Wednesday, July 24, 2013

Client Spotlight - Gilda's Club of the Quad Cities

As I've gotten older, I've gravitated to creating more mailings for non-profit organizations. Oh, I still sell a lot of sportswear, air conditioning, pizza and banking services, but I find raising money for charity more rewarding. One key to producing a successful package is to understand and "buy in to" the organization's mission. Every once in a while that mission really strikes home.

I've recently been taking a friend to Iowa City for cancer treatments at the Holden Cancer Center. Surrounded by families living with cancer, I have been reminded of the marvelous work done by Gilda's Club of the Quad Cities.

Gilda's Club was founded in memory of original Saturday Night Live star, Gilda Radner, who died in 1989 of ovarian cancer. Their mission statement reads, "The mission of Gilda's Club Quad Cities is to ensure that all people impacted by cancer are empowered by knowledge, strengthened by action and sustained by community."

They serve families from all walks of life, races, ages and with all types of cancer and all services are free of charge.

We've tried to make their appeals very personal. In fact, the opening few paragraphs of the acquisition letter come directly from a Gilda's Club member, George Ramos.

"How could I keep my family going while my bride fought for her life?

I asked myself that question one lonely night in July, 2009 after my wife - my soul mate - LaNae, had undergone a radical mastectomy and was beginning aggressive chemotherapy.

Cancer sucks.

A lot."

We go on to tell the story of the  help provided to the Ramos family by Gilda's Club.

In 2011 we added another personal story to the package. A Quad City area TV personality was herself diagnosed with ovarian cancer. She wrote a personal "lift" note that added a "voice" to the appeal. She received hand written notes of encouragement written in the margins of the reply form.

Gilda's Club is doing great work and is trying to expand its service area. Cancer is everywhere - and there aren't enough Gilda's Clubs to go around.

Gilda's Club website



Wednesday, July 17, 2013

What would Jayme do?

Bill Jayme was probably the greatest direct mail copy writer on the planet. He and his graphic designer partner, Heikki Ratalahti, created packages that cumulatively sold millions of copies of Smithsonian, Bon Appetit, Food and Wine, Mother Jones and over two dozen other publications. It's been over twenty years since their last effort (Jayme died in 2001) and I sometimes wonder how they would approach today's direct marketing world.

They disapproved of most gimmicks - employing only a show-through "FREE" token on the order card. What would they think of QR codes and purl addresses? Bill wrote wonderfully long, literate and lyrical letters. (Research showed that each additional page added as much as an extra 1/2 percentage point to response). I suspect he would be appalled with the trend toward postcards and one-page/one sided letters. (Actually, I really suspect he would just laugh and say, "I'm selling and you're not, you fool.") Beautiful envelopes with powerful tease devices were a trademark of their packages. The Psychology Today envelope famously asked, "Do you close the bathroom door even when you're the only one home?" When was the last time you saw a really great envelope?

That being said, we cannot ignore that it is a brave new world and that today's direct marketing practitioners have far more technological tools at their disposal than Jayme and Ratalahti could have imagined. Creative as they were, there was a plan of attack for each package. The envelope drew you to the letter, where typically you would read the headline or Johnson box first, then the PS and then the body of the letter. A publishers lift note would add a second "voice" to the package, either re-stating the offer or adding a new benefit - or both. A full-color brochure would "show and tell" the unique features of the magazine. Finally, the order device would re-tell a brief version of the sales message and confirm the offer. Each component was designed to play a specific role in moving you from piqued interest to subscribing.

So - how can you add today's technological arsenal to this proven attack plan?

Last summer we created an integrated direct mail, email and internet effort for an area university. The 9" x 12" envelope made a traditional sweepstakes offer with a 21st century twist - you could enter online at your own personalized web page (purl) - AND - if you had a smart phone you didn't even need to type your url, you could just scan your personal QR code. All of the necessary information was on the envelope so there was really no need to open it. THAT'S where it gets complicated. The internet elements must do the same jobs as the components in the envelope - BUT - they must do them better. When you send a potential buyer to the internet you magnify the opportunity for distraction. Just when she is ready to order, a facebook alert comes up or she decides to compare your pricing to a competitor's. You risk losing a sale or inquiry with each click.

Never has great writing and creative been more important than in this multi-media digital age. There was only one Bill Jayme and I doubt that we'll ever see the likes of his talent again - BUT - it is critical that, even with today's technology, we heed the lessons he can teach.



