Digital Fundraising Trends for Nonprofits Part 2

Yesterday we promised to discuss the 2012 eNonprofit Benchmarks Study’s findings on online fundraising. And here at Guest Relations Marketing we always provide on our promises.

As the economy has improved, general giving has increased. As a result, these numbers can be directly correlated to the incline in the number of online donations that most nonprofit organizations are witnessing.

However, it is important to understand the trends in how people are giving and through what mediums. Below you will find a synopsis of some of the important takeaways as we explain what these mean to your organization.

Courtesy of eNonprofit Benchmarks Study

Takeaway # 4

On average, 35% of online revenue was sourced to direct email appeals. The remaining 65% came from other sources, such as unsolicited web giving and peer referrals.

What this mean for you

A majority of online giving is coming from sources other than email. As a result organizations should NEVER exclude providing additional opportunities for people to donate. Consider unsolicited web giving and peer referrals as other great sources for fundraising.

How can you increase peer referrals? Social sites that promote sharing and make it easy for people to talk about your organization provide excellent word of mouth marketing opportunities. If you aren’t in these mediums (Facebook, Twitter, etc.) than you should consider doing so immediately.

Courtesy of eNonprofit Benchmarks Study

Takeaway # 5 

While one-time gifts remain the largest source of online revenue for participants, online revenue from monthly giving is growing at a much faster rate.

What this means for you

While one-time gifts are generally of higher value than monthly giving, keep in mind that the total dollar value for continuous donations will be higher. Consider establishing brand loyalty amongst your fans and provide opportunities for them to give over and over again throughout the year.

Maybe this is done through a series of events or establishing a monthly loyalty plan. Either way, keeping your organization top of mind will promote continuous giving.

Encouraging and promoting online fundraising isn’t always an easy task. Thankfully social media has enabled organizations multiple channels to spread the word.

Interested in how most nonprofits stack up in the social realm? Check in tomorrow when we summarize the benefits of having a strong social media presence.

Digital Fundraising Trends for Nonprofits Part 1

Curious at how your nonprofit organization stands up against the rest when it comes to online messaging, fundraising and social media?

Thankfully M+R Strategic Services and the Nonprofit Technology Network have analyzed 44 nonprofit data sets to analyze the average performance in 2011, measuring email messaging, list size, fundraising, advocacy, social media and mobile programs. The results were compiled into the 2012 eNonprofit Benchmarks Study.

However, we realize that many of you are way too busy to sit down and analyze graph after graph or even understand the significance of the findings.

Here at Guest Relations Marketing we have interpreted the data for you. Over the next few days we will roll out important takeaways from the study and explain what is means for nonprofit organizations.

Today, we discuss email messaging!

Courtesy of 2012 eNonprofit Benchmarks Study

Takeaway # 1 

When sending emails, advocacy messages had the highest open rates, click-through rates and response rates – as well as the lowest unsubscribe rates. In contrast, fundraising emails have the lowest open rates and highest unsubscribe rates.

What this means for you

On average people don’t enjoy being asked for money, even if they are a Zealot for your organization’s cause. Keep this in mind and consider providing fundraising news within other email messaging.

Want to put a heavy emphasis on the fundraiser? Then be sure to use a crafty subject and headline that will capture the recipient’s attention. Directly stating that your email is requesting they contribute could send their cursors directly to the delete button.

Courtesy of 2012 eNonprofit Benchmarks Study

Takeaway #2 

With only a few exceptions, almost every organization in the study saw their email subscriber list grow from 2010 to 2011, though the increase in growth rate appears to be slowing (environmental groups grew their lists at the highest rates).

What this means for you

Remember that every day people’s inboxes are flooded with random emails that most consider spam. It’s easy for an individual to get frustrated at the constant stream and quickly hit the unsubscribe button. More relevant to this topic, it is easy to assume that many people are hesitant to even sign up for email newsletters out of fear of how their inbox will be filled.

Finding a solution to this problem on the surface is two-fold.

First, whatever the cause that your organization is working for, it is important to make it relevant and trendy to the general public. Environmental concerns has been a general growing topic of interest over the last few years and it can be assumed that this would have a direct correlation to the large increase in email subscribers.

