Heartstrings and Purse Strings Best Practices in Nonprofit Marketing

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    1

    Presented by:

    Tom Abrahamson

    Managing Director & Principal

    200 South Michigan Avenue, 16th Floor

    Chicago, IL 60604

    312.356.8000

    [email protected]

    www.lipmanhearne.com

    Heartstrings and PursestringsBest practices in nonprofit marketing and annual

    giving fundraising

    Shelley Goode

    Vice President1899 L Street NW, Suite 850

    Washington, D.C. 20036

    Phone: 202.457.8100

    [email protected]

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    2

    What keeps you up at

    night?

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    3 Agenda

    What well talk about today

    Essentials of branding

    Understanding and reaching the new consumers

    How do I get viral?

    Annual giving best practices

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    Give me more angels and make them gladder to see me.

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    Some branding essentials

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    6 Branding essentials

    Branding is not about getting your

    prospect to choose you over yourcompetition; it's about getting your

    prospect to see you as the onlysolution."

    --Rob Frankel

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    7 Branding essentials

    What is a brand

    Harley Davidson =

    Starbucks =

    FedEx =

    MIT = ________________ =

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    8 Branding essentials

    A brand is not

    A vision statement A mission statement

    A logo

    A tagline

    An ad

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    9 Branding essentials

    A brand is

    a shortcut for making decisions

    what people say about you when you are not in theroom

    a promise expressed as a benefit

    Both logical and emotional

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    10 Branding essentials

    A more complex view:

    Everybody has a personal narrative.

    Everybody has aspirations.

    Everybody wants something.

    How can you brand your institution to be the answer totheir needs even if not fully voiced?

    How can your brand stimulate the desired action?

    How can your institution be the hero in their narrative?

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    11 Branding essentials

    Every strong brand is a hero in someones narrative

    Volvo protects my familyRed Cross helps me in a disaster

    Disneyland offers good clean fun

    Republicans cut my taxes

    ________________ =

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    13 Branding essentials

    Key branding challenges

    Making the intangible concrete and meaningfulDifferentiating the quality/benefit of your service

    Every encounter a moment of truth

    Internal awareness of external impact

    Fulfilling the brand promise

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    14 How it all comes together

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    Reaching the new

    consumers

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    16 Their media is fragmented and complex

    Radiostations:

    4,400

    1960

    Mass Media, Matures

    Magazinetitles:8,400

    5.4 Billionpages indexed

    by Yahoo!:Magazine

    titles:

    17,300

    TV channelsper home:

    82.4

    Internetbroadcaststations:25,000+

    2006

    Mass Media, Evolves

    TV channelsper home:

    5.7

    RadioStations:13,500.

    Source: Yahoo! State of the Union 2006

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    17 Meet the new consumers

    New consumers

    A sense of ownership

    Demand relevance

    Expect invitation

    Reject interruption

    Want value convenience, portability, accessibility

    Want the new, new thing

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    18 Meet the new consumers

    Source: 2006 W2 Group Inc.

    Mindboggling options for staying informed andconnected

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    19 Meet the new consumers

    Behavioral tracking

    User visits pre-

    defined sites

    Behavioral Targeting

    Index (BTI) applied

    User is anonymously

    tagged

    Behaviorally

    targeted ads served

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    20 Meet the new consumers

    Does this frighten you?

    http:www.aclu.org/pizza/images/screen.swf

    http://www.aclu.org/pizza/images/screen.swfhttp://www.aclu.org/pizza/images/screen.swf
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    21Meet the new consumers

    Banner ads

    Click-thru rates

    Email

    Pop-ups

    Social Networking

    Evolving

    Diminishing

    Spam

    Blocked

    Portals/Niche

    New gets old fast

    ... and (for the under-30s), print/snail mail is new and novel

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    22 Meet the new consumers

    Communications must be:

    Authentic

    Positive

    Respectful

    Respectable

    Motivational

    Goal-focused

    Source: www.generationsatwork.com

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    23 Meet the new consumers

    Among the challenges

    Develop or reinforce a famous brand withbroadscale and localized advertising

    Dose level must be adequate to be seen and heard(e.g., TRPs)

    Multi-channel approach

    Activating word of mouth influentials

    Must cut through the clutter

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    Viral Marketing:

    a short-course

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    25 Viral marketing

    A marketing phenomenon thatfacilitates and encourages people

    to pass along a marketingmessage.

    Source: http://www.marketingterms.com

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    26 Viral marketing

    In a few short

    generations, a virus

    can explode.

