Sponsored by: Multichannel Strategies to Convert Online-Acquired Supporters Into Donors Clint O’Brien September 10, 2013 Use Twitter Hashtag #4Glearn Part Of:
May 11, 2015
Sponsored by:
Multichannel Strategies to Convert Online-Acquired Supporters Into
Donors
Clint O’Brien September 10, 2013
Use Twitter Hashtag #4Glearn
Part
Of:
Sponsored by:
Protecting and Preserving the
Institutional Memories of
Nonprofits Since 1993
www.cjwconsulting.com
(866) 598-0430
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Of:
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Of:
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Today’s Speakers
Hosting:
Cheri J Weissman, CJW Consulting & Services, Inc. Assisting with chat questions: Jamie Maloney, 4Good
Part
Of:
Clint O’Brien Vice President
Care2
Multichannel Strategies to Convert Online-Acquired Supporters Into Donors
Clint O’Brien
Stuff We’ll Cover • Online Acquisition Methods
• The Paid Acquisition Model
• Multichannel Conversion
– Why it matters, how it works, some case studies
– Some caveats
• Largest community of engaged people taking action daily to support causes they care about
Ranked among 150 most highly trafficked U.S. web networks, by Quantcast
• Care2’s nonprofit clients also reach an additional 150 M people via Care2’s revenue-sharing media partner program, which includes Mother Jones, AlterNet, Ms. Magazine, eNature.com, The American Prospect, National Memo, VolunteerMatch, LeftAction, Democrats.com and 200+ more partners
• 23 million members • 75% Women • Avg Age = 42 • Educated • High HH Income
• Monthly unique audience of 16 M people
About Care2
Some of Care2’s 1000+ Nonprofit Clients�
Source: Target Analytics donorCentrics Q1 2013 Index of National Fundraising Performance
The Problem: Direct Mail Acquisition of New Donors Is Declining
Consistent decline since 2005
Nonprofits need new ways to find new donors
A Few Questions About YOU • Poll Question 1: Which channel does your
organization use to acquire new donors and/or donor prospects? (Choose all that apply)
• A) Direct Mail; B) Telemarke2ng; C) Face-‐to-‐Face Canvassing; D) Online (Email, websites, etc.); E) Social Media; F) Direct Response TV.
• Poll Question 2: Which channel is your highest quantity source for acquiring new donors and/or donor prospects? (Choose only one)
• A) Direct Mail; B) Telemarke2ng; C) Face-‐to-‐Face Canvassing; D) Online (Email, websites, etc.); E) Social Media; F) Direct Response TV.
Online Acquisition Methods
Online Donor Acquisi2on Strategies -‐-‐ Compared
PRICE
VOLU
ME
SEM Google Grants
SEO
Email List Sharing
Social Media
Email Append
Paid
Acquisi2on
Social Media ROI
Social Network ROI Calculator (by Jus2n Perkins) " hPp://www.frogloop.com/social-‐network-‐calculator
• Some2mes stuff that seems “free” …isn’t actually free at all
Online Acquisi2on Strategies Compared …Again
PRICE
VOLU
ME
SEM Google Grants
SEO
List Sharing
Social Media
Email Append
Paid
Acquisi2on
The Paid Acquisi2on Model
Paid Acquisition – of Warm Donor Leads • Goal = Recruit multi-channel donor prospects and
supporters who are warm – i.e. “pre-qualified” to boost likelihood of conversion into actual donors
• Only pay for actual captured leads – not for “branding,” “awareness,” impressions, exposure, advocacy, etc.
• Tap existing communities of people who already care about my cause – preferably w/ good demographics, income, etc.
PLUSES
• High volume. High quality. Fast. Proven model
• No real work involved, until leads delivered
MINUSES
• Upfront cost
• You still must cultivate, convert leads into donors
Care2 DONOR ACQUISITION Model for Nonprofits�
+ =
• No duplicates. All leads are new to the nonprofit, not supporters they had already
• Cost per lead pricing. Nonprofit pays only for actual leads delivered
• Multichannel leads. Nonprofit receives email address AND postal address. Sometimes phone numbers, too
Prequalified “Warm” Leads
Paid Acquisition Model (cont’d)
Behavioral Targeting
Permission Based
Marketing
Online Community of Engaged “Do Gooders” Who Take Action Every Day to Support Causes
Behavioral segment that cares about YOUR cause
Subset that takes YOUR branded action
Sub-subset that signs up for YOUR list
Multi-Channel Donor Leads, Asking to be in Relationship with YOUR Nonprofit
Paid Acquisition Model (cont’d)
Age Distribution Community Member Profile
Gender 75% women
Age (Average) 39
Education 67% college+
Annual HH Income 65% >$75,000
Charitable Giving 62% donors
• Demographics matter, too. • But behavioral targeting
matters more -- to find good donors
• The host of an online community sends email alerts to members, urging them to click through to take actions
• Actions may be pledges,
petitions, surveys, polls, quizzes, photo contests
How it Works
Paid Acquisition Model (cont’d)
The contact info captured includes full name, email, street address, state and zip code.