Second, you must provide incentive for people to want to receive emails from your organization. Maybe this is subscriber only updates, or behind the scenes looks. Whatever the news, make it clear for people that the only way they will get certain information is by signing up for your email newsletters.

Courtesy of 2012 eNonprofit Benchmarks Study

Takeaway # 3

Between 2010 and 2011, the email fundraising response rate held steady at 0.08%, with a negligible growth of 2%.

What this means for you

Online fundraising has steadily increased in popularity for nonprofit organizations. This should not be news to you. However, what is important to take note of is that email fundraising rates are generally low and should not be the only way your organization pushes to raise money.

Interested in what other methods generally show success at fundraising? Then tune into our post tomorrow where we will highlight some of the study’s findings of online fundraising.

Marketing, Metrics and Measurement, Oh My!

Ah, metrics.

Ask any marketer in the world and they will tell you that it is important to measure your marketing efforts. Because if you don’t monitor metrics that report  the significance of what you are (or aren’t) doing, then you will never have any idea if you are doing the right thing.

This should not be news to you. 

Blog posts and articles saturate the web that outline the significance of measuring marketing efforts. However, and might I add ironically, this is the exact area where marketers lack the most. In fact, I garauntee that if you walked into any marketing agency and asked them if all of their metrics dashboards or data sheets were up to date you would get a big fat “NO.”

Why is this so often the case? Well, I could tell you because updating spreadsheet after spreadsheet is often tedious. Or maybe you would prefer the answer that marketers are so fixed on doing that they forget to look back and observe what they’ve done?

I believe that the true answer lies into a little of both.

As a marketer I want to put the client first. I want to share their content, brainstorm for their brand, and dream of the next viral campaign. However, the more time I spend on thinking of the future without observing the past, the higher the risk I run of heading straight down a path to NOWHERE.

My point? Take the time to measure your initiatives and understand how your marketing efforts are performing. I promise that it will only provide insight that will enable you to be a better marketer. And in the end, isn’t that what we all are striving to become?

Adjusting Value. Are You Keeping Up with Your Customers?

A recent survey by hotels.com noted that for more than 80% of respondents, free Wi-Fi in-room is a make-or-break decision for online bookings. Surprised? Shouldn’t be. Free Wi-Fi is now becoming ubiquitous. As it is offered in one location, consumers don’t understand why it is not available – for free – in another spot.

How does this impact hotels? Well, it is one of those somewhat hidden add-on charges.  An additional profit center. And, for major chains, it is a major hit to their bottom line to decide to remove a daily $10 charge from thousands of rooms in hundreds of locations.

But, from a consumer perspective, it has become a given that a certain level of establishment, or hotel, offers complimentary Wi-Fi. Why pay $10 a day at the hotel I’m paying to stay at, when I can walk next door to the diner or Starbucks and get the Internet for free? It is a component of the overall experience.

The Zealotry Marketing lesson? Value is not a fixed position or asset. The marketplace, consumers’ needs, and competition all change. Thus, it makes sense that value points of a business would also change. Logical and simple enough. But, how often is your product, operational delivery, or marketing program significantly examined and adjusted on the basis of aligning with what is perceived as value today?

In this example, the solution is simple. Guests want Wi-Fi for free. Or really, what they are saying is that it is a fundamental need. Not an “add-on.” Hotels need to drop the add-on fee. The cost is a part of the room rate and a part of doing business.

Value is transparent. Now it’s time to figure out how to package and market it.

Georgia Center for Nonprofits Features the Success of CURE Childhood Cancer

In 2006 CURE Childhood Cancer and Guest Relations Marketing teamed up to transform the CURE brand from that of a grassroots organization to the renowned nonprofit that it is today. 

We are immensely proud of the work CURE does on a day-to-day basis and are even more proud of our own April Voris, who is currently Board President for CURE. CURE’s transformation was recently featured in the Georgia Center for Nonprofits April Newsletter, which we are pleased to share:

GCN member CURE Childhood Cancer, an Atlanta-based nonprofit cancer research foundation dedicated to finding cures for childhood cancer, knew they had to make some major changes in order to effectively carry out their mission. In a recent conversation, executive director Kristin Connor and board chair April Voris shared highlights of the organization’s “inside-out” transformation over the past three years.

