Microsoft PowerPoint - Phonathon Strategies (00067352)

PhonathonStrategies

Introducing…

Gordon Dowell

Today’s Agenda

1. Various approaches to telemarketing—in-house versus outsourcing.

2. Volunteer versus paid callers.

3. Staffing for the phonathon—professional versus student management.

4. Environmental factors impacting phonathonproductivity.

5. The phonathon as an integral part of the annual giving program.

GettingDonors toGive Every

Year

GettingProspects

To Give

GettingDonors toIncreasetheir gifts

Annual Giving is about three steps:

Face to face calls

Direct Mail

Internet/philanthropy

Phone

Events/Mass Marketing

• Phoning large lists of prospects• Phoning special targeted audiences• Phone a single person

Face to face callsVolunteers, officers/staff, or development staffTarget messagesDirect and immediate feedback from donorVery personalizedDifficult to reach large numbers of donors

PhoneVolunteers, officers/staff, or development staffTarget messagesDirect and immediate feedback from donorRelatively personalizedEasier to reach large numbers of donors

Direct MailAble to reach almost 100% of the listCan customize appeal by individual, by group, or use common appealUnsure of donor response to message

PhoneCan reach a large percentage of the prospect listCan customize appeal by individual, by group, or use common appealRegular feedback from donors; know who was reached.

ePhilanthropyRequires either donor initiated (web-sites) or response to appeal (email)Ability to customize message, but normally a generic appealCan track donor actions, but requires donor action to initiate effortsCreative opportunities

PhonePro-active solicitation effortCan customize message, but unfortunately often a generic appealFeedback and tracking of donorsPerson to person approach

Events/MediaLess pressure by many for making asksAble to attract new prospectsCan be expensive cost to raise a dollarBest for community/ regional donor bases

PhoneMust be able to make an askConfined to known prospectsShould be cost effectiveCan be regional or nationalFits many causes and organizations

In-house versus outsourcing

In-house normally refers to phoning done on your campus or site. – Run by your staff– Run by an outside firm on your site

Outsourcing is for a firm with a phone bank to make calls on your behalf.

Partial list of firmsAria CommunicationsDirect Line TechnologyIDCLester IncRuffaloCODYTelecomp, Inc

Number of prospects– 30 per hour or 100 per night

Quality of data base– Good phone numbers– Good addresses and email addresses

History of program– Donor relationships; nature of appeal– Past solicitation history

Space, phone lines, and security issues

Key factors to consider in determining your strategy

AdvantagesEase of starting; flexibilityControl over phoners and messageLow initial cost for limited sized programs.Message from campus

In-house: Advantages/Disadvantages

In-house: Advantages/Disadvantages

DisadvantagesNeed for space and phonesChallenges of managing activity, especially evening activitiesFinding phonersLimits on timing and strategy

Outsourcing: Advantages/Disadvantages

AdvantagesEase of management—though not hands offScalableProfessionalism of operations and follow through systemsFlexibility of dates and times

Outsourcing: Advantages/Disadvantages

DisadvantagesRelationship with some donors is lessenedDoes not build internal skills or ownershipFull costs are accounted for and, therefore, seem steep

Best Practices:Kansas State University

Personal and PassionateEconomy and efficiency

Shared histories

Career advise

Course/faculty pointers

Hometown/home state matches

Pride


http://www.found.ksu.edu/telefund/index.htm

Attitudes and opinions of President / board / leadershipSize of your development operation

InstitutionalFactors

How should you decide?

In-house or external data baseQuality of dataPast linkages to prospects/donors

– How did they become donors?



ProspectData Base

Dollar targets for upcoming year– New dollars– Dollar retention targets– Upgraded gifts

Donor targets for upcoming year– New donors– Retention targets– Upgrades

Budget for annual giving– Total budget– Cost to raise a dollar for one year– Three- to five-year targets



ProspectData Base

Goals andPlans

Beyond annual giving– Competition for budget or

management talent– Other efforts underway

Direct Mail

ePhilanthropy

Volunteer driven

Staff calls on key prospects



ProspectData Base

Goals andPlans

Other Programs/Strategies

Volunteer versus paid callers

First paid phoners from the 1970s at the University of Minnesota. First major paid phoner firm was IDC’s Phone/Mail in the early 1980s.Automated phoning emerged from US Telemarketing and RuffaloCODY in the early 1990s.

Volunteer Programs:• Students, alumni, friends group• Volunteers are not free

Paid Callers:• Emerged as the dominate approach for large donor bases

• Base pay, often with bonuses• On-campus versus outsiders

Paid phoners as a resource for your development office

Potential future leadersPotential future development staff

Ability to keep phoners for many nights. Experience creates stronger callers.Ability to find more phoners. Pay them.Ability to monitor phoners and make sure they are good representatives.

Sources of callers: students, local labor force


http://www.found.ksu.edu/telefund/movie.htm


Why Student Volunteers?Create a culture of philanthropy

Telemagic

Academic links

Create advocates

What else can students give?

K State—Telecar

Staffing the phonathon

Mature, disciplined managementAbility to handle important questions or issuesAdjustments from donor feedbackLong hours for staff

Annual GivingStaff

StudentManagement

Rewards for great callers; pipeline for future development staffPeer to peer training; feedback from someone who has been on the phonesEnthusiasm to phoners; better balance for annual giving staff

Phonathon environment

No call listState laws and regulationsLess legislative action at this time

Legal/Legislation



Legal/Legislation

Technology

Answering machinesPhone IDsCell Phones



Legal/Legislation

Technology

Reactions

Answering machinesPhone IDsCell Phones

End of novelty; different reactions by ageMonitor what they do, not just what they say

Projecting results

Poor approachesLast year’s results plus some number or percentageNo projections from annual giving staff, just use number from senior advancement staff or othersSet a single goal—dollars or donors—and track few details

Projects take time and dataAnalysis of last year’s phoning effortAnalysis of donor baseSolid research on prospect attitudesReview of approaches and alternatives

Sample Telefund Tracking Chart

17.21% Cost per $ Raised







$213,106.38Expenses

$186,934.25Expenses

$180,827.19Expenses

$210,082.65Expenses

$201,611.66Expenses

$207,425.46Expenses

$224,925.48Expenses

$67.41 Average Gift Received







$1,238,596.22Revenue

$1,496,107.44Revenue

$1,493,126.08Revenue

$1,583,974.98Revenue

$1,566,138.12Revenue

$1,612,532.59Revenue

$1,753,060.12Revenue

20.99% Return

34.79% Return

25.47% Return

25.22% Return

24.04% Return

23.81% Return

24.86% Return

18,375 Forms Returned







87,524 Forms Printed







Telefund2001 as of 6/30/2001







Size of your prospect base– LYBUNTs

• Under $50• $50 to $100• $101 to $499• Over $500

– SYBUNTs– Never givers– Responded to phone, mail, or other

solicitation

Quality of data base:– Good phone numbers– System to update phone numbers– Other data

How manycan youreach?

History of phoning results– Calls per hour average– Dollars raised per hour– Calls per hour for acquisition,

retention, upgrading

Phones and names– Number of phones– Automated or manual system– List procedure

Callers– Number that can be recruited– Drop out rate


How many calls are needed?

Calls placed

Calls placed good phone numbers

People reached

Percentage of yeses

Percentage collected


How many calls are needed?

EstimatingTargets

Breakdown for acquisitionBreakdown for retentionBreakdown for upgrades

Questions?

Microsoft PowerPoint - Phonathon Strategies (00067352)

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