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The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value. Presented by Ken Kuhler, Interactive Strategy Manager, Blackbaud. Ken will discuss how to apply next generation trend data to your multi‐channel, multi‐generational fundraising and engagement efforts including practical tools and techniques, and real‐world case studies.
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10/10/2013 Blackbaud Confidential 1
Presented By: Kenneth Kuhler Online Solutions Consultant Blackbaud
The Constituent Engagement Journey:
10/10/2013 Blackbaud Confidential 2
AGE NDA
• Current Landscape & Trends
• Constituent Engagement Fundamentals
• The Evolution of Nonprofit Operations
10/10/2013 Blackbaud Confidential 3
The Nonprofit
Landscape
10/10/2013 Blackbaud Confidential 4
Total Fundraising $19.7 Billion*
* Adjusted for inflation giving has not grown since 2000 and giving as a percent of GDP is down 16% since 2006.
Competition for Awareness and Support
10/10/2013 Blackbaud Confidential 5
# of Nonprofits
43% since 2001
Competition for Awareness and Support
10/10/2013 Blackbaud Confidential 6
3000+ Messages Targeting Supporters
Every Day
Competition for Awareness and Support
10/10/2013 Blackbaud Confidential 7
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
10/10/2013 Blackbaud Confidential 8
Renewals & Lifetime Value Mostly Flat
Average Annual Gift/Attrition Rate = LTV
Competition for Awareness and Support
10/10/2013 Blackbaud Confidential 9
Deepen Relationships
& Build Loyalty
10/10/2013 Blackbaud Confidential 10
F UNDRAIS ING E MP HAS IS : MAT URE S
Matures
Boomers
Gen X Gen Y
1
0
10/10/2013 Blackbaud Confidential 11
GE NE RAT IONAL G IV ING
$0.
$100.
$200.
$300.
$400.
$500.
$600.
$700.
$800.
$900.
$1,000.
$1,100.
$1,200.
30% 40% 50% 60% 70% 80% 90%
% Giving
To
tal a
nn
ua
l g
ivin
g
Boomers
Gen X
Matures
Gen Y
58% Give 35.9M donors
$796 yr/avg
4.2 charities
$35.9 B/yr
56% Give 28.5M donors
$341 yr/avg
3.6 charities
$9.7B/yr
67% Give 52.2M donors
$901 yr/avg
5.2 charities
$47.1 B/yr
79% Give 30.8M donors
$1066 yr/avg
6.3 charities
$32.7 B/yr
10/10/2013 Blackbaud Confidential 12
GIVING AMOUNTS % who say have donated in this way in last 2 years (total)
58%
41%
34%
33%
32%
27%
25%
21%
16%
16%
3%
Checkout Donation
Fundraising Event
Tribute Gift
Charity Gift Shop
Online via Website
Mailed Gift
Monthly Debit
In lieu of Gift
Phone
Third Party Vendor
SMS or Social Media
GEN Y GEN X BOOMERS MATURES
59% 64% 56% 58%
27% 43% 44% 44%
19% 28% 37% 50%
30% 34% 34% 30%
41% 37% 29% 24%
12% 17% 33% 38%
25% 28% 24% 24%
22% 23% 21% 20%
6% 14% 21% 19%
24% 21% 14% 12%
7% 4% 2% 0%
4.7% 2.8% 2.3% 1.3%
10/10/2013 Blackbaud Confidential 13
Constituent
Expectations
Have
Changed.
10/10/2013 Blackbaud Confidential 14
Constituents Want to Engage
on Their Terms & in Their Channels
10/10/2013 Blackbaud Confidential 15
ONLINE FUNDRAISING CONTINUES TO GROW
10/10/2013 Blackbaud Confidential 16
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
10/10/2013 Blackbaud Confidential 17
ONL INE F UNDRAIS ING GROW T H HAS KE P T
PACE W IT H RE TAIL E - COMME RCE
Sources: Convio benchmark reports 2007-2012 and eMarketer.com
10/10/2013 Blackbaud Confidential 18
. . BUT P E RF ORMANCE VARIE S W IDE LY
* 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
10/10/2013 Blackbaud Confidential 19
Peer Solicitation Is Broadly Accepted
52%
41%
28%
22%
15%
8%
Peer to Peer
Social Media
Phone
Text
% 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.
10/10/2013 Blackbaud Confidential 20
PEER TO PEER / SOCIAL FUNDRAISING
10/10/2013 Blackbaud Confidential 21
ALZHEIMER’S ASSN:
THE LONGEST DAY
In Year 1,
200 Teams
Raised $236K
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Lifetime Donor Value Donor Value 12 Months New Donor Renewal Rate
VAL UE OF MULT I - CHANNE L E NGAGE ME NT
Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOne
Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use.
