You re Never Too Small for Sponsorship!
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- Amos Singleton
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1 You re Never Too Small for Sponsorship! Why do people donate? Presented by Shaun G. Lynch, CFRE President Adventum Philanthropic Marketing People give To people To help people Why do business sponsor? Businesses sponsor businesses To reach target markets Businesses sponsor Sponsorship is, first and foremost, a business transaction businesses Sponsors support organizations that are: o Well-managed o Professional o Reliable to reach target markets Sponsors are looking to reach their own customers and yours Being a good corporate citizen is just a tangential benefit
2 You re Never Too Small for Sponsorship! Page 2 Attributes for Success Entrepreneurial culture Willingness to take risks Flexibility Ability to shift gears quickly to meet needs and capitalize on opportunities Superior events and programming Knowledge of the audience Implies ongoing market research Aggressive outreach Sponsors won t come to you You have to anticipate many refusals Volunteers and staff who enjoy interacting with business people Responsiveness Don t expect sponsors to be patient when they make demands Realistic sales goals It takes time to develop a sponsorship programme Reliability Be prepared to do whatever it takes to deliver value to sponsors
3 You re Never Too Small for Sponsorship! Page 3 The Sponsorship Process Know your audience Develop sponsorship offerings Determine pricing for the offerings Identify appropriate potential sponsors Contact potential sponsors Develop sponsorship proposals Negotiate sponsorship deals Service the sponsorship Getting to Know Your Audience Key data Audience size Geographic distribution Household incomes Education levels Business titles Marital status Number of children living in the home Gender How far they travel to attend Consumption habits, e.g.: How often do they travel - for leisure & business? How old is the vehicle they drive? How often do they dine out? Do they purchase beer, wine or spirits? Do they use the Internet to shop? What magazines do they read?
4 You re Never Too Small for Sponsorship! Page 4 PRIZM C2 Demographic Segments The PRIZM C2 demographic segments provide a handy shortcut for describing your audience: Example of some PRIZM C2 Segments: No matter what the size of your organization, you MUST make the effort to know your own audience. You have to be able to prove that your audience has the same profile as the sponsor s target market.
5 You re Never Too Small for Sponsorship! Page 5 What Sponsors Look For: Image Association Association with your core values and attributes Goal is to introduce or reinforce those attributes within its company or product Target Audience Access one or more of your target markets Ability to reach these people with the sponsor's marketing message in a meaningful way Tangible Benefits A range of benefits that maximizes impact Think like a sponsor If I were a business trying to improve my relationship with this target market, what kinds of things might I want to do? Sticking sponsors names and logos on things is no longer enough.
6 You re Never Too Small for Sponsorship! Page 6 What Sponsors Look For: What is the real cost to your organization? Benefits provided Staff and administration Selling costs What profit you hope to achieve As a guideline, double the total cost of sponsorship to your organization What is the market price? What are similar organizations/properties charging? How does your sponsorship opportunity compare? Benefits, audience reach, profile, marketing support How do you compare to mainstream media costs? How much would it cost a sponsor to reach your audience, through say direct mail, TV, print advertisements, etc?
7 You re Never Too Small for Sponsorship! Page 7 Identify Potential Sponsors - basic sponsor attributes: Audience Know your audience first Think of companies that want to reach that audience Objectives Identify companies that are trying to achieve the same goals as you are Attributes e.g. being at the leading edge could attract an IT company Identify companies that share your attributes Further Research e.g. new young sexy make-up company may like the image of a contemporary dance company Ask for companies' sponsorship guidelines Check out relevant magazines, newspapers & other media to see who is advertising and how Ask your Board and loyal audience members for suggestions Consider your in-kind needs eg. airlines for travel, beverages for events, equipment for exhibitions/performances, etc. If you re small, be realistic. You probably won t attract serious interest from big national brands, because your target market will be too small for them. unless yours is a community that a national brand is especially interested in attracting! Don t forget that it might be just as valuable to a sponsor to have the opportunity to put your logo on their stuff, as to put their logo on your stuff!
8 You re Never Too Small for Sponsorship! Page 8 Contact Potential Sponsors What to expect from cold calls: Reaching a sponsor live at her desk: 30 phone calls Gaining a first meeting: 10 rejections for each success Gaining a second meeting: 3 rejections for each success Gaining a commitment: 1 rejection for every success By this calculation, you need to target 264 prospects to get 3 sponsorships! To increase your odds of success: Start with prospects with whom you and your organization already have a relationship Plug yourself into appropriate commercial and professional organizations (e.g. chambers of commerce) At every meeting with a prospect, ask who else do you know that might benefit from an opportunity like this?
