Doubling Your Christmas Appeal Appeal Income July 2009 Toronto V1 Jg

Unwrapping the magical steps to doubling your Christmas

appeal income

1. Setting the scene

What we’ll cover today


2. Uncovering the magical steps


steps




steps

3. Busting some myths




steps

3. Busting some myths

4. Final takeaways

This is why we do what we do

What do you want?

• Solicitation by direct mail (to individuals)

• For the purposes of today to existing donors (warm, in-house)

• With an ask for cash (or a monthly gift) and/or

Defining an appeal

• With an ask for cash (or a monthly gift) and/or a request to take some other action (I.e.

survey)

• Developed 22 Christmas appeals in 2008• In Australia, NZ, Hong Kong and Canada

• 13 up on income versus 2007, 9 down on 2007

• Overall income 2008 around $8.5m CAD versus $8m CAD

in 2007

What are we seeing?

in 2007

• Individual giving still on the rise• Monthly giving strong, still growing

• Cash giving stagnant (donors over $1k not giving at same levels)

• Organizational income falling • Specifically corporate support

• Developed 18 appeals in May/June 2009• In Australia, NZ

• 7 up on income versus 2008, 11 down on 2008

• Overall income 2009 around $9.9m CAD versus $9.2m

CAD in 2008

What are we seeing?

CAD in 2008

Uncovering the magical steps

1. Targeting the right people



2. Asking for the right thing




3. Getting the message right





4. Getting the letter right






5. Getting personal






5. Getting personal

6. Getting the execution right






5. Getting personal


7. Making it easy to respond






5. Getting personal



8. Getting the follow up right






5. Getting personal




9. Test, test and test again

Talking to different people

How do I decide who to ask?

Recency Frequency Value


indicates likelihood of

giving

indicates likelihood of

giving

indicates how much they will give

RecencyRecency FrequencyFrequency ValueValue

0-12 months >1 a$1000+

13-24 1 b$500-$999.99

25-36 c$250-$499.99


37-48 d$100-$249.99

49-60 e$50-$99.99

61-72 f$25-$49.99

73-84 g$10-$24.99

85+ h$0.01-$9.99

RecencyRecency FrequencyFrequency ValueValue

0-12 months >1 a$1000+

13-24 1 b$500-$999.99

25-36 c$250-$499.99

Drilling down

37-48 d$100-$249.99

49-60 e$50-$99.99

61-72 f$25-$49.99

73-84 g$10-$24.99

85+ h$0.01-$9.99

How often should I ask?

Ask

ThankThankThe donor

communications

© Pareto Fundraising May 2008

CareAsk

communications cycle

Some tips

• RFV is the most important thing to drive the success of your appeal

• Consider different packs for different audiencesaudiences

• Include confirmed bequestors, monthly givers if they have given historically

Segment R F V Qty to Mail Ask 1 Ask 2 Ask 3

001 0-12 >1 $500+ 246 *1.5 *2.5 *4

002 0-12 >1$100-

$249.99 1,011 *1.5 *2.5 *4

Asking for the right thing

003 0-12 >1 $50-$99.99 2,555 *1.5 *2.5 *4

004 0-12 1$100-

$249.99 4,340 *1.5 *2.5 *4

005 0-12 1 $50-$99.99 6,618 *1.5 *2.5 *4

006 13-24 >1$100-

$249.99 1,330 *1.25 *2 *3

• Based on previous donation patterns

• Used to prompt increase of donation amount

• Consider using highest gift, last gift,

Personalized asks

• Consider using highest gift, last gift, average gift prompts to elevate gift level

• Based on previous donation patterns

• Used to prompt increase of donation amount

• Consider using highest gift, last gift,

Personalized asks

• Consider using highest gift, last gift, average gift prompts to elevate gift level

• Repetition of ask � increases response

• Personal (and increased) ask amount �increases average gift

Personalized asks

Some tips

• “I need you to <insert action>…”

Some tips


• “This is the most important letter I have ever written…”

Some tips

written…”



Some tips

written…”

• “…respond by the 30th of June..”



Some tips

written…”


• “I need to raise $250,000”



Some tips

written…”


• “I need to raise $250,000”

• Singularly focused**

• What the single most important thing is that you want them to do (proposition)

• Why they should give you money

• By when

Remember to tell them

• By when

• All of this in the first 3 paragraphs and in the P.S.

