Case Iii 2 11 09 Final

CASE III Atlanta

February 11, 2009

Market Research and Integrated Marketing Strategies

Shaping Fundraising Communications

2

Michael JonesSenior Director of Strategic Communications

The University of Virginia

Donna Van De WaterManaging Director & Principal

Lipman Hearne

3Agenda

•The Situation

•The Assignment

•Findings

•Key Insights

•Reinventing the Annual Fund

•Discussion

The Situation

5

The Climate:

• $3 billion campaign concludes 2011

• After the campaign: How do we keep alumni engaged?

• Challenge: Decentralization

6

Decentralized annual fund efforts:

• Schools and Colleges

• Athletics

• Libraries

• Alumni Association

• Other Units

The Assignment

8The work

We wanted to understand how undergrad alumni: • Affiliate with U.Va.

• Engage in giving

• Relate to messages from different U.Va. colleges/schools, departments

• Perceive U.Va. Annual Fund communications⁻ Coordination⁻ Channels⁻ Timing

9The work

What We Did:

• Reviewed current Annual Fund solicitation materials

• “Mapped” key and core messages and support points

• Alumni research• In-depth individual interviews

• Focus groups

• Survey

Findings

11The results

Why do alumni give? • Pride and appreciation for U.Va.

12The results

Why do alumni give? • Pride and appreciation for U.Va.

“I am beyond proud to be an alum of U.Va. I love telling people where I went to school as most of them are visibly impressed.”

13The results

Did the unit-level Annual Funds promote giving?

14The results

Did the unit-level appeals promote giving? • In general, no. Messages weren’t clear:

⁻ What it is⁻ Why it is necessary⁻ How it is used⁻ How it is different from other fundraising

initiatives

15The results

“I have no idea what the Annual Fund is.”

“I’m not sure, but I believe it’s the annual plan for raising money from alumni donations.”

16The results

Strategic recommendation: Reinvent the U.Va. Annual Fund

• Establish a distinct, unified identity for the undergraduate Annual Fund

• Anchor benefit in U.Va. pride and alumni appreciation

• Clearly define Annual Fund uses and value

• Integrate with undergraduate schools – each as a component of the U.Va. Annual Fund

Key Insights

18The results

Insight #1:It’s about the brand.

“My gift is a way of expressing my loyalty to my college or school and my confidence in the University’s future.”

“A gift to the Annual Fund shows that I am proud to be connected to the long history and venerable traditions of Thomas Jefferson’s university.”

19The results

Insight #2:It’s about investing in the brand.

“My gift makes it possible for new generations to have the kinds of experiences that made my own U.Va. education so meaningful.”

“My gift helps give U.Va. the resources necessary to attract leading teacher-scholars.”

20The results

There’s a gap:

• What alumni feel the

Annual Fund is

currently used for

• What they believe it

should be used for.

21The results

Perceived “actual” uses

• Whatever the University feels is necessary/administration/ general use

• Building/facilities

• Program/curriculum/research

22The results

Perceived “actual” uses

• Whatever the University feels is necessary/administration/ general use

• Building/facilities


Top three “important” uses


• Financial aid/student support

• Faculty salaries/recruiting faculty

23The results

Insight #3: Alumni need to know their gift counts.

Why did alumni stop giving?

• Financial reasons

• U.Va. is important, but others need help

more, especially religious and healthcare

institutions

• U.Va. doesn’t need small donations

24The results

Insight #4: Life stage matters.

• 1980-1989 grads particularly constrained by

finances

• 2000-2007 grads have less discretionary income

25The results

U.Va. is not important to me relative to:

1. “My daughter’s college costs”

2. “My son’s high school tuition”

3. “Environmental causes”

26The results

“I’m probably exactly what Virginia wants. The

older I get, the higher they move up on my

list, and I turn down everything else.”

27The results

Insight #5:Pay attention to what you send.

• Avoid “excessive, redundant mailings”

• Be more succinct and tailored

• Stop always asking for money.

