Marketing for Non-Profits. Center for Non-Profit Leadership at MCC February 12, 2009
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1 Center for Non-Profit Leadership at MCC February 12, 2009
2 Welcome and Introductions Rick Schildgen C L Graphics C L Graphics is a Print Management Resource firm offering consulting, marketing and print communication services for the Non-Profit market.
3 Seminar Outline Overview of Current Non-Profit Environment Importance of a Marketing Plan Improving Communications Targeting Your Prospects Personalizing Your Message Tracking Responses Conclusions
4 Overview of Current Non-Profit Environment The 10 Immutable Laws of Fundraising 1. No group of individuals is waiting to give. 2. Fundraising is a conversation between funded and funder. 3. Effective fundraising is a result of telling your story. 4. People give to people. 5. Someone must ask for money.
5 Overview of Current Non-Profit Environment The 10 Immutable Laws of Fundraising 6. An organization cannot thank a donor enough. 7. Seek investments, not gifts. 8. Donors are developed, not born. 9. Fundraising out of desperation is futile. 10.In the best of circumstances, people will do what they please.
6 Overview of Current Non-Profit Environment There are those that have tightened-up, but are still functioning, those that are spending money to respond aggressively to challenging times, and finally the largest group are those that have retrenched, pulled back and are crying woe is me. If your organization is in the third category, that gives me the opportunity to steal your donors! Kurt Aschermann, Boys & Girls Clubs of America
7 Overview of Current Non-Profit Environment Tides are Changing 9-11 had a Dramatic effect on Fundraising 8 years ago Economy stumbled for 2+ years after that Drop in State/local funding Tsunami disaster, then Hurricane Katrina hits at home Compared to now Economy is at an all-time low! Un-employment is at an all-time high! The need for non-profit services is higher than ever! State funding is behind schedule and limited at best! What Next?
8 Overview of Current Non-Profit Environment Increased Competition/Sophistication World-wide, there are 20 million Non-Profits! In the U.S. alone, 500,000 in 1990 vs. 1,087,000 in 2004 Marketing is becoming a higher priority for all Level of Sophistication is growing In-House Capabilities plus Increased technology from vendors Equals a higher level of communication to all possible donors
9 Overview of Current Non-Profit Environment Increased Competition/Sophistication Shift from individual appeal programs to more sustained giving: Planned Giving Endowed Programs Greater desire/need to become closer more personal with top level donors
10 Overview of Current Non-Profit Environment Increased Competition/Sophistication however There will also be shake-outs and merging of organizations Only the strong will survive!
11 Importance of a Marketing Plan "If you don't know where you are going, you will wind up somewhere else." "You've got to be very careful if you don't know where you're going, because you might not get there." Yogi Berra
12 Importance of a Marketing Plan Define yourself Define your audience(s) Segment your audience(s)
13 Importance of a Marketing Plan Set Goals Develop a timeline and a timetable Plan for at least three years But be ready and able to shift within 3 months! Plan for multiple approaches
14 Importance of a Marketing Plan Communicate your passion, commitment and enthusiasm Communicate benefits, not features Make donors feel part of the program Now more than ever!
15 Importance of a Marketing Plan Write it out! Marketing Plan should be written out and endorsed by leadership (both Staff and Board) Typically as part of Development Plan Assign Responsibilities Used as part of Review process Some thoughts on Staffing/Board turnover: It is inevitable! It is disruptive if everything changes every 2-3 years! Board training is worthwhile to define what their boundaries are Leadership must define goals and assign responsibilities to the position, and not the individual
16 Importance of a Marketing Plan Marketing Calendar With Print/ Projects Newsletters Appeals With Events Dinners/Auctions/Etc. Cultivation Events Thank You Events Media Projects Articles Press Releases
17 Importance of a Marketing Plan Branding your Organization Research Differentiate Develop an image Be Professional Be consistent
18 Importance of a Marketing Plan Branding your Organization A thought about change Updating your image is okay, just make sure there is a reason Sponsoring a contest to design logos or images is not a good idea When done in-house, make sure the individuals have the right programs and creative knowledge
19 Importance of a Marketing Plan Hang in There! Plan for the long term and stay with your plan. There are no miracles in marketing! The biggest challenge is to stay on schedule put your emphasis on this!
20 Improving Communications 80/20 Rule 80% of your contributions come from 20% of your donors Focus on, profile, target and design for the 20% and find more like them!
