Science, Institutions & the Industrial Revolution - Simon Fraser
Social science simon series
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Free Ideas for Free Lift In the DonorVoice Social Science Simon Says…. Series
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Transcript of Social science simon series
Free Ideas for Free Lift In the DonorVoice
Social Science Simon Says….
Series
Presenter
Presentation Notes
As Why Axis authors and renowned behavioral economists Uri Gneezy and John List, noted, “The vibrant…important charity sector is driven by anecdotes, not science.” We share that view and hope to help rewrite ‘best practices’ for how to raise money focusing on donor motive and intent – i.e. the cause and effect of behavior – rather than the often random, subjective ideas that make their way in A/B tests, new product launches and various other touchpoints that together, constitute an often fragmented and less than optimal supporter experience. As a hopefully humorous or at least borderline creative way to dispense some free counsel we created Social Science Simon. This Simon (the Social Science version) is admittedly a bit – or a lot – geeky and lives for controlled experiments dictated by hypotheses on human behavior and decision making. He also loves to offer clear, explicit and simple instructions but unlike the childhood game he really isn’t trying to trip anybody up though he admits his instructions may create a certain amount of doubt or resistance and so he is happy to further geek it up and offer rationale.
Social Science Simon Says… Simon Says: Add lead-in sentence that explicitly tells the donor how great they will feel after making a donation. What was Simon thinking? Donors have a two-stage mental model for making giving decisions. First decision is give or not give. Second, is how much. The key driver of the first decision is “how good am I going to feel after donating? It is 100% “selfish” and internal and must be directly and explicitly messaged.
Simon Says: Add lead-in sentence to the ask array that says “please think about how a relatively small monthly donation on your part fits with your values and desire to help others in your community less fortunate than you” What was Simon thinking? Priming is a social science term for bringing one memory to mind with a stimulus to influence a response to another stimuli. This example is identity priming by explicitly reminding or priming donors to think about how donating fits with who they are as a person in order to influence the amount given.
Presenter
Presentation Notes
Test ideas tend to be very random or otherwise not guided by any overarching point of view of how people make decisions – rationale or otherwise. And as we know, the vast majority of tests fail. If non-profits are going to get off the plateau or flat/no growth and flat/declining LTV and retention rates then it will require doing business differently. And while nobody is going to A/B test their way to sustainable growth there is a much better way to test; one dictated by theory and evidence of how people make decisions. The winners lead to further reinforcement and refinement and a body of knowledge. Come to think of it, the losers add to that body of knowledge too but only if there is a systematic, hypothesis and theory driven point of view to guide the testing.
Free • Feedback widget for your website that is setup in 5 minutes and automatically
increasing ROI with your website (click here to learn more here) • Simon Says… review of an e-appeal. Just send it our way.
For 45min of your time (click here to contact us) • How to measure true loyalty and increase it for 131% increase in LTV • How to get rid of Excel for your planning/comms work • How much your core messages are worth to LTV and which ones don’t matter
Presenter
Presentation Notes
If our global, science based insight - channeled through Simon - is this solid just think what we can provide if we apply this same science based rigor to your file with our custom work? We get it though, everybody loves FREE so shoot us an e-appeal and we’ll offer up three Simon Says… recommendations. Or, consider getting into the feedback game with a completely automated, installed in minutes widget to start getting more ROI from your website visitors by AUTOMATICALLY fixing bad experiences and building on positive ones as they occur. And if you have 45min to spare we can guarantee even more insight and value by getting a debrief on how relationship building really works and how, using our proven, Commitment framework we assign financial value to touchpoints across the functional silos within your organization – e.g. value of brand attribute, core message, enewsletter, magazine, donor service interaction – using an attitudinal plus transactional model on your donors. The client roster is pretty extensive and impressive (thanks to our forward thinking clients who said yes) – Oxfam, Operation Smile, MS Society, Audubon Society to name a few – and we are officially the smallest international company in the sector with clients in the UK, Canada, Europe and Australia. It turns out we are the only ones – according to our clients – providing this insight and tools for application.
Read On for More on How We Can Help
(Our standard hustle is in the next slides with heavy annotation so they can “stand up” alone. There, we forewarned you. That said, it is worth the read)
Current broken (but accepted?) process
• White board of new ideas
• 100% created internally
• Not empirical
• Campaign level focus
• Not evidence based
• No new (risky) ideas, optimize current world
• Reliable donor input – Voice of Customer
• Highly empirical (how much is message worth?)
• Touchpoints and sequence
• Built on theories of what causes behavior
Our Process
Presenter
Presentation Notes
The sector is heavily focused on the “who” side of the business, which is about selection and targeting. Who is in or out for a given campaign or appeal? Who to select for the reinstate effort? The Who side of the business is about efficiency and while that matters, nobody is going to efficient there way to real, sustainable growth. To do this the “What” side of the business needs to be re-thought and re-made. This is where we focus our time, effort and offering. The “What” side of the business is about greater effectiveness and dictated by the cause and effect of supporter behavior. The “what” business answers the question of what touchpoints taken together over time and channel actually matter to the constituents decision to stay or go. However, the “what” side of the business today tends to be a frustrating, Groundhog Day type experience of most clients that is both broken and (begrudgingly) accepted at the same time. The DV process is very different and yet, doesn’t add time or cost or complexity to the current approach.
