The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value. Presentation by Ken Kuhler

10/10/2013 Blackbaud Confidential 1

Presented By: Kenneth Kuhler Online Solutions Consultant Blackbaud

The Constituent Engagement Journey:


AGE NDA

• Current Landscape & Trends

• Constituent Engagement Fundamentals

• The Evolution of Nonprofit Operations


The Nonprofit

Landscape


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


# of Nonprofits

43% since 2001



3000+ Messages Targeting Supporters

Every Day



New Donor Acquisition

23.4% since 2006


Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter

Results


Renewals & Lifetime Value Mostly Flat

Average Annual Gift/Attrition Rate = LTV



Deepen Relationships

& Build Loyalty


F UNDRAIS ING E MP HAS IS : MAT URE S

Matures

Boomers

Gen X Gen Y

1

0


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


$341 yr/avg

3.6 charities

$9.7B/yr


$901 yr/avg

5.2 charities

$47.1 B/yr


$1066 yr/avg

6.3 charities

$32.7 B/yr


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%


Constituent

Expectations

Have

Changed.


Constituents Want to Engage

on Their Terms & in Their Channels


ONLINE FUNDRAISING CONTINUES TO GROW


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


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


. . 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


Peer Solicitation Is Broadly Accepted

52%

41%

28%

22%

15%

8%

Peer to Peer

Mail

Email

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.


PEER TO PEER / SOCIAL FUNDRAISING


ALZHEIMER’S ASSN:

THE LONGEST DAY

In Year 1,

200 Teams

Raised $236K


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%

Mail

+48%

Multi-Channel

$96

$187

Mail

+95%

Multi-

Channel

$314

$694

Mail

+121%

Multi-Channel


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


Multi-Channel Strategy


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


Constituent Experience

• Disjointed constituent experience

• Fragmented messaging from a variety of channels

• Less engagement

Current Landscape:


• Unified constituent experience

Goal:

Constituent Experience

• Integrated messaging across a variety of channels

• Optimized engagement


Better Engagement with Supporters =

Better Results for Your Organization


Constituent

Engagement

Fundamentals


• Constituent Centricity

• Presence in Multiple Channels

• Effective Storytelling

• Consistent Branding

• Integrated Process

• Integrated Measurement

Constituent Engagement Fundamentals


• 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


A Single Email with

Conditional Content

Donor Version

Survivor Version

CONS T IT UE NT CE NT RIC IT Y


CONS T IT UE NT CE NT RIC IT Y - W E L COME S E RIE S

2-Part Series


Direct Mail

Email Web Page

PRESENCE IN MULTIPLE CHANNELS


• Get the right message in front of the right person at the right moment.

PRESENCE IN MULTIPLE CHANNELS


• 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


EFFECTIVE STORYTELLING – APPEAL TO THE HEART

NOT THE HEAD


EFFECTIVE STORYTELLING - DIAGNOSED WITH

CHRONIC LYMPHOCYTIC LEUKEMIA


EFFECTIVE STORYTELLING – PICKED HIMSELF BACK

UP AND ACHIEVED GREATNESS


CONSISTENT BRANDING

21

Envelope back

Integrated tiger appeal results show 40% better response rate

Offline

Appeal &

Envelope

Online

Appeal,

Included

Envelope

Image


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

http://bit.ly/dp0ovd


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


• 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


CROS S - CHANNE L CONTACT INF ORMAT ION


KE Y ACQUIS IT ION ME T RICS T RACKE D


DONOR CHANNE L M IGRAT ION T RACKE D


• Constituent Centricity

• Presence in Multiple Channels

• Effective Storytelling

• Consistent Branding

• Integrated Process

• Integrated Measurement

Constituent Engagement Fundamentals –

Difficult Without Organizational Alignment


The Evolution

of Nonprofit

Operations


• 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?


• Integrated marketing sophistication and size don’t closely correlate.

W HE RE ARE Y OU?


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


• Organizational Alignment

• Technology / Infrastructure

Keys to Evolution


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


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



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



Support Business Units

Infrastructure Challenge

Track Performance

Add New Channels

Coordinate Departments

Integrate Systems

Understand Data


• 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.


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.


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