• Landing page features action that member is being urged to take
• It includes the nonprofit’s branding and approved content
• After taking action, the person is invited to take the extra step of signing up for the nonprofit’s email list
• The invitation to subscribe includes the nonprofit’s logo and a sentence or two describing the content that the person will receive
Paid Acquisition Model (cont’d)
Welcome Email
Message to Online-
Acquired Supporter
• Timeliness counts. Should be sent out within 24 hours of the new supporter’s having signed up for your list
Trying to Shortcut the 2-Step Fundraising Process: “End-of-Funnel” Donation Ask
• Petition action – good for advocacy, acquisition
“End-of-Funnel” Donation Ask (cont’d)
• Shown AFTER supporter signs up for list – so lead captured already • Avoids recruiting least likely prospects – prompts them to unsubscribe • Good cultivation for ALL prospects to see – not just those who donate • But typically very few prospects are ready to donate yet, at this point
Question for YOU • Poll Question 3: If your nonprofit organization
engages in advocacy activities (e.g. petitions, calls to lawmakers, public comments), do you ask your donors to take action – and ask your advocacy supporters to donate? Or do you treat donors and advocacy supporters differently?
A. Yes we ask donors to take action, and action-takers to donate.
B. No, we treat them separately C. Our organization does not engage in advocacy
at all
A Key Principle
• A recent study proves what we have long suspected:
Online advocacy and fundraising activities
complement -- and reinforce -- each other
SOURCE: Charitable Memberships, Volunteering and Discounts: Evidence from a Large-Scale Online Field Experiment. May 2009, National Bureau of Economic Research, A. Lange, A. Stocking. Sample size = > 700,000 subjects.
They are seven (7) times more likely to donate, compared to supporters who did not previously take an online action for the organization
• What is special about supporters who take online actions for a nonprofit – such as via pledge or petition campaigns?
Online Action Campaigns Fuel Fundraising
Multichannel Conversion Strategies
• The welcome series (multi-channel)
Why Multichannel Conversion Matters
0
100
200
300
400
500
600
700
800
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
Other
Telemarke2ng
Direct Mail
Online
• Many online-acquired leads convert online; others via DM or telemarketing • Vendor helps make multi-channel conversion possible by providing
mailing addresses, along with email addresses, for leads recruited
Don
or C
onve
rsio
ns /
Mo.
Multi-Channel Fundraising Case Study #1
Nature Conservancy Canada (NCC) is a leading environmental charity that conserves and protects areas of natural diversity
• Channels Used – Email, Direct Mail and Telemarketing
• Goals:
• Generate actions in support of NCC’s mission and to build loyalty
• Generate new donors • Including new monthly sustainer donors
Case Study
First welcome email
Online Acquisition & Welcome Email Series
8,000 new supporters acquired from
Care2
!
Teva Harrison
From: TEST MESSAGE FROM: Nature Conservancy of Canada [[email protected]]
Sent: March-26-2012 2:07 PMTo: Teva HarrisonSubject: Thank you for taking action to protect the Burrowing Owl
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Teva Harrison
From: TEST MESSAGE FROM: The Nature Conservancy of Canada [[email protected]]
Sent: March-26-2012 2:37 PMTo: Teva HarrisonSubject: The Leaflet, March 2011 - A ssstartling discovery, Old-growth forests 101, and more!
!!!
If you received this newsletter from a friend and would like to receive it directly from NCC, sign up here.
March 2011
In this issue
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A ssstartling discovery in the badlands of Alberta
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Old-growth forests 101
The badlands of Alberta, where the team set out on their expedition (Photo by MULTISAR)
Most recent newsletter
!
Teva Harrison
From: TEST MESSAGE FROM: Nature Conservancy of Canada [[email protected]]
Sent: March-26-2012 2:16 PMTo: Teva HarrisonSubject: Teva: Make a Difference for Nature
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Donation appeal. Tested two
versions: “Opportunity” and “Threat”
Survey
0 4 wks 2 wks
Direct Mail and Telemarketing
4 wks 6 wks
Direct Mail Prospecting pieces
PLA
TE1
BLA
CKPL
ATE
2M
AG
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PLA
TE3
CYA
NPL
ATE
4Y
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WL5
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To:
From:
I prefer to give through my credit card. Please charge my:
Charitable registration # 11924-6544-RR0001. We are happy to issue an official tax receipt for donations of $10 or more — others on request.
