Today's Ideas for Tomorrow’s Voluntary

Organisations

Enabling Enabling

Your Your

Fundraising Fundraising

StrategyStrategy

WELCOME to WELCOME to Messrs G Owen & CoMessrs G Owen & Co

Enabling your Enabling your Fundraising StrategyFundraising Strategy

TRAINER:

VOLUNTARY SECTOR & VOLUNTARY SECTOR & FUNDRAISING FUNDRAISING CONSULTANTCONSULTANT

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AgendaAgenda Introductions

Safety Information

Fire alarms and exits

Relationship Fundraising

The need for one to one communications

Making the Transition

Insight into the strategic decisions involved in making such a transition

Coffee & Networking Break

Combining your fundraising strategy with your IT strategy

Process driven examples of personalised multi-channel

communications

Seminar close

Lunch & Networking

Relationship Relationship FundraisingFundraising

The need for

one to one

communications

The need for 1 to 1 The need for 1 to 1 communicationscommunications

AgendaChallenges for fundraising

professionals

Donor Market Issues

Multi-channel marketing and the rise of personalisation

Relationship Marketing

Challenges to FundraisingChallenges to FundraisingStatistical Facts

25% decrease in giving over the last 10 years as a proportion of

GDPThe number of people giving to

charity has remained static at ~67%

Less than 3% actually give more than £600.00 a year.

Poorest 10% of the population give 3% of their household

expenditure, but the richest 20% give just 0.7%

The Charities Bill & Self-regulationChanging the way you conduct and

report on Fundraising - [SIR - Standard Information Report]

What

the

Papers

Say!

Challenges : Donor AttritionChallenges : Donor Attrition

Donor attrition over time

0102030405060708090

100

1 2 3 4 5 6 7 8 9 10

Years

Att

riti

on

%

Pressures : Resource Pressures : Resource ConstraintsConstraints

Donor pyramid

Your interaction effort

Problem : Problem : Acknowledgements • 1Acknowledgements • 1

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Major Donors Corporate Donors

Supporter survey of gift acknowlegement

AlwaysUsuallySometimeSeldom/never

Problems : Problems : Acknowledgements • 2Acknowledgements • 2

0%

10%

20%

30%

40%

50%

60%

Major Donors Corporate Donors

Supporter survey of length of time to receive acknowledgement

Within 2 weeks

Within a month

Within 2 months

Longer than 2months

Research : Research : What Supporters WantWhat Supporters Want

• Whilst supporters appreciate the acknowledgement and recognition they really wanted something else. They wanted information; the more information they received the more they would give, and the more loyal they became.

• What they want is:– Prompt acknowledgement of their gift– Reassurance that their gift was being used as intended– To know that the program where the gift had been directed was

having an effect.

Problems : Problems : Resource Constraints • 1Resource Constraints • 1

Donor pyramid

Your interaction effort

The difficult to reach mid-band

Area of untapped potential : Where do all your legacies come from?

The mass-affluent are not responding

Area of untapped potential : Where do all your legacies come from?

The mass-affluent are not responding

If we could deliver personalisation to all supporters we would be able to realise far more potential.

Pot 2 Social value

Pot 1 Safety

Pot 3 Discretionary (Self actualisation)

Problems : CompetitionProblems : Competition

EssentialMortgage/Rent

Utility BillsTravel

EssentialMortgage/Rent

Utility BillsTravel

Variable - SocialHolidays

Birthdays/XmasHouse Repair

Variable - SocialHolidays

Birthdays/XmasHouse Repair

DiscretionaryGoing Out

Treats“Rewards”

DiscretionaryGoing Out

Treats“Rewards”

Hierarchy of Needs

Most people prioritise their finance in this way with charitable giving most likely to come from pot 3.

Most competition for discretionary spend comes from commercial companies who use segmentation and personalisation to develop affinity and brand loyalty.

