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Making Advocacy Pay
             Understanding the Link Between
                  Activism and Giving

                                  Presented by:
                              Vinay Bhagat, Convio
                              Yvonne Garrett, OMP
                            Randy Paynter, Care2.com
                             Ryann Miller, Care2.com

                                 March 24, 2011

For Audio Call: 1-408-792-6300
Meeting Number: 668 671 770
Using
         •  Chat & Raise hand
         •  If you are having internet audio problems, you
            can dial-in using a landline: 1-408-792-6300,
            Meeting Number: 668 671 770
         •  If you lose your internet connection, reconnect
            using the link emailed to you
         •  WebEx Support: 1-866-229-3239


For Audio Call: 1-408-792-6300
Meeting Number: 668 671 770
•  This webinar is being recorded.
      •  The webinar recording will be available on
         Frogloop blog at http://www.frogloop.com
      •  You will receive a link to this presentation
         following the webinar.
      •  Tweeting the webinar?
         Use Twitter hashtag: #Care2



For Audio Call: 1-408-792-6300
Meeting Number: 668 671 770
Agenda

•  What is online advocacy?
•  What does advocacy have to do with
   fundraising?
•  How does it work?
•  Making the economic case.
 
 
    What is online advocacy?
Advocacy – The active support of an idea
 or cause etc.; especially the act of
 pleading or arguing for something

 
Defini'on from: wordnetweb.princeton.edu/perl/webwn 
What does advocacy have
 to do with fundraising?
Advocacy starts the
  conversation.
NRDC Activist Conversion
Finding New Supporters
•  73,000 new wolf activists through paid and
   organic sources

•  $40,000 spent on paid sources

 
One Year Later…
•  31,000 took another action

•  700 converted to donors online

•  1,325 converted to donors via mail

•  Break even – 15 months
Advocacy builds
 relationships.
Actions Increased Donor Value
Advocacy keeps donors
      engaged.
Analysis of Advocacy’s Impact
       on Fundraising
Activists:
   2+ actions Sept – Nov = 4x more
   likely to give at year end
                                                           Online     Offline
                                    Emails Action Takers Conversion Conversion Unsubs
Moved into 2+, Highly Responsive:     6,172        9.0%         1.0%        0.2% 1.9%
Stayed in L:                         88,293        0.7%         0.2%        0.1% 2.0%

Prior 2+ Action Takers:             66,239      12.2%         1.0%        0.3%   1.9%

Moved into L:                       30,817       2.3%         0.4%        0.1%   3.7%
Donors:
   2+ actions Sept – Nov = 26% more
   income at year end
                                                           Online     Offline
                                    Emails Action Takers Conversion Conversion Unsubs
Moved into 2+, Highly Responsive:     6,172        9.0%         1.0%        0.2% 1.9%
Stayed in L:                         88,293        0.7%         0.2%        0.1% 2.0%

Prior 2+ Action Takers:             66,239      12.2%         1.0%        0.3%   1.9%

Moved into L:                       30,817       2.3%         0.4%        0.1%   3.7%
 
         
How Does it Work?
Activist Relationship Management



    Recruit    Engage     Convert




                  Deepen
Recruit
•  Be thoughtful about form of ask
  –  Pledge vs. contact your legislator
  –  Constituent relevance

•  Multiple venues in addition to your website
  –  Paid online (e.g. Care2)
  –  Social media
  –  In the field

•  Strong user experience
•  Viral marketing including social media
Engage
•  Acknowledge returning Web visitors

•  Send tailored updates/ stories

•  Related appeals

•  Multi-channel appeals - email, text, social

•  Rewards/ incentives
Convert
•  Campaign specific donation forms
•  Email welcome/ conversion series
•  Follow up in timely fashion with mail, TM
•  Apply filters to prioritize investment
•  Select appeals based on advocacy actions
Website Activist to Donor Conversion
Food for Thought

 •  Major donors frequently active

 •  It’s increasingly critical to track
    messaging intensity/congruency
    across programs and channels
 
            
Making the Economic Case
Online Advocacy Increases Dona2ons 
                                                                              .47% 




                                      .07% 




                  No Online Ac2on                      Took Ac2on Online 

Source: : Charitable Memberships, Volunteering and Discounts: Evidence from a Large‐Scale Online Field Experiment. 
May 2009, Na2onal Bureau of Economic Research, A. Lange, A. Stocking. Sample size =  > 700,000 subjects. 
How do you measure
economic value?

