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Direct Marketing Facts and Figures in the Nonprofit Industry

Direct Marketing Facts and Figures in the Nonprofit Industry
May 13th, 2008 2:00 pm

Nonprofit Branding Lessons from Pizza

In today’s over communicated society, it’s important that your nonprofit organization is about something remarkable. That’s how your organization will get noticed, get publicity, get word of mouth, and ultimately, get supporters and donors and members. And just being a little different from a competitor is no guarantee of that.

In branding, being different is desirable. It’s a good thing. Not only do you want to be different in order to stand out from your competitors, you want to be radically different. You want to be the "only." Prospects need to understand your organization by its reputation alone, and then you need to get them to pass that message on to others. That’s how you turn prospects into customers and customers into evangelists.

According to Charlie Hughes and William Jeanes, authors of Branding Iron, "Consumers admire and gravitate to companies that display a compelling vision–a vision executed in a way that differentiates them in the marketplace."

You should be able to quickly and confidently complete this simple sentence:

"Our organization is the only ________that _________."

The first blank is the category your organization is in. The second blank should be filled in with your differentiating factor, the one thing that makes you compellingly different.

What sets your organization apart? Embrace and celebrate your difference. Then, you’re ready to tell the world. And that’s what effective marketing is: telling the world (or the people that can and will support what your organization offers).

Just copying the competition is a race to obscurity. So don’t settle for copying others. Let’s go back to Hughes and Jeanes for a moment: "Corporate Me-Tooism. Monkey see, monkey do. Copycatting will get you exactly what you’ve earned: a cloak of invisibility."

Take pizza places for example. Sure, there are different varieties of pizza: deep dish, New York style, thin crust, and many more. But pizza would still seem a commodity business where it would be difficult to discover a differentiating attribute.

But Pizza Hut "owns" the family pizzeria marketplace. Dominos became a household name because they differentiated on the attribute of delivery. Papa Johns found success by focusing on ingredients. Little Caesars started down the right road with Pizza! Pizza! (a two-for-one value proposition) but they’ve since given up on what made them unique. Chuck E. Cheese is the premiere pizza place for fun and entertainment. Together, these are the top five pizza chains in the country because they’ve focused on an exclusive attribute that people care about. They’ve found a way to push out of the forest of sameness and into the open meadow of distinctiveness.

Think all the unique pizza attributes are gone? Galactic Pizza recently opened regionally in Minneapolis and touts itself as "pizza with a conscience". Their food is delivered in electric vehicles and all of the power purchased to run their restaurant is renewable wind energy. They’ve incorporated a number of organic items into their menu, and even their mozzarella cheese comes from cows not treated with growth hormones. And every time a pizza is ordered, Galactic donates $1 to a hunger relief organization. And just for fun (and yet another way they’ve differentiated themselves from the dozens of pizza options available in Minneapolis) Galactic’s delivery drivers are each dressed in a distinctive super hero outfit.

Your challenge–like Galactic Pizza–is to turn conventional wisdom on its ear. Shake things up. That is the only way you’ll attract and retain loyal supporters.

Mike DiFrisco, Founder, BrandXcellence



May 9th, 2008 3:30 pm

5 ideas for getting feedback from your donors

Research is an important element for an organization undertaking a communication initiative, or even during the course of normal business.

Many organizations refrain from conducting research because of concerns regarding costs, but the Communications Toolkit, written and designed by Cause Communications, offers advice about conducting research on a shoestring.

Following are the low-cost ideas the Toolkit gives for conducting primary research:

  • For less than $50 in stamps and stationery, send a survey to 100 people asking for their feedback on a particular publication, direct mail piece or other communication vehicle.
  • Gather a dozen of the most important constituents for an informal focus group (providing simple refreshments such as coffee, juice and cookies).
  • Invest a few hours of staff time to call a targeted group of audience members to answer a telephone survey about the organization and its communication efforts.
  • A number of companies offer email and Web survey templates and services, which can be quick and cost effective. Some offer discounts to nonprofits.
  • Another audience research technique is to create a chat room on the organization’s Web site where constituents can share and exchange feedback. It is an inexpensive and effective way to obtain research on what an organization’s audiences think about it.
  • Convince a donor to undertake a major quantitative research survey.

NPT Instant Fundraising/NonProfit Times



May 6th, 2008 2:30 pm

The Wisdom of the In Crowd

Every high school has at least a few popular girls. Though they’re rarely the prettiest or the most charming, they rule their social scene with a cynicism that would make Machiavelli shudder. Even their friends fear them, and pop culture is rife with fantasies of popular girls who get their comeuppance—cult classics like Heathers and Mean Girls come to mind.