Problems : Problems : Reaching the AudienceReaching the Audience

X

X

X

X

Mail Preference Service

Telephone Preference Service

Directive on privacy & electronic communications

Negative media, self-regulation, Central & Local Government

The Same Issues Face Commercial & Voluntary / Not-for-Profit Sector Organisations

Commercial Commercial Market IssuesMarket Issues

Problems : Donor LoyaltyProblems : Donor Loyalty

• Changes in society have had an impact upon donor loyalty

• In 1985 the average consumers was exposed to 650 commercial marketing messages a day, it is now estimated at 3,000, let alone appeals.

• In 1980 there were 35 million direct mailings, by 1999 this had reached 86 million

• Potential donors are increasingly sophisticated about what, where and how they spend their money.

0%10%20%30%40%50%60%70%80%90%

100%

1975 2000

Changes in Donor Loyalty

20-29

30-39

40-49

50-59

60-69

70-79

Problems : Problems : Campaign DelaysCampaign Delays

• On average it takes an organisations 2.5 months to develop and execute a campaign

• Over 50% of organisations take more than 2 months to create, plan and execute a campaign

• Nearly 20% of organisations take more than 4 months.

• In a world used to Internet Time, taking more than a few weeks means the message is no longer as relevant

• Information erodes over time

Time to Create and Execute a Campaign

1 Month or less

1 to 2 months

2 to 4 months

> 4 months

Commercial Market IssuesCommercial Market Issues

• Commercial companies face the same problems– Credit card companies report a fall in

response rates from 2.8% in 1992 to 0.6% in 2000

– Customer attrition on average across industry runs at 15-20% per year, in certain sectors it can run as high as 50%

What to do?What to do?

Multi-channel

marketing and the rise

of personalisation

Multi-channel Marketing • 1Multi-channel Marketing • 1• Not a new concept, origins in the “media mix” idea• Important developments have taken place to evolve media-mix into

multi-channel marketing:1. A transition by marketing professional in the at 1990’s towards

integrated communications. Marking the shift away from transactions to customer relationships.

2. Power shifted to the consumer3. Competition increased, whilst the cost of new customer acquisition

soared, 4. Customer retention based on quality of relationship became the

driving factor5. Privacy concerns and governmental actions placed greater focus on

establishing true relationships rather than “hit or miss” tactics• The results of a well executed personalised communication are

impressive – an increase of 5 to 10 fold in response and conversion rates. When print, e-mail, web and telemarketing are combined the results are even greater.

Multi-channel Marketing • 2Multi-channel Marketing • 2• e-Mail is not a replacement for direct mail and e-mail

without personalisation is an irritant

• Well executed permission based email positively affects brand attitudes, Queris survey of 2002 found that 67% of respondents liked the organisations they received mail from; 58% regularly opened messages and 54% expressed a preference for those organisations

• The quality of e-mail affects brand perceptions; 56% believe the quality of the e-mail influences their opinions about the organisations that sent the e-mail

Multi-channel Multi-channel Marketing • 3Marketing • 3

• Two critical components to effective multi-channel marketing:

– Creating relevant offers via personalisation– Co-ordination and management of multiple

techniques

• Personalisation means using profiles to segment, create, customise and deliver a message in the right format in the right time.

• The number of personalisation elements has a direct impact upon the response rate

• Following up e-mail with direct communication increases response rates 5-10%: the “multiplier effect” of multi-channel marketing

0%

2%

4%

6%

8%

10%

12%

14%

No elements1 to 2 elements3 to 4 elements5 to 6 elements

7 or more

Response rate

The ProcessThe ProcessCampaignCampaign

TacticTactic

EventEvent

PackagePackage

TemplatesTemplates

e-Maile-Mail

WebWebEndPointsEndPoints

ContactsContacts

AudienceAudience

ExecutionExecution

Includes and Excludes

Conditions

Relationship Database

Campaign Package

Using a Database to

input and process

requirements to Donors

Intelligent & Automatic Intelligent & Automatic ProfilingProfiling

Supporters get a personalised message delivered in their preferred media with the right connection between profile, preference and approach.

Questions & Answers

Thank you for attendingThank you for attending

Feedback

Forms &

Lunch

Where to Get More Information

Help Support

Gordon Owen e-Mail: gowenandco@yahoo.comWeb Site: www.gowenandco.co.uk

[Striving to Create Provisions for Tomorrow’s Organisations]