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MYTHBUSTERS!
Damian O’BroinAsk Direct
#dfk15@damianobroin
MYTH #1
Germany is the best football team in the
World
Deutschland ist der beste Fußballmannschaft der Welt
MYTH #1
Germany is the best football team in the
World
Deutschland ist der beste Fußballmannschaft der Welt
BUSTED
You can’t replicate the ice-bucket challenge
so you shouldn’tbother trying.
MYTH #2
Sie können die Eiskübel challengeso sollten Sie nicht die Mühe, nicht replizieren.
7
Summer 2014: €1.4m raised
@ €4 per text = ~350,000 participants
Almost 1 in 10 people in Ireland took part
#icebucketchallenge
47% of Rovio’s revenue come from licensing
2013 Profit: $568 million
How to replicate the ice bucket challengeGuaranteed!
1. Invest very heavily in idea development - properly resource innovation teams and buy in outside expertise if necessary
2. Develop a ruthless culture of fail-fast and be prepared to fail repeatedly.
3. Practice Zen-like levels of patience. This could take 10 years.
4. (Buy a couple of lottery tickets, just in case.)
5. Implement robust online and mobile tools to be ready for when it takes off.
6. Develop top-of-the class social media strategies and tactics so that you can amplify the message when it goes viral.
7. Cross your fingers.
8. Sit back and wait for the money to roll in.
Sie können die Eiskübel challengeso sollten Sie nicht die Mühe, nicht replizieren.
You can’t replicate the ice-bucket challenge
so you shouldn’tbother trying.
MYTH #2
BUSTED
Sending thank you letters to all your donors for every donation is a
waste of time
MYTH #3
Senden Dankesbriefe an alle Ihre Spender für jede Spende ist eine Verschwendung von Zeit,
“It appears no one has any empirical evidence that thanking donors, promptly or otherwise,
makes the slightest difference...”
“On average, we get more than one fifth of our net income from direct mail from our thank you letters...”
- Angel Aloma, Food for the Poor
(No ask, but envelope & reply device)
Test Group A Test Group B
Q = 25,000 Q = 25,000
ControlAdditional thank you piece
at start of year(no ask, envelope or reply device)
– + $450,000 in gifts
“The closest I've come to testing that was when a client of mine accidentally turned off their acknowledgement program.
It stayed off for about three months — donors not getting any thanks for their gifts — because nobody noticed.
We saw retention drop during that time, and we had no idea why, until we learned about the missing acknowledgements.
Of course, it wasn't a test with a control group, so we couldn't say for sure that not sending the receipts is what caused the drop in renewal.”
- Jeff Brooks, TrueSense Marketing
The 7 Key Drivers of Donor Commitment1. Donor perceives your organisation to be effective in trying to achieve its mission.
2. Donor knows what to expect from your organisation with each interaction.
3. Donor receives timely thank yous.
4. Donor receives opportunities to make his or her views known.
5. Donor is given the feeling that he or she is part of an important cause.
6. Donor feels his or her involvement is appreciated
7. Donor receives information showing who is being helped
ASK
THANK
REPORT
Who’s saying thank you?
“When people ask me what difference a donation can make, I reply that donations to Starship transform lives. “Parents have told me with tears in their eyes what it means to know their child is receiving the best possible care at Starship.
And behind every one of those children there are compassionate people like you dedicated to helping. Thank you.
Your donation will help Starship support children and their families at their moment of greatest need. It is at these moments, when a child’s life can hang in the balance, that your donation becomes truly transformational.”
THE BIG QUESTION:
Why don’t we testthank-yous more?
Sending thank you letters to all your donors for every donation is a
waste of time
MYTH #3
BUSTED
Senden Dankesbriefe an alle Ihre Spender für jede Spende ist eine Verschwendung von Zeit,
If you mail your donors too often you’ll drive
them away
MYTH #4
Wenn Sie Ihre Spender zu oft mailen Sie sie zu vertreiben
“There is absolutely no evidence that frequency of solicitation negatively impacts retention and
lifetime value. Period.”
This is at least 24 mailings per year
Lots of charities are here
Typical response rates
Mailing arrives from your favourite charity
Take out your cheque book and make a donation
Receive warm glow from beautifully penned thank you letter and satisfaction that charity has explained exactly how they’ve spent
your money
Mailing arrives
from a
DIFFERENT
charity
Write cheque to YOUR COMPETITOR
If you mail your donors too often you’ll drive
them away
MYTH #4
BUSTED
Wenn Sie Ihre Spender zu oft mailen Sie sie zu vertreiben
You need to givepeople concrete facts
and figures to persuade them to give
MYTH #5
Sie müssen sich die Menschen konkrete Zahlen und Fakten, um sie davon zu überzeugen, geben
The RokiaExperiment
Food shortages in Malawi are affecting more than 3 million children.
In Zambia, severe rainfall deficits have resulted in a 42% drop in the maize production from 2000. As a result, an estimated 3 million Zambians face hunger.
4 million Angolans – one third of the population – have been forced to flee their homes.
More than 11 million people in Ethiopia need immediate food assistance.
23% of earnings donated
Her life would be changed for the better as a result of your financial gift.
With your support, and the support of other caring sponsors, Save the Children will work with Rokia’s family and other members of the community to help feed her, provide her with education, as well as basic medical care and hygiene education.