Thursday, July 11, 2013

Doing less with less

Kevin Berchelmann is the CEO and principle consultant at Triangle Performance in Spring, Texas. He is a nationally respected expert on leadership and management and occasionally comes to Cedar Rapids for client meetings. Over the years we’ve had several stimulating business discussions – and more than a few glasses of wine.

Earlier this week Kevin posted a blog on facebook called, “Middle Managers: We Didn’t Miss Them Until They Were Gone.” His basic premise is that the notion of cutting middle management and then “doing more with less” is flawed. In a well-managed company, the elimination of managers simply redistributes the workload and leads to companies “doing less with less”.

Kevin’s message resonates with me because I see so many small nonprofits wandering down this path – but in a slightly different direction. Funding is a universal and constant challenge for such organizations. When enough money isn’t there, charities are faced with tough choices.

  • Reduce services/clientele

An Eastern Iowa organization recently redefined its eligibility requirements to reduce its participation by over 20%. The reason – THE NEED was growing faster than the funds.

  • Increased staff workload

Whether staff is reduced by layoffs or attrition, all too often, as in Kevin’s blog, workload is reassigned. Program/mission staff can be stretched far too thin, reducing the effectiveness of programming. Frequently program staff members are also asked to take on roles for which they are not well suited – marketing and public relations, for example.

  • Cut fundraising budgets

This seems counter intuitive to many but, unfortunately, is all too often chosen as a course of action. Instead of across-the-board fundraising cuts let’s look at some ways to make your fundraising efforts more cost efficient.

  1. Plan all media for the entire year.

It is difficult to integrate your mission and need statements without planning how all will be intertwined. Are your facebook posts supporting your direct mail ask and your website donation page? Do you have vehicles available to engage event attendees in an ongoing relationship? Long range planning will improve your fundraising ROI.

  1. Clean your database

I’ve worked with dozens of donor databases and data hygiene is a major issue. At the very least run your file through an approved USPS standardization and change of address software annually. Most mailing vendors can do this for you at a reasonable cost and the investment will pay dividends.

  1. Target, target, target

Sending the right message via the right medium to the right audience is critical to overall success. Accurate targeting requires the donor analysis we discussed two issues ago.

New donors are at a crossroads. Their future relationship with you is hanging in the balance. Speak to them early and often. They MUST know what their generosity means.

Not all of your past donors are potential respondents. One-time donors who’ve been inactive for two or more years comprise over half of most of the donor databases I’ve studied. There is very little you can do to get another gift from them. Why keep trying?

Twelve to fifteen percent of your donors will provide 80-85% of your donation revenue. Be sure they know just how important they are.

Some members of your community are more likely to embrace your mission than are others. Target donor acquisition appeals to those that most resemble your current good donors.

These are just some of the ways to make your fundraising more efficient. What are some of your methods (comments, please)?

PS Read Kevin’s full blog here.

http://humancapitalresource.net/kevin-berchelmann/middle-managers-we-didnt-miss-them-until-they-were-gone/

Tuesday, July 2, 2013

Brother can you spare a dime - Part 2

Not too long ago I was moderating a session on direct mail at the Success in Fundraising Workshop for the Quad Cities Chapter of the Association of Fundraising Professionals. At one point the discussion turned to the topic of solicitation letters. I made a statement that was, perhaps, too broad. “It’s not about you.”

Speaking in the institutional voice is a weakness I see in many fundraising letters. The executive director will cite statistics and the awards the organization may have won. Some letters do quote the organization’s mission statement but often in techno-speak. The “ask” may then be grounded in numbers and not the story.

You have a story – tell it.

The Cystic Fibrosis Foundation’s “65 Roses®” letter is one of the most successful in the history of direct mail fundraising. It has raised millions and has remained unchanged for over 20 years. It begins with the headline, “’65 Roses®…’ Why do children give such a beautiful name to such an ugly disease?” This is followed by the opening three paragraphs:

“ ‘65 Roses’ is what little children suffering from cystic fibrosis often call their disease.

The words are much easier for children to pronounce, but making it easier to say doesn’t make it any easier to live with…

I know this from personal experience. One of my children died from cystic fibrosis – and she was only eight years old.

Aren’t you already reaching for your checkbook? A parent who lost a child is telling his story.

Only two statistics are presented in the letter.

“More than 10 million Americans are unknowing, symptomless carriers of the defective gene that causes cystic fibrosis.”

And

“When the Cystic Fibrosis Foundation was created in 1955, few children with cystic fibrosis lived long enough to attend elementary school. Today, because of Foundation-supported research and care (Writer’s note – Please notice they did not say, “because of us” – they’re giving credit elsewhere), patients are living to predicted median age of 37.”

