CharityComms Engagement conference

Michele MaddenManaging Director

• Trust

• Financial values

• Compatibility/shared values

• Communication

• Dealing with conflict, external adversity or crisis

It’s complicated…

2

3

4

“It is not simply enough to blame sections

of the media: senior journalists in newspapers traditionally supportive of charities tell us that their postbags are full of complaints about fundraising”

-Stuart Etherington

Ageing

• Population is ageing

• Behaviours and attitudes of younger demographics often resist popular preconceptions

• The path of life is no longer a straight track

• Individuals within British society are entering traditional lifestages at later points in their lives

• At the same time we witness delay creeping into later life-events - such as retiring and re-marriage - too.

• Growing acceptance in society that traditional lifestages do not have to happen at set times

• Clear shift towards less rigidly structured and less predictable life trajectories

Age at first marriage and re-marriage on the rise

Average age at first marriage and at re-marriage after divorce | Data released in March 2012

20

25

30

35

40

45

50

1962

1966

1970

1974

1978

1982

1986

1990

1994

1998

2002

2006

2010

Men

Women

20

25

30

35

40

45

50

1962

1966

1970

1974

1978

1982

1986

1990

1994

1998

2002

2006

2010

At first marriage At re-marriage after divorce

Source: National Statistics/nVision | Base: England and Wales, 2010

Moving out of the parental home later in life

% of people aged 16-34 living with their parents (see notes for details)

0%

20%

40%

60%

80%

100%

16

17

18

19

20

21

22

23

24

25

26

27

28

1997 2002 2007 2012

% of men aged 20-34 living with parents(Projection)

Source: Labour Force Survey, ONS/nVision | Base: Individuals aged 16-34, UK

199725%

201932%

Age of withdrawal from the labour market

59

60

61

62

63

64

65

66

67

68

2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Men observed Men forecast

Women observed Women forecast

Source: Pension Trends/ONS/nVision, UK, 2012

So what…

• Major life events become less wedded to a particular age group, age-based assumptions regarding a person’s particular lifestage or situation are weakened

• Attitudes can remain an important differentiator across the age spectrum - broadly speaking, older generations are more traditional, conservative and less enamoured by all forms of modern technology - weakening

• People have to reconsider their financial planning behaviourso Many young UK adults remain financially dependent on their parents for longer, placing a greater

burden on parents of older children

• Period before family planning and formal relationship building is stretched, devoted to personal development

• More people starting a family once made significant progress in a career – more to juggle

• The power of “youth” as a marketing concept will not be diluted, defined not in terms of rigid demographics, but in terms of lifestyle, attitude and “spirit”

Trend in action

Trust and transparency

• General push from all quarters for greater openness and penetrability in all corporate communications

• Fuelled by widespread mistrust felt towards large corporations

• Spread to the voluntary sector

• But there is a contradiction. Although consumers say they want complete transparency, the extent to which most are willing to engage with corporate/charity intelligence is limited

• A world of managed transparency - one where companies and charities provide a degree of backstage access that is sufficient enough to reassure. It is a process that is bound to become more prominent in the years ahead

0%

20%

40%

60%

80%

100%

Tota

l

Male

Fem

ale

16-2

4

25-3

4

35-4

4

45-5

4

55-6

4

65+

Agree strongly Agree

Concerns and expectations

0%

20%

40%

60%

80%

100%

2009 2012

2013 2014

Source: nVision Research │ Base: 4941 online respondents aged 16+, GB, 2014

“Companies should be penalised for failing to care for the environment” | % who agree or agree strongly

“When I download and use an app on my mobile phone, I am concerned about who my personal information/ data is shared with” │Among smartphone owners % who agree

strongly or agree

51%

70%

66%

53%

Sep 06 Jul 07 Jul 08 Nov 08 Jul; 09 Jan 10 Jan 11 Jul 11 May 12 May 13 Apr 14 Apr 15

Charities

“Below is a list of public bodies and institutions. Please indicate, by ticking in the appropriate column, how much trust you have in each of the bodies” A great deal or quite a lot

Base: 1,000 adults 16+, Britain. Source: Charity Awareness Monitor, April 15, nfpSynergy 13

We predict public trust in charities to continue declining after a tough summer

So what….

• Increasingly, consumers can verify claims while in store simply by scanning products with a smartphone app

• A number of brands have given the consumer an all-access-pass, enabling them to view decision-making and production processes

• Elsewhere, several high-profile business leaders have chosen to take a more public-facing role in the communication of corporate errors

• CSR policies of tomorrow will be of central importance to a corporation’s credentials

• How can charities respond to this trend as consumers become more used to engaging with tools and sources of information to scrutinise and inevitably become more demanding?

The reward of transparency

Base: 1000 adults 16+, BritainSource: Charity Awareness Monitor, July 13, nfpSynergy 15

o 64% of 16-24s

o 64% of ABs

Trend in Action

Options to reassure supporters

17

• UK has suffered four recessions since 1980 but real value of family wealth doubled between 1987 and 2009

o Even the poorest quintile has seen (by mid-10s) real incomes grow by 200% since 1997

• As wealth expands and incomes rise consumers grow confident in the future

• Basic needs are almost universally met and luxuries/indulgences more affordable

• Consumers are likely to entertain ideas/ambitions beyond mere value-for-money, to be interested more in ethics, environmentalism, the cultural identities of brands…

• Affluence is naturally expected to swell. Interruptions (downturns, austerity...) are extremely disruptive

• A steady 60% of British consumers confirm that each month they “carefully budget” their personal finances

Finances

Gross personal disposable income growth

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015 (

f)

2017 (

f)

2019 (

f)

Source: Oxford Economics/nVision, UK, 2015

Real personal income | August 2015 forecast

Donor confidence fluctuating

102

107

96

103

82

111

107

70

80

90

100

110

120

Jan-10 Jan-11 May-11 Sep-11 Mar-12 Nov-12 Mar-13 Jul-13 Nov-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15

Donor Confidence Index Consumer Confidence (EC)

Source: Charity Awareness Monitor, nfpSynergy Base: 1,000 adults 16+, Britain

So what…..