PLEASE RETURN THIS FORM WITH YOUR GIFT. DETACH FORM AT PERFORATIONS AND PLACEIN RETURN ENVELOPE SUPPLIED. DO NOT PEEL APART. THANK YOU FOR YOUR SUPPORT.
Card #
Expiry Date
I prefer to give by cheque (made payable to theNature Conservancy of Canada).Become a Monthly Donor!Please see over...
DDoonnaattee oonnlliinnee aatt wwwwww..nnaattuurreeccoonnsseerrvvaannccyy..ccaa
!
Signature
Please fill in your email address so we can keep you up-to-date with the latest NCC news electronically.
Yes! I’d like to help save Canada’s rare and endangered species.Here is my tax-creditable gift of:
Please use theselabels for CD's,books, gifts, mason jars, etc...
To:
From:
To:
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This belongs to:
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I support the Nature Conservancy of Canada I support the Nature Conservancy of Canada I support the Nature Conservancy of Canada I support the Nature Conservancy of Canada
36 Eglinton Avenue West, Suite 400, Toronto, ON M4R 1A1Toll Free: 1-800-465-8005
Email: [email protected] do not forward cash.
wwwwww..nnaattuurreeccoonnsseerrvvaannccyy..ccaa
Mr. John SampleWyers Direct1128 Kingston RoadPickering, ON L1V 1B4
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$35 $50 $100 I prefer to give: $__________
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999999999-09 P1B 685-DW-T
Telemarketing calls
Dear fellow Canadian,
Let me paint a scene for you.
A Grizzly paces back and forth, several metres from the busy road. He isagitated and frustrated, wanting to move forward to new feeding grounds on theother side of the highway but is disturbed by the cars and noise. He snorts hisirritation and slowly turns back to return the way he came.
This Grizzly’s situation is not unique. Roads, habitat destruction and otherhuman impacts are seriously fragmenting and reducing the remaining habitat forCanada’s Grizzly Bear population. In fact, the Grizzly has already disappeared fromthe prairies. And we have no viable options left today for reintroduction.
Did you know that Grizzlies have been wiped out from an estimated 50percent of their previous range globally, and they’ve lost 98 percent of their rangein the lower 48 United States?
Grizzlies are a symbol of our great wilderness. And as Canadians, we arelucky that we still have the opportunity to protect our native wild animals —an opportunity that has been lost in many other countries around the world.But only if we act now!
That’s where the Nature Conservancy of Canada (NCC) comes in. We areCanada’s leading national charity dedicated to the direct protection of significant,threatened habitat across the country. We work on private land with willing sellers,securing the land by purchase, through donation or by putting conservationagreements in place that will protect the land – and the species it supports.
Since 1962, with the support of our partners, NCC has helped to protectmore than 2 million acres of ecologically significant land nationwide.
If we want the Grizzly to survive, it’s crucial that we protect the naturalspaces where it ranges. That’s why I’m writing to you now. Please, will you senda donation of $35, $50 or $100 today to help protect Grizzlies and other speciesat risk? The land we conserve will give these amazing animals a chance to recovertheir dwindling population and help to protect these Canadian treasures for usand for our children.
The fragmentation of Grizzly habitat and their population is a major threat.Grizzlies require vast tracts of land to survive and thrive as a species — the home
Will North America’s Grizzliestake their last stand here in Canada?
Over, please…
36 Eglinton Avenue West, Suite 400 • Toronto, ON M4R 1A1Toll Free: 1-800-465-8005
Email: [email protected] • Website: www.natureconservancy.ca S
5 wks
Cost to acquire = $20,000 Cost of DM and TM outreach = $34,284 Total Cost = $54,284
Total Revenue = $28,219
Net Annualized Cost Per Donor Acquired: $35.39 Net Annualized Cost Per Sustainer Acquired: $195.06
Average Gifts: One-Time: $47.53 Monthly: $16.28 / month
Telemarketing & DM 6.1 % conversion rate • Including one-time donors and monthly sustainers (≈10 gifts/yr) • Converted 88 to monthly sustainers so far
Case Study Results Results 11 Months After Acquisition
Multi-Channel Fundraising Case Study #2
Covenant House provides loving care and vital services to homeless, abandoned, abused, trafficked, and exploited youth.
