Multi-Channel Marketing WorkshopWorkshop

for the Annual Fund

Welcome to Emmanuel College

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Welcome to Emmanuel College

Introductions

� Name/Organization/Role

� What is working well/not so well with the annual fund at your school

� What you hope to gain from this session

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� Guilty food pleasure

Workshop Tenets & Goals

1. No annual fund silver bullets, but lots of learning & experience

2. Two primary goals1. Facilitate discussion and sharing of best practices

2. Attendees leave with at least one new actionable idea

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3. Your participation makes this session better

A Word From Our Sponsor

Blackbaud Data Management Services

� Outsourcing Raiser’s Edge and NetCommunity tasks to Blackbaud experts based in Cambridge.

• Data entry, reporting, gift processing

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• Data entry, reporting, gift processing• Segmentation, mail merging, analysis• Email appeals, web content, campaign planning

Agenda

� The opportunity

� Laying the foundation

� Choosing the channel

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� Segmentation

� Testing

First…First…let’s talk about the opportunity…

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Total giving to charitable organizations in 2009.

All data property of Giving USA 2010, the Annual Report on Philanthropy, published by the AAFRC Trust for Philanthropy.

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Total giving from individuals in 2009.

All data property of Giving USA 2010, the Annual Report on Philanthropy, published by the AAFRC Trust for Philanthropy.

© 2010 Blackbaud

Total giving to religious organizations in 2009.

All data property of Giving USA 2010, the Annual Report on Philanthropy, published by the AAFRC Trust for Philanthropy.

© 2010 Blackbaud

Total charitable giving to other organizations in 2009.

All data property of Giving USA 2010, the Annual Report on Philanthropy, published by the AAFRC Trust for Philanthropy.

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Total private giving to American colleges in fiscal year 2009.

Data published by The Chronicle of Higher Education; Voluntary Support of Education survey.

And $27.8B is down year over year…

…in participation…

…and in revenue…

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Data published by Target Analytics Index of Higher Education Fundraising Performance .

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Capitalize on your opportunity…

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Capture your share…Capture your share…

A Multi-channel Marketing Primer

What exactly is Multi-Channel Marketing?

“A marketing approach that coordinates messaging across many channels. More importantly, Multi-Channel Marketing

allows a prospective customer to interact and purchase in the

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allows a prospective customer to interact and purchase in the channel of his/her liking”

Schierholz, Ragnar; Susanne Glissmann, Lutz M. Kolbe, Walter Brenner, Alexander Ostrowski (2006). Journal of Information Science and Technology.

What is the foundation for Multi-Channel Marketing?

� C.onstituent� R.elationship

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R.elationship� M.anagement

Is CRM is a technology?Is CRM is a technology?

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Major Gift OfficerEvents

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Capital Projects

The Annual Fund Foundations and

Clubs

Website

Reunion Online/

Web

The problem is a disconnected constituent experience…

Giving

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Direct

Mail

Events

Volunteering

Social

Networking

Largely due to the various communication channels…

Blackbaud Direct Marketing

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Web

Currently

STATUS

Member, Prospect for Renovation

Worked for Reagan first term

Board Member

Interests: Also gives big bucks to USC

Reunion

SPENDING HABITS

$500 over past 5 years

Buys books HISTORY

And we end-up with an incomplete view…

Fundraising System of

Record

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GIVING

last five years: $2,200

INTERESTSPrefers newsletters

Responds to Great Communicator

Appeals

Currently not able to

collect information on web visits, interests, email communication preferences, response

to email campaigns

big bucks to USCBuys books and coffee

mugs

HISTORY

Visited campus 3 times last year

Interested in Berlin Wall

Uses Audio Tours

Booked 2 events last year

Direct Mail

Admissions &Event

VOLUNTEERVolunteered at 5K

run event2 Years ago

Event AttendanceHas participated in Past “Write YourCongressman”

Campaign

Single Holistic View

Dr Robert HernandezLifetime commitment to the institution:

$27,000 since 1995, Class Agent since 2001, Advisory Board since 2007

Successful multi-channel

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since 2007

Last Gift: $25 in response to an Athletic Foundation email campaign

Status: In cultivation for Capital Building Campaign and Planned Gift

Last Touch : Last week, attended home football game

Next Touch: Meeting with Planned Giving Officer

Preferences: Prefers email, avid golfer

multi-channel marketing requires a single view

Choosing the Channel…Choosing the Channel…

Choosing the Channel

� College of Charleston – Declare Your Impact Theme

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Choosing the Channel

� College of Charleston – Declare Your Impact Theme

Compelling & authentic student impact story posted on www.CofC.edu

Email appeal to ~800 music majors/SYBUNTS with embedded video and

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majors/SYBUNTS with embedded video and giving URL

Appeal mailed to 1,200 music majors/SYBUNTS with URL & response device

Promotion by staff, faculty & alums/influencers on Twitter & Facebook

www.cofc.edu/giving included with all messaging

Choosing the Channel | Conversation Topics

� How many send the same message to all alumni?