21 Improving Communications
22 Improving Communications Allocation Guide Spend 10% on Untargeted Prospects People with whom you have no known contact. They may know nothing about your services. Profile this group for the highest probability of interest in supporting your organization. Don t Ignore this! Spend 30% on Interested Prospects People you have called on, talked to on the phone, or who have made inquiries to your organization. They already know something about you. A + B = 40% of your marketing dollars. Spend 60% on Current and Previous Donors People with whom are now supporting you or have supported you in the past. They have an emotional tie to your organization. It is the richest vein to mine.
23 Improving Communications
24 Improving Communications
25 Improving Communications Kinds of Messaging General Image Builds brand awareness. Influences prospect attitudes. TV/Print/Radio Targets message and audience. Generates leads and customers/donors. Interactive Website: Branding. Educates consumer. Timely communication of detailed service information. Banners: Targets direct response leads to website. Builds one-on-one relationships with donors. . Individualized website information. E- commerce. Becoming much more important! Explore Viral marketing and video where possible! Direct Mail One-on-one dialogue with targeted prospects and donors. Builds on-going relationships. Is accountable and measurable. Describes complicated services and programs. Can be personalized. Best method to drive people to the Web!
26 Improving Communications
27 Improving Communications Synergy Take Advantage of the Multiplier Effect Direct Mail alone 1-3% response typical (Mailings to donor lists will typically get a higher return) Print/Media Alone 1/2 to 1% response typical TV/Radio Alone 2% response typical Total if all 3 used? 3 1/2 to 6%? NO! TOTAL if all 3 used as high as 8% because each has a different kind of appeal and each reinforces the others. The numbers in this example are not as important as the concept.
28 Improving Communications
29 Improving Communications -A Multi-Dimensional Approach Newsletters Brochures, Annual Reports Direct mail, Appeals Print media Broadcast media Web/ (use this for year-olds)
30 Overview of Typical Print Communications Newsletters Most non-profits use newsletters to promote services, highlight events or solicit volunteer time. Effective newsletters are powerful communitybuilding tools The most effective marketing newsletters consist of: News, People Education, Events Entertainment, Response Make it about your clients and donors not you!
31 Overview of Typical Print Communications Brochures A brochure s power lies in its ability to inform, involve and persuade. Gives a quick overview of your organization Prompts your audience to take the next step Shares the passion of your organization
32 Overview of Typical Print Communications Brochures Other important features to include: Facts and figures Testimonials Important contact information
33 Overview of Typical Print Communications Event Materials A special event is a great way to bring people together for fund raising and to educate them about the work you are doing.
34 Overview of Typical Print Communications Event Materials Typical event materials include: Save The Date Cards Invitations Posters Banners Programs Raffle Tickets Thank You Cards
35 Overview of Typical Print Communications Annual Reports Financial Reporting Marketing Applications Donor Recognition Grant Writing
36 Overview of Typical Print Communications Appeals Most common form of Fundraising Wide variety of options and costs Typically 1-3 per year Holiday Appeal is most common Consider multiple versions highly personal for donors, more generic (lower cost) for prospects
37 Overview of Typical Print Communications Capital Campaign Materials/Planned Giving Create Case Statement Establish a clear plan for Donor solicitation High Profile Donors/Supporters High Profile Community Leaders Corporate Donors General Public Develop print materials in relation to value of campaign people invest in successful organizations, be sure to look like it!
38 Overview of Typical Print Communications Capital Campaign Materials Common elements Presentation Folder Brochure multi page, with overview, statement of need, scope of project, estimated timelines, estimated costs, listing of supporters/community leaders, giving levels/programs, etc. Letterhead masters for correspondence and imprinting with facts, figures, progress, press releases, etc. Business cards for primary solicitors Handout materials, including simple brochures, fliers, etc. Direct mail campaign for general public Pledge cards, return envelopes Posters, signage
39 Break Time! Back in 10 minutes
40 Targeting Your Prospects The Changing Demographics of Donors Each generation has its own general behavioral characteristics and motivations And their own preferred methods of communication
41 Targeting Your Prospects The Changing Demographics of Donors Donor profiles include; Older, wiser and wealthier 63 to 80+ yearolds Prime giving years especially for planned giving Females are best donors to many causes Drawbacks regarding computer usage Adverse to using credit cards on line It is predicted that there will be a 3.14 billion dollars transfer of wealth in McHenry County alone from this generation to the next!