The Wisdom of the In CrowdNevertheless they know something from which social media practitioners could learn. Impossible, you say? Consider a list of a popular girl’s skill set:

  • She knows the importance of being a hub, and controls information for her own benefit.
  • She knows the right way to spread information, whether her purpose is organizing a party or harassing another girl.
  • She knows how to exclude others from the group, and can deftly exploit a weak link.
  • She understands her brand and exactly how to go about developing pent-up demand.

Add that a lack of maturity means these girls often use their powers for evil, not for good, and that we don’t want to replicate a vicious high school experience in social media.
However, why are we as adults relearning things that these girls know better than most of us do? Asking that question—and, better yet, finding the answer—is Marketing Inspiration.


Rachel Happe, Research Manager, Digital Business Economy, IDC



May 2nd, 2008 2:30 pm

Stupid Activist Watch: Special Interests, My Rear End

Reposted with permission from Direct

For a great example of an empty boogeyman quote aimed at smearing the pro-marketing opposition look no further than Todd Paglia, executive director of environmental group ForestEthics.

Paglia was featured in a recent Washington Post article on how the U.S. Postal Service has so far been able to help stop misguided efforts at establishing state and national do-not-mail lists.

"The Postal Service has come in and clobbered legislators," said Paglia, according to the Post, which noted ForestEthics has collected 289,000 signatures on an online petition to Congress that calls for a National Do Not Mail Registry. "It’s really a people-versus-special interest kind of battle."

Special interests? Now there’s an intellectually vacant term. It means anything the person using it wants to outlaw, regulate or tax the crap out of, but has yet been unable to do so to his or her satisfaction.

Message to Paglia: All interests trying to get government to either do something or leave them alone are "special interests," including you and your group.

Let’s consider a few numbers in comparison to the 289,000 signatures ForestEthics has been able to gather, shall we? Keep in mind that using a nice viral e-mail, we could probably get 289,000 people to sign a petition urging Congress to keep me in beer and cigars for life.

The United States Postal Service employs 680,000 people. And make no mistake, Christmas cards to Aunt Betty aren’t paying the freight here. Direct mail is.

Meanwhile, non-catalog direct mail employed 2.8 million people in 2007 and drove $536.7 billion—that’s billion with a "b"—in sales, according to the Direct Marketing Association.

Catalog direct marketing employed 793,000 people in 2007 and drove $150 billion in sales, the DMA contends.

Direct mail accounts for only 2.4% in weight of the total municipal solid waste generated in the U.S. annually, according to the U.S. Environmental Protection Agency. That figure is also likely to decline as paper recycling efforts improve.

In 2006, a record 53.4% of the paper consumed in the U.S.—53.5 million tons—was recovered for recycling.

The amount of U.S. forestland today is about the same as it was in the early 1900s, despite our population tripling and "forest inventory" in the U.S. has grown by 39% since 1952, according to the U.S. Forest Service

The paper industry claims it plants more trees each year than it harvests.

Annual net growth of U.S. forests is 36% higher than the volume of annual tree removals, according to the Society of American Foresters. The vast majority of the paper produced in America today comes from trees that are grown as managed crops for that specific purpose.

More than 36% of the fiber used to make new paper products in the U.S. comes from recycled sources and more than 80% of U.S. paper makers use recovered fiber to manufacture new paper products, according to the American Forest and Paper Association.

Open letter to ForestEthics: You know those government services you count on so much? You know, cops, fire fighters, national highways, getting your streets plowed and your kids educated? They are all the result of the fact that people sell stuff to each other and create tax revenue. No sales: No tax revenue. It really is that simple.

Oh, and all that affordable wonderful stuff you buy every day that makes your lifestyle the cushiest in the history of the world? It’s because people advertise, market and sell things to each other.

If it weren’t for advertising, marketing and sales, at best you’d be living in caves, speaking in grunts, and digging through the mud for grubs. More likely, you’d be in a gulag.

Now, the people who sell stuff would love to be able to deliver their sales pitches telepathically only to people with a 100% propensity to buy—after all, they don’t like wasting their money either—but they simply haven’t figured out a way to do that yet.

So they have to be able to communicate with prospects through channels that don’t involve invisible mind waves.

Go figure.

Plus, if your do-not-mail idea extends to non-profits, it would kill them. Bye-bye Special Olympics. So long Feed the Children. Bet you didn’t think of that, did you?

We could exempt them, you say? Why sure. Non-profits and politicians. Congress always let itself off the hook with this sort of thing.

