8 benchmarks for your Web marketing

How does an organization know if its online fundraising is working? At a recent conference on nonprofit technology, several items were offered as benchmarks best practices to help gauge the success of online donation.

The benchmarks:

• Budget for success. One survey showed a clear relationship between the online communication budget and two indicators of success – the amount raised in online donations and the number of advocacy actions taken.
• Lengthen an email list to increase online advocacy and fundraising impact. Organizations with larger email lists had better fundraising success and saw significantly better results in advocacy outcomes.
• Anticipate and track list churn. For an email list, anticipate churn (turnover). Compensate for it and keep a list growing.
• Improve retention of list subscribers. Organizations with a greater percentage of subscribers retained for longer than one year saw higher participation rates and generated more citizen letters.
• Carefully track marketing and recruitment efforts. A plan to do this should be in place before online marketing programs are launched.
• Test optimizing day of the week for advocacy message launch.
• Act quickly to respond to timely events. All organizations should have rapid-response plans in place. Fundraising after the Asian tsunami is an excellent example of how much can be donated quickly
• Carefully target and segment email messages. There should be a strategy for this.

Blogging gets your information to constituents

Blogging is becoming an increasingly important aspect of the fundraising framework. According to Michael Baler, vice president of the fundraising and database firm Epsilon, blogging is making its way into the nonprofit picture as it offers constituents and volunteers a way to share thoughts on events, even while an organization is trying to raise money. It can integrate with an organization’s ongoing marketing strategies and build rapport and lasting relationships.

Specific benefits that blogging offers over bot the long term and specific events include:

• Two-way instant communication that email does not allow.
• A viral approach to building a constituent database from a group of potential donors who have selected themselves as being interested in an organization’s cause.
• A method to increase traffic to an organization’s national and local chapter Web sites.
• The opportunity to raise funds and support by driving constituents to Microsites designed to solicit an immediate donation.
• Offering a first-hand method for special events captains and participants to record their personal experiences, raise funds and recruit participants.
• Posting live commentary during an event.
• Supporting ongoing communications with event participants after event season is over.
• Providing a low-cost channel to deliver event results, post event photos or enable participants to keep in touch with each other throughout the year.

HOW OFTEN SHOULD YOU SEND AN EMAIL?

Even though few people have experience with regular emails to a donor database, and fewer still have tested variations in frequency, many people, some far removed from your fundraising department, won’t hesitate to tell you how often you should send an email.

According to Rick Christ, senior consultant at NPAdvisors.com, in Warrenton, Va., instead of listening to them, listen to your donors.

First, of course, you must understand that sending an email is not important. Getting a response is important. Every email should ask its reader to do something -- tell a friend, sign a petition, read an article online, make a contribution. That’s the first question you need to answer: What do we want, or need, our donors to do right now? (See the article “Ten Actions to Ask of Your Email” at http://www.npadvisors.com/NewContent/100xxx). If you don’t need them to do anything, then you don’t need to send them an email.

Second, consider the response curve of an email. For most emails, 75 percent or more of responses take place within 36 hours of the time the email is sent out. A great “viral” email will last for weeks, but there are few of them. Therefore, when you see your responses dwindling, it’s time to consider the next email.

Third, consider your donor’s memory. If 5 percent of them responded to your email, then 95 percent of them have probably forgotten about your email within minutes of seeing it in their inbox. They’re certainly not going to feel hounded by you with another email a week later.

The 5 percent may be eager to hear from you, but given all the other emails they probably receive, and the other pressures on their time and attention, they’ve probably forgotten about that last email as well.

Fourth, look at the “negative” responses from your email. If an increasing number of readers are unsubscribing, that’s an indicator that your emails are not relevant to them, or perhaps are arriving too frequently. Read carefully their comment messages and pay some attention to complaints.

Don’t pay too much attention, though. If 5 percent of your donors responded to an email, and one-half of one percent complained, don’t alter your email strategy for the few.

Fifth, offer your subscribers a choice of frequency and perhaps content. If a subscriber wants information on topic A immediately and information on topic B once a month, then a little be of database programming should be able to accommodate that request.

You should be in the business of posting articles to your Web site, and your content manager/database should be matching each new article up with subscriber preferences, sending emails as needed. Customized, relevant emails that honor the subscribers request are never spam. They are the pinnacle of personalization.

Argue or ask questions: rick@npadvisors.com

 

Privacy and security for online work

As nonprofits embrace technology, they also have to deal with its by-products, such as issues of privacy and security. Attendees at a recent nonprofit technology conference learned that there are several considerations to keep in mind, especially when utilizing computer technology for fundraising.

