…

“The bathtub was invented in 1850 and the telephone in 1875. In other words, if you had been living in 1850, you could have sat in the bathtub for 25 years without having to answer

the phone.”

Bill DeWitt


But it can have power and resonance

“The telephone, which interrupts the most serious conversations and cuts short the most weighty

observations, has a romance of its own”

Virginia Woolf


We’re talking online and phone, but...

Remember that online should be working with all channels.

1.Email – your cheap and easy friend

2.Direct Mail – your oldest friend

3.Social media and SMS – you new friends

4.Phone – your best friend

Maybe we’ll do another session on ALL channels another day...


More on calling personal page registrants to improve their

fundraising

hjcProprietary & Confidential


The phone and online?


Further tests…

A phone test was conducted a second year with online event registrants…

The test group that received a phone call (2.5 minutes in length) raised $131.42 more than a registrant who did NOT receive a call

This could be for memory/tribute NOT just events…


Another example


High touch… high gift amounts

20 board member pages

$237,534 raised ($143,000 by one board member)

Phone used to stimulate, manage, and help board members with their personal pages


Case study

All callsEmail sent within one

dayNo email sent

within one day

Contacts 1866 939 773

Success – new monthly donor 7.21% 8.18% 6.60%

Success – single gift 0.46% 0.20% 0.65%

Send Form – new monthly donor 3.08% 3.05% 2.91%

Send Form – single gift 0.31% 0.41% 0.22%

Average gift – monthly gift $41.10 £48.53 £36.46

Av gift Val Success – One time $1.32 £0.00 £2.50

Yr 1 ROI 0.86 1.03 0.75

YR 4 ROI 3.77 4.44 2.95


SMSCollect mobile phone numbers during the advocacy action and instead of emailing the thank you text them a thank you.

Then send them a text to give, ask or call that mobile number.


One million text “votes” in 51 days.


When Greenpeace finished the mobile text campaign they had 800,000 new contacts, and 180,000 whom agreed to be called

They called those individuals…

9.65% conversion 9.65% conversion to monthly giving: to monthly giving:

15,38815,388

170,658 called 170,658 called on their mobile on their mobile

phonesphones

50% converted 50% converted to monthly to monthly

givinggiving7.6 million 7.6 million dollars LTV dollars LTV

(over 5 years)(over 5 years)

Average gift 3.28 Average gift 3.28 dollars/monthdollars/month



givinggiving60% said YES60% said YES


givinggivingVoice and Voice and text to build text to build

relationshipsrelationships

282,000 Euros 282,000 Euros in single giftsin single gifts

Medecins San Frontiers Austria


Why we have to get this right

Catholic Relief Services – when someone made a text donation during the Haiti earthquake aftermath they were given a chance to connect to a call centre. The organization believed that “calls could build a stronger bond with donors”. They are right – and we’ve shown you.

Sprint Nextel shut the service down.

Charities need to fight for the FCC to make sure that texts, like telephone calls, cannot be interrupted by phone companies. You can see why it’s important!

Sending a recorded message works too!


Today’s Takeaways…1. Leslie Karp – Defenders of Wildlife proves that the telephone is

an excellent tool to find monthly and single gift donors from online activist files – and the sooner you ask, the better!

2. Deanna Bickford – reinforces Leslie’s point with even more evidence that the phone is your friend when it comes to converting online warm leads to donors

3. Mike Johnston – finished by showing that the phone can help pledge based giving; find donor value in paid social media; been a proven partner with text message giving; and works as a recorded message

4. In the end, using the phone in the right way - at the right time - will vastly improve the value of your online investments


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