“We wanted to transform CURE from more of a grassroots organization to a much more professional, sophisticated, higher-impact organization,” says Kristin Connor, Executive Director of CURE Childhood Cancer.

The process began in 2006 with a successful growth pattern that resulted from CURE’s inaugural annual campaign; but, as Connor observed, this was only a start. At a point, “we realized that we had captured the low-hanging fruit,” acknowledges Connor, who recognized the need “to dig deeper and gain a better understanding of how to really do annual fundraising right.” They made a major strategic shift, moving away from an emphasis on special events to focusing on major gifts. A development audit conducted in 2009 formed a critical step forward in clarifying direction, but left Connor and her board without the capacity to move from plan to execution. A GrantsPlus coaching grant from the Community Foundation for Greater Atlanta enabled the organization to push forward.

CURE tapped GCN Consulting Services and partnered with consultant Cara Schroeder, who worked closely with the executive team and board to provide hands-on training. Connor credits the process of “literally walking us through an entire fiscal year of major gift and annual campaign fundraising, step- by-step” with providing CURE with the breakthrough it needed. Through one-on-one and group coaching, staff and board learned the “how-to’s” to systematically and strategically approach the process. Board members were trained to solicit donations through personalized appeals – which, with the help of scripts to allay intimidation, proved a successful tactic.

The results speak for themselves: In 2010-11, CURE received 69 new major gifts and 640 annual gifts to their annual campaign.

The organization then chose to hire its first-ever Director of Development, a department that has now expanded to a 3-person team.

A Brand Makeover

Another transformation instrumental in building CURE’s fundraising capacity is a rebranding, led by board president April Voris of Guest Relations Marketing. The “before” image of CURE was “a pink teddy bear, unprofessional documents printed on a home computer, and a low level of professionalism.” The “after” is a transformed brand “built from the bottom-up” that reflects CURE’s mission and vision, while resonating deeply with CURE’s core audience: families of children with cancer.

Identifying those who are passionate about CURE’s mission – our “zealots” – explains Voris, has been the key to developing effective branding and marketing strategies. An early adapter of social media, CURE recognized that a Facebook page not only offered their constituents a place to build a community of supporters, but could act as a story-telling platform. The momentum grew quickly. Voris cites CURE’s Kids Conquer Cancer, a fundraising initiative they launched during National Childhood Cancer Awareness month, with a goal of raising $30,000 online. Over 30 days, 60 families were honored and the momentum grew quickly, eventually raising $170,000.

CURE’s marketing program continues to grow from the inside-out through an overall marketing philosophy, which Voris explains is much like a “spider web approach,” each piece is interconnected and strengthening the others. “Your customers take the lead on how they want to interact with your brand,” says Voris, “so you must be prepared to engage and accept them from all points of entry.” Reflecting on the journey, Connor and Voris offer some insight to fellow nonprofits with similar challenges. The first steps toward positive change? “Really looking at ourselves”; honestly evaluating core competencies; and asking both “where are we needed?” and “what do we not need to be doing?”

CURE Childhood Cancer has been instrumental in serving the children and families that depend on timely research. Through a transformation on the inside, they have been furthered their ability to transform lives on the outside.

Instagram: Picture Perfect

Instagram has turned everyone into professional photographers. Click, focus, select one of the 18 pre-set photo filters, and share with your masterpiece with your friends. It’s Twitter in visual format, allowing users to share snippets of their everyday lives. Simple. Beautiful. Fun.

Not only is Instagram popular with the general public – and the GRM office – but many businesses are jumping on-board as well. From behind-the-scenes shots to glamorous product sneek-peeks, Instagram is perfect for sharing beautiful images from the retail world.

The fact that Facebook recently spent $1 billion to acquire Instagram is beyond intriguing. For an app that currently creates zero revenue, (the app is free and there are no ads) change is most certainly in-store. And with the Facebook connection and its introduction into the Android Marketplace, Instagram’s average 1.6 million new monthly users is sure to increase.

Have you downloaded Instagram yet? Get snapping.

