Using the Science of Direct Marketing for Planned Giving Lead Generation, Cultivation and Close

Transcription

1 Using the Science of Direct Marketing for Planned Giving Lead Generation, Cultivation and Close 2010 WASHINGTON NONPROFIT CONFERENCE January 28-29, 2010

2 Today s Speakers: Steve Froehlich, Senior Director of Direct Response, ASPCA Steve Froehlich has been with the American Society for the Prevention of Cruelty to Animals (ASPCA) since October Steve worked at Greenpeace from as the manager of the monthly giving program. He has also worked for Sanctuary for Families, a domestic violence shelter, and the Brooklyn Historical Society. Steve s fundraising career began in 1996 as a door-to-door canvasser and he believes this is the most important job any career fundraiser can hold. He currently serves on the Board of Directors for the Direct Marketing Fundraisers Association. Steve holds a BA in Women and Gender Studies from American University and a MPA in nonprofit financial management from New York University. Phyllis Freedman, President, SmartGiving Phyllis Freedman is President of SmartGiving, an independent consultancy specializing in planned giving marketing and strategic fundraising. During the previous 25 years of her professional career, Phyllis held key positions in nonprofit management and fundraising, helping organizations operate and raise money more effectively and efficiently. Phyllis has served as the Executive Vice President and General Manager of Epsilon s Fund Raising & Membership Services Group, Director of Development and subsequently Associate Executive Director of Paralyzed Veterans of America and as Chief Development Officer for Special Olympics International. She is currently a docent and provides pro bono fundraising assistance to the National Building Museum in Washington, DC, and also provides pro bono fundraising counsel to Triad Health Project, an AIDS service organization serving the Greensboro, High Point and Raleigh-Durham region of North Carolina. Previously, she served on the Board of Directors of Food & Friends and the Whitman-Walker Clinic, both Washington, DC area AIDS service organizations. Moderator: Glen A. Beasley, Director, Direct Marketing, Arbor Day Foundation Much of Glen s 15+ years of Direct Marketing experience has been in the for profit world working for companies such as Harry and David, Musician s Friend and Bowflex. Glen joined the Arbor Day Foundation in 2008 and has made a great connection with nonprofit fundraising, our industry s close relationships and the genuine passion we all have for our causes. He is currently in charge of the Arbor Day Foundation s direct mail program, and online membership and Planned Giving lead generation. Glen holds a degree in Marketing from Southern Oregon University. 2

3 Let s not over think this it is Our goal as direct response fundraisers should be to identify older donors who are likely to consider leaving a charitable donation in their estate plans and to market our group s Planned Giving information while using basic reports to track the effectiveness of our efforts. remarkably simple. By following this guiding principle the ASPCA substantially increased the number of planned giving leads within just 18 months. 3

4 A problem of our own design After several years of aggressive RFM cuts to house file mailings, the ASPCA had been successful in improving the efficiency of individual mail campaigns by ignoring lower dollar and further lapsed donor segments. This strategy had been eliminating unproductive segments from our communication/solicitation stream unfortunately this segmentation strategy was disproportionately excluding donors aged 70+ who had been giving smaller gifts under $10. As a result, we simply hadn t been talking to our best planned giving prospects about the ASPCA s work. 4

5 Age distribution of recent donors Target growth This chart shows the ASPCA s age distribution for new donors acquired through direct mail over the past two years. Even though this distribution is older than the web & DRTV, it still shows the gap we targeted for growth. 5

6 The 5 bucket strategy Total donors in the last 0-24 months Need more donors 70 years of age and older Focus on converting older donors to be active & committed defined as 3+ gifts and MRC 0-24 months Find donors interested in being planned giving Information Seekers Identify donors who have already listed the ASPCA in their estate plans. 6

7 Tracking growth in the buckets Nov Jun Jan % Growth 0 24 donor count 990,919 1,093,387 1,199, % 70+; HPC $5+;MRC 0 60 mos. 165, , % 70+; 3+ gifts; MRC 0 24 mos. 96, , % Information seekers 6,379 8,499 9, % Legacy Different Society strategies members have driven 701 each of the 1,225 segments 1,605 shown % here. As our size grew, appends helped identify older donors we already had. Our goal is for active & committed to keep pace with full file growth. 7

8 Sample Legacy Society mailing 8

9 Tracking the sources of infoseekers and in-will notifications Category Description Month Month Ending Apr Ending Dec 30, , 2009 Growth % increase IN WILL Reverse of house reply devices % 3 effort mailing done in /09 PG Appeal: told we're in their will % Has already named ASPCA in Estate Plan % Z: UNIQUE DONOR TOTAL % TAX INFO REQUEST 3 effort mailing done in Reverse of house reply devices % Tel/Int Request for Gift Annuity Propsl Z: UNIQUE DONOR TOTAL % WILL INFO REQUEST 3 effort mailing done in Interest in leaving ASPCA in Estate % Reverse of house reply devices % Will Info Requests from Tel, web, other % Legacy Society Info Seekers % Z: UNIQUE DONOR TOTAL % 9

10 Remaining challenges Finding best house mailings to use for our 70+ carry strategy in order to maximize conversion to Active and committed Break-out of different Info-Seeker strategies to calculate cost per lead and also to track eventual conversion to gift by pathway used to first identify the lead. Develop better conversion of Info-Seekers to identifies and confirmed Legacy Society members. Assign Planned Giving Revenue Receivable back to the acquisition channel and source 10

11 QUESTIONS? Steve Froehlich Senior Director, Direct Response, ASPCA Direct line:

12 What works in planned giving marketing 12

13 Start with a Plan! Of PG Society members surveyed, only 60% report working from a plan! Apply the same discipline to PG marketing as you do to DM Goals and objectives Communication matrix Production Schedules 13

14 Rules to Live By Follow basic DM principles Personalization & customization Write & Design with this audience in mind Remember these are major donor prospects PG marketing is lead generation activity (for the most part) Evaluate based on final outcome not just initial response Be careful about testing response rates are very low making statistical validity problematic 14

15 Write & Design with the Audience in Mind Jargon/technical terms Copy heavy Text only Generic Information-burdened Donor-friendly language Readable/white space Photos of donors/cause Mission-filled Response-enhancing 15

16 BEFORE AFTER 2010 Washington Nonprofit Conference 16

17 Incorporate Calls to Action 2010 Washington Nonprofit Conference 17

18 Be yourself! 2010 Washington Nonprofit Conference 18

19 Reply Card for Prospects 2010 Washington Nonprofit Conference 19

20 Customized Reply Card for Legacy Society Members 2010 Washington Nonprofit Conference 20

21 Evolution of a Package 2010 Washington Nonprofit Conference 21

22 Test of Trusted Expert copy vs Rate Table 2010 Washington Nonprofit Conference 22

23 Latest Version Combines the Two 2010 Washington Nonprofit Conference 23

24 Results of New Postcard Charitable Gift Annuities % Change # of CGA Proposals Requested % # of CGAs in Cultivation/Open % # of CGAs Closed % Current CGA Portfolio $30,000 $55, % 2010 Washington Nonprofit Conference 24

25 Brochure vs Newsletter for Lead Generation 2010 Washington Nonprofit Conference 25

26 Exception to the Rule Enclosed is my gift of $ 2010 Washington Nonprofit Conference 26

27 Exception to the Rule 2010 Washington Nonprofit Conference 27

28 Other winning tests 28

29 QUESTIONS? ( 29