Advancement 2.0
The keynote address for the 2008 CASE Online Strategies conference, happening today and tomorrow in Seattle, was delivered by Vinay Bhagat, founder and chief stategy officer of Convio. In his presentation, Advancement 2.0: Online Strategies in a World of “Exponential Change,” Vinay focused, as he usually does, on presenting eye-opening data that provides context for practical examples of how nonprofits are taking new approaches to online solicitation, giving, and relationship-building.
He began his presentation with five key messages:
*Efficient fund generation is ever more critical in hard economic times, with competition from many causes*Must build strong constituent relationships
*Online marketing can be a foundation for overall advancement strategy
*Shift from broadcast, appeal to strategic engagement and empowerment
*Integrated, multi-channel approach
In fact, Convio reports that Despite Difficult Economy US Online Holiday Giving to Exceed $3 Billion and that more than 89 million online adults plan to give, so developing an effective, long-term strategy to communicate with and to engage donors through online channels is essential, even in economic hard times.
Direct mail-and even email-is no longer enough as the broader Internet (think Facebook, MySpace, LinkedIn) and other technologies (texting, IM) gain marketshare from email.
While some donors (especially older donors) may prefer direct mail solicitations, the fact is that they are also using the web and email. Moreover, revenue from direct mail is now declining. And, even as online fundraising is growing, email files are shrinking and email alone is no longer as effective as it once was in raising awareness or soliciting donations. Time and information overload are significant issues for everyone: segmentation and relevance grow ever more important. Half of donors say they unsubscribe from email offers when the offers/types of content don’t interest them and 37 percent unsubscribe from email offers from senders who email them too often.
So personalization, conditional content within emails, and respecting preferences for such things as types of content and frequency of communication become even more important in the context of a campaign. And while email needs to be an important part of the online giving scene, it is still only a part. The most compelling and effective online campaigns will utilize an integrated strategy, linking email, social networks, and various online engagement and conversion strategies.
More and more, successful campaigns develop a multi-phase, multi-channel strategy. One simple example is the appeal by Defenders of Wildlife for feedback about the cover for their 2009 calendar. Email to 400,000 supporters resulted in nearly 60,000 responses, and an opportunity to re-email everyone to announce the winner and solicit them for a calendar purchase—and membership.
Another example is an ASPCA Adopt-a-Pet program that relies on a Facebook app that alerts your network about actions you’ve taken for the ASPCA and posts a suitably adorable picture of the pet you adopt on your Facebook page.
The most important result of an integrated communications approach-one that utilizes a variety of channels-is that this kind of approach really maximizes results and enhnances engagement. That’s really the key: engagement, over the long-term, on the donor’s own terms, which will result in life-time value for your organization.
Some examples Vinay cited:
*World Wildlife Fund achieved a 40% better response rate via multi-channel campaign.*At the University of Texas, Annual Fund donors were sent an email with Flash video before they were called about their contriubitions; this approach improved the receptiveness to the telemarketing phone call and increased giving.
And here are his “Five Things to Plan for In 2009”:
*Create preference center, tiered email options [for your email list]; result: More targeted messages to supporters, increase % read*Evaluate usability, overhaul donor information on website; result: Stronger case for giving on your website
*Psychographic profile donors; result: better understand donor dynamics and needs
*Expand options for relationship seekers, especially video; result: Increase engagement with most engaging group
*Create a permanent feedback loop with donors, including advisory panel; result: More touchpoints = more engagement = better relationship.
Finally, he remarked that Convio’s research underscores how important a good website is for major donors. Even though they will not give online, and don’t visit the website frequently, they do use it to confirm their giving decision.
Thank you for the great summary of Vinay’s presentation. You helped make the point that it is not just about the internet - it is about engagement. Technology has changed the rules of engagement and how one connects with donors.
To that point; I am posting this from my car, in a parking lot, via an iPhone as I prepare to leave a college fair at which I represented my alma mater. Technology lets me (or a donor) connect when, where and how I desire. It makes it easier for the donor to help build and manage the relationship - to work for and with you.
I just saw hundreds of college bound students who will never know a phone that is wired to a wall and who have high expectations for how technology helps them connect in their relationships. Those expectations are spreading to all age groups. It’s apparent that now is the time to make sure you are using the Internet and technology to connect with and empower donors. Thank you again. Your post combined with my experience tonight to create one of those “wow” moments. Where you clearly see how the world has changed. That’s cool and fun.
Posted on October 30, 2008 by Tad Druart, Director of Communications, Convio
Great synpopsis Michael. You really captured the essence of the presentation.
I am also looking forward to reading the research you’ve recently published on capital campaigns and the Web. I learned recently that Iowa State is leveraging their online assets in support of a campaign and look forward to seeing the data they have to report.
Vinay
Posted on October 31, 2008 by Vinay Bhagat
Alumni and donors are becoming more sophisticated and their expectations are growing. I’m concerned that so many institutions aren’t prepared to be agile in their responses. Thanks for sharing your Ah Ha moment, Tad.
Posted on October 31, 2008 by Michael Stoner