converting prospects to multichannel gold
DESCRIPTION
Not sure how much your online supporters are worth? Thinking there may be a better way to maximize their value? Frustrated at internal barriers to multichannel integration? If so, this webinar is for you. Multichannel donors are gold. Annual revenues are often 4x that of direct mail-only donors, with higher retention and much better net. Simply supplementing an email with a text or a mail piece (or both!) can dramatically improve response rates. This presentation is for those who are ready to break down the barriers and effectively conduct multichannel marketing. Jeff Regen of M+R Strategic Services, Adam Scruggs of the Human Rights Campaign and Justin Perkins of Care2 discuss how rapid, multichannel conversion strategies can turn your new online supporters into multichannel donors. See case studies and data on what’s working and what’s not. This webinar dives into the major barriers to multichannel marketing, such as organizational structure, separate online and offline budgets, and lack of data integration. You’ll learn about the practical ways that nonprofits are overcoming these obstacles to conduct effective multichannel campaigns leading to fundraising success. About the Speakers: Jeff Regen, Senior Vice President of Integrated Services, M+R Strategic Services: Jeff joined M+R to establish a new practice focused on helping nonprofits with integrated, multichannel fundraising and communications in order to maximize donor/activist value and broader communications goals. Jeff came to M+R from Defenders of Wildlife, where he helped grow the organization’s email list to over 800,000 e-supporters, and generate over 1 million advocacy actions and raise over $5 million online a year. At Defenders, he integrated the online department closely with the membership and communications departments, among others, and spearheaded the nonprofit’s integrated, multichannel approach. Prior to joining Defenders in 2004, Jeff spent 12 years in the private sector. He learned private sector database marketing techniques at Capital One, where he managed marketing and business development teams in both online and direct mail divisions. Jeff also built and served as president of a start-up called EnVisto and worked for the consulting firm McKinsey & Company. In the early 1990s, he worked in the former Soviet Union—first on environmental issues, and later on privatization and capital markets development. Jeff received his Bachelors from Swarthmore College and MBA from the Wharton School of the University of Pennsylvania. Adam Scruggs, Associate Director of Data Acquisition and Analysis, Human Rights Campaign: Adam Scruggs is the Associate Director of Data Acquisition and Analysis at the Human Rights Campaign, where he has worked for four years. In this role, Adam is responsible for the collection, management, and strategic analysis of data to support HRC's programmatic and fundraising goals. Prior to this position, Adam worked asTRANSCRIPT
Webinar: Converting Prospects to Multichannel Gold
For Audio Call: 1-408-792-6300 Event Number: 664 293 501
Presented By:Jeff Regen, M+R Strategic Services,
Adam Scruggs, Human Rights Campaign and Justin Perkins, Care2.com
April 19, 2011
Using WebEx• Chat & raise hand
• If you are having internet audio problems, you can dial in using a landline 1-408-792-6300 Event Number: 664 293 501
• If you lose your internet connection, reconnect using the link emailed to you.
• WebEx Support: 1-866-229-3239
For Audio: 1-408-792-6300 Event Number: 664 293 501
This Webinar is being Recorded• The webinar will be available on the Frogloop blog at
http://www.Frogloop.com
• You will receive a link to this presentation following the webinar.
• Tweeting the webinar? Use the Twitter hashtag: #Care2
For Audio: 1-408-792-6300 Event Number: 664 293 501
The problem Part 1: Anyone seen this
before?
It’s my name It’s my list
What year is your nonprofit structured for?
The Problem Part 2
1991?
Telemarketing
Television(no DRTV)
Face-to-Face
NonprofitSupporter
Or 2011?
Mobile
Telemarketing
SocialNetworks
Website
Television(DRTV)
NonprofitSupporter
Face-to-Face
The Problem Part 3: Other big trends
Nonprofit offline donors are aging
Donor files are shrinking
Retention is falling (and online low already)
Direct mail costs are increasing / fundraising margins are shrinking
Nonprofits need (younger) more valuable donors
A multichannel approach can create “golden multichannel
donors”
• Age falls between online and offline donors
• Income about the same as online
How about revenue and retention?
Multichannel donor revenue* looks great…
Offline (no email)
Offline (with email)
Online Multichannel $-
$50
$100
$150
$200
$250
Annual Revenue Per Donor
* Target Analytics Internet donorCentrics data
…and retention does, too!*
Offline (no email)
Offline (with email)
Online Multichannel0%
10%
20%
30%
40%
50%
60%
70%
First Year Retention by Donor Type
* Target Analytics Internet donorCentrics data
Maximizing value of online recruitment…
1 2 3 4 5 6 7 8 9 1011121314151617181920212223242526272829303132333435360
50
100
150
200
250
300
Revenue Per Online Supporter
TelemarketingDirect MailOnline
Months on File
…and growing sustainer files
DRTV Web and phone
Face-to-face Follow-up online and offline
Mail donors converted via telemarketing
Online / telemarketing / (limited mail) Great, largely untapped and lowest startup costs
Recapture Multichannel is key
Making Multichannel Work: Integrated Campaigns
1. Planned issue campaigns
2. Unplanned “hot issue” campaigns
3. Membership-oriented campaigns
…onboarding stream critical, too (HRC)
Multichannel: Planned Issue Campaign
Day of Campaign
Message type and description Targeted segments / other notes
1 Petition email. Land on a TAF page. 2-3 Facebook posts / Tweets. Mobile text
All online names
1 Homepage graphic, blog post Website traffic
4 Fundraising email #1 + 2-3 Facebook posts and Tweets. Mobile text
All online names
5-10 Mail piece arrives in-house Offline and online donors Deeper select of lapsed offline donors (eg,
taken action in the past 6 months) High-potential online non-donors
6-27 Telemarketing (sustainer) campaign begins on day 6 and continues for ~3 weeks
Same as for mail PLUS Petition signers to first email in campaign Donation email clickers
12 Fundraising email #3. 2-3 Facebook posts and Tweets
Online names who have not given (TY version to donors)
14 “Last call” fundraising email #4 on the day before deadline
Online names who have not given (TY version to donors)
Obstacles to multichannelOrganizational structure, culture,
processes
Data integration
Know-how
Organizational structures
Coordinating
Teams
1. Siloed
3. Centralized,integrated
2. Online, other coordinating
teams
Aligned goals and integrated processes
Organizational goalsGrow list; $$$; advocacy impact
BudgetsIncentives Single acquisition / investment budget?