Among those considerations:

• Design, not products. Security is something to factor into the overall design of an information system. Designing for security requires considering the entire system.
• Putting people first. Though often overlooked, people are the single most important factor, and security technology is only as effective as the people operating it. Educating users about the importance of security and their role in maintaining it is the first priority.
• Security is holistic. Security can be evaluated only by considering the system as a whole. Two systems that are adequately secure alone may not be when combined.
• “Default deny.” Anything not specifically approved should be forbidden. Turn off/deinstall features not used; remove “default” user accounts and set permissions as restrictively as possible.
• Defense in depth. When implementing security measures, never rely on a single line of defense. Keep audit trails of key activity.
• Avoid needless risk. Where possible, design processes to avoid storing high-risk items like credit card and Social Security numbers.
• Make compromises. Security is not an absolute goal in itself. Remember compliance with legal and other standards, all in the context of the organization’s mission.

Web site layout becoming commonplace

As the whole idea of technology-related nonprofit operation becomes commonplace, more thought is given to making the best use of what is available.

Nonprofit executives attending a recent national nonprofit conference learned that many organizations are finding a degree of success by employing certain strategies for the layout and presentation of their Web sites. They are shared by many of the organizations whose sites were rated in the Top 10 by either Forbes or The NonProfit Times.

Among the common characteristics:

• Nine out of 10 positioned their logo in the upper left-hand corner. It is the expected location. Further, logo placement should be consistent and link back to the homepage.
• Seven out of 10 use mastheads at the top of their homepage. This separates the core components to a site (Who, What, Where, Why).
• 80 percent positioned their search in the upper right-hand corner.
• 60 percent of the sites used a three-column grid format.
• 70 percent of the sites used a sidebar for simple navigation.
• 33 percent of the sites utilized Macromedia Flash.
• 30 percent of the sites incorporated streaming video.
• 40 percent of the sites used dropdown menus.
• 10 percent of the sites used pop-ups.
• 50 percent of the sites had a graph image that made eye contact with the viewer.
• Almost all built their text from html rather than a graphic.
• The best performers used multiple areas on the page for “Donate” or “Sponsor.”

6 questions to ask about Web donations

Online fundraising has become a routine part of many nonprofits’ operations. As more people become computer proficient and comfortable with transacting business online, the future of donations looks to be even more of an online venture than ever before.

At a recent conference on nonprofit technology, several issues were raised about many uses of technology, including online payment. Six questions were aired, and an organization that is committing to online fundraising may need to answer them.

• Are donations part of a larger whole? Does the organization also need to sell products, even tickets, or member registrations? Is the organization planning sophisticated email campaigns or a Web site redesign? If so, it might need to look beyond a basic donation tools.
• Whose merchant account? It is usually cheaper, especially for smaller organizations, to use a vendor account. If an organization uses its own account, it receives money faster, and it is cheaper for high volume, with more flexibility. Also, the organization’s name appears on the credit card bill.
• How many and how large? An organization should estimate the donations it expects (number and average amount) and compare fees.
• Does the donation form need to look like the Web site? Should it match the organization’s colors and fonts?
• Are export features worth extra? Is it worth it to pay extra for features that will save money down the road?
• What other features are critical? Recurring donations, international donations, support tributes or premiums, custom fields?

8 Steps to raising money on eBay

Use of the eBay online selling system, which is very popular with individuals, is proving to be a real help for nonprofit organizations. Utilizing a name and vehicle with a huge recognition factor can be a great help in fundraising.

In their book Fundraising on eBay, Greg Holden and Jill Finlayson offer suggestions on what must be done up-front by organizations that might have experience with online dealing but are new to eBay.

Their suggestions:

• Register with eBay and MissionFish. This includes both setting up accounts and setting selling preferences, as well as signing up for PayPal or other online payment solutions.
• Obtain inventory/donations. This involves both soliciting and collecting donations from individuals and companies.
• Create event branding. This can be as simple as naming your event and creating your personal page on eBay or as advanced as having graphic artists and web designers create a logo and selling templates.
• Photograph items. Most items sold on eBay will need at least one photograph.
• List items for sale. It means filling out the Sell Your Item form for one or two items are possibly using software to expedite the listing process.
• Market auctions. Publicize the event and be willing to leverage online marketing opportunities.
• Mange auctions. If your descriptions are complete and clear, there will be less need to answer questions, but you must answer emailed questions.
• Complete sales. Collecting the money is not enough. Pack and ship items.