34.4%
50.9%
+48%
Multi-Channel
$96
$187
+95%
Multi-
Channel
$314
$694
+121%
Multi-Channel
10/10/2013 Blackbaud Confidential 23
MULTI-CHANNEL GROWS TOTAL REVENUE
$28M $28M
$47M
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
1990 2000 2010
Mil
lio
ns
Online
Direct Mail
10/10/2013 Blackbaud Confidential 24
Multi-Channel Strategy
10/10/2013 Blackbaud Confidential 25
If You Could…
T HE V IS ION: CONS T IT UE NT E NGAGE ME NT
• Anticipate your constituents’ needs
• Know their interests, passions & preferences
• Offer more relevant interactions & opportunities to engage
You Would…
Improve acquisition & referrals
Establish lifetime relationships
Grow support & fundraising
10/10/2013 Blackbaud Confidential 26
Constituent Experience
• Disjointed constituent experience
• Fragmented messaging from a variety of channels
• Less engagement
Current Landscape:
10/10/2013 Blackbaud Confidential 27
• Unified constituent experience
Goal:
Constituent Experience
• Integrated messaging across a variety of channels
• Optimized engagement
10/10/2013 Blackbaud Confidential 28
Better Engagement with Supporters =
Better Results for Your Organization
10/10/2013 Blackbaud Confidential 29
Constituent
Engagement
Fundamentals
10/10/2013 Blackbaud Confidential 30
• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals
10/10/2013 Blackbaud Confidential 31
• 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?”
CONSTITUENT CENTRICITY
10/10/2013 Blackbaud Confidential 32
A Single Email with
Conditional Content
Donor Version
Survivor Version
CONS T IT UE NT CE NT RIC IT Y
10/10/2013 Blackbaud Confidential 33
CONS T IT UE NT CE NT RIC IT Y - W E L COME S E RIE S
2-Part Series
10/10/2013 Blackbaud Confidential 34
Direct Mail
Email Web Page
PRESENCE IN MULTIPLE CHANNELS
10/10/2013 Blackbaud Confidential 35
• Get the right message in front of the right person at the right moment.
PRESENCE IN MULTIPLE CHANNELS
10/10/2013 Blackbaud Confidential 36
• 125,000 born each year
• 6.5 million people
• 10% of American families
• 25 time more common than blindness
• Over 250 causes discovered
EFFECTIVE STORYTELLING – INTELLECTUAL
DISABILITY STATISTICS
10/10/2013 Blackbaud Confidential 37
EFFECTIVE STORYTELLING – APPEAL TO THE HEART
NOT THE HEAD
10/10/2013 Blackbaud Confidential 38
EFFECTIVE STORYTELLING - DIAGNOSED WITH
CHRONIC LYMPHOCYTIC LEUKEMIA
10/10/2013 Blackbaud Confidential 39
EFFECTIVE STORYTELLING – PICKED HIMSELF BACK
UP AND ACHIEVED GREATNESS
10/10/2013 Blackbaud Confidential 40
CONSISTENT BRANDING
21
Envelope back
Integrated tiger appeal results show 40% better response rate
Offline
Appeal &
Envelope
Online
Appeal,
Included
Envelope
Image
10/10/2013 Blackbaud Confidential 41
YEAR OF THE T IGER A M U LT I M E D I A Y E A R L O N G E F F O R T
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
10/10/2013 Blackbaud Confidential 42
INTEGRATED PROCESS
Frequency Target Q2
we
ek 1
Q2
we
ek 2
Q2
we
ek 3
Q2
we
ek 4
Q2
we
ek 5
Q2
we
ek 6
Q2
we
ek 7
Q2
we
ek 8
Q2
we
ek 9
Q2
we
ek
10
Q2
we
ek
11
Q2
we
ek
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
10/10/2013 Blackbaud Confidential 43
• 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
INT E GRAT E D ME AS URE ME NT
10/10/2013 Blackbaud Confidential 44
CROS S - CHANNE L CONTACT INF ORMAT ION
10/10/2013 Blackbaud Confidential 45
KE Y ACQUIS IT ION ME T RICS T RACKE D
10/10/2013 Blackbaud Confidential 46
DONOR CHANNE L M IGRAT ION T RACKE D
10/10/2013 Blackbaud Confidential 47
• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals –
Difficult Without Organizational Alignment
10/10/2013 Blackbaud Confidential 48
The Evolution
of Nonprofit
Operations
10/10/2013 Blackbaud Confidential 49
• 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 Optimized Traditional
• 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
W HE RE ARE Y OU?
10/10/2013 Blackbaud Confidential 50
• Integrated marketing sophistication and size don’t closely correlate.
W HE RE ARE Y OU?
10/10/2013 Blackbaud Confidential 51
T HE T RAJ E CTORY OF NP E V OL UT ION
Aggregate and improve constituent data
Consistent messages across channels
Increased personalization & relevance
Dynamic response to interactions
Optimize channel mix & message cadence
Aggregate and improve constituent data
10/10/2013 Blackbaud Confidential 52
• Organizational Alignment
• Technology / Infrastructure
Keys to Evolution
10/10/2013 Blackbaud Confidential 53
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
ORGANIZ AT IONAL AL IGNME NT
10/10/2013 Blackbaud Confidential 54
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
ORGANIZ AT IONAL AL IGNME NT
10/10/2013 Blackbaud Confidential 55
Optimized
Coordinating
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
ORGANIZ AT IONAL AL IGNME NT
10/10/2013 Blackbaud Confidential 56
Support Business Units
Infrastructure Challenge
Track Performance
Add New Channels
Coordinate Departments
Integrate Systems
Understand Data
10/10/2013 Blackbaud Confidential 57
• 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
REMEMBER: IT IS AN EVOLUTION.
10/10/2013 Blackbaud Confidential 58
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.
10/10/2013 Blackbaud Confidential 59
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