adminesolutions on Wednesday, December 7, 2011 12:00 pm
The New Year is always a good time to step back and look at what it means to be a donor to your organization. Take a step into their shoes for a moment and you might find out that you could be doing things better. We usually focus on the big ideas, but often the little things are easier to address and have a much bigger pay off.
Do this – assume that you’ve never heard of your organization. You stumble upon it; either you got a mailing or a friend “liked” them or you hear a news story about their good works. You make a gift. Well, what happens next? Do you even know? It’s good practice to every so often make a whitemail gift to your own organization. Have some fun with it! Make up an alias, throw a few bucks into an envelope and mail it to your office. Watch what happens next and answer these questions:
Were you thanked effectively?
How long does it take your thank you letter to arrive? The sooner, the better. Take a look at the form; does it have a reply slip and return envelope? If not, you are leaving revenue on the table. Your thank you letters should be producing AT LEAST as much revenue as they cost. If not, likely one of the above is not happening.
Are you encouraged to make a monthly donation?
Donors typically feel closest to an organization when they make their first donation. That is when you want to hit them with an offer to make a monthly commitment. But a donor is not going to assume that
they can just make a monthly pledge; they need to be told so and you want to hit them with that information as soon as possible. Ideally, in the first thank you letter.
How long before the second appeal arrives?
There is this downright dangerous idea floating around in nonprofit circles that you shouldn’t be asking people who just gave a gift for another gift. I think it comes from major donor departments, where the idea makes more sense; if someone gives you a $50,000 gift, you are probably better off giving them some time to rest. For the typical donor though, the people most likely to give are those that made a gift the most recently. If you are left hanging for a couple of months after you get your thank you letter; you need to look for why and how to improve your turn around time.
There’s a reason that every successful retailer uses secret shoppers. So, be your own. Make a cash donation to your organization. By knowing your donor’s experience with your organization, you can maintain and develop your core group of dedicated donors and improve your overall donor retention
Creative Cautionary Tips
adminesolutions on Wednesday, November 30, 2011 12:00 pm
When it comes to creative in your direct mail fundraising, sometimes what seems like a great idea may not turn out to be. Here are a few tips to keep in mind when creating your next fundraising appeal:
To tease or not to tease?
Teasers on the outer envelope that refer directly to the offer/ benefit, or alert the donor about the free gift or member card inside often work best. If you’re just including a teaser to be clever, skip it. Your copy must be extremely provocative for this kind of teaser to work – and testing proves it usually doesn’t. “Blind” carriers – those without teaser copy or logos – often are the ones that win, especially in acquisition or for organizations without high brand awareness.
Caution with inserts
Have a great new insert you’re considering to include in your package – brochure, lift note, recent news article? Make sure you test with and without the insert. While an insert might provide great additional information about your mission – they also might depress response. It’s counter-intuitive, but I’ve seen it happen too many times.
Focus on the big idea and not the window dressing
Too often in the world of direct response fundraising, fancy design gets in the way of what it
is you’re really trying to accomplish: convincing a donor that the non-profit’s mission is worthy of her support. I’ve found that a clean, simple layout almost always wins over something that’s flashy and over-designed (usually distracting from the readability of the piece). At the end of the day, the job of creative is to create revenue – not beauty.
Conversion Contest Winner Selected
adminesolutions on Thursday, November 10, 2011 12:00 pm
We’ve received many great entries into our recent contest where we asked readers to submit their best ideas for converting new donors into multi gift donors. At this time of year when most organizations are doing their heaviest new donor acquisition drives we thought it was a good time to gather ideas on the best strategies for converting new donors.
In fact, we got so many good ideas we couldn’t select just one. So we’ve decided to award two winners. Both entries shared specific strategies that work for their organizations. One contest winner nailed the basics. The other came up with a unique approach that our experts thought was
sure to work.
And the winners are….
Stanton Cadow (St. Vincent de Paul Regional Seminary/Boynton Beach, FL)
Don’t assume something you write in the second appeal letter will be read. Understanding this, and the idea you will need to do something extra special to get their attention, do the following:
1. Within 48 hours of the first gift, the regular thank you and gift acknowledgement letter should go out. An industry standard yes, but not always followed. The carrier envelope should indicate some place on its outside, preferably on the front, a big “Thank you for your support.” Print in red or a contrasting color of your design.
2. When you have good reason to believe that letter has been received, place a personal thank you call to that donor, preferably using volunteers, students, etc. Give them a script, but make it such that
the call sounds, “unscripted,” thus increasing the genuineness of the call.