• In many places, worrying about employment and income is associated with the imperative of control

o Where careers are unstable, savings unprofitable, pensions unreliable, household costs high... individuals keep themselves - and their households - in check

• Make do and mend. Moderation is generally favoured as a high social value.o Increasing personal wealth no longer legitimises over-indulgence or recklessness

• Lag effect from the recession, awareness of austerity to come – cautious optimism

• How to engage and encourage cautious supporters?

Long term but low level engagement

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Digital revolutions

• No stopping the growth of computer power or storage capacity – Moore’s law

• Online everywhere

• Instant communication and immediate information

• Everybody is connected - a non-presence on social media is an eccentricity

• Lack of privacy and the inability to hide - perceived benefits generally trump such concerns

• Ever fewer activities are, by necessity, location-specific

• Communication technologies become more portable, versatile, multi-functional. Virtually anything can be achieved on-the-go and be tracked

• Cashless societyo Expectations about in-store service and speed will be reshaped

o Death of the ATM? With NFC-enabled mobile phones, our cash will be in our hand

The digital world

24

89%

75%

350,000

So what….

• Information never so readily accessible, expectation that consumers can find the facts they want

• Swamped by it – using intermediaries, who are yours?

• Social networks used most by young people – future growth will be in older age-groups

• Service development to help, opportunities to engage

• Care and respect of data – build trust and long term relationships

In July 2014, Singapore-based healthcare start-up Healintreleased Migraine Buddy - a new mobile platform which helps

patients and doctors work together on migraine care.

.

Trend in Action

•

Launched in early 2015, pplkpr is an iOS app which uses biometric information measured through a heart rate wristband to monitor and auto-manage its users’ relationships.

Trend in action

27

• Living in an affluent world, time-poor, ever changing, never settling, easily bored – brief encounter

o If you can catch someone’s attention, it will not be for long

• Instant gratification and increased service levels

• Increased personalisation – algorithms, data collection, recognition

• Multiple forms of communication, what language are you speaking?

• Change from acquiring things to acquiring experiences, skills, knowledgeo Want to display these

o Personal views, ethics and standpoints

Personalisation and engagement

Time pressure : fuelling the desire to manage lives?

0%

20%

40%

60%

80%

100%

Tota

l

Male

Fem

ale

16-2

4

25-3

4

35-4

4

45-5

4

55-6

4

65+ AB

C1

C2

DE

Genera

tion Y

Genera

tion X

Baby-b

oom

ers

2010 2013 2014

Source : nVision Research │ Base : 4959 online respondents aged 16+, GB, 2014

“I am often under time pressure in my everyday life” | % who agree strongly or agree

Multiple network membership

Source: nVision Research │ Base: 5002 online respondents aged 16+, GB, 2014

% of users of the services listed below

who are also users of the services listed

right

Facebook Instagram Twitter YouTube Google+ Pinterest Tumblr Whatsapp Snapchat

Instagram 91% 73% 82% 42% 24% 24% 58% 39%

Twitter 90% 31% 81% 36% 15% 16% 36% 20%

Google+ 76% 18% 36% 71% 12% 11% 28% 11%

Pinterest 87% 38% 57% 79% 46% 27% 37% 22%

Tumblr 88% 48% 74% 89% 49% 35% 37% 40%

Whatsapp 86% 32% 47% 77% 36% 13% 11% 24%

Snapchat 92% 55% 66% 83% 36% 20% 29% 59%

“Which of these websites/mobile apps have you used in the last month?” │ 2014

So what…

• Living in an always-on world means that brands need to be available and respond when consumers want to engage and in the way they want to engage

• Consumers are developing a sophisticated understanding of the tonalities of different conversation formats o Brands must be comfortable interacting with existing and prospective customers

in a number of languages, switching as appropriate

• New problems inevitably arise : if a consumer makes a complaint, for instance, in the form of a short-form, self-destructing video-message, which format would the appropriate response take?

• Understanding the relationship individuals want to have with you is at the heart – the relationship we have with one brand is not the same with all

Trend in action

Confide’s “swipe-to-reveal” message-reading prevents screenshots.TigerText allows you to send texts

that cannot be copied or forwarded

Trend in action

33

Personalisation of messages82% “feel

negatively towards any organisation that sends me badly targeted

marketing communications”

2-6 Tenter GroundSpitalfields London E1 7NH

020 7426 8888 insight@nfpsynergy.netwww.twitter.com/nfpsynergy www.linkedin.com/company/nfpsynergy

www.nfpsynergy.net

Registered office: 2-6 Tenter Ground Spitalfields London E1 7NH. Registered in England No. 04387900. VAT Registration 839 8186 72

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Engagement

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22 October 2015

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