COVID-19 Crisis Alters Fundraising Tactics

As the coronavirus crisis alters the social and economic landscape for nonprofits, fundraising tactics will need to alter, too. In a recent NonProfit PRO post, two Orr Group fundraising agency executives suggest some quick tactical shifts. First of all, don't panic and cancel events, they advise, but reschedule or repurpose. If an event can be postponed, a nonprofit may be able to transfer tickets/table buyers to the future event instead of refunding, and can add touchpoints along the way. Or, the fundraiser can switch to a digital event, perhaps with livestreaming. Indeed, this is an opportunity to go digital in multiple targeted ways, starting with more social media ads, paid search ads and SEO efforts. For example, now is a good time for a digital forum, such as a virtual “fireside-chat” with a subject matter expert discussing COVID-19 impact on the mission. Or the nonprofit can pen an article to post on social media as well as e-mail to donors and prospects. And don't forget nondigital communications, such as direct mail and phone calls. The authors suggest building out a phone-call list of top funders, for example. Michael Wasserman, CEO of the stream fundraising platform Tiltify, uses another NonProfit PRO post to stress how the crisis should push fundraisers to boost social media use. The potential audience is huge: almost 80% of the population uses social media, with Facebook and YouTube having over 2 billion users per platform. Even newer sites like TikTok boast 500 million, Discord gets 250 million, and Twitch attracts 15 million daily visitors. Note that the Facebook Fundraisers tool has already raised over $2 billion. So charities that still use elementary fundraising pages with a simple donate button, some text and an image are missing big opportunities. He urges nonprofits to focus more on enticing content, such as video, which can leverage YouTube, the No. 2 search engine in the world with 2 billion registered users. Nonprofits should also consider livestreaming events for fundraising, he argues, to raise big sums in a few hours, citing the example of a group that raised in a week the amount it costs to run St. Jude Children's Research Hospital for a day, which is about $2.7 million. What about the impact of "social distancing" on traditional face-to-face connections with major donors? Suzanne Hilser-Wiles, president of philanthropic consulting firm Grenzebach, Glier and Associates, offers some tips in a recent piece in The Chronicle of Philanthropy. Start by showing you care and reach out quickly to ask how the donor is faring and discuss how the nonprofit is responding. Enlist top executives to communicate plans; e-mail can quickly provide a direct but formal assurance, while social-media platforms offer a more human touch. Ad hoc “investor calls” may be appropriate for smaller donor groups. In messaging, highlight the nonprofit's expertise and how gifts support efforts relevant to the COVID-19 crisis. And don't abandon events; get creative with virtual format substitutes, such as a conference call or webinar. For more detail, see https://www.acculist.com/covid-19-crisis-alters-tactics-for-fundraising-success/

Experiential Marketing Turns to Non-Event Options

What happens when experiential marketing—the strategy of engaging customers in branded live experiences—faces a world where events are being cancelled or postponed thanks to novel coronavirus fears? The blow to b2b experiential marketers is significant. Back in January 2020, the Demand Gen Report found that 53% of U.S. B2B marketers surveyed rated in-person events and tradeshows as their most effective channel for driving lead conversions, above digital-only efforts such as e-mail and the company websites. Of course, that was before the coronavirus began to scuttle plans. The event drought doesn’t mean that the power of experiential marketing vanishes, but marketers do have to adapt. As experiential agency Fake Love’s CEO Alanna Lynch explained in a recent AdWeek article, since there’s no doubt experiential marketing will be affected, "particularly around large-scale events with a global audience," the company is "proactively thinking about how our approach to branded experiences may need to evolve in the short term, more specifically, how physical activations could be experienced virtually and then shared virally." In a ClickZ post, Gretchen Scheiman reminds experiential marketers of the potential power of online experiences, ranging from gaming like Fortnite, to educational platforms like Kahn Academy to McDonalds restaurants, where parents who might hesitate to send children into crowded Happy Meal Play Zones can visit happymeal.com for downloadable coloring pages, activities and interactive games. Jillian Ryan at eMarketer likewise urges pandemic-deprived marketers to "go digital and be nimble" as virtual conferences replace physical events, creating digital touchpoints whose content and engagement can still influence the intended audience. Indeed, event cancellations can provide a great opportunity for marketers to A/B test whether their physical event presence is as crucial to conversion as presumed, Ryan notes. Plus, experiential marketers have some good old-school options that have been technogically enhanced for interactive engagement. Ryan urges consideration of direct mail as an experiential tool, for example. In addition to its visual and tactile engagement, direct mail can be highly targeted and personalized, and now, thanks to digital print technology such as QR, VR and AR, digitally interactive as well. Similarly, ClickZ’s Scheiman reminds that targeted e-mail is another great way to create a direct line of communication with people around an event or experience, physical or virtual, with links to interactive digital. For more, see our website blog post at https://www.acculist.com/b2b-experiential-marketers-have-options-to-pandemic-cancelled-events/

