How to knock down silos with a hammer how do siloed organizations become more integrated final afp

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How to Knock Down Silos With A Hammer!How do siloed nonprofit organizations

become more integrated?

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At the end of the session, we’ll ask you to go online and fill out our integration survey. We’ll select 1 WINNER to receive complimentary 1-hour integrated fundraising consulting session

http://www.surveymonkey.com/s/MK85BCT

Take our survey at the end of the session!

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1) Be better at planning and executing cross channel and integrated fundraising and communications

2) Understand that this will lead to improved cooperation between “competing” departments within your nonprofit organization

3) Understand how to embed innovation into your fundraising culture

4) Look at what channels work for you

5) Making the right investment to reach your target audience

Learning Outcomes

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1) Our Take on The Barriers to Integrated Marketing

2) Our Current RealityWhat is driving changes in how we fundraise?

3) IntegrationWhat’s the value of being integrated?

4) Self-AssessmentWhere are you as an organization?

5) Facilitated SolutionsHow do you align culture, staff, and technology?

6) Evidence – Put It All TogetherWhat does integration look like in the real world?

Today’s Agenda

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Our ‘take’ on What’s Stopping Integrated

Fundraising

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• Fear of risk

• Lack of vision

• Personal Ego

Harvey: What’s Stopping Integrated Marketing

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• Lack of shared goals

• Lack of exploration of opportunities

• Ego (also)

Greg: What’s Stopping Integrated Marketing

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• Lack of budget

• Lack of skill sets

• Internal competition

Mike: What’s Stopping Integrated Marketing

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What have we missed and you want to cover today?

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Our Current Reality

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1) Nonprofit offline donors are aging

2) Donor files and acquisition list sources are shrinking

3) Donor Fatigue is evident

4) Revenues are flat and – in many cases – are falling

5) Direct mail costs are increasing/ fundraising margins are shrinking

6) Online – when keep in a silo - underperforms

Nonprofits need younger more valuable donors

More personal relationships with loyal donors

Investment in a multi-channel approach

WHAT’S MISSING IN YOUR CURRENT REALITY?

Current Reality

Online donor retention of single gift donors can be terrible...

Year Acquired Number Acquired Gave in Year 22006 99 32.30%2007 1736 24.20%2008 3194 19.30%2009 2913 26.40%2010 76562011 7570

25.5% average retention rate

Benchmark 28%

How can we improve this?

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IntegrationThe Value

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• Integrated Marketing Benefits• Deepens constituent loyalty and increases lifetime value

• Strengthens the brand

• Engage new audiences, grow revenue, and maybe even save money.

The Three Main Benefits

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Value of Multi-Channel: Loyalty

Retention Rate2Annual Donor Value1

Sources: 1. Convio / Strategic One White Paper: Integrating Online Marketing (eCRM) with Direct Mail Fundraising: Adding a New Communication

and Donation Channel Increases Donations; total contributions over 12 month period, excluding $10k+ gifts for SPCA of Texas2. Ibid. Comparison of retention rates for multi-year donors, SPCA of Texas

82.3%

70.1%62.3%

$102.64

$191.35

$255.74

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Self-AssessmentWhere Are You in the Multi-Channel Evolution?

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Where are you?

• Online Marketing Makes Minimal Contribution

• Calendar-Based Campaigning

• Not Financially Committed to Second Channel

• Thematically Integrated

• Coordinated Appeals

• Integrated Calendar

• Shared Metrics

• More Stuff, More Channels

Coordinated IntegratedSilos

• Separate Metrics & Team for Online Marketing

• No Calendar / Campaign Coordination

• Online Constitutes 5-25% Direct Response Revenue

• Unified Strategy & Full Integration Across Channel Managers

• Measures Success Across Channels, Not By Channel

• Seamlessly Integrates New Media across channels

• Shared success, budget and goals

Single

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• “1” = Silos, “5” = Coordinated, and “10” = Integrated

• Where do you fall on the scale?

On A Scale of 1 to 10…

DIRECT THE RIDER

MOTIVATE THE ELEPHANT

SHAPE THE PATH

How are you doing?

What’s happening next door.

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• Leadership commitment to the philosophy

• Planning and investing in the systems & process to make it happen

• Removing silos between teams and departments

Three Factors for Integration

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Making It HappenOptimizing Talent and Finding Leverage

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An integrated approach for Sick Kids

• The cultivation survey:

• Sent to 57,400 donors

• 3 key segments: Monthly, Active & Lapsed

• 5,530 responses (response rate of 11%)

• Raised $17,574 – a bonus!

• Reactivated 30 donors

• Found 85 expectances and 292 legacy leads and 143 middle and major donor leads!

• Key: shared budgeting!

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Country Planned Gifts revealed

Planned Giving or Major Gift leads

Canada 22 232

United States 52 164

Mexico 9 1,043

Netherlands 196 345

Australia 147 600

New Zealand 92 244

It’s happening around the world

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Holiday 2011 Campaign

The campaign featured a landing page, which displayed “messages of hope”, left by constituents when they were making donations.

The landing page also featured a video with a brief explanation of what the BC Cancer Foundation is, a campaign thermometer and a promotion of the ability to send eCards.

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Holiday 2011 Campaign

The campaign was active for about three weeks, ending on December 31, 2011. It included:

1. Google AdWords Search Network (Paid Account)

2. Google AdWords Display Network

3. Google AdWords Search Network (Google Grant Account)

4. Email – 4 waves

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eCard

DM engagement device

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Results and Learnings

Overall Revenue: 1,272 gifts, $275,003, $216.20 average gift

1. Big Breakthrough #1: Google Search, Adwords - $2,500 spent with a return of $58,000.

2. Big Breakthrough #2: Integration across channels worked

3. Big Breakthrough #3: More emails, with personalization and e-cards, led to more money online

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• Brand is perceived as authentic

• They had no online fundraising presence and non integration in the recent past

A Public Broadcaster

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• 2nd gift conversion dropped from 83% to 30%

• Net loss of donors since 2005.

• LTV of donors decreasing significantly since 2001

• Magazine, which was the primary stewardship vehicle, stopped in 2007.

• Share of voice, i.e.number of times donors hear from TVO in a year, has decreased.

Things needed to be improved

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• Senior management support

• Cross departmental cooperation

• Create an integrated plan and stick to it

It would take an integrated solution…

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Online and offline integration

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Bring back Print Media

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Launched Symbolic Giving

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• Q3 - 26% increase over same quarter previous year

• Q4 - 40% increase over same quarter previous year

Results - 2010

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Results – 2010 and 2011

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• So what did you learn today?

• One more time…integrated communication works!

• Where is your organization in the multi channel journey?

• How do you get buy in at the senior level and then if you make an integrated plan – stick with it!

The stirring conclusion…

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http://www.surveymonkey.com/s/MK85BCT

Remember to fill out the online survey to win FREE

consulting session!

How to knock down silos with a hammer how do siloed organizations become more integrated final afp

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