•    Time to pay back investment
•    Cost per donor
•    Cost per dollar raised
•    Return on Investment
Online Recruitment: It’s a Relationship
                                    Cumulative Donation Income
                                           (over 36 months) 
250

200

150

100                                                             Return on Investment =
                                                                  Lifetime Value!
 50

 -
      0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36


         Source: M&R Strategic Services
Value of an Email Address
                       Human &            Environ-
   Annual                                                     Public              Animal
                        Social            ment &                                                        ALL
  Donations                                                   Affairs             Welfare
                       Services           Wildlife
Year 1*                        $17.18              $4.81              $3.36              $15.91              $11.68
Year 2                          $8.59              $2.41               $1.68              $7.96               $5.84
Year 3                          $4.30              $1.20               $0.84              $3.98               $2.92

Year 4                          $2.15              $0.60               $0.42              $1.99               $1.46

Year 5                          $1.07              $0.30               $0.21              $0.99               $0.73

Avg Lifetime
Value Per Email                $33.29              $9.32               $6.51             $30.83              $22.63


* * Source: 2010 Convio Online Benchmark Study of roughly 300 nonprofits. Email addresses are usable only (approx
50% of total addresses) Years 2 through 5 assume 50% per year drop off in donations.
Online Recruitment:
                            Multi-Channel Returns
                                           Cumulative Donation Income
                                      Online      Direct Mail   Telemarketing
250

200

150

100

 50

  0
      0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36


          Source: M+R Strategic Services
Fully Load Your Expenses
•  Direct Expenses
  –  Campaign costs (fixed and variable)
  –  Search Engine Marketing (SEM)
  –  Email appends
  –  etc.
•  Indirect Expenses
  –  Consultants (fixed and variable)
  –  Social Media Outreach (Facebook, Twitter, etc.)
  –  etc.
The True Cost per Lead
If I spent $1,000 to acquire 1,000 new leads, I spent $1.00 per lead. Great price!

But what if…
•  100 leads have bad addresses; and 200 leads unsubscribe within first 3 mo.
•  Now I’ve only got 700 leads, so the real cost per lead rises to 1,000/700 = $1.42
And what if…
•  Only 30% are opening my message.
•  Now I’ve got only 210 active leads, and the real cost per lead is 1,000/210 = $4.76
And what if…
•  Only 10% of these people click through and only 10% of those donate?
•  Then I paid $1,000 to buy two (2) donors, and my true cost ( Investment ) was $500
   per donor.




                              Quality Matters!
List Growth: Speed vs. Value
       10

High    9
Quality         Collecting Opt-ins                                Viral Campaigns
                   on your site
        8                                  Niche site
                                      e.g. Democrats.com         Paid Acquisition from
                  Google Adwords                                  targeted audiences
        7


        6
                                     Targeted List Swaps
        5


        4               Social                                 Name Acquisition Large,
                       Networks         Canvassing               General Audience
        3

Low                            Banner Advertising
Quality 2                                                                    List Append

        1
            1      2           3            4          5   6        7          8           9   10

                       Slow Growth                                  Rapid Growth
                       (<1k/month)                                  (>10k/month)
Calculate the Value of your Leads


                 SocialNetworkCalculator.com
Ryann Miller
Director, Nonprofit Services              Yvonne Garrett
416-651-9098                             Partner, OMP
ryannm@care2team.com                     ygarrett@OMPDirect.com




Vinay Bhagat
Founder & Chief Strategy Officer, Convio
vinay@convio.com
                                         Randy Paynter
                                         CEO & Founder, Care2
                                         randy@care2team.com