48% of earnings donated
0%
10%
20%
30%
40%
50%
EmotionalRational
Combination
Small, Loewenstein & Slovic
Proportion of Earnings Donated
The Mother Teresa Principle
If I look at the mass,I will never act.
If I look at the one, I will.
The Joe Stalin Principle
One man’s death is a tragedy,
but a million deaths is a statistic.
You need to givepeople concrete facts
and figures to persuade them to give
MYTH #5
BUSTED
Sie müssen sich die Menschen konkrete Zahlen und Fakten, um sie davon zu überzeugen, geben
You need to invest in brand awareness to drive up fundraising
income
MYTH #6
Sie müssen sich in die Markenbekanntheit zu investieren, um bis Spendeneinkommen
Fundraising Spend €500,000 €300,000
Awareness Spend – €200,000
Cost per Response €125 €100
# Responses 4,000 3,000
Awareness campaign would need to improve performance by 40% to justify spend
Jeff Brooks isn’t as optimistic as me...
“...for the awareness campaign to be worthwhile it would have to improve fundraising by 67%...”
You can’t compete with these people
“The consumer approaches impulse items, like Coca Cola, as a PULL .i.e., they go and buy a soft drink, and Coke is (or is not) their choice of beverage. They get a new car and choose between a Ford and a Toyota.These brands spend millions on ‘Top of Mind’ marketing, which makes sense.
However, charity fundraising is different. Statistically speaking, people don’t give without being asked. The only exception is a media disaster story such as an earthquake, or, bizarrely, Princess Diana dying.
Outside of emergencies, fundraising is a pure PUSH exercise. Being top of mind definitely makes asking easier, but a charity that asks effectively and is not top of mind, beats the charity that is top of mind, but doesn’t ask effectively.”
- Sean Triner (101Fundraising.org)
Cash Acquisi,on ResultsDecember 2010 – May 2012
When Number Mailed Response Rate Average GiD Number of new donors
December 2010 77,000 1.8% $58 1,474
April 2011 85,000 1.9% $55 1,675
September 2011 43,500 5.8% $46 2,608
March 2012 150,000 2.7% $46 4,328
May 2012 156,000 3.9% $48 6,298
TOTAL 511,500 3.2% $51 16,383
You need to invest in brand awareness to drive up fundraising
income
MYTH #6
BUSTED
Sie müssen sich in die Markenbekanntheit zu investieren, um bis Spendeneinkommen
Take major donors out of your direct mail
programme
MYTH #7
Nehmen Sie den wichtigsten Gebern aus IhrerDirect-Mail-Programm
The Black Hole of Almost Major Donors
1% of the response - just 21 people - generated over 35% of the total income from the appeal.
20% ofdonors
80% ofincome
20% ofdonors
4%
80% of 80%= 64% of income
Pareto Pareto2
Take major donors out of your direct mail
programme
MYTH #7
BUSTED
Nehmen Sie den wichtigsten Gebern aus IhrerDirect-Mail-Programm
There’s no point investing in direct mail unless you’re a large
charity with a big database of donors
MYTH #8
Es hat keinen Sinn Investitionen in Direct-Mail, wenn Sie eine große Charity mit einer großen Datenbank von Spendern sind
$3,900 million
€40 million
4.4million 4.9million 5.4million
Ireland
Barcelona
There are advantages to being small...
Use thePareto principle
Personalise
Make it feel homemade
Ask for REALLY big gifts
€0
€200,000
€400,000
€600,000
€800,000
20072008
20092010
20112012
Annual Direct Marketing Income
There’s no point investing in direct mail unless you’re a large
charity with a big database of donors
MYTH #8
BUSTED
Es hat keinen Sinn Investitionen in Direct-Mail, wenn Sie eine große Charity mit einer großen Datenbank von Spendern sind
Women are from Venus and Men are from Mars
MYTH #9
Frauen von der Venus und Männer sind vom Mars
Control No priming men outperformed women
Male Primed“men perform better than women in this test,
probably for genetic reasons”men outperformed women
Female Primed“women perform better than men in this test,
probably for genetic reasons”no gender difference
Delusions Of Gender: The Real Science Behind Sex Differences– Cordelia Fine (2010)
Women students in business trying to organize a humanitarian action in Togo.
We are relying on your support
DONATING = HELPING
Women students in business trying to organize a humanitarian action in Togo.
We are relying on your support
DONATING = LOVING
CONTROL €0.54
HELPING €0.62
LOVING €1.04
“One possible explanation is... the loving concept acts as a prime that leads to activation of further concepts associated
with compassion, support, or solidarity that, in turn, lead participants to offer donations more favorably”
The effect of the word “love”on compliance to a request for humanitarian aid: An evaluation in a field setting– Dr. Nicolas Guéguen & Lubomir Lamy (2011)
Control Time-ask Prime Money-ask Prime
–“How interested are you in volunteering for HopeLab?”
“How interested are you in making a donation to HopeLab?”
$4.42 $5.85 $3.07
Activates emotional mindsetActivates value-maximization
mindset
Asking for time vs asking for money
Women are from Venus and Men are from Mars
MYTH #9
BUSTED
Frauen von der Venus und Männer sind vom Mars
I’m buying free drink for everyone in the bar in...
oh, about 5 minutes time
MYTH #10
BUSTED
Ich kaufe Freigetränk für jeden in der Bar in ...oh, ca. 5 Minuten Zeit
