doubling your christmas appeal appeal income july 2009 toronto v1 jg
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![Page 1: Doubling Your Christmas Appeal Appeal Income July 2009 Toronto V1 Jg](https://reader033.vdocuments.site/reader033/viewer/2022051514/54bfb2c74a79594f318b456d/html5/thumbnails/1.jpg)
Unwrapping the magical steps to doubling your Christmas
appeal income
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1. Setting the scene
What we’ll cover today
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1. Setting the scene
2. Uncovering the magical steps
What we’ll cover today
steps
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1. Setting the scene
2. Uncovering the magical steps
What we’ll cover today
steps
3. Busting some myths
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1. Setting the scene
2. Uncovering the magical steps
What we’ll cover today
steps
3. Busting some myths
4. Final takeaways
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This is why we do what we do
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What do you want?
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• Solicitation by direct mail (to individuals)
• For the purposes of today to existing donors (warm, in-house)
• With an ask for cash (or a monthly gift) and/or
Defining an appeal
• With an ask for cash (or a monthly gift) and/or a request to take some other action (I.e.
survey)
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• Developed 22 Christmas appeals in 2008• In Australia, NZ, Hong Kong and Canada
• 13 up on income versus 2007, 9 down on 2007
• Overall income 2008 around $8.5m CAD versus $8m CAD
in 2007
What are we seeing?
in 2007
• Individual giving still on the rise• Monthly giving strong, still growing
• Cash giving stagnant (donors over $1k not giving at same levels)
• Organizational income falling • Specifically corporate support
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• Developed 18 appeals in May/June 2009• In Australia, NZ
• 7 up on income versus 2008, 11 down on 2008
• Overall income 2009 around $9.9m CAD versus $9.2m
CAD in 2008
What are we seeing?
CAD in 2008
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Uncovering the magical steps
1. Targeting the right people
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
8. Getting the follow up right
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Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
8. Getting the follow up right
9. Test, test and test again
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Talking to different people
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How do I decide who to ask?
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Recency Frequency Value
How do I decide who to ask?
indicates likelihood of
giving
indicates likelihood of
giving
indicates how much they will give
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RecencyRecency FrequencyFrequency ValueValue
0-12 months >1 a$1000+
13-24 1 b$500-$999.99
25-36 c$250-$499.99
How do I decide who to ask?
37-48 d$100-$249.99
49-60 e$50-$99.99
61-72 f$25-$49.99
73-84 g$10-$24.99
85+ h$0.01-$9.99
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RecencyRecency FrequencyFrequency ValueValue
0-12 months >1 a$1000+
13-24 1 b$500-$999.99
25-36 c$250-$499.99
Drilling down
37-48 d$100-$249.99
49-60 e$50-$99.99
61-72 f$25-$49.99
73-84 g$10-$24.99
85+ h$0.01-$9.99
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How often should I ask?
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Ask
ThankThankThe donor
communications
© Pareto Fundraising May 2008
CareAsk
communications cycle
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Some tips
• RFV is the most important thing to drive the success of your appeal
• Consider different packs for different audiencesaudiences
• Include confirmed bequestors, monthly givers if they have given historically
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Segment R F V Qty to Mail Ask 1 Ask 2 Ask 3
001 0-12 >1 $500+ 246 *1.5 *2.5 *4
002 0-12 >1$100-
$249.99 1,011 *1.5 *2.5 *4
Asking for the right thing
003 0-12 >1 $50-$99.99 2,555 *1.5 *2.5 *4
004 0-12 1$100-
$249.99 4,340 *1.5 *2.5 *4
005 0-12 1 $50-$99.99 6,618 *1.5 *2.5 *4
006 13-24 >1$100-
$249.99 1,330 *1.25 *2 *3
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Segment R F V Qty to Mail Ask 1 Ask 2 Ask 3
001 0-12 >1 $500+ 246 *1.5 *2.5 *4
002 0-12 >1$100-
$249.99 1,011 *1.5 *2.5 *4
Asking for the right thing
003 0-12 >1 $50-$99.99 2,555 *1.5 *2.5 *4
004 0-12 1$100-
$249.99 4,340 *1.5 *2.5 *4
005 0-12 1 $50-$99.99 6,618 *1.5 *2.5 *4
006 13-24 >1$100-
$249.99 1,330 *1.25 *2 *3
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• Based on previous donation patterns
• Used to prompt increase of donation amount
• Consider using highest gift, last gift,
Personalized asks
• Consider using highest gift, last gift, average gift prompts to elevate gift level
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• Based on previous donation patterns
• Used to prompt increase of donation amount
• Consider using highest gift, last gift,
Personalized asks
• Consider using highest gift, last gift, average gift prompts to elevate gift level
• Repetition of ask � increases response
• Personal (and increased) ask amount �increases average gift
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Personalized asks
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Huh?