Singularly focused

Asking for two things

Emotion

A story

Repetitive and personalized asks

Urgency

Target and deadline

As long as it needs to be

Colloquial language

• Emotion

• A (human) story

• Repetitive and personalized asks

• Urgency

A recap: what you must have

• Urgency

• Target and deadline

• As long as it needs to be

• Colloquial language

• Make the recipient feel like an individual

• Apply the limited resources to where you will get the best return

• Use survey information

A guide to personalization

• Use survey information

• Acknowledge previous giving

• Recognize if they make monthly gifts or have included your charity in their Will

Using the data

Using the data, donor type

Using the data, area

Use transactional history

Using survey information

Creating emotional connections

Creative is more than pretty pictures

• A brilliant letter

Creative execution: must haves


• Lift devices support the letter




• Authenticity




• Authenticity

• Follow up/reminder mailing for ‘larger’


• Follow up/reminder mailing for ‘larger’ mailings

The end result?

Heart FoundationHeart Foundation

• Eliminate barriers or distractions

• Make sure the reply mechanism integrates with the letter

• Include an involvement device where

Ease of response

• Include an involvement device where there is an opportunity to do so

• Minimize response channels*

• Thanking

• Measuring response

• Feeding back – the impact on beneficiaries

• Post campaign de-brief

Getting the follow up right

• Post campaign de-brief

• Develop an acknowledgement strategy

• Thank promptly

• Use of the words ‘thank you’

• Personalized response

Thanking

• Personalized response

• Include handwritten notes and PS where possible

• Don’t ask the donor to do anything else

Measuring response

47.6%

61.8%

50.0%

60.0%

70.0%

HV PACK

STD PACK

Gift level versus ask

30.1%

22.3%19.6% 18.6%

0.0%

10.0%

20.0%

30.0%

40.0%

<Ask1 Ask1 >Ask1

8%

16%

Sent Letter only

Impact of involvement devices

75%

Sent Donation, no Letter

Sent Letter AND Donation

Mailed RR% Gross income Net

income Ave Gift ROI

Cash Appeal Donor 0-12 35,142 26.0 $ 1,192,133 $ 1,105,750 $ 130 13.8

Cash Appeal Donor 13-24 10,565 17.0 $ 210,445 $ 184,867 $ 117 8.2


Measuring recency


Cash Appeal Donor 37+ 8,238 4.5 $ 46,751 $35,359 $ 127 4.1

Responded to End of Year appeal

You’ve already helped us get off to a great start with your gift to our recent appeal in support of our work in tackling dangerous climate change.

Feeding back

our work in tackling dangerous climate change. Thanks to your< gift of $<don> – and the

overwhelming response that I received from your fellow supporters – we’ve raised the $250,000

we need to double our climate change campaign this year.

• Ask prompts (highest gift v last v average)

Consider testing


• Impact of lifts

Consider testing


• Impact of lifts

• Impact of involvement pieces

Consider testing


• Impact of lifts


• Long term cohort tests

Consider testing



• Impact of lifts



Consider testing


• Letter length

• Don't test for the sake of testing

Some rules


• Test stuff that will have an impact, not because it seems like fun

Some rules



• Make sure the volumes are sufficient to make

Some rules

• Make sure the volumes are sufficient to make the results statistically valid



• Make sure the volumes are sufficient to make

Some rules

• Make sure the volumes are sufficient to make the results statistically valid

• Ensure you think through what the hypothesis of the test is

A recap: Uncovering the magical steps





5. Getting personal




9. Test, test and test again

“It won’t work in a recession”

MSF Canada Seasonal Appeal 2009

Did it work?

• Net income increased from $1.0m to $1.7m

• Response rate increased from 14% to 18%

• Reactivated over 2,500 donors

Why did this work?

• Brilliant, empowering copy that asked repetitively

• We stretched people (HG in last 2 years

x 1.25)x 1.25)

• It was authentic

• It was really easy to respond

• We reminded donors of the importance (3 weeks later)

Starlight Foundation May Appeal 2009

Did it work?

• Gross income $614,000 (AUD)

• Net income $500,000 (AUD)

• Doubled income from previous year

• Most successful appeal ever• Most successful appeal ever

Why did this work?