Brand Logic

Ron Johnson, the CEO of JCPenney, understands branding and the value it represents. The following article is worthy on its own, but three key takeaways:

1.  Creativity – looking at the business differently – is the starting point of success.

2.  Experience is the core issue – not product.

3.  Develop a mission that you and your staff will believe in.

From The Hub magazine:

“Improvement merely lets you hit your numbers … Creativity is what transforms,” says JCPenney ceo Ron Johnson in a Fortune profile by Jennifer Reingold (3/19/12). That was the main lesson Ron says he learned while he was at Target, after gambling on introducing Michael Graves designer products in a big way. “The math was simple,” says Ron. “If I didn’t sell one piece but people looked differently at the other 96% of products we’d win. It’s always about mind share, not market share.” Ron is now bringing a similar sensibility — which of course he also brought to Apple stores — to JCPenney.

The essential vision, once again, is to create “a place where the experience (is) as important as the products themselves.” This apparently was more Ron’s vision at Apple stores than it was Steve Jobs’s. “He said it’d be a store for creative professionals,” says Ron. “I said, ‘Well, then I’m not coming. If you want it to be a store for all Americans, sign me up.” Ron also “persuaded Jobs to nix commissions for salespeople, arguing that they should give customers the best advice, not the advice that earns them the most.” Ron says, “You can motivate by a mission or motivate by money… the mission will work.”

It certainly worked at Apple stores, where sales per square foot average $6,000. But will it work at JCPenney, where sales per square foot are currently $146 and the shopping experience is a safe distance from either Apple or Target? Fitch, the ratings agency, has “downgraded the company’s debt to junk level,” based on Ron’s strategy, the core of which is a “return to the company’s original values,” espoused by founder James Cash Penney as a “morally upright place.” Ron Johnson, eternally an optimist, says his plan will work. “What you can’t do is chicken out,” he says. “If you had looked at the data on the Genius Bar after a year and a half, we should have taken it out of the store… There’s no reason to sell an idea short. The only risk would be to not fulfill the dream.”

All-things Retro: Newsweek’s Mad Men Issue

In a time where advertising is not always glamorized (excluding Super Bowl Sunday, of course) one TV show has helped bring back the industry’s cool factor among the general public.

Mad Men.

And while this show may have led to some interesting conversations about how I spend my day at work (No, we don’t drink whisky and smoke cigars all day. Only in the afternoons.) it has brought a lot of welcomed attention to the industry. The show’s stellar ratings have proven that ad-folk and non-ad-folk alike enjoy reminiscing on the glamor, controversy, and history of the advertising industry.

So when I heard about Newsweek’s Mad Men issue, I was giddy. Not only is the magazine’s cover a throwback to the 1960′s design, but the publication is filled with retro ads. Can you imagine being assigned to create an ad for a brand – and make it in-line with how it would have looked in 1965? Best costume contest ever.

Click over to AdAge to check out 22 pages of retro ads for Bloomingdales, Lincoln, Tide, and more. Plus, you can even vote for your favorite. Which has your pick?

New List of Banned Words

Lake Superior State University (wasn’t this the school in Coach?) has released its list of 12 words/phrases to be banned due to overuse and misuse.

Top of the list? “Amazing.”

Some other favorites (or not so):  shared sacrifice; man cave; baby bump; blowback; the new normal; ginormous. And, “Thank you in advance.”

An amazing list, actually.

Read them for yourself.

Exactly What Does Social Media Replace?

The biggest single myth surrounding social media is that it is a replacement in some form for other advertising or marketing channels. Social media destroys traditional linear marketing communications models. At heart, social media is an engagement point that can be started by customer, company, competitor, or onlooker. Anyone.

Online & social media is a two-fold communications addition:

1. An exploratory touchpoint prior to sales

2. A follow-up, referral and word-of-mouth to prospective customers and to enhance repeat purchases

As this chart demonstrates, social media is a new touchpoint. One of research initiated by prospects. It is a new step in the purchase cycle, not replacing any traditional element.

Zealotry actions (referral, reviews and other engagements) are extremely valuable, but they work best as authentic elements within this new stage of exploration.