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Some tips
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• “I need you to <insert action>…”
Some tips
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• “I need you to <insert action>…”
• “This is the most important letter I have ever written…”
Some tips
written…”
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• “I need you to <insert action>…”
• “This is the most important letter I have ever written…”
Some tips
written…”
• “…respond by the 30th of June..”
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• “I need you to <insert action>…”
• “This is the most important letter I have ever written…”
Some tips
written…”
• “…respond by the 30th of June..”
• “I need to raise $250,000”
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• “I need you to <insert action>…”
• “This is the most important letter I have ever written…”
Some tips
written…”
• “…respond by the 30th of June..”
• “I need to raise $250,000”
• Singularly focused**
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• What the single most important thing is that you want them to do (proposition)
• Why they should give you money
• By when
Remember to tell them
• By when
• All of this in the first 3 paragraphs and in the P.S.
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Singularly focused
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Asking for two things
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Emotion
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A story
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Repetitive and personalized asks
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Urgency
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Target and deadline
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As long as it needs to be
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Colloquial language
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Colloquial language
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• Emotion
• A (human) story
• Repetitive and personalized asks
• Urgency
A recap: what you must have
• Urgency
• Target and deadline
• As long as it needs to be
• Colloquial language
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• Make the recipient feel like an individual
• Apply the limited resources to where you will get the best return
• Use survey information
A guide to personalization
• Use survey information
• Acknowledge previous giving
• Recognize if they make monthly gifts or have included your charity in their Will
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Using the data
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Using the data, donor type
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Using the data, donor type
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Using the data, area
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Using the data, area
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Use transactional history
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Using survey information
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Using survey information
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Using survey information
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Creating emotional connections
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Creative is more than pretty pictures
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• A brilliant letter
Creative execution: must haves
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• A brilliant letter
• Lift devices support the letter
Creative execution: must haves
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• A brilliant letter
• Lift devices support the letter
• Authenticity
Creative execution: must haves
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• A brilliant letter
• Lift devices support the letter
• Authenticity
• Follow up/reminder mailing for ‘larger’
Creative execution: must haves
• Follow up/reminder mailing for ‘larger’ mailings
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The end result?
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Heart FoundationHeart Foundation
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• Eliminate barriers or distractions
• Make sure the reply mechanism integrates with the letter
• Include an involvement device where
Ease of response
• Include an involvement device where there is an opportunity to do so
• Minimize response channels*
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• Thanking
• Measuring response
• Feeding back – the impact on beneficiaries
• Post campaign de-brief
Getting the follow up right
• Post campaign de-brief
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• Develop an acknowledgement strategy
• Thank promptly
• Use of the words ‘thank you’
• Personalized response
Thanking
• Personalized response
• Include handwritten notes and PS where possible
• Don’t ask the donor to do anything else
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Measuring response
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47.6%
61.8%
50.0%
60.0%
70.0%
HV PACK
STD PACK
Gift level versus ask
30.1%
22.3%19.6% 18.6%
0.0%
10.0%
20.0%
30.0%
40.0%
<Ask1 Ask1 >Ask1
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8%
16%
Sent Letter only
Impact of involvement devices
75%
Sent Donation, no Letter
Sent Letter AND Donation
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Mailed RR% Gross income Net
income Ave Gift ROI
Cash Appeal Donor 0-12 35,142 26.0 $ 1,192,133 $ 1,105,750 $ 130 13.8
Cash Appeal Donor 13-24 10,565 17.0 $ 210,445 $ 184,867 $ 117 8.2
Cash Appeal Donor 25-36 6,477 6.4 $ 59,425 $ 47,573 $ 143 6.5
Measuring recency
Cash Appeal Donor 25-36 6,477 6.4 $ 59,425 $ 47,573 $ 143 6.5
Cash Appeal Donor 37+ 8,238 4.5 $ 46,751 $35,359 $ 127 4.1
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Responded to End of Year appeal
You’ve already helped us get off to a great start with your gift to our recent appeal in support of our work in tackling dangerous climate change.