4 WAYS TO IMPROVE EMAIL RESPONSE

In direct mail fundraising, sometimes as many as 90 percent of prospective donors didn’t even open the envelopes. Yet, very little time and effort was put into testing outer envelopes. The same is true with email.

According to Rick Christ, president of npadvisors.com in Warrenton, Va., and a contributing editor of The NonProfit Times, many of your emails aren’t being opened. With email there are four possible reasons:

     1. It isn’t being delivered: It’s vital that you make every possible attempt to keep email addresses accurate and current. When emails from past donors bounce, you need to reach out to them via postal mail and ask them for an updated address. Gift receipts are a great, low-risk way to ask for email addresses.
     2. It’s ending up in their spam folder: Don’t be too cute with your content or subject line. Your donors are using ever-more-devious ways to cull spam from their inbox. Test your letters with a group of insiders to make sure each issue is being delivered before you send it to the whole list.
     3. Your subject line is vague, too-cute, or suspicious: Again, don’t be too clever. The key word or words of your issues (animal safety, kidney research, etc.) should probably be in the subject line of every email.
     4. Your “from” address is suspicious or unknown: Christ explained that he used to get emails from the “Legislative Information” office of a nonprofit. Unfortunately the “from” address was just “LegInfo” and it looked like junk. Why not use a short form of your organization’s name, like “Kidney Assoc.” as the from address? Better yet, test two different “from” addresses and see which one produces the better results.
     You can argue with Rick Christ at rick@npadvisors.com

 

Developing planned giving via the Web

The recent explosive growth of online interactive communities presents a wide range of opportunities for nonprofit in the future.

As Frank D. Schubert of the University of Texas development office explained to attendees at the 2006 National Conference on Planned Giving, developing an online interactive community is an exciting prospect, perfecting the art of connecting donor and recipient in a manner that it direct, customizable and meaningful while encouraging personal expression.

With all that, there are several principles that should be kept in mind:

• Making it personal. There is an increasing preference, especially among but not limited to the young, for customization and personalization. People want a space that is searchable by those who have similar interests and backgrounds. It is clear that customized sites are providing highly valued communication between and among participants.
• Uniting the financial with the meaningful. Rather than beginning with the financial reporting, imagine creating an input space where those who benefit from a particular donor's contribution might be invited by email to come to a site and create a short but meaningful message.
• Cultivating the next gift online. The University of Texas created a Donor Direct system as a method of accountability, but it turned into much more. Former recipients of aid were encouraged to return to the site to create milestone messages of their own, both for donors and current recipients.

Online …
8 ways Quincy Medical Center boosted its annual cancer walk

The money raised by the Quincy Medical Center Cancer Walk had grown steadily since it started in 1998, but the amount flowing from online donors still remained tiny.

Speaking at the March conference of the New England Association of Healthcare Philanthropy, Amy Klotz, development officer of the hospital in Quincy, Mass., described a series of steps that were taken to beef up the online capability for the 2007 walk.

The hospital’s Walk organizers initially voiced several concerns, including the potential expense, the drain on staff time to set up and operate the system, the complications of using it that might scare off potential donors and security issues.

But after resolving those issues, the hospital tried eight different ways to boost online giving, divided into passive and proactive approaches. The passive part involved including the link to the donation button in four different places:

1. All posters and pledge sheets;
2. All press releases concerning the walk;
3. Prominent display on the hospital’s Web site; and,
4. Word of mouth.

The results were described as a “moderate success,” slowed by the hurdle that potential donors needed to remember the link after seeing it and then log on to the hospital’s Web site after first seeing it.

The proactive piece included:
1. Placing the link on all marketing materials;
2. Placing the link at the foot of all staff email;
3. Integrating the link into email marketing campaign; and,
4. Including it as part of pre-registration for the walk.

This approach was termed a “huge success,” because potential donors were already on line and merely had to click on the link. All told, online donations for the walk shot up to $24,101 for 2007, 262 percent greater than the previous year. The walk raised a record $200,000

Online …
10 criteria for your communication with donors

Like any type of fundraising, online fundraising has its own specific rules of engagement. Herschell Gordon Lewis, a direct response consultant, argues there are 10 specific criteria to online fundraising that, if followed sequentially, will produce solid results.