You’re writing out an amount because CFF is helping hard working researchers help parents like the writer have their children in their lives longer.

The preamble to the “65 Roses®” ask is, “A cure for cystic fibrosis is within our grasp. But, it’s simply a matter of time and money. The faster we can provide funds for scientific research, the faster we’ll see a cure.” Then, the close – “Your gift will be a beautiful way to help children and young adults fight an ugly disease.

The signature is the final touch.

“Sincerely,
Frank Deford
Parent and Past Chairman”

Not the executive director – a parent who has felt the heartbreak of losing a child (in this case also a celebrity).

The bottom line – tell the story of the people the donor will help – NOT YOU.

Message me or email me at dmsolutions4u@live.com and I will give you a FREE analysis of your current solicitation letter. Contact me also if you want the full text of the “65 Roses®” letter.

Wednesday, June 26, 2013

Brother can you spare a dime? (Part 1)

Brother can you spare a dime?

My friend Mike Vondran and I recently presented a session at the Success in Fundraising Workshop for the Quad Cities Chapter of the Association of Fundraising Professionals. Mike is the president and CEO of TAG Communications in Davenport and our topic was Direct Mail and Social Media: What Works and What Doesn’t. Today I begin a three-part series that summarizes much of what was presented and discussed.

Part 1 – Know thy donor

Who is giving? How often do they give? How much?

Raising money requires a balance between creating an emotional attachment to your mission and knowing just who will respond to your appeals. There are three data based tools that will help you with the latter part of that equation.

Behavior analysis

What is you average gift? How frequently does your average donor give. What’s the balance between your corporate, institutional and private donors? Quantifying these elements is the first step in determining the potential ROI for your events and appeals. If you’re collecting your data properly, you have the information – you just need to get it.

If you’re organization is like the many that I have worked with over the years, you’ll probably find that the vast majority of your money comes from a very small percentage of your donors. The 80/20 rule (80% of revenue from 20% of customers) doesn’t seem to apply to charities – 85/15 seems more appropriate. This points toward a real need for small charities to solidify their relationships with their major donors. Start this process by evaluating their past behavior.

You might learn that “in-kind” donors write checks reluctantly or that event sponsors don’t respond to direct mail. The efficiency of your annual development plan should rely heavily upon this type of information.

RFM Analysis

Direct mail is the bread and butter fund raising medium for most of the world’s prominent charities. The American Heart Association, Veteran’s of Foreign Wars, the Nature Conservancy, Greenpeace, the Audubon Society, the National Wildlife Federation, the US Olympic Committee, etc, etc, etc – all use direct mail extensively.

Many smaller organizations avoid direct mail because they focus on the investment – not the return. There is no denying that the development costs of a direct mail campaign can seem daunting – but don’t start there. Look at the income side.

An experienced direct mail fund raising professional will recommend three things:

1.      Start with a test.

This will make your per piece in-the-mail cost higher, but reduce your total exposure. Test results will guide you in your future decision making.

  1. Be realistic with your goal.

It’s reasonable to expect a 2-1 or 3-1 return on investment with a first time effort. It will take time before you move consistently into the 3-1 to 5-1 ROI range.

  1. Perform an RFM analysis on your donor file.

Not everyone on your database will respond to your direct mail effort. RFM analysis provides a means for identifying the most likely respondents. RFM stands for recency, frequency and monetary value and the predictive reliability of those three elements runs in that order. Your most recent donors are the most likely to give to a new effort and your most frequent donors follow them in responsiveness. Monetary value is an effective measure only when combined with the other two.

Each donor is scored on each element relative to the entire donor base. Selecting top potential respondents is key to the success of your mailing.

Donor demographic profiling

Every non-profit needs new donors. Finding them and then engaging them emotionally are your challenges. Once again – start with what you know. How educated are your donors? How old are they? What are their average incomes? Demographic profiling answers those questions.

You have your best chance for acquiring new donors by reaching out to those who are most like your current ones. Your acquisition direct mail lists should be rented using what you’ve learned about those who are giving to you now.

Profiling should also inform your entire development process. Which media are most effective in reaching this audience? Does your imagery reflect the makeup of your donor constituency? Are the mechanics of your presentation demographically appropriate? Here’s a prime example of the latter. Let’s say you determine that your prime donors are over the age of 50. Then why would you design a website that is hard for older folks to read – small and reversed type, etc?

All of the information you need to strengthen your fund raising is buried in your donor database. Start digging.

Next up – “It isn’t about you.”