Totally Integrated Fundraising

Totally Integrated Totally Integrated FundraisingFundraising

. . . and as a bonus, rewards for questions. . . and as a bonus, rewards for questionsGeoffrey W. PetersGeoffrey W. Peters

PresidentPresidentCreative Direct ResponseCreative Direct Response

Corporate Partnerships

Direct MailPlanned Giving

Work Place GivingTelemarketing

Advocacy

Web Strategy

Advertising

Special Events

In-Kind Sponsorships

What is Totally Integrated Marketing?

Your

Charity

• Remain focused on existing programs

Benefits of Integration

• Remain focused on existing programs• Try new concepts without taking big risks


• Remain focused on existing programs• Try new concepts without taking big risks• Develop new “National Programs”


• Remain focused on existing programs• Try new concepts without taking big risks• Develop new “National Programs”• Take advantage of what works for other charities


• Remain focused on existing programs• Try new concepts without taking big risks• Develop new “National Programs”• Take advantage of what works for other charities• Create new ideas sculpted to fit your specific strengths


Why integrate already successful marketing programs?

TO GENERATE NEW REVENUE!- Repair and revive existing programs- Establish new concepts for programs- Establish new fundraising channels

But does $1 + $1 really equal $3?

Stimulus - ResponseStimulus - Response

Postage and mail Postage and mail costs continue to risecosts continue to rise

Too much competition Too much competition and too much clutterand too much clutter

Negative reactions to Negative reactions to banners and spambanners and spam

Outbound phones Outbound phones viewed as intrusiveviewed as intrusive

DRTV too expensive DRTV too expensive and segmentedand segmented

Conversions to e-mail Conversions to e-mail and e-newslettersand e-newsletters

Consistent reinforcing Consistent reinforcing messagingmessaging

Use other media to pull Use other media to pull rather than pushrather than push

Inbound phones driven Inbound phones driven by mail and internetby mail and internet

Changed formats and Changed formats and use of URLs for more use of URLs for more info.info.

Mixing MediaMixing Media• Child Sponsorship and Disasters/EmergenciesChild Sponsorship and Disasters/Emergencies

• DRTV – inbound 800 – mail fulfillmentDRTV – inbound 800 – mail fulfillment

• High Dollar CampaignsHigh Dollar Campaigns• Mail-Phone-Mail or Phone-Mail-PhoneMail-Phone-Mail or Phone-Mail-Phone

• Emergency e-mailsEmergency e-mails• Electronic transfer – inbound 800 – reply Electronic transfer – inbound 800 – reply

addressaddress

• Outbound telemarketing Thanks-Yous & Outbound telemarketing Thanks-Yous & UpgradesUpgrades

• Membership survey to undergrad and dual degree holders

• Objective to understand e-newsletter as communication tool for awareness, promoting resources, encouraging giving

• 49% of e-newsletter recipients donated in that year vs. 34% of non-recipients

• 78% who made gift in that year renewed vs. 73% of non-recipients

Examples of IntegrationExamples of IntegrationStanford University Alumni Stanford University Alumni

NewsletterNewsletter

• 32% of lapsed donors (no giving in prior year) but 32% of lapsed donors (no giving in prior year) but who received e-newsletter gave vs. 22% of non-who received e-newsletter gave vs. 22% of non-recipientsrecipients

• Of total e-newsletter recipients who never Of total e-newsletter recipients who never donated, 13% did so vs 5% of non-recipientsdonated, 13% did so vs 5% of non-recipients

• Ultimately 2x response of direct mail onlyUltimately 2x response of direct mail only

Examples of IntegrationExamples of IntegrationStanford University Alumni Stanford University Alumni

NewsletterNewsletter

Telephone Thank You Integration

• Question: Does personally thanking a donor by telephone cause them to give more?

• Theory: thank you calls and notes will:• Build rapport• Strengthen affinity• Cause donors to give more

The Test…

6,225 Total Donors:6,225 Total Donors:• 2,131 designated as control group ~ no 2,131 designated as control group ~ no

acknowledgment, just ongoing mail.acknowledgment, just ongoing mail.• 2,094 designated as thank you call test.2,094 designated as thank you call test.• 2,000 designated as thank you note test.2,000 designated as thank you note test.• Audience:Audience:• $50-$249.99, one-time and multi-donors$50-$249.99, one-time and multi-donors• Had given one gift to a disaster appeal Had given one gift to a disaster appeal

within the previous twelve months.within the previous twelve months.

Timing

• Control group received regularly scheduled Control group received regularly scheduled mailings for 11 months following the initial gift.mailings for 11 months following the initial gift.

