Informed Attention:Delivering “The Amazon Experience” in Advancement

The University of North CarolinaAdvancement ConferenceJuly 27, 2006

Informed Attention:Delivering “The Amazon Experience” in Advancement

Jon ThorsenVice President, Professional ServicesKintera, Inc.

Agenda

What do our supporters want? What are they receiving? How do we engage them positively? How do we hone our messages? How do we improve our results?

Signal to Noise

Donors receive far more messages than ever before From more charities From other sources competing for their

time and attention Through more media With greater immediacy and frequency

Standing out from the crowd is simultaneously more important and more difficult

626,225 654,186692,524

733,790773,934

819,008865,096

909,574964,418

1,010,3951,045,979

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

626,225 654,186692,524

733,790773,934

819,008865,096

909,574964,418

1,010,3951,045,979

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Registered 501(c)(3)Organizations, 1995–2005

Source: Giving USA Foundation™ /Giving USA 2006

Everything on the Verge ofBecoming Something Else

How Much is Too Much?

On his way to Diego's, Jeffrey discovers a woman harmed by information excess. All the symptoms are present: bleeding from the nose and ears, vomiting, deliriously disconnected speech, apparent disorientation, and the desire to touch everything.

-Ted Mooney, 1981

Who Wants Your Supporter’s Time & Money?

Insurance

Business

LeisureReal

Estate

FinancialServices

Banking

Charity

Supporter

And You Are?

Religion

BusinessCharities

Colleges)

Hospital

Kid’sColleges)

SpouseColleges)

SpouseCharities

Parent’sCharities

PersonalCharities

Kids’Prep

School

Supporter

Who’s Choosing Whom?

“And You Want What?”

“How many have bought an airline ticket on the ‘Net?” Toffler asks. Hands are raised across the room. “We buy our own airline tickets; we track our own packages; we do our own financial research. Many functions that we used to pay somebody to do, we now do ourselves. We can do it ourselves because our technology makes its possible. The consumer has been turned again into the prosumer. We are producing our own services.”

- John Dunn, Economic Revolution

The Future is Here

Always on Customer-Driven Interactions Customer-Driven Expectations Electronic Funds Transfer Communication modes of choice Greater Accountability (Tell them what

you did with the money)

Donor and NPO expectations differ

Characteristic

Easy to useSignificant content on causeVisually pleasingMemorable URLInfo on getting involvedDonate onlineInfo on how donations are spent

Volunteer opportunitiesBecome memberAdvocate for causeForum for discussion

NPO

1234567

89

1011

Donor

3169482

75

1011

The Future is Here

One year plan & five year vision Solicitation by professional staff The return of the venture

philanthropist Tax-exempt (not non-profit) Donor stewardship at multiple levels Distinguishing ourselves in an

expanding field of choices

New Rules, New Responses

Kelly Mooney, Laura Bergheim

The Amazon Experience

The Customer Manifesto

I want to have a say. I don't want to do business with idiots. I want to know when something is wrong, and what you're going to

do to fix it. I want to help shape things that I'll find useful. I want to connect with others who are working on similar problems. I don't want to be called by another salesperson. Ever. (Unless they

have something useful. Then I want it yesterday.) I want to buy things on my schedule, not yours. I don't care if it's

the end of your quarter. I want to know your selling process. I want to tell you when you're screwing up. Conversely, I'm happy

to tell you the things that you are doing well. I may even tell you what your competitors are doing.

I want to do business with companies that act in a transparent and ethical manner.

I want to know what's next. We're in partnership…where should we go?

(Source: Social Customer, October 26, 2004 )

Ask Me What I Want

Thanks, I’ll Get it Myself

The Donor Manifesto Among donors' top expectations of any charity they support:

It will be honest in its business practices and in its relationship with donors

use their gifts only as it said it would not treat them rudely manage its operations well avoid budget shortfalls refrain from using guilt or manipulative tactics to

persuade them to give. Among lapsed donors, one in five said that not being

adequately thanked or acknowledged would cause them to stop or decrease gifts,

while 35 percent said that they would curtail their giving if the charity did not treat them as a partner.

Opportunity Knocks – Where We’ve Set the Bar

More than 60 percent of both active and lapsed donors say they would consider reviving their giving to charities that had not met their expectations if those charities apologized or somehow made up for doing a bad job.

Testing the Waters

Affluent investors ($500K+) have an average of 12 investment accounts and three checking and savings accounts.

This complexity increases for investors with more than $5M in investable assets, who have an average of 17 investment accounts.

Philanthropists support 20-25 organizations on average with the top 3 receiving 60% of the money

The Hierarchy of Needs

I'll give you all I got to give if you say you love me too I may not have a lot to give but what I got I'll give to you I don't care too much for money – Money can't buy me love

- John Lennon & Paul McCartney Money Can’t Buy Me Love

Time Is Money

From the Attitudes & Values column of the February 1996 issue of American Demographics.

