Totally Integrated Fundraising

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Totally Integrated Fundraising . . . and as a
bonus, rewards for questions
Geoffrey W. PetersPresidentCreative Direct
Response
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What is Totally Integrated Marketing?
Advertising
Special Events
Web Strategy
In-Kind Sponsorships
Your Charity
Advocacy
Work Place Giving
Telemarketing
Direct Mail
Planned Giving
Corporate Partnerships
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Benefits of Integration

• Remain focused on existing programs

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Benefits of Integration

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

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Benefits of Integration

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

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Benefits of Integration

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

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Benefits of Integration

• 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

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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?
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Stimulus - Response

• Postage and mail costs continue to rise
• Too much competition and too much clutter
• Negative reactions to banners and spam
• Outbound phones viewed as intrusive
• DRTV too expensive and segmented

• Conversions to e-mail and e-newsletters
• Consistent reinforcing messaging
• Use other media to pull rather than push
• Inbound phones driven by mail and internet
• Changed formats and use of URLs for more info.

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Mixing Media

• Child Sponsorship and Disasters/Emergencies
• DRTV inbound 800 mail fulfillment
• High Dollar Campaigns
• Mail-Phone-Mail or Phone-Mail-Phone
• Emergency e-mails
• Electronic transfer inbound 800 reply address
• Outbound telemarketing Thanks-Yous Upgrades

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Examples of IntegrationStanford University
Alumni Newsletter

• 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

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Examples of IntegrationStanford University
Alumni Newsletter

• 32 of lapsed donors (no giving in prior year)
  but who received e-newsletter gave vs. 22 of
  non-recipients
• Of total e-newsletter recipients who never
  donated, 13 did so vs 5 of non-recipients
• Ultimately 2x response of direct mail only

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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

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The Test

• 6,225 Total Donors
• 2,131 designated as control group no
  acknowledgment, just ongoing mail.
• 2,094 designated as thank you call test.
• 2,000 designated as thank you note test.
• Audience
• 50-249.99, one-time and multi-donors
• Had given one gift to a disaster appeal within
  the previous twelve months.

?
?
?
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Timing

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

?
?
?
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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.

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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.

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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.

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Test 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 2.41
  ROI.

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Integration

• 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!

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Example of Integration

• 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

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Example 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!)

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Example of Integration

• Integrated on and offline marketing campaign
• DRTV, Billboards, Press ads, Mail
• Hotlinks, Banners, Mini-site
• Thank you email and letter
• On/offline supporter servicing

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Measuring Outcomes

• 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

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Results

• 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 21
• Response handling costs reduced by 40
• Servicing costs reduced by 60

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Examples of IntegrationWXPN-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)

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Examples of IntegrationWTVS 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)

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Examples of Integration - Mail
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Examples of Integration - WEB
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Telephone and Mail Segregation NOT Integration

• 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.