• Thank you call test group received their call in Thank you call test group received their call in January and then received regularly scheduled January and then received regularly scheduled mailings for the next 11 months.mailings for the next 11 months.

• Thank you note group received their note in Thank you note group received their note in January and then received regularly scheduled January and then received regularly scheduled mailings for the next 11 months.mailings for the next 11 months.

CONTROL GROUP RESULTS(No Acknowledgements)

• 277 gifts over the course of the following year, a 13% subsequent gift rate.

• $15,323 total dollars fulfilled• An average gift of $55.32.• Gross revenue of $7.19 per donor.• Net revenue of $7.19 per donor.

Thank You Call Test Group Results + +

• 400 gifts over the course of the following year ~ a 19.1% subsequent gift rate.

• $23,984 total dollars fulfilled. • An average gift of $59.96.• Gross revenue of $11.45 per initial donor.• Net revenue of $9.70 per initial donor.

Thank You Note Test Group Results +

• 312 gifts over the course of the following year ~ a 15.6% subsequent gift rate.

• $18,061 total dollars fulfilled. • An average gift of $57.89.• Gross revenue of $9.03 per donor.• Net revenue of $7.53 per donor.

Test ConclusionsTest Conclusions• Thank you calls increase subsequent giving!

• Subsequent gift rate for donors who were called was 47% higher than those who received no thank you call , and 22% higher than those who received the thank you note.

• The thank you call increased the average size of the subsequent gifts.

• The average gift for donors who were called was 8.3% higher than those who received no acknowledgment and 3.5% higher than those who received the thank you note.

• The donors who received the phone call generated an additional $8,661 in gross revenue at a 2.4:1 ROI.

IntegrationIntegration

• Common Themes and Common TimingDirect mail packages – copy and photos

• Inbound Telemarketing

• Special Events Sign-up and Ticket Sales

• Planned Giving and Corporate Sponsorships

• URL as part of identity – on everything!

• Advantages of the WEB for Greenpeace• EFT/CC gifts• Unsolicited major gifts• Reduced response handling cost• Personalisation and customization• Immediacy and urgency (ask and

response)• Instant donor acknowledgement

Example of IntegrationExample of Integration

• Opportunities of the WEB - Greenpeace• Online supporter servicing (reduced cost)• Increased donor expectations• Changing demographics• Unmediated voice• Added value (stickiness) • Community building (THEN ASK!)


• Integrated on and offline marketing campaign

• DRTV, Billboards, Press ad’s, Mail• Hotlinks, Banners, Mini-site• Thank you email and letter• On/offline supporter servicing


• Link each appeal to a unique URL (donation form)

• Use web analysis software to see how people use your site

• Survey online and offline donors

• Track income before and after you added the internet to your Fundraising mix

Measuring OutcomesMeasuring Outcomes

• 70% of donors driven to website by offline marketing• Online average gift is 20%+ higher• Conversion rate of site visitors to donors remains

constant (0.7-1.3%)• Increased giving $8,000 - $140,000 USD• Activists are better donors by 2:1• Response handling costs reduced by 40%• Servicing costs reduced by 60%

ResultsResults

Examples of IntegrationExamples of IntegrationWXPN-FM (McPherson)WXPN-FM (McPherson)

• Integration model: e-mail, direct mail, & on-air

• Targeted to Renewing/Lapsed Members

• Sent 1 day before One Day On-Air Fund Drive

• Results:• 2% of e-mails converted immediately• 20% of pledges made came from the lapsed

members (twice the norm)

Examples of IntegrationExamples of IntegrationWTVS Public TV (McPherson)WTVS Public TV (McPherson)

• Mirrored e-mail appeal with direct mail

• List #1: Non-members/Donors received an e-newsletter (Result: click through rate of 6.9%)

• List #2: Members/Donors w/e-mail addresses (Result: click through of 2%)

Examples of Integration - MailExamples of Integration - Mail

Examples of Integration - WEBExamples of Integration - WEB

Problems with Outbound Telemarketing• Cost $12+ to acquire new TM donor, yet only $1.73 to acquire DM donor• Cost of Fundraising very high for TM program• Lifetime value for direct mail donors 23% better than TM donors due to longer life• MADD decided to consider phasing out the TM program. MADD conducted a series of tests in the fall (October and November) and spring (March) to determine if the telemarketing donors could be successfully incorporated into the direct mail program.