Those 10 criteria are, in order:

• Rapport. This is the most crucial. Assumption of a relationship, real or invented, is the key to positive attention.
• Rationale. Saying to the message recipient, “I’m contacting you because you are who you are,” adds octane, provided the first criterion has been established.
• Heroism. Being able to tell a potential or lapsed donor “You can be a hero” in credible, digestible wording can jog that individual.
• Logic. Projecting the concept of logic isn’t wording that says to the recipient “This matches you.” Rather, it is wording that has the recipient saying “This matches me.”
• Urgency. Urgency is implicit, but it should also be explicit. What makes the timing right? Why are we in a hurry?
• No pledges. You’re using the “Right now” medium, and your call should stay in sync with that medium.
• Recognition. Inclusion of publicized recognition, often decked with ribbons on a separate enclosure in a direct mail appeal, should be mentioned early and exploited later.
• Guilt. It is one of the great motivators of our time.
• Satisfaction. Don’t assume the person with whom you’re communicating will complete this link without you.
• Verisimilitude. This is difficult to impose, and if done wrong can wipe out both rapport and guilt.

Online ...
Web tools that can make your life easier

Although getting the maximum use out of online tools can be complicated at first, even daunting to smaller organizations, there are avenues that can be helpful.
Rick Christ, managing partner of NPAdvisors.com in Warrenton, Va., an online marketing consulting firm, suggests several resources that can be helpful to any nonprofit. They are:

• MySpace.com. If you're looking for free Web page hosting, with blog tools, room for photos, email and newsletter service, get one that comes with about 100 million other users who are online 24 hours a day.
• Paypal. It is free to set up. It costs about as much per transaction as most donation processing services (and less than many), ant it is a tool of choice for 67 million people whose sole purpose in having it is to transfer money online.
• Text messaging. When the Federal Emergency Management Agency (FEMA) failed to provide street lamps and the forms necessary to run search operations in post-hurricane New Orleans, relief workers used text messaging to stay in touch with each other and constituents were able to ask questions and provide updates.
• IM (instant messaging). It is another free way to be "open" for business.
• ThePetitionSite. Com. This is a site for online advocacy, a place to post a petition and drive advocacy.

Yahoo! Groups. This provides file sharing, group email, calendars and other features.

Online ...
Tailoring the online experience for everyone

Everyone is unique. At the recent Conference for Nonprofits sponsored by Blackbaud Inc., Christy Lowell, school solutions interest specialist at Blackbaud, illustrated how there can be a wide divergence of interest even among a group that would appear to have much in common.

Further, she demonstrated how a Web site can cater to each unique constituent. Using the example of a college, Lowell showed that:

• Prospects/applicants (potential students) want:
  An eye-catching home page that will make them read further about the school; to see potential friends and activities; to read "day in the life' stories and blogs.
• Applicant parents want:
  Virtual tours of the school; easy navigation to find information; one-stop shopping.
• You want parents to see:
  An easy search for information; eventual application to the school; slick marketing; reduction in paperwork, new dollars coming in.
• Current students want:
  A one-stop shop for information and an ability to crate their own community.
• You want students to:
  Find information easily and quickly; view grades and assignments; use the school email system; come back to the site long after graduation.

Faculty want:
Teacher pages; seamless sign-on to grade books; directories.

• You want faculty to:
  Use the self-service tools to reduce administrative work; send emails to students; update teacher pages.
• Alumni want:
  Reconnection; a sense of pride; a job board.

You want alumni to see:
Information and images that make them want to re-engage with the school.

Online ...
They've Got Mail: 10 marketing strategies

The current economic situation nationwide, combined with higher costs and tighter regulations relating to postal fundraising, will make online marketing even more important in upcoming years.

Vinay Bhagat, chief strategy officer for online fundraising firm Convio, maintains that nonprofits will need to invest in effective online marketing programs. He offers 10 best practices for getting started online:

• Ensure your Web site makes the right first impression. Prospective donors are very likely to visit your site before making a gift in any channel.
• Collect email addresses of current donors. Communicating online with donors enhances their value. Few organizations have emails for more than 30 percent of their active donors.
• Optimize your Web site to convert visitors to email subscribers. Target a 3 percent conversion rate of unique visitors to new subscribers.
• Make every communication count. Write emails with a constituent-centric point of view, and steer clear or sending non-compelling material.
• Inspire. Provide value and be transparent to your donors about how funds are spent.
• Ask for money, regularly. Include a soft ask in every communication.
• Use multiple emails in a series to lift appeal response rates. Suppress those who respond to earlier appeals in the series.
• Make fundraising appeals tangible and compelling. People are presented with lots of appeals and offers.
• Empower volunteers. Raise money through online peer-to-peer fundraising software tools.

Encourage monthly giving. The lifetime value of monthly donors is much higher than single-gift donors.