Swap or Die (2005)

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Despite being three years old, this presenation is still useful addressing some of the concerns abour charities swapping their data. It is aimed at Australia fundraisers, but useful beyond Australia. Some of the privacy statements quotes may have been changed by the relevant charities over the past three years.

Text of Swap or Die (2005)

  • Swap or Die Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • Swap or die -overview
    • Introduction
    • What is swapping?
    • Benefits of reciprocal mailings
    • Problems and barriers
    • How it works
    • Your next steps
    • Questions and Answers
    • A useful spreadsheet & questions
    (c) Pareto Fundraising February 2005
  • 1. Introduction Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • Charity Donors
    • Talking about charity to charity reciprocal mailings
    • Australia small market
      • Population 20 million 3 million give by mail or monthly donation
      • NSW 1.2 million
      • But is worth a lot
    (c) Pareto Fundraising February 2005
  • Why do people give? (c) Pareto Fundraising February 2005
    • strings
    (c) Pareto Fundraising February 2005
  • Why do people give?
    • Even when they are asked, most people still dont give
    • Targeting people more likely to give, and asking them is obviously better
    (c) Pareto Fundraising February 2005
  • What we know about donors
    • Older people more likely to respond to mail
    • Donors are promiscuousbut generous
    • Reciprocals identify people who already give via mail who are not on your database
    (c) Pareto Fundraising February 2005
  • Clues we use to find new donors
    • Age, demographics, read similar magazines
    • Say they will give to your cause (eg on a Geo Spend survey)
    • But best are charity givers already
    • How do we find these people?
    (c) Pareto Fundraising February 2005
  • Key donor identifiers (c) Pareto Fundraising February 2005 Proportional chance of someone donating to a mail appeal
  • (c) Pareto Fundraising February 2005
  • 2. What is swapping? Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • What is swapping?
    • Reciprocal mailings
    • Two charities mutually agree to mail each others like with like data
      • Selected by recency, frequency, value and type
    • Agree timeframes for the reciprocal
    (c) Pareto Fundraising February 2005
  • What is swapping?
    • Donor Data
    (c) Pareto Fundraising February 2005 Charity A Data Charity B Data Promiscuity report Opportunity Report Mail appeals Respondent data captured Respondent data captured
  • 3. The Benefits Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • The benefits (c) Pareto Fundraising February 2005
  • The benefits
    • Previous chart says it all AND
    • Return On Investment can be 4 to 20 times that of cold mail
    • You can make a profit on reciprocal mailings
    • Can be cheaper because no rental fee
    (c) Pareto Fundraising February 2005
  • The benefits an example
    • Cold mailings 0.9% from 50k @ 15
    • 1.5% from top 5k @ 15
    • Reciprocals achieving 3.3% from 30k @ 15
    • 8.0% from top 5k @ 15
    (c) Pareto Fundraising February 2005
  • The benefits
    • Long-term effect on database is positive increases number of donors
    • Donors recruited by swaps are good swap prospects AND have excellent Life Time Values
    • Australian market quite virgin better results for those in there first
    (c) Pareto Fundraising February 2005
  • The benefits.
    • Small charities can get involved
    • Cold is declining but this can supplement
    • Other good list sources very small
    • 10+ years of UK data proves it works
    (c) Pareto Fundraising February 2005
  • The benefits
    • Reciprocal mailings identify donors who are already charity mail responsive
    • Reciprocals with corporates can cut costs but do not have the key advantage mentioned above
    (c) Pareto Fundraising February 2005
  • 4. Problems and barriers Pareto Fundraising Masterclasses (c) Pareto Fundraising February 2005
  • Why wouldnt you swap?
    • Tell me!!!
    (c) Pareto Fundraising February 2005
  • Why wouldnt you swap?
    • Detrimental effect on database?
    • Not legal?
    • Current database is too small?
    • Wrong type of donors?
    • My donors are not natural fits
    (c) Pareto Fundraising February 2005
  • Why Wouldnt you swap?
    • Just dont like it
    (c) Pareto Fundraising February 2005
  • Why Wouldnt you swap?
    • Just dont like it
    • With all the evidence showing it raises more money, more quickly in the short term AND increases the number of donors, bequest prospects and regular givers in your pool for the long term
    (c) Pareto Fundraising February 2005
  • Effect on your database
    • Your donors are already getting 10-50 cold mailings
    • These cold mails were less targeted by swapping we REDUCE the amount of mailings
    • Overall income from new donors > Potential income lost
    (c) Pareto Fundraising February 2005
  • Effect on your database
    • UK data shows no long term negative impact from swapping 2 or 3 times per annum
    • No evidence to show any significant increase in attrition
    • Careful with swapping board members, major donors, internal stakeholders
    (c) Pareto Fundraising February 2005
  • Legalities
    • This is not legal advice - always check with your lawyer
    • Our interpretations have been checked with ADMA lawyers but each situation is unique
    • Privacy laws are relatively new and there are few test cases
      • You dont want to be the first charity test case
    (c) Pareto Fundraising February 2005
  • Legalities
    • Can charities swap data?
      • easier if primary purpose of original acquisition was fundraising and swap is with like-minded organisation
    • Many Australian charities are not able to swap NOW
      • Because they have told their donors that they wont
    • Privacy Statements & policies should be used wisely
    (c) Pareto Fundraising February 2005
  • Legalities
    • If you have stated you will not make your list available to third parties
      • Stop stating it
    • You should mail an opt-in to those recruited with that promise
        • Only a tiny proportion will respond to this
    • Check with your lawyer to see if there is a way you can swap your data
    (c) Pareto Fundraising February 2005
  • Legalities
    • If you said would not sell the list
      • Good you are not selling the list
      • Be more explicit in future
    (c) Pareto Fundraising February 2005
  • Privacy policy statements
    • Often on web and referred to in printed materials. But hardly anyone looks.
    • Fundraising teams often not consulted
    (c) Pareto Fundraising February 2005
  • Privacy statements
    • RACV (NOT THE FOUNDATION) (On Web)
    • From time to time, RACV may use your information to tell you about other products and services, discounts, , special offers, competitions and invitations to special events. However, we clearly recognize the import