Nonprofits Upbeat on 2019 Fundraising Growth

The most recent survey of nonprofits and donors by the Nonprofit Research Collaborative (NRC), a coalition of professional fundraising associations, finds that 60% of respondents expect to raise more money this year than they did in 2018! That’s encouraging news for fundraisers as they head into their key year-end giving campaigns. Many fundraisers feared the new tax law would undercut giving, but the survey found that only a 17% minority reported a negative impact from tax changes, and only 16% of donors said they would change the amount or method of their gift this year because of tax changes. It is true that since nonprofits rely heavily on year-end giving, certain continuing tax trends prove challenging, such as bundling or bunching, in which donors provide multiyear support but give a large donation in just one tax year and then skip contributions in the following year or years. Still, only 30% of nonprofit respondents reported that some donors were bundling. Based on various reports of reduced giving, many nonprofits also were concerned about fundraising growth, yet the NRC online survey of individual donors in March of this year found 56% said they gave the same amount in 2018 as in 2017, 33% gave more, and only 11% gave less. As a result, 63% of fundraisers said their charities did raise more money in 2018 than the previous year. Overall, 73% said they met their 2018 fundraising goals. It’s no wonder most fundraisers (60%) are confident they will raiser even more in 2019. Not all charities participated equally in 2018 growth, of course. Charities with budgets of $3 million to $49 million reported the most fundraising increases in 2018 over 2017 levels. And environmental and animal charities in particular were most likely to meet 2018 fundraising goals. Melissa Brown, author of the report and manager of the NRC, stresses that the upbeat forecast for fundraising needs to be undergirded by targeted, relevant, engaging direct mail and e-mail contacts. Overall, the survey supports both the need for a multi-channel fundraising strategy of frequent contacts. On average, after the first gift, organizations send about 3 more appeals by mail, an average of 4 appeals by e-mail, and invitations to events, including stewardship/recognition activities. For a link to the full survey, see our website blog post at https://www.acculist.com/most-nonprofits-upbeat-on-2019-fundraising-growth/