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    27 Viral marketing

    Elements of a Viral Marketing Strategy

    1. Gives away valuable products or services

    2. Provides for effortless transfer to others

    3. Scales easily from small to very large

    4. Exploits common motivation and behaviors

    5. Utilizes existing communication networks6. Takes advantage of others resources

    Source: Ralph F. Wilson, E-mail Marketing and Online Marketing editor, Web Marketing Today, 2/1/2000 &

    http://www.clickz.com/showPage.html?page=837511

    FUN, EASY, POPULAR

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    28 Viral marketing

    1. Gives away valuable products or services

    Free will generate a wave of interest

    May not profit today

    Act as a Driver

    Source: Ralph F. Wilson, E-mail Marketing and Online Marketing editor, Web Marketing Today, 2/1/2000

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    Text Templates

    Viral marketing

    Example: Sunflower Markets

    Let it Grow!

    http://www.sunflowermarkets.com

    The store opened and beat its forecasted sales by 24percent, and its actual per purchaser goals by 67 percent.

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    http://www.sunflowermarkets.com/http://www.sunflowermarkets.com/
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    Text Templates

    Section Breaker Format

    Viral marketing

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    31 Viral marketing

    2. Provides for effortless transfer to others

    Viruses spread when easy to transmit

    Digital Format

    Simple Message

    Source: Ralph F. Wilson, E-mail Marketing and Online Marketing editor, Web Marketing Today, 2/1/2000

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    33 Vi l k i

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    33 Viral marketing

    3. Scales easily from small to very large

    Little financial investment

    Plan ahead to accommodate increase of visitors

    Source: Ralph F. Wilson, E-mail Marketing and Online Marketing editor, Web Marketing Today, 2/1/2000

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    35 Vi l k ti

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    35 Viral marketing

    4. Exploits common motivations and behaviors

    Understand what drives your audience

    Fit the needs of your specific communication

    Source: Ralph F. Wilson, E-mail Marketing and Online Marketing editor, Web Marketing Today, 2/1/2000

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    37 Vi l k ti g

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    37 Viral marketing

    5. Utilizes existing communication networks

    Each person has a network of 8 to 12 close

    friends, family and associates

    Internet relationships exist as well

    Source: Ralph F. Wilson, E-mail Marketing and Online Marketing editor, Web Marketing Today, 2/1/2000

    38 Viral marketing

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    38 Viral marketing

    Example: Sixdegrees.org

    http://www.sixdegrees.org/

    http://www.marketingsherpa.com/viralawards2007/7.html

    Use the game Six Degrees to KevinBacon on AIM WebPages.

    Display to all your friends thatyouve made a donation.

    39 Viral marketing

    http://www.sixdegrees.org/http://www.sixdegrees.org/
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    39 Viral marketing

    6. Takes advantage of others resources

    Place text or links on others websites

    Someone else's newsprint or webpage is relaying

    your marketing message Send articles/press releases that support your

    message

    Source: Ralph F. Wilson, E-mail Marketing and Online Marketing editor, Web Marketing Today, 2/1/2000

    40 Viral marketing

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    40 Viral marketing

    Example: Fafarazzi.com

    Enjoy fantasy football leagues

    and celebrity gossip?

    Fafarazzi.com utilizes socialnetworks and links to other blogs

    as part of their marketing

    campaign.

    http://www.fafarazzi.com/index.php

    41 Viral marketing

    http://www.fafarazzi.com/index.phphttp://www.fafarazzi.com/index.php
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    41 Viral marketing

    Some advice on better viral

    Ask yourself What is driving people to your sites andgetting them to come back?

    Celebrity endorsements can work

    Contests are popular

    Interactivity on sites a must

    Target your audienceBe creative!

    Viral marketing shouldnt be expensive. Keep it cheap,keep it uncontrolled

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    Some examples of brand

    activation

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    Get bold

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    DifferentiateIt could be a downtown

    that needs more trees.

    Or a remote village thatneeds fresh water.

    Whenever a local Lions

    club gets to work,

    problems get smaller.And communities get

    better. Thats the power

    of organized good.

    Find out more atlionsclubs.org/roar.

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    Take a stand

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    Surprise them

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    The Annual Fund

    Catalyst for change

    ororganizational burden?

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    Making the Assessment

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    52 The Annual Fund

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    The Annual Fund

    A philosophical approach to Annual Giving

    Institutional salary (Internal Focus)

    Club Med for prospects and donors (External Focus)

    53 The Annual Fund

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    The Annual Fund

    Source: Taking Control of Your Annual Fund Lawrence Henze

    Creating a dynamic Annual Giving Culture:

    Soliciting donors when they like to give builds loyaltyBuild gift clubs based on loyalty. . .not just donation size

    Test annual giving messages through segmented and

    targeted appealsDont always ask for money

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    The special event

    friend or foe?

    55 The Annual Fund

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    Infrastructure:

    Understanding staffing capacityWhen do you use outside counsel?

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    Letters of Appeal

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    Questions & Discussion