"Affluent Americans report that money can buy them lots of things, but not time or happiness.”

In at least one way, the rich are not so different from the rest of us. They, too, are limited to 24 hours a day. And if they had more time they would spend it with their loved ones.

One World

Washington, DC -- January 25, 2006 

The Internet and email expand and strengthen the social ties that people maintain in the offline world, according to a new report released today by the Pew Internet & American Life Project.

The Internet Improves Americans’ Capacity To Get Help

45% of Internet users – about 60 million Americans – say the Internet has played an important or crucial role in helping them deal with at least one major life decision in the previous two years. Helping another person with a major illness or medical

condition: About 17 million said the Internet had played a crucial or important role in this.

Choosing a school for yourself or a child: About 17 million said the Internet had played a crucial or important role in this.

Buying a car: About 16 million said the Internet had played a crucial or important role in this.

Making a major investment or financial decision: About 16 million said the Internet had played a crucial or important role in this.

www.pewtrusts.com

65% of donors visit the website of the non-profit organization or fundraising event before making the donation

50% of donors always go on-line before making the donation

75% of donors who go on-line before making a donation say that going on-line made some impact on their decision whether or not to give25% said the impact was significant

Kintera-Luth Survey Results

The Katrina Effect

Moving at ‘Net Speed

Time to Reach 10 Million Users:

Radio 20 yearsTelevision 10 yearsNetscape 2 ½

yearsHotmail 7

Months

CRM – The Established Model

A business (for-profit) model: Customer Relationship Management

Developed in the 1990s… …to enable organizations to better serve

their customers through the introduction of reliable processes and procedures for interacting with those customers. (CRM Today)

Reliant on (relatively static) data and information

Moves Management – The Non-Profit Application

Doing what’s necessary Focus on organization – “moving”

donors where we want them to go Narrowly defined – single level of

relationship Continued reliance on (uni-directional)

data and information

Social CRM – Moving Beyond Moves

Beyond data and information: Knowledge platform (Staff facing) Interactive communities (Constituent

facing) Data analytics (Benchmarking, P!N,

Predictive Modeling) Configurable data drives workflow

Focus on donors: Novel social financial technology Enhancing donor experience

The Constituent’s Perspective

Engineering

Athletics

Development

Arts & Sciences

Law School

Medical Center

Planned Giving

Campaign

Major Gifts

Annual Fund

Alumni Relations

Poor Reception

Words are flying out like endless rain into a paper cup They slither while they pass They slip away across the universe

- John Lennon, Paul McCartney Across the Universe

Communication Channels

In Person

Phone

Mail/Fax

Media

Internet

Supporter Receives the Benefit of Sharing Information

All Together Now

Even the best fall down sometimesEven the wrong words seem to rhymeOut of the doubt that fills your mind

I somehow findYou and I collide

- Howie Day, Collide

Build online relationships

It’s all about online

Relationships We communicate

They respond

Community “sells” for you

You listen & analyze

Lather, rinse, repeat

CRM and Segmentatio

n

Web

Database

ASP – Hosted Solution

Reports and Forms

Database

Connected-Giving

If At First You Do Succeed

Breadth and depth Mission and message Expanding the reach Standing out from the crowd Beneath the numbers

Planning for success Eyes on the real prize

Lifetime engagement leads to lifetime giving

•Targeted Content

•Highly Personalized

•2-way Communication

•Regular, cost effective

communications

In its last campaign, the University of In its last campaign, the University of Virginia was successful at cultivating the Virginia was successful at cultivating the loyalty and support of its top tier of alumni – loyalty and support of its top tier of alumni – those with capacity to make significant gifts those with capacity to make significant gifts

Events, special mailings, publications, new Events, special mailings, publications, new volunteer opportunities, and presidential volunteer opportunities, and presidential visits were aimed at the very top of the visits were aimed at the very top of the pyramidpyramid

These activities are sure to increase in These activities are sure to increase in scope and sophistication as the University scope and sophistication as the University enters a new campaignenters a new campaign

The great majority of alumni, however, The great majority of alumni, however, largely remain unengaged and underservedlargely remain unengaged and underserved

Far too many alumni have the perception Far too many alumni have the perception that they do not matter to the institutionthat they do not matter to the institution Source: University of Virginia Alumni Relations

Task Force, June 2004

Building Engagement

Deliver Customized Stewardship

Deliver Customized Stewardship

Special Delivery

Everything we’ve learned Everything we’ve received Everything we’ve processed Everything we’ve focused Everything to which we’ve

responded Every donor need and interest

we’ve met

Refinement

People say information is Power Information is actually fuel Fuel must be processed before it becomes

powerful We must refine our messages to reinforce

our missions Those who receive refined information

gain knowledge Those with knowledge return power