Making Advocacy Pay: Understanding the Link Between Advocacy and Giving

Transcription

1 Making Advocacy Pay: Understanding the Link Between Advocacy and Giving

2 Agenda What is online advocacy? What does advocacy have to do with fundraising? How does it work? Making the economic case.

3 What is online advocacy?

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7 Advocacy The active support of an idea or cause etc.; especially the act of pleading or arguing for something wordnetweb.princeton.edu/perl/webwn

8 What does advocacy have to do with fundraising?

9 Advocacy starts the conversation.

10 NRDC Activist Conversion

11 Finding New Supporters 73,000 new wolf activists through paid and organic sources $40,000 spent on paid sources

12 One Year Later 31,000 took another action 700 converted to donors online 1,325 converted to donors via mail Break even 15 months

13 Advocacy builds relationships.

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15 Actions Increased Donor Value

16 Advocacy keeps donors engaged.

17 Analysis of Advocacy s Impact on Fundraising

18 Activists: 2+ actions Sept Nov = 4x more likely to give at year end s Action Takers Online Conversion Offline Conversion Unsubs Moved into 2+, Highly Responsive: 6, % 1.0% 0.2% 1.9% Stayed in L: 88, % 0.2% 0.1% 2.0% Prior 2+ Action Takers: 66, % 1.0% 0.3% 1.9% Moved into L: 30, % 0.4% 0.1% 3.7%

19 Donors: 2+ actions Sept Nov = 26% more income at year end s Action Takers Online Conversion Offline Conversion Unsubs Moved into 2+, Highly Responsive: 6, % 1.0% 0.2% 1.9% Stayed in L: 88, % 0.2% 0.1% 2.0% Prior 2+ Action Takers: 66, % 1.0% 0.3% 1.9% Moved into L: 30, % 0.4% 0.1% 3.7%

20 How Does it Work?

21 Activist Relationship Management Deepen

22 Recruit Be thoughtful about form of ask Pledge vs. contact your legislator Constituent relevance Multiple venues in addition to your website Paid online e.g. Care2 Social media In the field Strong user experience Viral marketing including social media

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24 Engage Acknowledge returning Web visitors Send tailored updates/ stories Related appeals Multi channel appeals , text, social Rewards/ incentives

25 Convert Campaign specific donation forms welcome/ conversion series Follow up in timely fashion with mail, TM Apply filters to prioritize investment Select appeals based on advocacy actions

26 Website Activist to Donor Conversion

27 Food for Thought Major donors frequently active It s increasingly critical to track messaging intensity/ congruency across programs and channels

28 Making the Economic Case

29 Online Advocacy Increases Donations Source: : Charitable Memberships, Volunteering and Discounts: Evidence from a Large Scale Online Field Experiment. May 2009, National Bureau of Economic Research, A. Lange, A. Stocking. Sample size = > 700,000 subjects.

30 How measure economic value? Time to pay back investment Cost per donor Cost per dollar raised

31 Online Recruitment: Value Over Time Source: M&R Strategic Services

32 Timing is Important Big Events e.g. Haiti $1.4 billion Seasonality

33 Value of an Address Annual Donations Human & Social Services Environment & Wildlife Public Affairs Animal Welfare Year 1* $17.18 $4.81 $3.36 $15.91 $11.68 Year 2 $8.59 $2.41 $1.68 $7.96 $5.84 Year 3 $4.30 $1.20 $0.84 $3.98 $2.92 Year 4 $2.15 $0.60 $0.42 $1.99 $1.46 Year 5 $1.07 $0.30 $0.21 $0.99 $0.73 ALL Avg Lifetime Value Per $32.21 $9.02 $6.30 $29.83 $21.90 * Source: 2010 Convio Online Benchmark Study of roughly 300 nonprofits. addresses are usable only, approx 50% of the addresses available to the orgs Yr 2-4 figures assume that 50% of s on each list become inactive each yr.

34 Online Recruitment: Multi Channel Returns Source: M&R Strategic Services

35 Fully Load Your Expenses Direct Expenses Search Engine Marketing (SEM) Campaign costs (fixed and variable) appends etc. Indirect Expenses Consultants (fixed and variable) Social Media Outreach (Facebook, Twitter, etc.) etc.

36 The True Cost per Lead If I spent $1,000 to acquire 1,000 new leads, I spent $1.00 per lead. Great price! But what if 100 leads have bad addresses; and 200 leads unsubscribe within first 3 mo. Now I ve only got 700 leads, so the real cost per lead rises to 1,000/700 = $1.42 And what if Only 30% are opening my message. Now I ve got only 210 active leads, and the real cost per lead is 1,000/210 = $4.76 And what if Only 10% of these people click through and only 10% of those donate? Then I paid $1,000 to buy two (2) donors, and my true cost ( Investment ) was $500 per donor.

37 List Growth: Speed vs. Value High Quality Collecting Opt-ins on your site Google Adwords Niche site e.g. Democrats.com Viral Campaigns Paid Acquisition from targeted audiences Targeted List Swaps Low Quality Social Networks Canvassing Banner Advertising Name Acquisition Large, General Audience List Append Slow Growth (<1k/month) Rapid Growth (>10k/month)

38 Calculate the Value of your Leads SocialNetworkCalculator.com

39 Yvonne Garrett, Partner OMP, Inc. Vinay Bhagat, Founder & CSO Convio Randy Paynter Founder & President Care2.com