3. If you have not been able to capture a phone number, have those same volunteers write a hand written thank you, again, using a script. Mail first class, with the return address on the back envelope, thus increasing your open rate.
4. These steps will most certainly increase future appeal conversion rates.
Barbara Kehl (Wesley Community and Health Center/Phoenix, AZ)
Wesley Community Center encompasses many programs. We have afterschool programs, a health clinic and a facility for ESL classes among other services. So my suggestions are in line with those issues.
1. When approaching new donors consider making a plea for specific needs such as clinic supplies, band aids, flu vaccines, afterschool scholarships, garden supplies, ESL workbooks, etc.
2. When a new donor donates, an immediate and special thank you can be sent along with a current newsletter or annual report and a confirmation of how many flu vaccines the money provided and a note of continued needs, with an envelope for sending another donation.
3. Our nonprofit qualifies for the Tax credit so encouraging another donation by the end of the year for maximizing the Tax Credit can be addressed especially for Nov. donors.
We hope you’ll learn from these two great submissions and improve your own new donor conversion strategies. Thanks to all who entered the contest and if you didn’t win… better luck next time!
Enter our Donor Conversion Contest
adminesolutions on Wednesday, October 26, 2011 12:00 pm
Most nonprofit organizations add more new donors during the months of November and December than any other time of year. This is the prime season for new donor acquisition. That’s the good news.
The bad news? Typically less than half of those new donors will ever give to you again.
ENTER OUR CONTEST – WIN A KINDLE E-BOOK READER – AND LEARN HOW TO CONVERT YOUR NEW DONORS INTO REGULAR GIVERS!
Many veteran fundraisers believe that the “conversion rate,” referring to the number of new donors that make a second gift and “convert” to
multi donors, is the single most important barometer of long-term success for an organization. Most statisticians would agree.
Getting a second gift from a donor will dramatically increase the odds that you’ll get another gift in the future. That’s why you should be planning now how you are going to go after those new donors that make their first gift to you this November and December. If you can increase the
number of new donors converting with a second gift by even 5% or 10% it will likely increase your overall renewal numbers by 25% to 35%.
So with this in mind we are announcing a new contest to gather the best ideas for new donor conversion strategies.
- The winner will receive a new Kindle e-book reader.
Just email your best conversion strategy idea to Christa@newrivercommunications.com and put the words “CONVERSION CONTEST” in the subject line of your email. Our panel of experts will evaluate the ideas and choose a winner.
This is a great idea for us to all learn from each other how best to tackle the tricky challenge of converting new donors. Don’t miss out on the chance to win a Kindle. Email your best conversion strategy idea today!
- We’ll share the top ideas in a future Currents email so that you can learn in time to start converting more new donors in the new year.
Lessons from Steve Jobs
adminesolutions on Wednesday, October 19, 2011 12:00 pm
I received an email earlier this morning from a colleague that included a list of inspiring “take aways” from the philosophy and wisdom of Steve Jobs, the late, great American inventor and entrepreneur.
Since I was smack in the middle of writing an appeal for a client when the email popped up in my inbox, there were two lessons, in particular, that struck me…
1. Create insanely different experiences. Jobs sought innovation in the customer-service experience. When he first came up with the concept for the Apple Stores, he said they would be different because instead of just moving boxes, the stores would enrich lives. Everything about the
experience you have when you walk into an Apple store is intended to enrich your life and to create an emotional connection between you and the Apple brand. What are you doing to enrich the lives of your customers (or donors)?
2. Master the message. You can have the greatest idea in the world, but if you can't communicate your ideas, it doesn't matter. Jobs was the world's greatest corporate storyteller. Instead of simply delivering a presentation like most people do, he informed, he educated, he inspired and he
entertained, all in one presentation.
The e-mail’s content gave me pause for reflection and a “what if” moment. Rather than a leader at the helm of Apple and the technological industry, what if Steve Jobs had been a fundraiser instead? What different approaches might he have taken to reverse the current declines in donor acquisition and donor giving in our industry?
And, upon further contemplation, what if Mr. Jobs were actually sitting at my computer this morning, how differently would he go about crafting this particular client’s fundraising letter? What technique or strategy would this master storyteller employ to more readily engage the donor and motivate a response?
While I don’t presume to have the exact answers to these questions, there is one thing I do know for
certain: Steve Jobs certainly wouldn’t accept the same old “we’ve always done it this way” approach to the work we fundraisers do. Instead, he would turn everything upside down, sideways – or toss it out entirely – until arriving at a completely new, fresh, innovative perspective or solution.