pt = Commitment to
ORG
Functional Connection
Personal Connection
Donor Commitment
Scores Size High Commitment 83 46%
Vulnerable 64 40%
Transactional 38 14%
Overall 69
• Impact on local community • Impact of gift in developing countries • Impact of non-future generations
• Humane research methods & standards • Support Programs for Women • Environmental Impact • Impact on the global community
• Making honor card order process easy • Accurate/timely receipt acknowledgement • Simple and easy donation process • Ordering of honor cards simple and easy • Accurate/Timely honor card delivery • Accurate/timely gift acknowledgment
• Frequency of request for donations • Providing token gifts for support • Receiving a Copy of the Annual Report
Reallocate Resources
• Offering information/materials to organize events • ORG Magazine • Hear/see stories of ORG supporters talk • ORG Website
Every 1pt increase in Commitment equals $170
increase in LTV
Focus Here Good Performance Weak Performance
Engagement $95.65
$24.70 “Welcome kit” on How ORG Work $19.45 Social Media for conversations $23.03 ORG e-Newsletter $23.71 ORG Event Volunteer
Gift Impact $25.29
$8.29 Funding Research $8.35 Understand impact of Catalog gift $8.66 Impact on families
Brand and Positioning $25.33
$6.33 Improves lives w/ disease $6.40 Help People Help Themselves $6.04 Helping Care Givers
Fundraising $15.43
$15.43 Offer simple way to give monthly $6.55 Gift Catalog
Customer Service
$8.40
$1.67 Easy to Find Contact Info $1.67 Helpful Customer Service $1.67 Convenient Hours $1.69 First Contact Issue Resolved $1.68 Knowledgeable Donor Reps
Presenter
Presentation Notes
This is an illustrative example of what we often refer to as the ultimate attribution model or retention blueprint. We identify the financial value of the messages, touchpoints, publications, communications and donor service experiences that matter to retention – the middle column - and by extension, those that don’t (the far left column). We assign financial value to increasing Donor Commitment, which is $170 in LifeTime Value per donor for every 1 pt. increase in Commitment in this example. The rest of the model shows what you as an organization do to raise this extra money. Best of all, it does not require new organizational spend, merely reprioritization on the activities, experiences and touchpoints that matter. We use this retention blueprint to organize experiences into 1 of 3 categories, Scale – experiences that predict/cause Personal or Functional connection where the organization is performing well (these are the experiences in blue font in the middle column with individual dollar amounts attached. An example here is the e-newsletter in the engagement bucket. The “scale” term refers to the opportunity to increase the impact of this experience by offering it more often, through more channels or both. Repair – these are key experiences (middle column) in red font. They matter to the Commitment and value of the donor but the experience is not a positive one so that value is being left on the table. Drop – This is the review process of the experiences in the far left column. Some of these will be maintained for other reasons even if they don’t increase value or Commitment. But some offer an opportunity to reprioritize time, effort and spend to more important activities.
Scorecard for each communication
Audited package components
Presenter
Presentation Notes
Moving from blueprint and model output to application is done in two steps. Message Audit – Scorecard and audited component “parts” of communication. This can be done for direct mail, e-appeals, face to face scripts, TM scripts, etc… Touchpoint Mapping This slide shows an illustration of the message audit. This is not a subjective review nor is it about format or creative. It is simply, but critically importantly, an audit to identify where communications deliver on key messages (per the blueprint) and where they don’t. Often a communication is only as strong as its weakest argument and the weak points only served to dilute the strong ones. There is significant improvement in donor experience and retention and value to be had by, Consistently delivering the key messages that the donor has identified as core to who you are an organization to the exclusion of everything else. These key messages are always a subset of those you use routinely. Consistently delivering the same message (with obvious room for storytelling and creativity) across touchpoints, sequentially and repetitively. Organizations get tired of their message and their copy and their communications long before the donor does. We know donors forget 50% of whatever they’ve ‘consumed’ from you 1 hour after consuming it. They lose 90% in 24 hours. Repetition and consistency of message that MATCHES donor preference to the exclusion of ‘stray” or non-matching message is one of the simple but not easy paths to better retention.
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7
8 5 5
4
Key Experience • Redo welcome kit • Make consistent with
acquisition piece and acknowledgement
Not Key Experience • Drop magazine
Key Experience • Change messaging on
two appeals based on message audit
• Functional Connection Consistency
Key Experience • Increase
frequency of enews
Build Personal Connection • Add welcome call
3
Key Experience • Change sequence of
acknowledgment so comes before welcome kit
• Fix it
2
Increase # Channels • Append data to
new donor records
6 6
Build Personal Connection • 2 Way Communication • Solicit Feedback Tied to
Inbound Donor Service Inquires
Presenter
Presentation Notes
This is a visual of our TouchPoint mapping product, an online planning tool designed to show and change the supporter journey. This illustrative screen shot shows timescale along the top (columns) and supporter journey as rows – current state and pilot – and highlights (purple text boxes) some hypothetical but realistic changes made to the supporter journey as a result of the new insights. Current State reflects all the touchpoints, across functional areas and channel, currently served up by organization for a given supporter segment and, The “Pilot” row is the desired state as identified by the specific insights from the Commitment model. Specifically, the touchpoints and experiences to scale, drop or fix. The touchpoint mapping tool turns model findings and key insights into a month by month, department by department and channel by channel detailed plan. The benefits are fourfold, A consolidated view of what is provided to constituents that does not exist now and in a tool built to display this important map of what the organization does to, with and for its supporters. Visual identification of the experiences/touchpoints that matter to Commitment and retention and of those, flagging the ones that are broken. Easily printed and displayed maps to help those executing against the plan but also to build and maintain internal support and understanding. Last but perhaps most importantly, the layout and highly customized, consolidated views naturally facilitate greater coordination and consistency across departments and touchpoints. In short, this is a donor retention planning tool instead of the Excel option that tends to focus on mail volume and production schedule.
Not so bad as far as pitches go, right?
We promise the in-person or virtual webex version will be as informative and worthwhile.
The only thing you have to lose is donors…
Click here to contact us
OR email one of the partners directly
Kevin Schulman, [email protected] Josh Whichard, [email protected]