9 You re Never Too Small for Sponsorship! Page 9 NEVER send letters to prospective sponsors!!! It s far better to make face-to-face approaches to a small number of receptive prospects, than to waste paper and postage writing to people who ll probably trash your letters. Be prepared to do A LOT of meetings with prospects. Anticipate the time you ll need for this process (a lot). Recruit and train additional people to help you (again, probably a lot of them). DON T try to sell a sponsorship or close a deal at a first meeting with a prospect. The objective of the first meeting (or meetings) is for you to learn about the prospect s business. (i.e. not for you to tell the prospect about yours.) Only when there is agreement on the nature of the sponsorship concept, should you move on to prepare a formal proposal.
10 You re Never Too Small for Sponsorship! Page 10 Develop Sponsorship Proposals Components of a proposal package Cover letter Describe sponsorship property One paragraph Explain key impact on people s lives Include total attendance figure List key selling points Breadth of reach o Size & geographic scope of the audience Means for interacting with audience o Events, direct mail, previews, paid advertising, media relations, etc. Prestige associated with the sponsorship o Canada s premier Gilbert & Sullivan theatre company
11 You re Never Too Small for Sponsorship! Page 11 Fact sheet Who your organization is What the event is Where it will be held When it will take place Why it will be valuable to the sponsor Highlights of the event Value-added I.e. summary of benefits to be offered to sponsors Investment range How to reach you Demographics and Psychographics (see target audience attributes discussed earlier) This is the key decision-making tool for the sponsor Don t embellish, but don t leave out details either Testimonials from previous sponsors More than just a list of previous sponsors Provide quotes from specific individuals describing specific benefits they received from their sponsorship (A by-product of acquiring these quotes is that it solidifies the commitment of past sponsors) Media clips Provides proof of reach and prestige Include print news coverage as well as a CD with radio and television clips
12 You re Never Too Small for Sponsorship! Page 12 Summary of Rights and Benefits Full promotional rights/official designation Exclusivity Customizable retail extensions Advertising exposure & media extensions Signage Cross-promotion with co-sponsors Heightened visibility Direct communication Targeted customer interaction Start by preparing a basic, generic proposal package. Then, use that template as a basis to create a unique and personalized package for each and every prospect. Sponsorship Evaluation A prospective sponsor will: Determine fit with its products, services and image Evaluate marketing potential in terms of specific product/service goals for a clearly-defined target market Look for specific business development and client relations opportunities Determine compatibility with reputation objectives
13 You re Never Too Small for Sponsorship! Page 13 Negotiate Sponsorship Deals Key negotiating points: Don t allow the sponsor to cap their commitment on a cause-related marketing tie-in Retain the right to use the sponsorship income as you see fit Specify up front how in-kind payments will be valued Remember that products and services cost the sponsor less than the price paid by their customers Avoid dollar-for-dollar valuation Define sponsor categories narrowly E.g. instead of 1 financial services sponsor, seek a bank, a credit card, an investment advisor, an insurance company Control your mailing list Define costs the sponsor must bear Specify the sponsor s fulfillment responsibilities Supplying artwork on time and within specifications Delivering samples to the event Sending inserts to go into your promotional packages Setting up tables or audiovisual equipment Staffing the sponsor s booth
14 You re Never Too Small for Sponsorship! Page 14 Service the Sponsorship Key service points: Clearly outline the objectives of the sponsoring organization This will assist both you and the sponsor to evaluate the sponsorship results Set lines of communication Who from your organization will be involved in servicing the sponsorship? Who is their staff contact point? Set evaluation mechanisms How are you going to evaluate whether the benchmarks have been met? E.g. visitor exit surveys/seat drops; direct mail follow-up; focus groups; tagged direct mail/coupons, etc. Clearly outline benefits package for each sponsor Then ensure that all are delivered - and then some! Ensure ALL artwork, marketing materials, etc are approved by the Sponsor within pre-agreed lead times Ensure sponsors are on both your media distribution list and your VIP invitation list Ensure they are invited to ALL key functions during the sponsorship term, even if they don't relate directly to their project
15 You re Never Too Small for Sponsorship! Page 15 Hold regular meetings with your sponsor Involve other key staff from within your organization where relevant e.g. artistic director to give update on exhibition/show Put everything in writing Take contact reports at meetings Conduct research as per evaluation methods confirmed Keep media clippings and electronic media references Especially if Sponsor is mentioned Copies of advertisements; testimonials; visitors' comments, etc. Remember! Businesses sponsor businesses To reach target markets Shaun G. Lynch, CFRE President Adventum Philanthropic Marketing 566, rue de la Cigale St. Lazare (Québec) J7T 2B3 Telephone: Facebook:
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