We can all learn something from this creative and visionary pioneer… even those of us who think we’re doing a pretty darn good job as it is. Steve Jobs’ counsel? Dream bigger. I think that's the best advice he could leave us with. See genius in your craziness, believe in yourself, believe in your vision, and be constantly prepared to defend those ideas.
New River Communications Brings Home Two Silver MAXIs
adminesolutions on Thursday, August 25, 2011 12:00 pm
FT. LAUDERDALE, FL – New River Communications was recently awarded two Silver MAXIs for
2011 from the Direct Marketing Association of Washington (DMAW). The annual awards honor marketing excellence and innovation. New River won this year for packages created for Cross International and Save the Chimps. One of New River’s MAXI’s came for Cross International’s “Send Back Cross” package that focused on the organization’s efforts to provide material and spiritual hope to poor children and families in the developing world. The package includes a small gold cross that donors are asked to send back with a donation for a destitute child.
The “Send Back Cross” package won in the MAXI’s “Workhorse” category, for control packages that continue to perform well for at least three years.
New River earned its second 2011 MAXI for their Save the Chimps Tote Bag Acquisition package. The prospecting piece tells the story of Bobby, a chimp who spent most of his life as a biological test subject in a laboratory before finding new life at the Save the Chimps sanctuary.
A large tote bag with the organization’s iconic logo is included and prospects are encouraged to use their bag to spread the word about the sanctuary.
Founded in 2001, New River Communications has won numerous MAXIs, including the competition’s “best of show” Big Idea Award in 2008 with a package created for Cross International.
For more information about the 2011 MAXI Awards, go to dmaw.org and scroll down to 2011 MAXI AWARDS Ceremony.
Six Big Mistakes to Avoid When Testing
adminesolutions on Tuesday, August 16, 2011 12:00 pm
One of the benefits of direct marketing is that decisions can be driven by data. Unlike say television advertising, it’s very easy to draw a straight line between “I did this” and “a donor did this.”
In most cases, we use this to our benefit to make the best use of fundraising dollars. Unfortunately, there are more than a few ways that data can be misinterpreted and push you to the wrong conclusion. Here’s a list of some potential mistakes during testing that can result in flawed conclusions:
- Insufficient Test Quantities: Testing should give you a result that is accurate and repeatable. Unfortunately, if the quantities that are tested are not large enough, you can wind up with a result that is essentially meaningless. For simplicity and as a general rule; always shoot for test quantities that will result in 100 or more responses. Doing so will lead you to results that are statistically significant.
- Improper Segmentation: When splitting packages into test and control groups, it’s critical that the groups are equivalent to one another. This is one of those infuriating little details that should go unspoken, but can wreck an otherwise good test. Most data companies have their ducks in
a row, but if you are working with someone new, it’s good practice to check output files to confirm that they are split correctly and of equal composition.
- Ignore Roll-Out Costs: Your control package is likely being produced in higher volume than any of the test packages. Make sure that you quote all test packages for roll-out costs, so that you have an apples-to-apples comparison. Otherwise, none of your small quantity tests will ever be able to compete with your control in full volume.
- Testing More than One Variable: It’s ok to test completely different packages against one another, but if you are trying to maximize response on your control or “tweak-testing” then testing one variable at a time is the only way to know what changes are making the most impact. Similarly. . .
- Extrapolating on Findings: Testing works because you run A vs. B and get a result. It’s tempting to take that result and assume it’s a general fact for every situation. Unfortunately, doing so can lead you to make some very wrong decisions.
It always amazes me how consistent donors will behave once you know some basic facts about their past behavior. Our job as fundraisers is to use that information to make the best decisions possible.
- Wildcards: A lot can happen between a concept and delivery; unanticipated events in the marketing environment can nullify a test. Some are obvious, such as when a hurricane strikes or unwanted press. Others are less obvious, such as what your acquisition list panel is receiving at the same time as your appeal. If any of your results seem blatantly inconsistent with what you have seen in the past, ask yourself “is there anything that could have impacted these results?”
One essential you need to get right
adminesolutions on Thursday, August 4, 2011 12:00 pm
Non-profit executive directors and development directors often ask me: "How can we use direct mail without being overwhelmed by complex strategies, production issues, postal regulations and other things I just don’t have the staff or time for?”
These leaders at small to medium size organizations get it. They recognize that
(a) A significant portion of the U.S. population are charitable and willing to support causes they believe in.
(b) Even though social media is all the rage, the vast majority of donors use direct mail to make their donations. (Many love to research organizations like yours online, but they do their actual giving the old way – at least 90% of it anyway!)