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Making advocacypay

  • 1. Making Advocacy Pay Understanding the Link Between Activism and Giving Presented by: Vinay Bhagat, Convio Yvonne Garrett, OMP Randy Paynter, Care2.com Ryann Miller, Care2.com March 24, 2011 For Audio Call: 1-408-792-6300 Meeting Number: 668 671 770
  • 2. Using •  Chat & Raise hand •  If you are having internet audio problems, you can dial-in using a landline: 1-408-792-6300, Meeting Number: 668 671 770 •  If you lose your internet connection, reconnect using the link emailed to you •  WebEx Support: 1-866-229-3239 For Audio Call: 1-408-792-6300 Meeting Number: 668 671 770
  • 3. •  This webinar is being recorded. •  The webinar recording will be available on Frogloop blog at http://www.frogloop.com •  You will receive a link to this presentation following the webinar. •  Tweeting the webinar? Use Twitter hashtag: #Care2 For Audio Call: 1-408-792-6300 Meeting Number: 668 671 770
  • 4. Agenda •  What is online advocacy? •  What does advocacy have to do with fundraising? •  How does it work? •  Making the economic case.
  • 5.     What is online advocacy?
  • 6.
  • 7.
  • 8.
  • 9. Advocacy – The active support of an idea or cause etc.; especially the act of pleading or arguing for something   Defini'on from: wordnetweb.princeton.edu/perl/webwn 
  • 10. What does advocacy have to do with fundraising?
  • 11. Advocacy starts the conversation.
  • 13. Finding New Supporters •  73,000 new wolf activists through paid and organic sources •  $40,000 spent on paid sources  
  • 14. One Year Later… •  31,000 took another action •  700 converted to donors online •  1,325 converted to donors via mail •  Break even – 15 months
  • 16.
  • 19. Analysis of Advocacy’s Impact on Fundraising
  • 20. Activists: 2+ actions Sept – Nov = 4x more likely to give at year end Online Offline Emails Action Takers Conversion Conversion Unsubs Moved into 2+, Highly Responsive: 6,172 9.0% 1.0% 0.2% 1.9% Stayed in L: 88,293 0.7% 0.2% 0.1% 2.0% Prior 2+ Action Takers: 66,239 12.2% 1.0% 0.3% 1.9% Moved into L: 30,817 2.3% 0.4% 0.1% 3.7%
  • 21. Donors: 2+ actions Sept – Nov = 26% more income at year end Online Offline Emails Action Takers Conversion Conversion Unsubs Moved into 2+, Highly Responsive: 6,172 9.0% 1.0% 0.2% 1.9% Stayed in L: 88,293 0.7% 0.2% 0.1% 2.0% Prior 2+ Action Takers: 66,239 12.2% 1.0% 0.3% 1.9% Moved into L: 30,817 2.3% 0.4% 0.1% 3.7%
  • 22.     How Does it Work?
  • 23. Activist Relationship Management Recruit Engage Convert Deepen
  • 24. Recruit •  Be thoughtful about form of ask –  Pledge vs. contact your legislator –  Constituent relevance •  Multiple venues in addition to your website –  Paid online (e.g. Care2) –  Social media –  In the field •  Strong user experience •  Viral marketing including social media
  • 25.
  • 26. Engage •  Acknowledge returning Web visitors •  Send tailored updates/ stories •  Related appeals •  Multi-channel appeals - email, text, social •  Rewards/ incentives
  • 27. Convert •  Campaign specific donation forms •  Email welcome/ conversion series •  Follow up in timely fashion with mail, TM •  Apply filters to prioritize investment •  Select appeals based on advocacy actions
  • 28. Website Activist to Donor Conversion
  • 29. Food for Thought •  Major donors frequently active •  It’s increasingly critical to track messaging intensity/congruency across programs and channels
  • 30.     Making the Economic Case
  • 31. Online Advocacy Increases Dona2ons  .47%  .07%  No Online Ac2on  Took Ac2on Online  Source: : Charitable Memberships, Volunteering and Discounts: Evidence from a Large‐Scale Online Field Experiment.  May 2009, Na2onal Bureau of Economic Research, A. Lange, A. Stocking. Sample size =  > 700,000 subjects. 
  • 32. How do you measure economic value? •  Time to pay back investment •  Cost per donor •  Cost per dollar raised •  Return on Investment
  • 33. Online Recruitment: It’s a Relationship Cumulative Donation Income (over 36 months)  250 200 150 100 Return on Investment = Lifetime Value! 50 - 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Source: M&R Strategic Services
  • 34. Value of an Email Address Human & Environ- Annual Public Animal Social ment & ALL Donations Affairs Welfare Services Wildlife Year 1* $17.18 $4.81 $3.36 $15.91 $11.68 Year 2 $8.59 $2.41 $1.68 $7.96 $5.84 Year 3 $4.30 $1.20 $0.84 $3.98 $2.92 Year 4 $2.15 $0.60 $0.42 $1.99 $1.46 Year 5 $1.07 $0.30 $0.21 $0.99 $0.73 Avg Lifetime Value Per Email $33.29 $9.32 $6.51 $30.83 $22.63 * * Source: 2010 Convio Online Benchmark Study of roughly 300 nonprofits. Email addresses are usable only (approx 50% of total addresses) Years 2 through 5 assume 50% per year drop off in donations.
  • 35. Online Recruitment: Multi-Channel Returns Cumulative Donation Income Online Direct Mail Telemarketing 250 200 150 100 50 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Source: M+R Strategic Services
  • 36. Fully Load Your Expenses •  Direct Expenses –  Campaign costs (fixed and variable) –  Search Engine Marketing (SEM) –  Email appends –  etc. •  Indirect Expenses –  Consultants (fixed and variable) –  Social Media Outreach (Facebook, Twitter, etc.) –  etc.
  • 37. The True Cost per Lead If I spent $1,000 to acquire 1,000 new leads, I spent $1.00 per lead. Great price! But what if… •  100 leads have bad addresses; and 200 leads unsubscribe within first 3 mo. •  Now I’ve only got 700 leads, so the real cost per lead rises to 1,000/700 = $1.42 And what if… •  Only 30% are opening my message. •  Now I’ve got only 210 active leads, and the real cost per lead is 1,000/210 = $4.76 And what if… •  Only 10% of these people click through and only 10% of those donate? •  Then I paid $1,000 to buy two (2) donors, and my true cost ( Investment ) was $500 per donor. Quality Matters!
  • 38. List Growth: Speed vs. Value 10 High 9 Quality Collecting Opt-ins Viral Campaigns on your site 8 Niche site e.g. Democrats.com Paid Acquisition from Google Adwords targeted audiences 7 6 Targeted List Swaps 5 4 Social Name Acquisition Large, Networks Canvassing General Audience 3 Low Banner Advertising Quality 2 List Append 1 1 2 3 4 5 6 7 8 9 10 Slow Growth Rapid Growth (<1k/month) (>10k/month)
  • 39. Calculate the Value of your Leads SocialNetworkCalculator.com
  • 40. Ryann Miller Director, Nonprofit Services Yvonne Garrett 416-651-9098 Partner, OMP ryannm@care2team.com ygarrett@OMPDirect.com Vinay Bhagat Founder & Chief Strategy Officer, Convio vinay@convio.com Randy Paynter CEO & Founder, Care2 randy@care2team.com