• Channels Used – Email and Telemarketing
• Goals:
• Add new one-time donors
• Add new monthly sustainer donors
Case Study
Online Acquisition & Welcome Series
0 4 wks 2 wks
2 Video Stories
1st Welcome Email
54,000 new supporters acquired from Care2
Donation Appeal
Telemarketing
4 wks 8 wks 6 wks
Advocacy + Bed/Blanket Appeal
Calls occurred during Oct – Dec 2013. In the end, only 30% of planned calls were made due to time constraints and strategy.
Advocacy + Bed/Blanket Appeal
Hurricane Sandy Appeal
Hurricane Sandy Appeal
December Email Appeals
Emails were sent throughout December 2013
8 wks 10 wks
Holiday Appeal
Bed & Blanket Appeal Kevin’s Letter
Gift Catalog Year-End Appeal 1
Year-End Appeal 2
12 wks
• With $24K in revenue after three months, Covenant House had already recovered 1/3 of the cost to acquire the online donor prospects
• 624 of the prospects (1.6%) had already converted into donors within the first three months, and 11 of these donors were monthly sustainers with a higher value – It seems likely that they would have had even more
donor conversions if the organization used Direct Mail as part of its mix.
• Roughly 80% of the Hurricane Sandy donors made a subsequent donation during the year-end appeals
• Covenant House still has more than 30,000 donor prospects on which to try telemarketing
Case Study – Key Results and Lessons Learned
Tip: Speed (Recency) Matters • LGBT advocacy
organization Human Rights Campaign reported donor pledge rates via telemarketing were >30 percent higher for newly acquired online leads if phone outreach took place within first four months after acquisition.
Source: 5700 phone contacts (over 12 mo.) with HRC supporters who were recruited by Care2.
• HRC’s acquisition campaign with Care2 included an optional field for people to indicate if they were themselves LGBT or not. This information enabled HRC to do targeted Direct Mail pieces
Campaign Package Approach Response Traditional 0.26%
September 2010 Targeted 0.61% Traditional 0.35%
February 2011 Targeted 0.57% Traditional 0.12%
Grand Total 0.32%
• DM packages with targeted (straight vs. LGBT) messaging strongly out-performed the non-targeted packages
Tip: Donors and Information from One Channel Can Feed Another Channel
Caveats About Multi-channel Fundraising
• “Multi-channel donors are not always more valuable than single-channel donors” • Among donors to CARE making two or more gifts,
multi-channel donors were only $19 more valuable ($187 vs. $168)
• Among CARE donors with highest previous gids between $500 and $999, single-‐channel donors were actually worth slightly more
• SOURCE: M+R’s Sarah DiJulio and Steve Daigneault, from presentation Bridge 2013 conference
Ø Another Caveat • It’s not magic; and there is no free lunch.
• Patience, effort and trial-and-error testing are all required!
Question for YOU
• Poll Question 4: How many donations appeals do you send (via all channels) to your donors and supporters each year?
A. Zero to Six times per year B. Seven to 12 times per year C. 13 to 18 times per year D. 19 to 24 times per year E. 25 or more times per year
“How many fundraising emails should you send per year?” (Hint: A lot) “Email marketing is mainly a numbers game.”
“…You typically have a huge advantage in the long term if you own the email list, as opposed to renting a Direct Mail list for acquiring new supporters. This is mainly because owning a list of opted-in supporters gives you the opportunity to develop a deeper relationship over time with these people – and to be a lot more aggressive with the frequency of your donation appeals because you've already established brand recognition and trust…”
“In short, more good emails = more revenue.”
“If you look at the latest M+R Benchmark study, the number of donation appeals sent per year to nonprofit supporters averages about 24. If you break that down, it's two per month, on average.”
--Justin Perkins (Care2), from 8/28/13 Frogloop.com blog post “How many fundraising emails should you send per year?”
Thanks!
Clint O’Brien [email protected] @care2team 202-785-7308 Website: www.care2team.com
Resources Online Marketing Benchmark Study for Nonprofits (by Blackbaud) • www.blackbaud.com/nonprofit-resources/onlinemarketingstudy
2013 eNonprofit Benchmarks Study (by M+R and NTEN) • www.e-benchmarksstudy.com
Frogloop – blog for nonprofit fundraising pro’s (by Care2) • www.frogloop.com
Justin Perkins’ Frogloop post “How many fundraising emails should you send per year?” • http://www.frogloop.com/care2blog/2013/8/28/how-many-
fundraising-emails-should-you-send-a-year.html
Justin Perkins’ ROI calculator • http://www.frogloop.com/breakeven-roi-calculator