So from June on, I answer their question like this: “Make sure you send out a year-end appeal to all your donors.” Even if it’s a low-key request for help, getting something into the hands of your supporters in the thick of the charitable giving season is essential –
In fact, most non-profits receive nearly half of all annual donations in the fourth quarter. But it won’t happen magically. Out of sight, out of mind. In the frenzy of the giving season, you’ve got to be on your donors’ radar screen – reminding them of the good works you’re doing and, most important, that you depend on them to make those good things happen.
If you don’t tell them, how will they know?
When done properly, a mailing with a compelling offer and direct ask sent to the right audience, can produce truly stellar results. One organization we helped with only 4,000 donors generated income of more than $100,000 from a single year-end mailing!
I know it’s only August, but don’t wait too long to get started. Remember, your donors aren’t just your donors. They “belong” to other organizations as well – organizations who will be reaching out to them
this fall. Will you get there first?
P.S. If you want to save the work and worry of producing a year-end appeal, we are ready and happy to help! Just click here to find out how we have made it simple and affordable for small and medium-sized organizations to get an effective year-end appeal into the mail.
Retention strategies… anyone?
adminesolutions on Wednesday, June 29, 2011 12:00 pm
A recent blog from the Agitator last week reported on a survey they conducted in April which asked, “What percentage of your non profit first time donors make a second gift?”
The results were far from impressive. In fact, the majority of responders reported 39% or less. The Agitator went on to comment that a Forbes Insights survey of top corporate executives in the U.S. and U.K. listed customer retention as their current number one priority too.
Times being what they are, combined with more “competition” in the marketplace, makes donor and customer retention all the harder for both non-profit organizations and for-profit companies alike.
So today I want to ask you, what specific strategies, or packages, have you tested and found to best increase supporter retention rates for your charity?
And since I’m the one asking the question, I guess it’s only fair to make me go first!
One package that has performed particularly well is our “Donor Loyalty Certificate” appeal pictured below:
This package leads right off with an eye-catching certificate at the top of the letter. The certificate recognizes the donor for her loyal support and the number of years she has been a supporter of the
organization. It can be detached from the letter and framed or otherwise displayed in her home or workplace.
The letter goes on to tell the donor just how very important she is to the good works being accomplished by the charity – something that is repeated several times throughout the copy. (Remember, despite what some of them may tell you, donors never tire of hearing the word “thank you!”) And by recognizing donors, and their loyalty, it’s a sure way to motivate more giving. At least that’s what our experience and results with this package have proven.
OK, so now it’s your turn. Please share with Currents what’s working for you in improving donor retention rates. I’ll take the best that comes in and share it with our readers. Anything we can all learn will be greatly appreciated.
Common Mistakes in Social Media
adminesolutions on Wednesday, June 22, 2011 12:00 pm
Just read a great article from Fundraising Success magazine about 10 common mistakes non-profits make when engaging in social media. After finishing, I quickly hit my “Like” button. Writer Heather Mansfield got it just right.
Three of her points really caught my attention and inspired a few riffs of my own…
1. Facebook Status Updates limit 1 per day - We all know one person on Facebook who seems to update their status about every 30 seconds. “Heading to work” 8am, “Getting Coffee” 8:08am, “Checking my email” 8:12am. Arrrrghhhh! Who cares!!! Although I am an admitted stalker, I actually don’t care what you are doing every minute of your life – and neither do your supporters. So spare your followers the minutiae and limit yourself to one great status update or posting per day! If not, your sanest followers will quickly “Hide” your updates, and you’ll never again appear on their mini feed! So show up each day, but make it one great post!
2. Twitter - Become a fan of your fans! Fundraising Success called it a 1:1 ratio - plain and simple support your supporters. Follow your followers. They will like you and trust you more – and they won’t think you’re a snob. Besides, symbiotic Twitter relationships can help you create new business relationships not to mention spreading the message of your organization to more people.
3. Blogging and exciting post content - Both of these are severely important and they kind of go hand in hand. Every non profit should be blogging. Deliver news and updates on what great work you are doing. Make it fresh; new, exciting... make your supporters laugh, cry, care..... Make them emotional about what you do or what needs doing! Blog about it, tweet about it, and Facebook about it!
Whether your non-profit is already fully immersed in social media or are just about to dip a toe in, don’t let social media stress you out! Become that social butterfly that you aspire to be and spread the good news and good works about your organization to your supporters! Be present and have fun, just don’t be a bore or a snob. To read the full Fundraising Success article, click here.