GROWING CONSTITUENT ENGAGEMENT LOYALTY, AND LIFETIME VALUE

Constituent Engagement Journey:

• Current Landscape & Trends

• Constituent Engagement Fundamentals

• The Evolution of Nonprofit Operations

AGENDA

The Nonprofit Landscape

Total Fundraising 13%*

In Canada from 2011

Competition for Awareness and Support

# of Nonprofits

161,000 in Canada

Competition for Awareness and Support

3000+ MessagesTargeting Supporters

Every Day

Competition for Awareness and Support

New Donor Acquisition

23.4% since 2006

Competition for Awareness and Support

Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter Results

Renewals & Lifetime Value Mostly Flat

Average Annual Gift/Attrition Rate = LTV

Competition for Awareness and Support

Deepen Relationships& Build Loyalty

FUNDRAISING EMPHASIS: MATURES

Matures

BoomersGen X

Gen Y

GENERATIONAL GIVING

30% 40% 50% 60% 70% 80% 90%$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

% Giving

Tota

l ann

ual g

ivin

g

Boomers

Gen X

Matures

Gen Y

79% Give5.8 M donors$831 yr/avg4.5 charities$4.8 B/yr 62% Give

4.5M donors$639 yr/avg4.0 charities$2.9 B/yr

78% Give6.9 M donors$942 yr/avg4.9 charities$6.5 B/yr

87% Give3.1 M donors$1507 yr/avg7.0 charities$4.7 B/yr

GEN Y GEN X BOOMERS MATURES

55% 54% 58% 55%

45% 55% 35% 31%

21% 35% 47% 56%

36% 39% 38% 30%

29% 33% 40% 37%

11% 23% 36% 58%

22% 29% 37% 34%

22% 24% 29% 29%

24% 20% 25% 20%

25% 19% 11% 9%

15% 14% 12% 14%

5% 9% 15% 18%

7% 5% 4% 9%

4% 9% 4% 4%

5% 8% 4% 3%

12% 4% 2% -

6% 4% 3% 2%

1% 2% 3% 2%

Checkout Donation

Honor/Tribute

Pledge at Event

Door to Door*

Street Canvassing*

Email*

Radio/TV*

Will/Planned Gift

Social Networking Site

56%41%41%

36%35%

32%32%

26%22%

15%13%12%

6%5%5%4%4%

2%

GIVING AMOUNTS

Constituent Expectations Have Changed.

Constituents Want to Engageon Their Terms & in Their Channels

ONLINE FUNDRAISING CONTINUES TO GROW

THE STATE OF ONLINE FUNDRAISING ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT

More good news - Online giving increased 13.7% for the three months ending January 2013 as compared to the same period in 2012

Even more good news – No matter what online benchmark study you look at, revenue is growing, sustained giving is growing and housefile size is up

ONLINE FUNDRAISING GROWTH HAS KEPT PACE WITH RETAIL E-COMMERCE

Sources: Convio benchmark reports 2007-2012 and eMarketer.com

.. BUT PERFORMANCE VARIES WIDELY

* Excludes major, corporate gifts, and planned giving. Source: Convio/ Edge Research survey of integrated marketing practices, Q1 2011

5-20% Raised Online

>25% Raised Online

<5% Raised Online

Peer Solicitation Is Broadly Accepted

Peer to Peer

Mail

Email

Social Media

Phone

Text

52%

41%

28%

22%

15%

8%

% say appropriate solicitation channel (rank ordered by very important –blue)

Did you know?Blackbaud clients raised 70% of event funds raised by the top 30 events in 2011.

04/11/2023 Blackbaud Confidential 20

PEER TO PEER / SOCIAL FUNDRAISING

Lifetime Donor ValueDonor Value 12

MonthsNew Donor Renewal

Rate

VALUE OF MULTI-CHANNEL ENGAGEMENT

Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOneTraditional defined as offline use. Internet Enabled defined as both offline and eCRM use.

34.4%50.9%

Mail

+48%

Multi-Channel

$96

$187

Mail

+95%

Multi-Channel

$314

$694

Mail

+121%

Multi-Channel

MULTI-CHANNEL GROWS TOTAL REVENUE

1990 2000 2010$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

$28M $28M

$47M

OnlineDirect Mail

Multi-Channel Strategy

If You Could…

THE VISION: CONSTITUENT ENGAGEMENT

• Anticipate your constituents’ needs

• Know their interests, passions & preferences

• Offer more relevant interactions & opportunities to engage

You Would…Improve acquisition

& referralsEstablish lifetime

relationshipsGrow support &

fundraising

Constituent Experience

• Disjointed constituent experience

• Fragmented messaging from a variety of channels

• Less engagement

Current Landscape:

• Unified constituent experience

Goal:

Constituent Experience

• Integrated messaging across a variety of channels

• Optimized engagement

Better Engagement with Supporters = Better Results for Your Organization

ConstituentEngagement

Fundamentals

• Constituent Centricity

• Presence in Multiple Channels

• Consistent Branding

• Integrated Process

• Integrated Measurement

Constituent Engagement Fundamentals

CONSTITUENT CENTRICITY

• Align processes and communication to respect constituent preferences, needs and interests

• Tailor channel mix, content and program participation and message frequency

• Ask, “What matters to a constituent?”