Telephone and Mail Segregation NOT Integration

October Test ResultsProgram Mail CountResponse Dollar

AverageDM File 200,000 5.80% $13.26TM File 200,000 4.25% $12.79

November Test ResultsProgram Mail CountResponse Dollar

AverageDM File 200,000 5.57% $13.75TM File 200,000 5.02% $12.79

Results

March Rollout ResultsProgram Mail Count Response Dollar

AverageDM File 635,816 7.22% $11.67TM File 1,147,818 4.79% $12.57 Because of the above results…MADD decided to phase out TM program

In first full year of mailing TM donors in DM program, MADD more than doubled overall net revenue!In subsequent years, revenue from combined campaign remained high, as MADD replaced lapsed telemarketing donors with direct mail donors (greater lifetime value).

Multi-channel doesn’t always work – Would integration have worked?

Organization:

Issues:

Advantages:

World USO

War approachingOnly known for “celebrity shows”Wanted to expand image/brandLocal USOs with limited resources/fragmentedPerceived as a World War II organization

War approaching: Increased media exposureRecognizable brandExcellent relationship with the Armed ServicesDoD implemented new tighter security proceduresNew board and World USO presidentStrong USO DC chapter

Example of an Integrated Campaign

Program Overview:

Fulfillment:

Care Packages of the requested items are given to members of the Armed Forces deployed overseasProgram was designed to facilitate a one-to-one giftIncluded notes from individuals who sponsored Care Packages

Establish DC warehouse where USO DCoversees volunteers stuffing packagesDistribute packages through in-kindsponsor (FedEx) to internationalUSO Mobile Canteens and localUSO points of departure

Operation USO Care Package

FundraisingOpportunity:

Donations to sponsor Care Packages ($25/Package)In-kind donations from manufacturers for itemsCorporate sponsorship levelsVarious special eventsWorkplace giving projects

Even a small donation of $25 can make a differenceDonor can include a personal message in PackageIn-kind sponsors can put logos on items

DonorBenefits:


Web Strategy: Developed www.usocares.orgE-mercials used to create emotional bondLinked to most major news web sites Implemented Kintera infrastructure

Conducted local Operation USO Care Package (OUCP) fundraising events

Special Events:


Anatomy of a ProjectOperation USO Care Package

Work Place Giving:

Developed “Cares for the Troops” campaignWeb-based co-branded programE-mail ask from CEO to customized web siteCo-branded note cardsCustomized reports to corporationCustomized tracking system for matching giftsExample: www.ngcares.org

Marketing Techniques UsedOperation USO Care Package

Anatomy of a ProjectMarketing Techniques Used

In-kind:

Done by another agency but reportedly results increased due to increased visibility of charity

Solicited product donationsSolicited warehouse facilityWeb site design and web hosting

Developed co-branded commercialwith sponsor (Lowe’s)Developed the USO NASCAR

Advertising:


Mail:

PR: Sent out announcement two (2) times per week during the warSecured spots for USO executive on major networksUsed local mediaJoint release program with Department of Defense endorsing program

Developed corporate sponsorship programs

CorporateSponsors:


Financial Success:

Individual gifts off-lineon-line

Cares For The Troops (online)Matching gifts for CFTGeneral on-line USOCorporate sponsorshipMeasurable in-kind

Totals

$12,950,000$925,000$403,000$105,000$125,000$720,000

$8,250,000

$23,478,000

Results


Example of an Integrated Campaign

““It’s not about Fundraising or Brandraising, It’s not about Fundraising or Brandraising, but about integrating”but about integrating”

The story of WWF Netherlands

Brandraising & Brandraising & FundraisingFundraising

Situation at the end of ninetiesSituation at the end of nineties

• At the first glimpseAt the first glimpse: : • Very strong positionVery strong position

• Looking more deeply:Looking more deeply:• Well known brandWell known brand• Seen as arrogant and far awaySeen as arrogant and far away• Old fashionedOld fashioned• Membership going downMembership going down• Poor financial resultsPoor financial results

Change was needed and Change was needed and achieved:achieved:

• Right people in right places.Right people in right places.• An “impossible” dream.An “impossible” dream.• Changing paradigms.Changing paradigms.

• The The mentality of a small business combined with the mentality of a small business combined with the vision of big brands (long term investment but vision of big brands (long term investment but withwith focus focus on short term profit!).on short term profit!).

• Building brand awareness.Building brand awareness.

• But But above all: integration of Communications & above all: integration of Communications & Marketing (approach – multichanneling – sharing, Marketing (approach – multichanneling – sharing, learning, looking outside).learning, looking outside).

• Not only improvement in figures but also in position. Not only improvement in figures but also in position. Bringing the brand into daily life. Bringing the brand into daily life.

