Nonprofit internet strategies phần 2

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22 IT ALL BEGINS WITH STRATEGY strategy team brainstormed about how they could use the Internet to enhance each of these mission-critical activities or carry them out more efficiently. Strategic planning should always begin with organizational mission—the purpose and reason for being of every nonprofit. Mission dictates the activities and programs of an organization, both on- and offline. Mission clarifies the “business” a nonprofit is in—that is, the scope of what an organization wants to accomplish—and strategy determines the activities that will be used to support the mission. Some organizational missions require promoting awareness, providing services, conducting programs, or carrying out other activities. Properly deploying the Internet requires viewing an organization holistically, with fulfilling the mission as the paramount goal of every activity, department, and program. Mission articulates the what; strategy provides the how. Additionally, every activity should be accompanied by clear, quantifiable objectives to measure the relative success of efforts, as well as to demonstrate return on investment. Developing a strategy is often the ideal time to revisit goals and objectives to ensure they are still timely, accurate, and relevant to the mission. CONSTITUENCY As the strategy team brainstormed, they realized all of their ideas had one thing in common—the involvement of the patrons, donors, volunteers, members, and other constituents who supported the symphony. Internally, the strategy had to serve the symphony’s mission. But, it also had to serve an external audience—the wants and needs of the people most important to the organization. Nonprofits must identify and respond to the wants and needs of constituents in order to build and sustain a loyal donor base. Just as with direct mail, operational activity, marketing, or any other offline activity, Web presence must closely match constituent needs, and building an effective strategy requires knowing and understanding the values, attitudes, and behaviors of constituents in order to tailor Web content and services. Information must be relevant and timely, services must be useful, and the overall experience must be user-friendly and valuable. When it comes to relationship building, organizations must conduct coordinated, constituent-centric activities in order to attract and maintain the attention and support of the public. Having a Web site that lacks timely and interesting content or helpful services, for instance, will discourage visitors from returning. Of course, these elements are both interdependent and subject to change, making strategy a living, constantly evolving process. To be effective, the use of technology must be revisited from time to time as the activities evolve to ensure all aspects of the organizational strategy are being supported. The impact the Internet will have on fundraising and the nonprofit community is far from certain, and nonprofits will need to adapt their strategy to take advantage of ever-improving technology and online marketing practices. The process of crafting a strategy is often iterative. The results and feedback from strategically planned activities inform and drive decision-making going forward, a self-tuning approach that vastly increases results over time. Applying Strategy—Sample Case 23 APPLYING STRATEGY—SAMPLE CASE After assessing the symphony’s mission, the activities of each department and the needs of their constituents, the team began drafting a strategy. From a strategic standpoint, making decisions regarding the board’s suggestions was much easier. The team recognized two primary objectives for the symphony: optimizing internal business processes and conducting bidirectional communication with constituents. After identifying these objectives, they could focus on how to use the Internet to support, expand, and deepen the symphony’s existing mission-critical activities. Fundraising was integral to the sustainability of the symphony’s operations and was one of the initial reasons for investing in a Web site. Accepting online donations would be convenient and easy to use for donors and could automate gift entry and processing, reducing the burden of administration and freeing staff to work on more valuable activities. Additionally, e-mail campaigns could complement the symphony’s successful direct mail efforts. The strategy team discussed these options with the board, and everyone agreed they should move forward with these initiatives. Although the symphony held a silent auction fundraiser every year the team realized that online auctions were beyond the scope of the symphony’s mission. A significant portion of the symphony’s constituent-facing activities took place through the ticketing department, and the Web offered a number of opportunities to improve service and increase value to the public. Online ticketing would make attending performances more convenient, and online customer service features—including a “Contact Us” Web form and a list of FAQs—could help the symphony better serve patrons while reducing the number of incoming calls. These options could provide convenient alternatives for visitors in addition to the traditional ways of contacting the symphony. The marketing department began a publicity drive that would take advantage of the inherent benefits of Internet communications. They added the symphony’s Web address to all of its printed materials to drive traffic to the site and began publishing high-quality, Web-only content to keep site content fresh and encourage first-time visitors to return to the site. Rather than investing in more graphics and animation for the site, the team decided to repurpose print content for the Web—an approach that would save time and money, as well as provide an ongoing resource for people interested in the symphony and its