Metrics: ROI
Culture: “What’s best for our organization” / highest ROIShare credit!
Data integration
HRC and Care2 - Overview• 4 year relationship
• 100k activists recruited
• 30k in the last 12 months
• Case studies to follow show performance of Care2 recruits within broader campaigns
The On-Boarding Process• First communication:
“Welcome Action” – our most popular recent action/email
• 6-10% perform the action on average
• Acclimates new recruits to our list and issues, gives them an immediate opportunity, and facilitates collection of additional data
The Marketing Process• Multichannel approach: Telemarketing, Direct Mail,
Email, Text
• Several goals:• Generate actions in support of our mission and to build
loyalty• Generate membership gifts• Generate new sustainers
The Marketing Process• No silos, shared goals
• Online constituent data is immediately fed into our membership database and ALL of that data is available for all channels of communication
• Weekly all-vendor calls, 100% data sharing
• Still room for improvement: embarking on a new project with M+R to better integrate our approach
Case Study: Telemarketing• Campaign conducted April-May 2010
• Audience consisted of new activists recruited over the last 12 months
• 5,700 contacts with Care2 recruits
• Care2 Recruits Performance:• 14.4% Pledge Rate• $30 Average Gift• Donor LTV at 1 year $42
Case Study: Telemarketing• Messaging dependent on which of our issues are hot at
the moment. These frequently mirror the actions our recruits saw on Care2 or in their Welcome Action.
• Data about online actions sent to the telemarketing firm.
• Script recognizes their role as advocates for HRC.
Case Study: Telemarketing• First lesson: recency is important. Campaigns should
be timed to coincide with large influxes of recruits
First 120 Days
Beyond0.00%2.00%4.00%6.00%8.00%
10.00%12.00%14.00%16.00%18.00%20.00%
Pledge Rate
Case Study: Telemarketing• Second lesson: patience is important. The campaign is
an investment; it’s hard to be excited about a 14% pledge rate without this understanding (and organizational buy-in)
• It’s a process – Some pledge immediately. 2% of refusals went on to become members over the next year. 3% of those who did give are now sustainers.
• Of everyone eligible for this call, more than 5% are now paid members of HRC.
Case Study: Direct Mail• Donors and information from one channel can feed
another. Remember this?
We developed some new package ideas (copy and back-end premium) to use the data our recruits had provided us.
Case Study: Direct Mail• Recognizing the importance of straight allies in our
work (who they are)
• Recognizing that activists form a core part of our mission (what they do)
• Establishing that the next step is to become a member to marry their passion with our expertise (what they need to do next)
• Broad themes – “Be the One”, “The Right Side of History”
Case Study: Direct MailCampaign Package Approach Response
April 2010 Traditional 0.26%
September 2010Targeted 0.61%
Traditional 0.35%
February 2011Targeted 0.57%
Traditional 0.12%
Grand Total 0.32%
• Targeted messaging substantially out-performed our standard messaging. Note: February results are still coming in.
Final Notes: Text Messaging• Donors and information from one channel can feed
another. Remember this?
We use our web campaigns to gather cell phone numbers for use in both advocacy and fundraising
Final Notes: Text Messaging• Split test of names in the mobile action network: half
received only a membership drive email, half received a text as well.
• Little/no direct revenue from the text, but…
• Recipients of the text message responded to the concurrent email campaign at a 25% higher rate.
Final Notes: Sustainers• Care2 recruits who convert to donors are excellent
sustainer prospects.
• 6.45% of all these donors have joined as sustainers, compared to an average of 1.4% for other donor sources.
• We target these new donors using a multi-channel approach: TM Sustainer Invite Calling and Rolling Sustainer Invite Emails
Putting It All Together• A multichannel approach to recruitment can nearly
double your success compared to online-only efforts.
Conversion Channel % Of Donors Converted
Online 54.74%
Telemarketing 22.41%
Direct Mail 6.45%
Other 6.07%
Merchandise 5.76%
Sustainer 3.21%
Events 1.35%
Putting It All Together• Patience, a multichannel approach, and a focus on
sustainer conversion can push the value per name recruited past $2 at 16 months and up over $11 over 4 years.
46.531.4
23.521.5
19.418.4
16.415.4
13.5 9.7 8.4 6.6 6.2$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
Revenue/Name
Months Since Recruitment
Q&A• Jeff Regen, M+R Strategic Services
Tel: (202) [email protected]
• Adam Scruggs, Human Rights CampaignTel: (202) [email protected]