Financial resultsFinancial results (in thousands of Euros)(in thousands of Euros) FY FY

20032003FY FY

20022002FY FY

20012001FY FY

20002000Membership fees Membership fees adultsadults

14,76514,765

14,31714,317

13,66213,662

12,76212,762

Membership fees Membership fees Rangers (children)Rangers (children)

1,1991,199

1,0611,061

856856

750750Fundraising Fundraising campaigns campaigns on consumer on consumer marketmarket

3,5333,533

3,5943,594

2,8072,807

2,7562,756

Fundraising Fundraising campaigns campaigns business & industrybusiness & industry

1,6741,674

1,4011,401

944944

824824MiscellaneousMiscellaneous 1212 1313 1515 2121

Total fundraisingTotal fundraising 21,18421,184 20,38620,386 18,28418,284 17,11317,113

+ 19.2 %

Marketing costsMarketing costs

- 13.1 %

FY FY 20032003

FY FY 20022002

FY FY 20012001

FY FY 20002000

TargetTarget

Marketing costs in Marketing costs in % % of income own of income own fundraising fundraising activities activities (legacies, lottery (legacies, lottery etc. etc. not included)not included)

19.8%19.8%

22.8%22.8%

21.9%21.9% 22.8%22.8% <22.5%<22.5%

Total donors (incl. members)Total donors (incl. members)

+ 13.3 %

FY 2003FY 2003 FY 2002FY 2002 FY 2001FY 2001 FY 2000FY 2000

930,015930,015 905,458905,458 860,560860,560 806,349806,349

• Top 10 Brand in the CountryTop 10 Brand in the Country

• Top 3 Charity Brand in the CountryTop 3 Charity Brand in the Country

• #1 Green Brand in the Country#1 Green Brand in the Country

• Not finished yet.Not finished yet. PandaVision. PandaVision.

ResultsResults

The 3 C’s of the WebThe 3 C’s of the Web

• Content• “Content is King” – Forrester Research

• Community• Community = Affinity = Loyalty

• Communication• What the web is all about

Some Other Views

• ““Direct mail is the best place to learn Direct mail is the best place to learn the techniques that work best in the techniques that work best in electronic media.” electronic media.” Leslie Laredo, Director of Advertising Leslie Laredo, Director of Advertising Development for Ziff-Davis InteractiveDevelopment for Ziff-Davis Interactive

• ““The Net…is the finest direct-marketing The Net…is the finest direct-marketing mechanism in the history of mankind. It mechanism in the history of mankind. It is direct mail with free stamps.” is direct mail with free stamps.” Seth Godin, VP of Seth Godin, VP of

Direct Marketing for Yahoo!Direct Marketing for Yahoo!

Experimenting with TechnologyExperimenting with Technology

• ““Ready, Fire, Aim”Ready, Fire, Aim”• Things are moving fast and often Things are moving fast and often

experimentation is the only way to “know” experimentation is the only way to “know” anythinganything

• WAP Technology in Japan and Finland – Save the WAP Technology in Japan and Finland – Save the Children looking at emergency opportunityChildren looking at emergency opportunity

• European Union will account for more than 50% of European Union will account for more than 50% of the world’s Internet users by the end of this year.the world’s Internet users by the end of this year.

• UCP looking into ATM machinesUCP looking into ATM machines• No difference between this and POP boxesNo difference between this and POP boxes

Driving Traffic to the WebDriving Traffic to the Web

• Best traffic driver in commercial use is mail•Mixed results in fundraising•Promotions work – premiums, prizes, sweeps

Site must be integrated with other efforts•Not technology but marketing•Not just fundraising but PR and branding

Opportunities to communicate electronically•E-newsletters – not PDFs•Viral Campaigns – disasters, breaking news

Internet vs. IntegratedInternet vs. Integrated

• Spam – outbound unsolicited e-mail

• This is who we are – please send money

• Advertising

• Single medium of communication

• Credit card donations

• Opt-in, other media or soft invitation by e-mail

• Database and content driven, informative

• Direct marketinG

• Options, interests and alternatives

• Multiple methods of participation

Web do - Web don’tWeb do - Web don’t

• Donation page no more than 2 clicks from home

• FAQ• E-newsletter and e-mail

opt-in (save a tree)• Secured donation

engine• Alternatives• Simple Navigation

• Shopping with multi-charity links

• Multi-charity portals• Failure to adhere to

privacy standards• Failure to

acknowledge gifts or activities

• Complex Navigation

Closing thoughts from DisneyClosing thoughts from Disney

Disney’s Credo:Disney’s Credo: DreamDream

BelieveBelieve DareDare Do………….Do………….

Thank You

Copies of this PowerPoint available for your use – just leave me your business card with an e-mail address

Geoff PetersGeoff Peters

Totally Integrated Fundraising

Documents

Transcript of Totally Integrated Fundraising