performers. Although having online communities and Web casts of performances were initially interesting ideas, these ideas failed to hold up under closer strategic scrutiny. The team decided that the time and resources required to build these features would be better spent elsewhere. However, the team agreed to reconsider these ideas in the future when revisiting their strategy. The marketing and development teams also worked together to take advantage of the Web for a benefit concert with the symphony’s jazz quartet at a popular local venue. The jazz quartet had broad appeal and, historically, jazz events had been one of the symphony’s top fundraisers. This year, the symphony wanted to expand the event to include an even broader audience. The strategy team recognized that the Internet—with more efficient processing, 24/7 availability, and appeal to a younger demographic—could potentially help to achieve this objective. In order to reach a broad demographic, the symphony promoted the concert through partnerships with local rock and popular radio stations. In addition to of- 24 IT ALL BEGINS WITH STRATEGY fering tickets through the symphony’s traditional ticketing office, the symphony began offering tickets online. Each radio advertisement mentioned the symphony’s Web address and encouraged people to buy tickets and donate online. To further encourage online traffic, the symphony offered two-for-one coupons for online ticket buyers. Additionally, demographic information from online donations and ticket purchases—including e-mail addresses—was captured and logged into the donor database for use in future e-mail campaigns. The initial results from the benefit concert were very encouraging—the broad appeal of the quartet combined with the reach of popular radio stations drew a record crowd, as well as provided a great jump start for the Web site and a substantial pool of e-mail addresses for future communications. The key to this success was the strategy team’s recognition that e-mail functionality, e-ticketing, and Web-based communication and support could not replace their traditional offline counterparts. Executing the strategy improved the results of these activities and deepened value to constituents—a key to any successful strategy. CONCLUSION The preceding case study, although fictitious, illustrates the leveraging power of the Internet as a tool to support organizational strategy—from optimizing ticket sales and improving the value of customer service to expanding marketing efforts and deepening constituent interaction. Jane’s success derived from the articulation of an organizational strategy and the subsequent implementation of appropriate goals and activities. In regard to Internet, most organizations are little different than Jane’s, and nonprofits that want to benefit from the advantages of the Internet must first create a strategy. ABOUT THE AUTHOR Anthony J. Powell, CFRE, ePMT, vice president of consulting services, is responsible for Blackbaud’s 160-employee consulting and technical services division. Tony joined Blackbaud in 1998 as a fundraising system consultant and has helped consulting services mature into one of the company’s fastest-growing divisions. Before joining Blackbaud, Tony spent 10 years in the nonprofit sector building his expertise in business process improvement, prospect moves management, and major gift solicitations as a major gifts officer at the Smithsonian Institution, assistant vice president for the Greater Baltimore Medical Center Foundation, and VP and COO for The Wesbury Foundation. Tony is a graduate of Allegheny College, where he began his fundraising career as assistant director of the Annual Fund. A five-time CASE Faculty All Star, Tony is a frequent speaker at national and international industry conferences. You can e-mail Tony at tony.powell@blackbaud.com. Endnotes 25 ENDNOTES 1. Fundraising is only one way in which nonprofits can use the Web. Many nonprofits have used the Internet to automate labor-intensive back office tasks through automatic inventory control, services management and similar tools. While constituent engagement has been the focus of much publicity surrounding the Internet, internal optimization has historically demonstrated lasting results for both businesses and nonprofits. A discussion of the benefits inherent to business-to-business (B2B) applications of the Internet, however, is beyond the scope of this book. 2. Nicole Wallace, “Online Donations Make Gains,” The Chronicle of Philanthropy (June 12, 2003). 3. Nicole Wallace, “Charities Tally Year-End Online Gifts,” The Chronicle of Philanthropy (January 21, 2003). 4. NonProfit Times study, February 17, 2004. Available online at http://www.nptimes.com/ enews/Feb04/news/news-0204_3.html. 5. www.redcross.org. 6. Nicole Wallace, “Charities Tally Year-End Online Gifts,” The Chronicle of Philanthropy (January 21, 2003). 7. www.heifer.org. 8. Reed Abelson, “Business to Business: Charities See Web’s Potential, but Are Finding It Hard to Afford,” The New York Times (29 March 2000), Section H, p. 30. 9. www.virtualpromise.net. 10. Blackbaud Consulting Services 2003 study. 11. Michael E. Porter, “What is Strategy?” Harvard Business Review (November–December 1996), 70. 12. Michael E. Porter, “Strategy and the Internet,” Harvard Business Review (March 2001), 64. 