Feeding back
our work in tackling dangerous climate change. Thanks to your< gift of $<don> – and the
overwhelming response that I received from your fellow supporters – we’ve raised the $250,000
we need to double our climate change campaign this year.
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• Ask prompts (highest gift v last v average)
Consider testing
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• Ask prompts (highest gift v last v average)
• Impact of lifts
Consider testing
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• Ask prompts (highest gift v last v average)
• Impact of lifts
• Impact of involvement pieces
Consider testing
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• Ask prompts (highest gift v last v average)
• Impact of lifts
• Impact of involvement pieces
• Long term cohort tests
Consider testing
• Long term cohort tests
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• Ask prompts (highest gift v last v average)
• Impact of lifts
• Impact of involvement pieces
• Long term cohort tests
Consider testing
• Long term cohort tests
• Letter length
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• Don't test for the sake of testing
Some rules
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• Don't test for the sake of testing
• Test stuff that will have an impact, not because it seems like fun
Some rules
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• Don't test for the sake of testing
• Test stuff that will have an impact, not because it seems like fun
• Make sure the volumes are sufficient to make
Some rules
• Make sure the volumes are sufficient to make the results statistically valid
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• Don't test for the sake of testing
• Test stuff that will have an impact, not because it seems like fun
• Make sure the volumes are sufficient to make
Some rules
• Make sure the volumes are sufficient to make the results statistically valid
• Ensure you think through what the hypothesis of the test is
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A recap: Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
8. Getting the follow up right
9. Test, test and test again
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“It won’t work in a recession”
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MSF Canada Seasonal Appeal 2009
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Did it work?
• Net income increased from $1.0m to $1.7m
• Response rate increased from 14% to 18%
• Reactivated over 2,500 donors
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Why did this work?
• Brilliant, empowering copy that asked repetitively
• We stretched people (HG in last 2 years
x 1.25)x 1.25)
• It was authentic
• It was really easy to respond
• We reminded donors of the importance (3 weeks later)
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Starlight Foundation May Appeal 2009
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Did it work?
• Gross income $614,000 (AUD)
• Net income $500,000 (AUD)
• Doubled income from previous year
• Most successful appeal ever• Most successful appeal ever
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Why did this work?
• Brutally honest
• Genuinely urgent
• It was personal (30 uses of the word 'I' and 20 uses of the word 'you' in a four page letter)uses of the word 'you' in a four page letter)
• It pulled at the heart strings
• Managed to maintain credibility despite crisis
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“It only works for big charities”
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• Australian charity with small individual database
• Attended a Pareto Fundraising workshop
• Interviewed service workers for a story
• Segmented database by RFV and tailored ask
“It only works for big charities”
• Segmented database by RFV and tailored ask
• Wrote a 3 page letter and separate response mechanism
– CEO said: ‘No one will read this’
• Created a sense of urgency and emotion
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From this
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To this
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Samaritians Appeals (Before and After)
$100,000
$120,000
$140,000
$160,000
$138,000
The impact
$0
$20,000
$40,000
$60,000
$80,000
$100,000
Winter 2004 Winter 2005
$89,000
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$138,000
“Don’t send appeals to monthly givers”
$89,000
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$138,000
ResponseRate Recency Prev gifts Value
26.13% Monthly Givers 0-12 Multi $100+
17.43% Cash only 0-12 Multi $100+
4.14% Monthly Givers 0-12 Single $100+
“Don’t send appeals to monthly givers”
$89,000
4.14% Monthly Givers 0-12 Single $100+
2.38% Cash only 0-12 Single $100+
48.66% Monthly Givers 0-12 Multi $50-$99.99
20.44% Cash only 0-12 Multi $50-$99.99
6.73% Monthly Givers 0-12 Single $50-$99.99
5.93% Cash only 0-12 Single $50-$99.99
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$138,000
ResponseRate Recency Prev gifts Value
26.13% Monthly Givers 0-12 Multi $100+
17.43% Cash only 0-12 Multi $100+
4.14% Monthly Givers 0-12 Single $100+Monthlies rock!
