The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value. Presentation by...
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Transcript of The Constituent Engagement Journey: Growing Engagement, Loyalty, and Lifetime Value. Presentation by...
10/10/2013 Blackbaud Confidential 1
Presented By: Kenneth Kuhler Online Solutions Consultant Blackbaud
The Constituent Engagement Journey:
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AGE NDA
• Current Landscape & Trends
• Constituent Engagement Fundamentals
• The Evolution of Nonprofit Operations
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The Nonprofit
Landscape
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Total Fundraising $19.7 Billion*
* Adjusted for inflation giving has not grown since 2000 and giving as a percent of GDP is down 16% since 2006.
Competition for Awareness and Support
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# of Nonprofits
43% since 2001
Competition for Awareness and Support
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3000+ Messages Targeting Supporters
Every Day
Competition for Awareness and Support
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New Donor Acquisition
23.4% since 2006
Competition for Awareness and Support
Source: Target Analytics Donor Centrics Index of National Fundraising Performance: 2011 First Calendar Quarter
Results
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Renewals & Lifetime Value Mostly Flat
Average Annual Gift/Attrition Rate = LTV
Competition for Awareness and Support
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Deepen Relationships
& Build Loyalty
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F UNDRAIS ING E MP HAS IS : MAT URE S
Matures
Boomers
Gen X Gen Y
1
0
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GE NE RAT IONAL G IV ING
$0.
$100.
$200.
$300.
$400.
$500.
$600.
$700.
$800.
$900.
$1,000.
$1,100.
$1,200.
30% 40% 50% 60% 70% 80% 90%
% Giving
To
tal a
nn
ua
l g
ivin
g
Boomers
Gen X
Matures
Gen Y
58% Give 35.9M donors
$796 yr/avg
4.2 charities
$35.9 B/yr
56% Give 28.5M donors
$341 yr/avg
3.6 charities
$9.7B/yr
67% Give 52.2M donors
$901 yr/avg
5.2 charities
$47.1 B/yr
79% Give 30.8M donors
$1066 yr/avg
6.3 charities
$32.7 B/yr
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GIVING AMOUNTS % who say have donated in this way in last 2 years (total)
58%
41%
34%
33%
32%
27%
25%
21%
16%
16%
3%
Checkout Donation
Fundraising Event
Tribute Gift
Charity Gift Shop
Online via Website
Mailed Gift
Monthly Debit
In lieu of Gift
Phone
Third Party Vendor
SMS or Social Media
GEN Y GEN X BOOMERS MATURES
59% 64% 56% 58%
27% 43% 44% 44%
19% 28% 37% 50%
30% 34% 34% 30%
41% 37% 29% 24%
12% 17% 33% 38%
25% 28% 24% 24%
22% 23% 21% 20%
6% 14% 21% 19%
24% 21% 14% 12%
7% 4% 2% 0%
4.7% 2.8% 2.3% 1.3%
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Constituent
Expectations
Have
Changed.
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Constituents Want to Engage
on Their Terms & in Their Channels
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ONLINE FUNDRAISING CONTINUES TO GROW
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THE STATE OF ONLINE FUNDRAISING ACCORDING TO BLACKBAUD’S CHARITABLE GIVING REPORT
More good news - Online giving increased 13.7% for the three months ending
January 2013 as compared to the same period in 2012
Even more good news – No matter what online benchmark study you look at,
revenue is growing, sustained giving is growing and housefile size is up
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ONL INE F UNDRAIS ING GROW T H HAS KE P T
PACE W IT H RE TAIL E - COMME RCE
Sources: Convio benchmark reports 2007-2012 and eMarketer.com
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. . BUT P E RF ORMANCE VARIE S W IDE LY
* Excludes major, corporate gifts, and planned giving.
Source: Convio/ Edge Research survey of integrated marketing practices, Q1 2011
5-20% Raised Online
>25% Raised
Online
<5% Raised
Online
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Peer Solicitation Is Broadly Accepted
52%
41%
28%
22%
15%
8%
Peer to Peer
Social Media
Phone
Text
% say appropriate solicitation channel
(rank ordered by very important –blue)
Did you know? Blackbaud clients raised 70% of event funds raised by the top 30 events in 2011.