SEO, Mail, Experiential Tactics Can Spur Events

Per the latest industry surveys, trade show and conference marketers can look forward to solid event industry growth in 2019--along with potential marketing strategy shifts in an increasingly competitive landscape. Event software firm Bizzabo's survey of over 1,000 mid- to senior-level marketers at major companies in 2018 found good news for the event industry: Most respondents (41%) consider live events to be the most critical marketing channel in achieving business outcomes (out of 9 possible channels), a 32% increase from 2017. Business execs are also doubling down on live events. Between 2017 to 2018, the number of companies organizing 20 or more events per year increased by 17%. Additionally, the vast majority of respondents (95%) believe in-person events provide attendees with a valuable opportunity to form connections in an increasingly digital world. This reflects a 12% increase compared to 2017. Meanwhile, Eventbrite, an online event management and ticketing firm, surveyed 1,200 event professionals last year to see how marketers are likely to spend in 2019. Word of mouth, an effective tactic for 63% of event marketers, is bolstered by investments in social media marketing, which 49% of event creators placed among the top three most effective drivers of ticket sales. E-mail rounded out the top marketing channels per those surveyed, with 38% of event professionals relying on it. However, with 89% of attendees using search for purchase decisions, Eventbrite foresees a necessary expansion of SEO efforts. There's definitely room for growth, with almost half (46%) of event professionals saying they aren’t using SEO. And, while e-mail is cited among the favored marketing channels, direct mail continues to turn in higher response for the 41% of event pros that use it. Eventbrite thinks the 50% who cite competition as their biggest challenge will want to reconsider the edge offered by adding mail to their arsenal. Meanwhile, experiential marketing is a hot new trend, engaging attendees by using branded experiences at an event, as part of an event, or in a pop-up activation not tied to any event. Yet Eventbrite found that close to 60% of event creators are not using experiential marketing, so innovators will have the edge. For more, see our website blog at https://www.acculistusa.com/for-2019-edge-event-pros-shouldt-overlook-direct-mail-seo-experiential-marketing/

Tips on Integrating Direct Mail & E-mail to Rev ROI

Even though omnichannel has gone from marketing buzzword to marketing given, marketers can still face challenges in getting the most ROI from direct mail and e-mail integration. A recent MarketingProfs post offered a collection of stats and tips that can help. For those who doubt the power that traditional mail can add to a digitally focused effort, the article cites a few important facts about snail mail's bottom line punch. For example, campaigns that use two channels together, such as direct mail and e-mail, have been shown to get up to a 35% lift over those using a single channel, per IWCO Direct data. The younger generation may be very digitally savvy, even addicted when it comes to social and mobile, but recent studies from the U.S. Postal Service prove mail's sales power: A whopping 57% of Millennials make purchases based on direct mail offers! Other USPS studies show why mail works so well regardless of age: People spend more time with physical advertising, have a stronger emotional response and remember the physical promotion better than digital efforts. Plus, beyond the ability to use direct mail's sizes, formats and tactile designs to grab attention, today's print technology makes it easy to link a printed piece to digital channels via QR codes, near-field communication (NFC), and augmented reality (AR). So how do you get the most out of a direct mail-e-mail marriage? Here are some ideas from the MarketingProfs post's authors, Dennis Kelly, CEO of direct mail automation tool Postalytics, and Nancy Harhut, a creative director who has worked with leading brands such as Google, Adobe, McGraw-Hill, and Nationwide Insurance: 1) Consider delivering critical information in both channels to reinforce the message; 2) Have each communication build on the previous one; 3) Use direct mail to emphasize a key message or break up the expected routine; 4) Ensure both e-mail and direct mail adhere to the same graphic standards and reflect the same voice so each piece reinforces and extends your brand promise; 5) Use direct mail to initiate a conversation with people whose email addresses you do not yet have, or with those who have repeatedly not responded to your email. For more, see the full post at http://www.acculistusa.com/learn-how-to-integrate-direct-mail-e-mail-for-max-results/

At Year-end, Check KPIs to Gird 2018 Marketing

The busy year-end holiday season, especially for fundraisers and retailers, should not distract direct marketers from the working on the analytics they need to finalize next year’s marketing plans and ROI. Marketing ROI is about effective spending and requires tracking results by channel and campaign. KPIs use actual annual outlay for direct mail marketing (lists, print, lettershop, creative, postage), digital marketing (e-mail, SEO/SEM, landing pages, social media and creative), as well as spending on PR/events/content marketing. Marketers must keep a tally of the number of outbound leads attributed to direct mail or e-mail campaigns, as well as the inbound leads generated by efforts such as SEO, blog content or PR. Then a cost per lead acquired (CPL) can be calculated by dividing annual expenditure by the number of leads generated. Since the ultimate goal is sales not merely leads, the percentage of leads that become paying customers and the dollar sales per lead are key measures. Beyond general performance, marketers should use measurement to fine-tune future plans and budgets. This means identifying the response rates and conversion rates for each channel, for each direct mail and digital campaign, and for tests of creative, timing, frequency, lists and segments. Performance rates should be measured not only for campaigns to acquire new leads/customers but also targeting of existing customers and reactivation of dormant customers. Website traffic reports from Google Analytics can not only show online ad and SEM effectiveness but also track spikes around direct mail or e-mail promotions to give a fuller picture of response. A simple ratio of the return on marketing investment can be calculated by adding up incremental sales from marketing and subtracting marketing amount spent, and then dividing the result by amount spent on marketing. But remember that a focus on annual or campaign results can be myopic since these do not necessarily deliver long-term growth. Marketers need to look at customer and prospect databases to make sure they are growing year-over-year. Because acquiring a single sale per lead also is less profitable long-term than acquiring a repeat customer, average customer lifetime value is vital and calculated by multiplying average dollar sale per customer by the average number of purchases per year and the average retention time in years. For a helpful KPI checklist from Digital Dog Direct, see http://www.acculistusa.com/use-key-direct-marketing-kpis-to-gird-2018-plans/