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Results
October Test Results Program Mail
Count Response Dollar Average DM File
200,000 5.80 13.26TM File 200,000
4.25 12.79 November Test Results Program
Mail Count Response Dollar Average DM
File 200,000 5.57 13.75TM File
200,000 5.02 12.79
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Multi-channel doesnt always work Would
integration have worked?
March Rollout Results Program Mail
Count Response Dollar Average DM 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).
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Example of an Integrated Campaign
World USO War approachingOnly known for
celebrity showsWanted 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
Organization Issues Advantages
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Operation USO Care Package
Care Packages of the requested items are given to
members of the Armed Forces deployed
overseas Program was designed to facilitate a
one-to-one gift Included notes from individuals
who sponsored Care Packages Establish DC
warehouse where USO DCoversees volunteers
stuffing packages Distribute packages through
in-kindsponsor (FedEx) to internationalUSO
Mobile Canteens and localUSO points of departure
Program Overview Fulfillment
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Operation USO Care Package
Donations to sponsor Care Packages
(25/Package) In-kind donations from
manufacturers for items Corporate sponsorship
levels Various special events Workplace giving
projects Even a small donation of 25 can make a
difference Donor can include a personal message
in Package In-kind sponsors can put logos on items
FundraisingOpportunity
DonorBenefits
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Operation USO Care Package
Developed www.usocares.org E-mercials used to
create emotional bond Linked to most major news
web sites Implemented Kintera infrastructure Co
nducted local Operation USO Care Package (OUCP)
fundraising events
Web Strategy
Special Events
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Anatomy of a Project Operation USO Care Package
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Operation USO Care Package
Marketing Techniques Used
Developed Cares for the Troops
campaign Web-based co-branded program E-mail ask
from CEO to customized web site Co-branded note
cards Customized reports to corporation Customized
tracking system for matching gifts Example
www.ngcares.org
Work Place Giving
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Anatomy of a Project Marketing Techniques Used
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Operation USO Care Package
Marketing Techniques Used
Done by another agency but reportedly results
increased due to increased visibility of
charity Solicited product donations Solicited
warehouse facility Web site design and web
hosting Developed co-branded commercialwith
sponsor (Lowes) Developed the USO NASCAR
Mail
In-kind
Advertising
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Operation USO Care Package
Marketing Techniques Used
Sent out announcement two (2) times per week
during the war Secured spots for USO executive on
major networks Used local media Joint release
program with Department of Defense endorsing
program Developed corporate sponsorship programs
PR
CorporateSponsors
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Operation USO Care Package
Results
Financial Success
Individual gifts off-line on-lineCares For The
Troops (online)Matching gifts for CFTGeneral
on-line USOCorporate sponsorshipMeasurable
in-kind Totals
12,950,000925,000403,000105,000125,0007
20,0008,250,000 23,478,000
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Example of an Integrated Campaign
Brandraising Fundraising
Its not about Fundraising or Brandraising, but
about integrating The story of WWF Netherlands
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Situation at the end of nineties

• At the first glimpse
• Very strong position
• Looking more deeply
• Well known brand
• Seen as arrogant and far away
• Old fashioned
• Membership going down
• Poor financial results

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Change was needed and achieved

• Right people in right places.
• An impossible dream.
• Changing paradigms.
• The mentality of a small business combined with
  the vision of big brands (long term investment
  but with focus on short term profit!).
• Building brand awareness.
• But above all integration of Communications
  Marketing (approach multichanneling sharing,
  learning, looking outside).
• Not only improvement in figures but also in
  position. Bringing the brand into daily life.

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Financial results
19.2
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Marketing costs
- 13.1
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Total donors (incl. members)
13.3
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Results

• Top 10 Brand in the Country
• Top 3 Charity Brand in the Country
• 1 Green Brand in the Country
• Not finished yet. PandaVision.

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The 3 Cs of the Web

• Content
• Content is King Forrester Research
• Community
• Community Affinity Loyalty
• Communication
• What the web is all about

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Some Other Views

• Direct mail is the best place to learn the
  techniques that work best in electronic media.
  Leslie Laredo, Director of Advertising
  Development for Ziff-Davis Interactive
• The Netis the finest direct-marketing mechanism
  in the history of mankind. It is direct mail with
  free stamps. Seth Godin, VP of Direct Marketing
  for Yahoo!

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Experimenting with Technology

• Ready, Fire, Aim
• Things are moving fast and often experimentation
  is the only way to know anything
• WAP Technology in Japan and Finland Save the
  Children looking at emergency opportunity
• European Union will account for more than 50 of
  the worlds Internet users by the end of this
  year.
• UCP looking into ATM machines
• No difference between this and POP boxes

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Driving 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

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Internet vs. Integrated

• 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

• Spam outbound unsolicited e-mail
• This is who we are please send money
• Advertising
• Single medium of communication
• Credit card donations

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Web do - Web dont

• 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

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Closing thoughts from Disney

• Disneys Credo
• Dream
• Believe
• Dare
• Do.

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Thank You Copies of this PowerPoint available
for your use just leave me your business card
with an e-mail address
Geoff Peters