But then we really don’t have a do-not mail list at all, do we? We have a screw-merchants-because-we-just-don’t-like-advertising-or-people-who-do-things-solely-for-profit list.

Let’s at least call it what it is.

Ken Magill, Direct



April 30th, 2008 3:30 pm

Opt-Out 101: Why They Unsubscribe

"It’s easy to feel defeated about losing subscribers who opt out," says AWeber’s Tom Kulzer. But don’t get discouraged. Instead, use Kulzer’s list of why customers unsubscribe to make improvements:

  1. You send too many—or too few—messages. When recipients feel a bit overwhelmed by the pitches in their inbox, they may decide it’s easier to deal with none at all. Or if you hardly ever touch base with customers, they may wonder why—or if—they ever opted in.
  2. Your content isn’t compelling. Unless your message is relevant and interesting, don’t hit send. "It’s clear that people don’t want to receive email for the sake of filling their inboxes," says Kulzer.
  3. Your relationship has changed. Customers return products; they cancel services; they move into new industries. Simply put, your messages might no longer address their needs.
  4. They have reasons unrelated to you. Unsubscribe requests often mention extended vacations or family illnesses. "Fortunately," says Kulzer, "many of these people will come back when the time is right."
  5. They change their email address, or use an alternative method of receiving messages. If you offer RSS, for instance, don’t be surprised if recipients unsubscribe from email campaigns. It’s not you; it’s tech.

The Point: What you know won’t hurt you. Says Kulzer, ""If we … understand what causes a number of people to exit, we also learn something valuable about our subscribers who stick around."

Tom Kulzer, Aweber on MarketingProfs, Vol. 1, No. 14



April 29th, 2008 11:33 am

ECONOMY WORRYING YOU?

Close your eyes for a moment, and just imagine… Imagine being away from your desk, and in a special place… a place where you spend three days discovering new ways to solve your nonprofit’s economic pressures… new answers toward identifying strategic initiatives that will strengthen your organization… new solutions toward building a foundation for future growth.

But, it doesn’t stop there…

Imagine being in a place where everywhere you turn, you hear answers and solutions. Imagine being in a place where every place you go you hear speakers sharing insights… peers sharing their best ideas… experts inspiring you to think creatively and find solutions to your toughest fundraising problems.

Now imagine you are doing this in a four star hotel with a sandy beach in warm weather. Better yet you will pay a two star price for your room.

Sound too good to be true? It isn’t. Stop Imaginin… and Join Us in Doing… at the 2008 Nonprofit Leadership Summit! But don’t wait! Time is running out and attendance is limited and restricted to senior managers.

Join us June 3-5, 2008 at the Ritz-Carlton in Palm Beach, FL. We have secured a limited number of rooms at a very low price that will fit you budget but you need to move quickly. To insure your attendance and convenience at this premier event get started now by visiting the conference WEB SITE and check out the ENTIRE PROGRAM. Then download the APPLICATION FOR REGISTRATION and you’ll be on your way to beating the economic blues…

Jill Murphy, Senior Manager, Member Services, Nonprofit Federation



April 22nd, 2008 6:16 pm

Annual Giving… It’s better than a day with the in-laws

I think it’s just the headline of this quick hit on annual giving that makes me want to post it…. But here are some reminders on annual giving from the NonProfit Times.

It happens once a year. The flurry of activity and preparation makes you anxious. You don’t know what to say or do. And you are more than happy when it’s over.


Annual giving shouldn’t be like a holiday with the in-laws. Stop facing annual giving with dread and start making proactive decisions that will help you before you ask. These tips can help you change your attitude toward annual giving over and over again, according to Jill Pranger, founder and president of Pranger Consulting and Training in Rochester, N.Y. during a recent fundrasing conference.


Once a Year Doesn’t Cut It
For a more effective approach, try smaller, targeted campaigns throughout the year instead of one large gift. You don’t want your donors to think about your organization once a year. You want them involved all the time. These little reminders will constantly renew donor goals and build loyalty toward your organization - hopefully with volunteer and leadership opportunities.

When Should I Ask?
Never ask in July or August. Try October or the end of the calendar year, tax year or fiscal year. Try to ask four to seven times a year but your efforts shouldn’t cost more than what you expect the donor to give. Use a different approach or creative look with each ask.

Reality Check
Analyze what your organization has done in the past and set up attainable goals. Take into consideration the national and local economic climate. And look at the organization’s climate and what you are capable of based on the donor base. Don’t just think of a dollar amount. Try to encourage goals with participation, recruiting volunteers and training sessions.