• Telephone solicitations are annoying, embarrassing, and intrusive

28The results

“It seems like I will give to one and then turn around

and hear from another. If you could coordinate all

these efforts it would be easier to understand where

my money was going and allow me to plan my giving.”

29The results

“After I make a contribution, please do not send

letters and other literature stating that I have not

yet made a contribution. That makes me feel like

my contribution is irrelevant.”

30The results

There is no “best” time to ask for donations

• Time of life: What was best for some was worst for others

• Time of year: Divergence of preference

• End of year/Holidays • Spring • Fall

31The results

There is no “best” channel to reach alumni

• Online: Best for local alumni clubs, financial solicitations

• Print: Best to convey news

• 63% read alumni magazine

• 25% read letters

Reinventing the Annual Fund

33Reinventing the Annual Fund

Objectives:

1. Clarify and distinguish Annual Fund2. Report on findings to alumni3. Emphasize the value of all gifts4. Coordinate communications more effectively 5. Refine communications mix6. Time appeals based on behavior7. Tailor communications based on segmentation8. Test and track9. Consistently anchor appeals in valued messages10.Continue to poll alumni

34The proposal

Introducing:

The Virginia Fund

• Joint, collaborative fund

• Builds on key U.Va. messages

• Addresses needs of individual undergraduate schools

35The proposal

Components of The Virginia Fund:

1. Communications and solicitations from central development office

⁻ Introduce new fund⁻ Educate alumni about Annual Fund⁻ Make the case

2. Solicitations from schools ⁻ Reinforce central messages⁻ State their own case

. . . Complemented by⁻ Virginia Fund website⁻ New quarterly giving newsletter

36The proposal

Plus internally:

Development Office guarantees each school specific unrestricted funds

. . . ensuring previous fund revenue in the first year

37Recommendations for next steps

1.Clarify and distinguish Annual Fund

• Establish unifying institutional identity

• Emphasize the value of everyday support

• Highlight and illustrate how Annual Fund is used

• Clearly define priorities

“There needs to be more transparency on how the university does business and spends its money. We give and have no clue on what we’re giving to half the time and no clue how the money’s being used.”

“I can never tell which campaign/fund I'm being asked to donate to.”

38

Response

• Consistent language, messaging, and clear definitions

• Messaging developed with schools, with school-focused messaging under institutional brand umbrella

• Ongoing reinforcement of The Virginia Fund as necessary to the everyday life of the University


2. Report findings to alumni

• Alumni want to know they are heard

• Share Annual Fund updates/stories and results through magazines/ newsletters/web pages

“Soliciting feedback/input, through initiatives such as this survey, does a great deal to engage alumni.”

40

Response

• Stories, ads, direct communications remind alumni:

⁻ U.Va. is interested in what they have to say

⁻ U.Va. is improving communications

• Integrate communications across all channels


3. Emphasize the value of all gifts

•Illustrate the value

and power of

collective gifts

•Reward consistency to

keep donors engaged

“The University gets so

much money from

private funds. I do not

think my $50-$100/year

is needed that much.

The school is well-

endowed. Why would

they need my help?

They're doing so well.”

42

Response

• Ongoing communication about the value of annual gifts

• Individual recognition and acknowledgement

letters (templated from central and school

perspectives)

• Features on the web and in Traditions.


4. Coordinate communications

• Create a comprehensive, integrated annual giving communications plan

• Coordinate and track communications through a central operation

• Allow a “grace period” from solicitations after a gift is received

“Even after I've donated, I continue getting calls for that same year. That's highly annoying and makes me consider not donating again.”

“I sometimes get

confused when I get

emails or print materials

from different parts of

the University (i.e.,

alumni association versus

college of arts and

sciences). It can be

difficult to decipher

where the information is

coming from.”

44

Response

• Comprehensive calendar

• Once gift has been made, donor not solicited again

• With exception of possible year-end gift to help meet Annual Fund goals

• Better utilization of coding and tagging will ensure better coordination


5. Refine communications mix

• Most alumni prefer/need more than one method of communication about the Annual Fund

• Better integrate phone-a-thon into overall strategy

• Consider limiting number of solicitations per year

“If [they] only requested

money twice a year that’s

fine. I give annually

anyway.”