42 Targeting Your Prospects The Changing Demographics of Donors Baby Boomers 45 to 62 year-olds Nearly one- third of households with incomes of $200,000 and up are headed by Baby Boomers Spending more on: insurance/pensions/children s education Don t consider themselves major donors yet Since many of these individuals are well off, the transfer of wealth from their parents will become a much more important event for Non-Profit organizations to be involved in.
43 Targeting Your Prospects The Changing Demographics of Donors Generation X ers or Baby Busters 28 to 43 year olds Approximately 20 million people worth $125 billion in spending Paying back student loans, buying first homes or starting a family is priority The web and is their preferred avenue for communication More prone to give during times of crisis or immediate need, rather than to an annual fund or perpetual need
44 Targeting Your Prospects The Changing Demographics of Donors Echo Boomers, or Y- Generation year-olds Largest group since Baby Boomers Nearly 80 million in number More racially diverse Technologically savvy Spend $170 billion per year Good volunteer base for organizations
45 Targeting Your Prospects The Changing Demographics of Donors Purchasing Targeted Lists Can pinpoint specific groups for prospecting Age, Income, Interests Consumer lists are fairly economical Other Non-Profit organizations will rent lists Use to augment In-House lists Create unique Donor Profile of your organization Worthwhile investment Tremendous for prospecting use
46 Personalizing Your Message What Makes a Piece Effective Traditional direct mail paradigm stood on its head. Personalization can yield response rates of 4%, 6%, 8% or more, when combined with unique database information Personalization as a tool in Relationship Marketing 59% of donors said they were likely to donate to an organization that they received direct mail from
47 Personalizing Your Message What Makes a Piece Effective Personalized mail is the most important factor, at 62%, in determining which charity or nonprofit mail gets opened Direct mail s impact is on the rise: In 2003, 46% of adults surveyed said they had responded to direct mail advertising in the past 30 days, compared to 34% in 2001
48 Personalizing Your Message What Makes a Piece Effective
49 Personalizing Your Message What Makes a Piece Effective - Samples
50 Personalizing Your Message What Makes a Piece Effective - Samples
51 Personalizing Your Message What Makes a Piece Effective - Samples
52 Personalizing Your Message What Makes a Piece Effective - Samples
53 Personalizing Your Message What Makes a Piece Effective - Samples
54 Tracking Responses Managing Results Track results of all mail campaigns For ROI payback on investment For Trends Analysis Comparisons to Previous Year(s) Number of Donors Comparisons to Previous Year(s) Dollars For Testing Different Versions of Letters, Formats, Dollar asks, etc. Different Donor characteristics Donor versus Prospecting Prospecting versus Prospecting different versions
55 Tracking Responses Managing Results Sample Tracking Worksheet
56 Tracking Responses Managing Results Database Management What Databases are: A collection of information arranged in useable order Databases of People volunteers, donors, prospects Must be arranged in a consistent manner Data is in a table of records Information about an individual comprises a record Each record contains different fields Each field contains unique information about individual
57 Tracking Responses Managing Results Database Management How do Non-Profits use them? Distribute information newsletters, invites, etc. Analyze effectiveness of campaigns & programs Provide statistical back up for grant applications
58 Tracking Responses Managing Results Database Management Building the database Collect data from every function or mailing Build profiles of best donor/volunteer Look for others that match profile Purchase list of like donor/prospects Continue to review & revise Cultivate new prospects through multiple avenues Newsletters, events, website, referrals
59 Tracking Responses Managing Results Database Management Review & Revise Does data meet current needs? Evaluate for future plan to change Look to capture more information for use in personalization Database to interface with financials or contact management? Standardize input format Clean existing data Review how data is collected revise & correct Assign data update deadlines/responsibilities
60 Tracking Responses Managing Results Database Management List Maintenance 20% of addresses in any given area change annually Address Quality promotes discounts on postage rates New NCOA postal requirement: All bulk mailings must have NCOA processing every 95 days
61 Tracking Responses Managing Results Database Management NCOA (National Change of Address) Service - subscription based service offered by USPS to certified mailing agents Return Service Requested FIRST CLASS Undeliverable-as-Addressed (UAA) mail returned with new address or reason for non-delivery, no charge STANDARD CLASS mail returned with reason for nondelivery; if ancillary line is printed on envelope, and there is additional cost for this service
62 Conclusions Challenging environment but when is it not? A written Marketing Plan provides benchmark for performance Communication efforts need to be varied Prospects need to be targeted Personalizing your message brings results Track your results and revise plan as needed
63 Conclusions Thank you for coming!
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