• Brutally honest

• Genuinely urgent

• It was personal (30 uses of the word 'I' and 20 uses of the word 'you' in a four page letter)uses of the word 'you' in a four page letter)

• It pulled at the heart strings

• Managed to maintain credibility despite crisis

“It only works for big charities”

• Australian charity with small individual database

• Attended a Pareto Fundraising workshop

• Interviewed service workers for a story

• Segmented database by RFV and tailored ask

“It only works for big charities”

• Segmented database by RFV and tailored ask

• Wrote a 3 page letter and separate response mechanism

– CEO said: ‘No one will read this’

• Created a sense of urgency and emotion

From this

To this

Samaritians Appeals (Before and After)

$100,000

$120,000

$140,000

$160,000

$138,000

The impact

$0

$20,000

$40,000

$60,000

$80,000

$100,000

Winter 2004 Winter 2005

$89,000

$138,000

“Don’t send appeals to monthly givers”

$89,000

$138,000

ResponseRate Recency Prev gifts Value

26.13% Monthly Givers 0-12 Multi $100+

17.43% Cash only 0-12 Multi $100+

4.14% Monthly Givers 0-12 Single $100+


$89,000


2.38% Cash only 0-12 Single $100+

48.66% Monthly Givers 0-12 Multi $50-$99.99

20.44% Cash only 0-12 Multi $50-$99.99

6.73% Monthly Givers 0-12 Single $50-$99.99

5.93% Cash only 0-12 Single $50-$99.99

$138,000

ResponseRate Recency Prev gifts Value

26.13% Monthly Givers 0-12 Multi $100+

17.43% Cash only 0-12 Multi $100+

4.14% Monthly Givers 0-12 Single $100+Monthlies rock!


$89,000


2.38% Cash only 0-12 Single $100+

48.66% Monthly Givers 0-12 Multi $50-$99.99

20.44% Cash only 0-12 Multi $50-$99.99

6.73% Monthly Givers 0-12 Single $50-$99.99

5.93% Cash only 0-12 Single $50-$99.99

Monthlies rock!

$138,000

BUT, there is an exception..

$89,000

$138,000

Recruited straight to regular giving by…

Cash Given (ie have they given a one off donation since recruited?)

Response Rate

Street recruits don’t respond

$89,000

Other No 11.40%

Face to Face No 1.10%

Other Yes 23.80%

Face to Face Yes 7.10%

$138,000

Mailed Cost RespResp Rate

Avg Gift Income ROI Net Income

“No one will read a long letter”

$89,0004 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769

2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129

$138,000

Mailed Cost RespResp Rate

Avg Gift Income ROI Net Income


$89,0004 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769

2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129

4 pages beats 2 pages

$138,000Mailed Resp Rate Gross Income Average Gift Net Income ROI


$89,0004 page letter 4,083 11.6% $21,624 $46 $19,056 0.89

6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98

$138,000Mailed Resp Rate Gross Income Average Gift Net Income ROI


$89,0004 page letter 4,083 11.6% $21,624 $46 $19,056 0.89

6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98

6 pages beats 4 pages

$200,000

$250,000

$300,000

5.00

6.00

7.00

8.00

9.00

10.00

RO

I

Real charity - change in ROI

ROI

“ROI is the most important measure”

$0

$50,000

$100,000

$150,000

0.00

1.00

2.00

3.00

4.00

5.00

RO

I

$150,000

$200,000

$250,000

$300,000

5.00

6.00

7.00

8.00

9.00

10.00

RO

I

Real charity change in ROI and Net income

NetROI

“ROI is the most important measure”

$0

$50,000

$100,000

$150,000

0.00

1.00

2.00

3.00

4.00

5.00

RO

I

Final takeaways

• Ask when you need the money, feedback and care

Final takeaways


• Always remember you are mailing real people – think about your own relationships– think about your own relationships

Final takeaways


• Always remember you are mailing real people – think about your own relationships– think about your own relationships

• Be disciplined with your direct marketing

Final takeaways


• Always remember you are mailing real people –think about your own relationshipsthink about your own relationships


• Scan what’s happening around you, including abroad

Final takeaways


• Always remember you are mailing real people –think about your own relationshipsthink about your own relationships


• Scan what’s happening around you, including abroad

• Apply the Pareto Principle

The Pareto Group exists to make the world a better place, by expanding the not-for-profit

sector's capacity worldwide to ensure as sector's capacity worldwide to ensure as many beneficiaries are helped as possible.

[email protected]

www.jonathongrapsas.blogspot.com

416 915 4114

www.paretofundraising.com

Doubling Your Christmas Appeal Appeal Income July 2009 Toronto V1 Jg

Education

Transcript of Doubling Your Christmas Appeal Appeal Income July 2009 Toronto V1 Jg