The “Write” Stuff
Your writing needs to be timely and relevant and most of all - readable. Read everything you write aloud and share it with a few people to check your work. You want your donors to read your writing with a call to action and urgency to give. Assume they will give and thank them. Add a “p.s.” to catch attention. Report the Results Your job isn’t done once you get donations.

Report the results to your donors. It will show them the work you are doing and will provide credibility to what you do. Be sure to add information such as the average gift, number of gifts, activity cost and how it compared to last year. Your donors can see how the organization is doing and tailor future gifts from information.



There is Always Next Year
Take what you learned and apply it to the next year. What worked well? What didn’t? Where is there room for improvement? Get opinions from new and old staff and add something new each year.



NPT Instant Fundraising, NonProfit Times


April 21st, 2008 1:30 pm

Nonprofit Federation’s Benchmarking Survey Underway!

The Nonprofit Federation launched its first ever comprehensive benchmarking survey, which will provide Nonprofit Federation members with data on how nonprofit organizations are performing relative to their counterparts through their use of various marketing channels.

"We developed this survey to help Nonprofit Federation members understand how their fundraising campaigns and marketing activities compare in terms of nonprofit sector norms," said Senny Boone, executive director of the Nonprofit Federation. "We encourage all nonprofits to participate in this first-of-its-kind Nonprofit Federation survey. We hope that it will not only fill a critical information gap, but will also become a valuable tool to help nonprofit organizations evaluate their current practices and identify areas of improvement as they seek to raise money and build awareness."

The survey, which contains 37 questions on a variety of topics — including renewals, acquisitions, online fundraising, and mobile marketing — is now open on the Nonprofit Federation’s website and will run through April 25, 2008.

Survey results will be first available at the 2008 Nonprofit Federation Leadership Summit, which will take place June 3-5 at the Ritz-Carlton, Palm Beach, FL. For information on the Summit, please visit www.nonprofitfederation.org.

Jill Murphy, Senior Manager, Member Services, Nonprofit Federation



April 15th, 2008 5:30 pm

Multi-Channel Marketing to Drive Results

dma.jpg Support and reinforce your Web-based initiatives with offline campaigns. When an email gets buried in an individual’s inbox, it might be rediscovered after a reminder received in the mail. By taking a multi-channel approach to fundraising or advocacy, you will remind constituents to participate in your campaign, and at the same time you will reinforce your brand and mission.

Proof That it Works
By managing its Web-based initiatives and offline development efforts together, the Catholic Medical Mission Board (CMMB) successfully integrated the messaging for its e-campaigns and direct mail programs. This multi-channel marketing approach improved the CMMB’s Web presence, which led to increased revenue for the organization’s direct mail program.

Leveraging the services of Amergent for direct mail campaigns, and NPAdvisors for strategic online consulting, CMMB’s integrated online campaigns included messaging and customized donation pages complemented with direct mail appeals. The amount raised through the organization’s online giving program increased from just over $32,000 in FY03 to more than $168,000 in FY07. From 2005 to 2007, CMMB’s email list grew from 4,000 to 32,000 through new online registrations and donors, as well as through email appends that were followed by confirmation emails to the appended constituents.

Benefits

  • Remain top-of-mind;
  • Reinforce your brand through multi-channel campaigns; and
  • Improve campaign results and grow your list.

Mandy O’Neill, Director, Business Development, Convio, Inc.

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April 11th, 2008 2:30 pm

Looking for donors in England…

In Great Britain, the culture of philanthropy is not as deep or wide-ranging as it is in the United States. At a recent international conference on cross-border charitable giving, Simon Weil, the chair of the European Association for Planned Giving (EAPG), acquainted an audience with recent changes that have come in Britain with the Charities Act 2006 (England and Wales) and Public Benefit.

Before passage of the Act, charitable purposes in the United Kingdom were recognized as related to relief of poverty, advancement of education, advancement of religion and other purposes beneficial to the community.

The Act, which is to take effect in 2008, has expanded those headings to include:

  • Prevention or relief of poverty
  • Advancement of education
  • Advancement of religion
  • Advancement of health or saving of lives
  • Advancement of citizenship or community development
  • Advancement of the arts, culture, heritage or science
  • Advancement of amateur sport
  • Advancement of human rights, conflict resolution or reconciliation of the promotion of religious or racial harmony or equality or diversity
  • Advancement of environmental protection or improvement
  • Relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage
  • Advancement of animal welfare
  • Promotion of the efficiency of the armed forces of the Crown, or of the efficiency of the police, fire and rescue services or ambulance services
  • Any other purpose recognized as a charitable purpose under existing charity law.

NPT Instant Fundraising



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