� Who communicates through more than one Marketing Channel? More than two? How about more than three?

� Who knows your constituent’s communication preference?

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� Any experience with mobile giving?

� Anyone studying Facebook/Twitter/LinkedIn to find highly connected alums

� Do you test messaging for favorable/desire responses?

Choosing the Channel | Recommendations

1. When choosing the channel, it isn’t a ‘One OR The Other’ question• Ex: We send Email to supplement & reinforce direct mail; not replace it

2. Find out where your constituency is and go there• Survey for both channel preference and frequency preference• Actively listen to the social media channels

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3. Direct mail is still king• Response improves with multiple touches using variety of channels

Where fundraisers are reporting success…

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All data property of Giving USA 2010, Giving to Education; research by The Center on Philanthropy at Indiana University.

By the way…

Multi-channel donors are significantly more nutritious than single channel donors!

In a 2010 Target Analytics bench marking study of giving:

� Median revenue per donor for multi-channel supporters was $339 compared to

© 2010 Blackbaud

� Median revenue per donor for multi-channel supporters was $339 compared to $88 for offline and $170 for online

� First year retention for multi-channel donors was 51% compared to 30% for offline donors and 22% for online donors

� Multi-year, multi-channel donors were retained 75% versus 59% for offline and 52% for online

Segmentation…Segmentation…

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© 2010 Blackbaud

A Diverse Spectrum of Constituents…

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…and Organizations…

What data elements can you use?

Sorority

Major

Fraternity

Minor

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SororityHonors

Advanced DegreesGender

AthleticsAge

What other data elements can you use?

Have you considered segmenting based on:

� Member of on line community

� Recently submitted address update

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� Wealth indicators

� Giving history (RFM)

� Communication preference

� Survey/poll responses

Segmenting in The Raiser’s Edge

Analytical Reports

� LYBUNT� SYBUNT� Consecutive Years

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� First/Greatest/Latest� …

Segment Tab

In Mail

And consider…And consider…Testing…

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Testing

� Frankly, it’s a necessary part of the Direct Marketing process• RFM• A/B• Split Testing

� Both The Raiser’s Edge and NetCommunity let you test:• Content & messaging

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• Content & messaging• Imagery• Packaging• Premiums• Segment Performance

Communication Roadmap for the Communication Roadmap for the Annual Fund

Case Studies

Marquette University

� They create an overall plan at the beginning of the year focusing on general ideas about messaging, segmenting, audience, and goals

� For each mailing, they determine:• Who to send to? • When to send? • Who to feature?

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• Who to feature? • What to send?

� Messaging:• Interviewing subjects works best• As they write the letter(s) based on the interview(s), they keep in mind different

audiences that could respond well to the message• Once they have written the letter(s), they can decide which segments will receive

which letter

Marquette University | Segmentation Criteria Samples

� Giving history � Managed internally � Rating/priority � Solicitation you have or are

scheduled to receive � Industry constituents currently

� College constituents graduated from

� Gender / age / race� How constituents gave in the

past (method and funds)� Volunteer history

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� Industry constituents currently work in

� Volunteer history� Event attendance

Marquette University | Additional Considerations

� Can specifically personalize ask amounts, P.S., pledge card copy, envelope teaser, or any other message or package for certain groups

� Can use 50/50 split by segment for testing

� Specify different packages for different segments (all included in the same mailing)

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mailing)

� Can determine profitability by segment

� Goal setting – it’s possible to set a goal for every segment and track against it, you can predict the money you’ll bring in.

And consider…And consider…LTF…

© 2010 Blackbaud

© 2010 Blackbaud

Who’s more valuable?

� A donor who gave $1,000 this year, and in 2008?

� A donor who gave $500 consecutively for the past 3 years?

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Who’s more valuable?

� An alum with 637 friends on Facebook?

� An alum who has attended homecoming for the past 3 years?

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Summary…Summary…

Walk away w/ these points…

� CRM = a strategy…a process…not technology

� Do everything you can to connect all the constituent experiences

� Communicate with your alumni using different methods…and base it on communication preference

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� Shake-up your messaging with varying audiences…segment

� Consider the impact of creative…the psychology of donors

� Test…test…test

Roundtable…Roundtable…