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What Should Nonprofits Learn from Other Industries? Part 2 of 3

Donor Acquisition, Internet Marketing Strategy, Nonprofit Communications, Online Fundraising

is7 was pleased to present at the Washington Nonprofit Conference with CURE International at a forum that explained how to shift an organization from mostly using offline marketing such as direct mail and move to an integrated multichannel strategy by combining internet marketing with their offline campaigns.

This hour long forum was densely packed with valuable information that we have spread over three blog posts. Here are the take away points from the middle of the presentation:

1.) Offering check-only payment for donations reduces giving.

  • Older donors write checks less frequently
  • The world is moving away from using checks to pay bills and make donations
  • Donors want payment options. In addition to the direct mail reply device, be sure to include online giving options in your appeal
  • Younger donors write no checks, or at the most, one or two checks a month for their rent and car payments

2.) Online giving for most direct mail donors starts with the direct mail appeal.

  • The best approach to online giving for direct mail donors starts with a unified multichannel direct response offer included in the familiar direct mail appeal
  • When direct mail and online messages, themes and offers are not aligned it may reduce income and confuse the donor
  • REMEMBER: Donors have one relationship with your organization, not separate offline and an online relationships
  • Review your communications schedule to ensure that your direct mail and online appeals are in sync and both offer an online donation option
  • It is crucial that your online and direct mail messages are always consistent

Donors with a high propensity to give online can be located using outside data.

  • Households can be matched with known “digital neighborhoods,” online banking, credit card use, online catalog buying behavior and many other indicators
  • Models have now been perfected with other nonprofit organizations that allow donor households to be ranked in the likelihood that they will give online
  • Households who rank high on these scores are the best candidates to target for online giving

3.) When direct mail donors begin giving online their giving increases from 35% to 50% per year.

  • Online donations are typically higher average gifts than direct mail donations and thus an increase in donor value
  • In many cases when the organization does not offer online giving the donor has been suppressed because they have already given online to other organizations and prefer the instant communication that comes with giving online
  • Donors who give to both direct mail and online campaigns have the highest value—in one organization the annual value of the “both” donors was $1600 a year
  • Many direct mail donors move to online monthly auto debit donors. As a result, their donor value increases

4.) Online donors are the most likely donors to sign up for monthly auto debit giving.

  • Monthly auto debit giving is the most promising avenue of increasing regular stewardship
  • It is already becoming the backbone of donor support from younger donors in some organizations
  • Promoting monthly auto debit donations is the next logical step to increasing consistent donations

In conclusion, offering multichannel giving options can:

  • Increase your organization’s donor income for every donor that begins to give online
  • Produce an increase from 35% to 50% when donors begin to actively give online
  • Bring back lapsed donors and increase donor retention
  • Result in larger average donations, because online donors typically give larger gifts, give more often and easily make the transition into monthly auto debit donors

Download the full slide show presentation.

If this article peaked your interest in strengthening your multichannel marketing efforts with online integration please contact us today for more info. Or catch us on Twitter – @is7interactive to see additional great content about nonprofit marketing.

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