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PEER TO PEER / SOCIAL FUNDRAISING
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ALZHEIMER’S ASSN:
THE LONGEST DAY
In Year 1,
200 Teams
Raised $236K
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Lifetime Donor Value Donor Value 12 Months New Donor Renewal Rate
VAL UE OF MULT I - CHANNE L E NGAGE ME NT
Sources: Study entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” by Convio and StrategicOne
Traditional defined as offline use. Internet Enabled defined as both offline and eCRM use.
34.4%
50.9%
+48%
Multi-Channel
$96
$187
+95%
Multi-
Channel
$314
$694
+121%
Multi-Channel
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MULTI-CHANNEL GROWS TOTAL REVENUE
$28M $28M
$47M
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
1990 2000 2010
Mil
lio
ns
Online
Direct Mail
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Multi-Channel Strategy
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If You Could…
T HE V IS ION: CONS T IT UE NT E NGAGE ME NT
• Anticipate your constituents’ needs
• Know their interests, passions & preferences
• Offer more relevant interactions & opportunities to engage
You Would…
Improve acquisition & referrals
Establish lifetime relationships
Grow support & fundraising
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Constituent Experience
• Disjointed constituent experience
• Fragmented messaging from a variety of channels
• Less engagement
Current Landscape:
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• Unified constituent experience
Goal:
Constituent Experience
• Integrated messaging across a variety of channels
• Optimized engagement
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Better Engagement with Supporters =
Better Results for Your Organization
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Constituent
Engagement
Fundamentals
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• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals
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• Align processes and communication to
respect constituent preferences, needs and
interests
• Tailor channel mix, content and program
participation and message frequency
• Ask, “What matters to a constituent?”
CONSTITUENT CENTRICITY
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A Single Email with
Conditional Content
Donor Version
Survivor Version
CONS T IT UE NT CE NT RIC IT Y
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CONS T IT UE NT CE NT RIC IT Y - W E L COME S E RIE S
2-Part Series
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Direct Mail
Email Web Page
PRESENCE IN MULTIPLE CHANNELS
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• Get the right message in front of the right person at the right moment.
PRESENCE IN MULTIPLE CHANNELS
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• 125,000 born each year
• 6.5 million people
• 10% of American families
• 25 time more common than blindness
• Over 250 causes discovered
EFFECTIVE STORYTELLING – INTELLECTUAL
DISABILITY STATISTICS
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EFFECTIVE STORYTELLING – APPEAL TO THE HEART
NOT THE HEAD
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EFFECTIVE STORYTELLING - DIAGNOSED WITH
CHRONIC LYMPHOCYTIC LEUKEMIA
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EFFECTIVE STORYTELLING – PICKED HIMSELF BACK
UP AND ACHIEVED GREATNESS
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CONSISTENT BRANDING
21
Envelope back
Integrated tiger appeal results show 40% better response rate
Offline
Appeal &
Envelope
Online
Appeal,
Included
Envelope
Image
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YEAR OF THE T IGER A M U LT I M E D I A Y E A R L O N G E F F O R T
WWF: For 1st time
ever, heads of state
convene 2 try 2 save
tigers. Tell the US 2
commit to global tiger
conservation.