A Single Email with Conditional Content

Donor Version

Survivor Version

CONSTITUENT CENTRICITY

CONSTITUENT CENTRICITY

Direct Mail

EmailWeb Page

PRESENCE IN MULTIPLE CHANNELS

PRESENCE IN MULTIPLE CHANNELS

• Get the right message in front of the right person at the right moment.

CONSISTENT BRANDING

Envelope back

Integrated tiger appeal results show 40% better response rate

Offline Appeal

&Envelop

e Online Appeal,Included Envelop

eImage

YEAR OF THE TIGER A MULTIMEDIA YEAR LONG EFFORT

WWF: For 1st time ever, heads of state convene 2 try 2 save tigers. Tell the US 2 commit to global tiger conservation. http://bit.ly/dp0ovd (reply STOP 2 unsub)

Direct Mail Email Social Media TV (Custom Web)

Outdoor Ads

Mobile Web

Celebrity Leadership

INTEGRATED PROCESS

Frequency Target

Q2 wee

k 1

Q2 wee

k 2

Q2 wee

k 3

Q2 wee

k 4

Q2 wee

k 5

Q2 wee

k 6

Q2 wee

k 7

Q2 wee

k 8

Q2 wee

k 9

Q2 week 10

Q2 week 11

Q2 week 12

General Communications

eNewsletter Weekly - Fridays Subscribers

Quarterly Update mailer 2nd Week / Quarter $50+ donors

Gala Promotion

Email Biweekly - Tuesday General

Direct Mail Once $100+ Donors

Telemarketing $200+ Donors

Mother's Day Campaign

Email ~Biweekly - Thursday

Direct Mail Once Prospects, Donors

Telemarketing Select targets

Inbox / Received Send Event

• Establish metrics that: • Measure donor

behavior and campaign performance across channels

• Focus on long-term value

• Collect and aggregate constituent data to correlate and extract meaningful information

INTEGRATED MEASUREMENT

CROSS-CHANNEL CONTACT INFORMATION

KEY ACQUISITION METRICS TRACKED

DONOR CHANNEL MIGRATION TRACKED

Constituent Engagement Fundamentals – Difficult Without Organizational Alignment

• Constituent Centricity

• Presence in Multiple Channels

• Consistent Branding

• Integrated Process

• Integrated Measurement

The Evolution of Nonprofit Operations

• Minimal Online Marketing

• Calendar-Based Campaigning

• Not Financially Committed to Second Channel

• Thematically Integrated

• Limited sensitivity to solicitation frequency

• Decisioning beyond RFM

• Shared Metrics

• Some consolidation of data across channels

Coordinated OptimizedTraditional

• Separate Metrics & Team for Online Marketing

• No Calendar / Campaign Coordination

• 2nd channel constitutes 5-20% Direct Response Revenue

• Separate databases for online/offline

• Unified Strategy & Real-time data integration

• Measures Success Across Channels, Not By Channel

• Donors’ behaviors and interests drives communication stream

• Shared budget and resources

Early Stage

WHERE ARE YOU?

• Integrated marketing sophistication and size don’t closely correlate.

WHERE ARE YOU?

Aggregate and improve constituent data

Consistent messages across channels

Increased personalization & relevance

Dynamic response to interactions

Optimize channel mix & message cadence

THE TRAJECTORY OF NP EVOLUTION

Aggregate and improve constituent data

Keys to Evolution

• Organizational Alignment

• Technology / Infrastructure

Traditional

• Separate Metrics & Team for Online Marketing

• No Calendar / Campaign Coordination

• 2nd channel constitutes 5-20% Direct Response Revenue

• Separate databases for online/offline

Communications

Development

IT

Others (?)Government Affairs

Traditional

ORGANIZATIONAL ALIGNMENT

Coordinated

Coordinating Teams

Communications Development

Government Affairs

IT

Coordinated

• Thematically Integrated

• Limited sensitivity to solicitation frequency

• Decisioning beyond RFM

• Shared Metrics

• Some consolidation of data across channels

ORGANIZATIONAL ALIGNMENT

OptimizedCoordinating

Teams

Development Online Communications Marketing

Optimized

• Unified Strategy & Real-time data integration

• Measures Success Across Channels, Not By Channel

• Donors’ behaviors and interests drives communication stream

• Shared budget and resources

ORGANIZATIONAL ALIGNMENT

Support Business Units

Infrastructure Challenge

Track Performance

Add New Channels

Coordinate Departments

Integrate Systems

Understand Data

REMEMBER: IT IS AN EVOLUTION.

• Identify where you are and map your key 2013 steps now…today, while you’re thinking about it!

• Every step toward Constituent Engagement will have an impact on your bottom line.

• Start with fundamentals.• Evolving understanding of metrics can drive you forward

faster.• Be aware of opportunities to evolve the operational

structure – shared goals, team alignment, technology

IN CONCLUSION

• More donors does not mean more engagement or revenue but more engaged donors will mean more revenue/LTV.

• Donors feel more engaged and more inclined to give if they are hit up on multiple channels with consistent messages

• Therefore, your organization needs to be organized to ensure a consistent and integrated experience on multiple channels. No silo’s.

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