Aging Donors, Not Millennials, Lead Online Giving

Many fundraising strategists assume the millennial age group, as digital-social-mobile junkies, should be the top target of online giving strategy. Not so, according to the latest survey commissioned by Dunham+Company, a nonprofit marketing firm. The study found that older donors, those aged 40-59, now are the most likely to give online, with 67% donating online in 2015, a 20% rise since the survey started in 2010. A smaller 54% of those under 40 years old reported donating via website in 2015, down from 60% in 2014 and mirroring the 54% online giving by those over 60. Which channels are driving online giving today? E-mail appeals are growing response, with 20% donating online as a result of an e-mail in 2015, up from 6% in 2010. But direct mail continues to spur online donors, too, with 11% saying they gave online because of a direct mail appeal. Older donors, per conventional wisdom, are more influenced by direct mail, with 19% of those over 66 years old inspired to give online by a direct mail appeal, compared with 8% of those under 40. Social media, a presumed catalyst of millennial charity, is having more online-giving impact--but not because of charities' direct appeals. Community and engagement are the engine of social media fundraising, with more donors in 2015 (26%) making online donations at the urging of another individual (friend/influencer) on social media than in 2014 (20%).  The basic lesson, per Dunham, is the importance of a multichannel strategy across age cohorts. The survey's direct mail trends support that conclusion: While 36% of those responding to a direct mail appeal sent their donation through the mail last year, the majority (51%) said they go online to contribute, and 18% will make that online donation using a mobile device! For more from the survey: http://www.dunhamandcompany.com/2016/01/survey-shows-aging-donors-most-likely-to-give-online/#sthash.38GD6IY2.dpbs

Brand Marketers Are Ignoring Consumer Preferences

U.S. brand marketers model communications on a dictatorship rather than a democracy, consistently ignoring consumer preferences for channel and frequency, according to a recent study by MarketingSherpa. Indeed, the gap between consumer preference and marketer practice is often wide enough that many brands shouldn't be surprised at a profit-burning customer revolt. A useful infographic of research results, based on surveys of more than 2,000 consumers and 455 brand marketers, was recently created by Direct Marketing News magazine. Among the findings, although 54% of consumers say they prefer to receive promotions via print mail, only 19% of brand marketers send out print materials. Instead, 90% of marketers blast e-mails, even though only 60% of consumers say they want to get e-mail promos. And once they've chosen to woo consumers via e-mail, marketers time messages to suit themselves; 76% of companies base e-mail frequency on their own needs, even though only 24% of consumers want that brand-determined frequency. Of course, marketers are enticed by social media popularity, so 77% of those surveyed offer customers the opportunity to follow brands on social media. The problem is that only 20% of consumers want to receive company updates and promotions via social media. Similar overfishing of digital waters occurs with online ads, with 60% of marketers using online advertising, even though just 27% of consumers say they discover new products via online ads. For more details from the DM News infographic, go to  http://www.dmnews.com/infographics/marketers-ignore-consumers-right-to-vote-infographic/article/453627/