http://bit.ly/dp0ovd
(reply STOP 2 unsub)
Direct Mail Email Social Media TV (Custom Web)
Outdoor Ads
Mobile Web
Celebrity Leadership
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INTEGRATED PROCESS
Frequency Target Q2
we
ek 1
Q2
we
ek 2
Q2
we
ek 3
Q2
we
ek 4
Q2
we
ek 5
Q2
we
ek 6
Q2
we
ek 7
Q2
we
ek 8
Q2
we
ek 9
Q2
we
ek
10
Q2
we
ek
11
Q2
we
ek
12
General Communications
eNewsletter Weekly - Fridays Subscribers
Quarterly Update mailer 2nd Week / Quarter $50+ donors
Gala Promotion
Email Biweekly - Tuesday General
Direct Mail Once $100+ Donors
Telemarketing $200+ Donors
Mother's Day Campaign
Email ~Biweekly - Thursday
Direct Mail Once Prospects, Donors
Telemarketing Select targets
Inbox / Received Send Event
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• Establish metrics that:
• Measure donor behavior and campaign performance across channels
• Focus on long-term value
• Collect and aggregate constituent data to correlate and extract meaningful information
INT E GRAT E D ME AS URE ME NT
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CROS S - CHANNE L CONTACT INF ORMAT ION
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KE Y ACQUIS IT ION ME T RICS T RACKE D
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DONOR CHANNE L M IGRAT ION T RACKE D
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• Constituent Centricity
• Presence in Multiple Channels
• Effective Storytelling
• Consistent Branding
• Integrated Process
• Integrated Measurement
Constituent Engagement Fundamentals –
Difficult Without Organizational Alignment
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The Evolution
of Nonprofit
Operations
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• Minimal Online
Marketing
• Calendar-Based
Campaigning
• Not Financially
Committed to Second
Channel
• Thematically
Integrated
• Limited sensitivity to
solicitation frequency
• Decisioning beyond
RFM
• Shared Metrics
• Some consolidation of
data across channels
Coordinated Optimized Traditional
• Separate Metrics &
Team for Online
Marketing
• No Calendar /
Campaign
Coordination
• 2nd channel constitutes
5-20% Direct
Response Revenue
• Separate databases
for online/offline
• Unified Strategy &
Real-time data
integration
• Measures Success
Across Channels, Not
By Channel
• Donors’ behaviors and
interests drives
communication stream
• Shared budget and
resources
Early Stage
W HE RE ARE Y OU?
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• Integrated marketing sophistication and size don’t closely correlate.
W HE RE ARE Y OU?
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T HE T RAJ E CTORY OF NP E V OL UT ION
Aggregate and improve constituent data
Consistent messages across channels
Increased personalization & relevance
Dynamic response to interactions
Optimize channel mix & message cadence
Aggregate and improve constituent data
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• Organizational Alignment
• Technology / Infrastructure
Keys to Evolution
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Traditional
• Separate Metrics & Team
for Online Marketing
• No Calendar / Campaign
Coordination
• 2nd channel constitutes 5-
20% Direct Response
Revenue
• Separate databases for
online/offline
Communications
Development
IT
Others (?) Government
Affairs
Traditional
ORGANIZ AT IONAL AL IGNME NT
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Coordinated
Coordinating
Teams
Communications Development
Government
Affairs
IT
Coordinated
• Thematically Integrated
• Limited sensitivity to
solicitation frequency
• Decisioning beyond RFM
• Shared Metrics
• Some consolidation of data
across channels
ORGANIZ AT IONAL AL IGNME NT
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Optimized
Coordinating
Teams
Development Online Communications Marketing
Optimized
• Unified Strategy & Real-
time data integration
• Measures Success Across
Channels, Not By Channel
• Donors’ behaviors and
interests drives
communication stream
• Shared budget and
resources
ORGANIZ AT IONAL AL IGNME NT
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Support Business Units
Infrastructure Challenge
Track Performance
Add New Channels
Coordinate Departments
Integrate Systems
Understand Data
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• Identify where you are and map your key 2013 steps
now…today, while you’re thinking about it!
• Every step toward Constituent Engagement will have
an impact on your bottom line.
• Start with fundamentals.
• Evolving understanding of metrics can drive you
forward faster.
• Be aware of opportunities to evolve the operational
structure – shared goals, team alignment,
technology
REMEMBER: IT IS AN EVOLUTION.
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IN CONCLUSION –
• More donors does not mean more engagement or
revenue but more engaged donors will mean more
revenue/LTV.
• Donors feel more engaged and more inclined to give
if they are hit up on multiple channels with consistent
messages
• Therefore, your organization needs to be organized
to ensure a consistent and integrated experience on
multiple channels. No silo’s.
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