46

Response

• Mix of communications and solicitations

• Includes editorials and ads in alumni magazine and

University magazine

• Targeted direct mail, direct e-mail, and viral/web

2.0


6. Time communications according to known giving trends

• Analyze database to determine timing trends for alumni giving

• Build communications plan for alumni to lead up to their “trigger” times

• Make a point in messaging that the University is sensitive to sending excessive communications

• Respect for alumni time and attention

• Responsibility to environment

48

Response

• Thorough analysis of previous annual giving to improve timing of appeals

• Proposed calendar adjusted in response to this analysis

• Establish benchmarks and best practices upon which to build ongoing effort


7. Actively segment the donor base

• Analyze alumni giving behavior and develop metrics:

•By school/college

•By life stage

•By class

•By age

•By geography

•Etc.

50

Response

• Research showed need for segmentation and to fine tune messaging

• Analyze alumni giving behavior with available information

• Assess effectiveness of each communication or solicitation prior to implementing subsequent touches


8. Part I: Test different strategies within specific segments

• Message and channel combinations• Timing and channel combinations• Vary communication mix

Part II: Actively track and measure all results• Response rates• Year-to-year changes• Percent increase in donors• Percent increase in dollars

52

Response

• Integrate Advance and Kintera systems

• Better support gift accounting

• Provide comprehensive metrics and analysis for decision making

• Code all solicitations and communications to facilitate analysis

• Pre-test messages within segmented populations

Recommendations for next steps


9. Consistently anchor appeals in valued messages

• Reinforce the core messages of pride and appreciation in the University

• Emphasize the key reasons alumni value annual giving

• Follow through with the most compelling school/college messages

54

Response

• Show by example

•Annual giving last year enabled 50 doctoral students to make presentations at national and international conferences

• Use testimonials in segmented appeals

Recommendations for next steps


10. Continue to ask alumni to share opinions

• Consider replacing one appeal/email per year with a simple email survey about communication

• Track results year to year – a “communication report card”

56

Response

• Periodically conduct informal focus groups and surveys to assess effectiveness of communication vehicles and messaging

• Report on ongoing results of The Virginia Fund through targeted communications

57Annual Fund message foundation

My gift is a way of expressing my loyalty to my college or school and my confidence in the University’s future.

A gift to the Annual Fund shows that I am proud to be connected to the long history and venerable traditions of Thomas Jefferson’s university.

My gift makes it possible for new generations to have the kinds of experiences that made my own U.Va. education so meaningful.

My gift helps give U.Va. the resources necessary to attract leading teacher-scholars.

School of ArchitectureU.Va. gave me the unique opportunity to study in Jefferson’s campus – itself a masterpiece of architecture, landscape architecture, and planning.

Arts & SciencesIt is an important time to give to U.Va. because it gives me the benefits of a large research university with the personalized atmosphere of a small liberal arts college – and all at a public school price.

Curry School of EducationOur nation needs to know how to train and support the best and most effective teachers and educators because children’s lives are improved through the transformative power of education.McIntire School of

CommerceMy Annual Fund gift expresses gratitude for the impact the McIntire School of Commerce had on my life.

…impact McIntire had on my professional life.

SEASMy annual gift supports the SEAS’s ambitions to be positioned among the nation’s top 20 engineering schools.

…helps keep SEAS at the forefront of science and engineering education by supporting distinctive research projects and student programs.

School of NursingMy gift to the School of Nursing is an investment in the future of the people, programs, and research that will shape the future of health care.

CO

RE

KEY

Questions?

59

Michael JonesSenior Director of Strategic Communications

The University of [email protected]

Donna Van De WaterManaging Director & Principal

Lipman [email protected]

Case Iii 2 11 09 Final

Education

Transcript of Case Iii 2 11 09 Final