“Don’t send appeals to monthly givers”
$89,000
4.14% Monthly Givers 0-12 Single $100+
2.38% Cash only 0-12 Single $100+
48.66% Monthly Givers 0-12 Multi $50-$99.99
20.44% Cash only 0-12 Multi $50-$99.99
6.73% Monthly Givers 0-12 Single $50-$99.99
5.93% Cash only 0-12 Single $50-$99.99
Monthlies rock!
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$138,000
BUT, there is an exception..
$89,000
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$138,000
Recruited straight to regular giving by…
Cash Given (ie have they given a one off donation since recruited?)
Response Rate
Street recruits don’t respond
$89,000
Other No 11.40%
Face to Face No 1.10%
Other Yes 23.80%
Face to Face Yes 7.10%
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$138,000
Mailed Cost RespResp Rate
Avg Gift Income ROI Net Income
“No one will read a long letter”
$89,0004 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769
2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129
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$138,000
Mailed Cost RespResp Rate
Avg Gift Income ROI Net Income
“No one will read a long letter”
$89,0004 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769
2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129
4 pages beats 2 pages
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$138,000Mailed Resp Rate Gross Income Average Gift Net Income ROI
“No one will read a long letter”
$89,0004 page letter 4,083 11.6% $21,624 $46 $19,056 0.89
6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98
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$138,000Mailed Resp Rate Gross Income Average Gift Net Income ROI
“No one will read a long letter”
$89,0004 page letter 4,083 11.6% $21,624 $46 $19,056 0.89
6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98
6 pages beats 4 pages
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$200,000
$250,000
$300,000
5.00
6.00
7.00
8.00
9.00
10.00
RO
I
Real charity - change in ROI
ROI
“ROI is the most important measure”
$0
$50,000
$100,000
$150,000
0.00
1.00
2.00
3.00
4.00
5.00
RO
I
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$150,000
$200,000
$250,000
$300,000
5.00
6.00
7.00
8.00
9.00
10.00
RO
I
Real charity change in ROI and Net income
NetROI
“ROI is the most important measure”
$0
$50,000
$100,000
$150,000
0.00
1.00
2.00
3.00
4.00
5.00
RO
I
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Final takeaways
• Ask when you need the money, feedback and care
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Final takeaways
• Ask when you need the money, feedback and care
• Always remember you are mailing real people – think about your own relationships– think about your own relationships
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Final takeaways
• Ask when you need the money, feedback and care
• Always remember you are mailing real people – think about your own relationships– think about your own relationships
• Be disciplined with your direct marketing
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Final takeaways
• Ask when you need the money, feedback and care
• Always remember you are mailing real people –think about your own relationshipsthink about your own relationships
• Be disciplined with your direct marketing
• Scan what’s happening around you, including abroad
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Final takeaways
• Ask when you need the money, feedback and care
• Always remember you are mailing real people –think about your own relationshipsthink about your own relationships
• Be disciplined with your direct marketing
• Scan what’s happening around you, including abroad
• Apply the Pareto Principle
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The Pareto Group exists to make the world a better place, by expanding the not-for-profit
sector's capacity worldwide to ensure as sector's capacity worldwide to ensure as many beneficiaries are helped as possible.
www.jonathongrapsas.blogspot.com
416 915 4114
www.paretofundraising.com