13. Michael E. Porter, “What Is Strategy?” Harvard Business Review (November-December 1996), 64–68. CHAPTER 3 Multichannel Marketing Marcelo Iñarra Iraegui, ePMT Greenpeace International Human beings use different kinds of thought mechanisms to understand different kinds of situations. MARKETING WITH A CHEF’S HELP Think about your favorite dish for a few seconds. Ready? Now think about the ingredients that make this dish so special for you—its unique taste, the aroma and special texture, the mixture of colors, or the sound it makes while cooking. This exercise will surely have whetted your appetite, but restrain your desires to rush off to your favorite restaurant. We are here to discuss how marketing will better your fundraising program by using the different offline media integrated with the online world. So let’s go back to the kitchen. As I can’t make an analysis of your favorite dish, I’ll do so for mine. Spaghetti with Seafood Sauce What makes this dish so special for me? The texture of freshly made spaghetti, the tomato sauce with red crayfish, mixed with fresh green herbs, and the unique aroma of chopped garlic in olive oil all produce expectations and anticipation of an unmistakable taste. This dish awakes all my senses, and this synergy of sensations makes it my chosen dish from among hundreds. This dish naturally uses multichannel marketing. As fundraisers, we need to use multichannel marketing to combine traditional media with the Internet, just as a chef mixes ingredients with artistic flair and knowledge to create our favorite dish. Multichannel marketing grew on a worldwide scale in the commercial sector during the 1990s, but without a doubt, this great revolution is a result of the incorporation of the Internet as a channel that modified the way of understanding and doing business. Today, it seems impossible for a company not to plan a sales campaign in an integrated online/offline way, whether we are talking about a mass consumer product such as soap powder, or a luxury item such as the most expensive car in the world. This is a tremendous opportunity for the nonprofit sector, because there aren’t many 26 27 A Chef in a Virgin Land such organizations using the mass media or more segmented media such as direct mailing or telephone fundraising with an online component. A CHEF IN A VIRGIN LAND I started as fundraising director for Greenpeace Argentina in 1995. Argentina was then an almost virgin market in professional fundraising, with all the advantages, challenges, and inconveniences that a new market presents. Instead of copying the established models, we ran multiple tests to find out which was the most appropriate form of media for Greenpeace Argentina. We incorporated integration of online media in 1996. We had our first donor through our Web page www.greenpeace.org.ar in the same year. Our Web site has subsequently transformed itself into a response channel whereby a third of new donors join Greenpeace Argentina (see Exhibit 3.1). The Greenpeace Argentina case began to be published and presented in the main international conferences, without our seeking this out, because of the diverse and successful strategies we have been working with since the middle of the 1990s. Following Jules Verne’s thought that “by knowing your village you will know the world,” we systemized the general teachings of the “Seven Elastic Rules of Online Fundraising”: Percent of All New Monthly Supporters 1. Change organizational culture, or how to make bytes an integral part of your existence. 2. Use the Web site as a response channel. 3. Develop a strong e-mail fundraising program. 35 32 30 28 25 22 19 20 15 10 7 5 3 1.4 0 1997 1998 1999 2000 Year EXHIBIT 3.1 Evolution of Online Donors Source: Greenpeace.org.ar 2001 2002 2003 28 MULTICHANNEL MARKETING 4. Integrate online and offline media. 5. Communicate from your Web site the opportunity to “live” the experience of being part of your organization. 6. Use online media to foster the relationship with donors. 7. Test. The history of online fundraising is being written and boundless discoveries are there to be made. In this chapter, we shall be looking in detail at some of these rules, relevant to the theme of this chapter. KNOCKING DOWN WALLS Human beings use different kinds of thought mechanisms to understand different kinds of situations. One such mechanism is separating a complex problem into its distinctive parts in order to understand them. By analyzing these parts, we can understand the whole. As fundraisers, we often propose strategies that employ this thought mechanism, but sometimes we get stuck in the middle of this process without reintegrating each component into the whole. This is one of the consequences of how some organizations structure their fundraising department, somewhat like a silo. They have an area of direct mail, another of telemarketing, another of major donors and yet another of bequests, and there is a very low level of integration between the divisions. This management structure was carried into fundraising, using only one medium, without at least testing the different integration possibilities with one or more media. The Internet has done more than just knocked on fundraising’s door, however; it has the tools to demolish walls! The online strategy is a transversal component that cuts across all areas and poses a big challenge to these areas. A challenge that is even more complex in big organizations where structures are more specialized resulting in more isolation. The solution to these problems is varied and different for each organization. The important thing is to knock down these walls, and the entire team must share the same motivation to reach a common goal. Integrating Traditional Media with Online Media Integrating the Internet into the fundraising strategy has to happen in the fundraiser’s head. This integration has more to do with a change of attitude toward using online media than massive investment of resources. It is fundamental to break down resistance, such as “This won’t work,” “It’s not for us,” “Things are different in our country,” and many other barriers and fears, too numerous to mention here. There are hundreds of reasons in this book, backed up with solid arguments and evidence, that prove that the Internet has arrived in the world of philanthropy to stay. Strategically, the integration of offline media with the Internet involves two big components: 1. Using the Web site as a channel where donors respond to campaigns 2. Providing the opportunity to consolidate the reasons why people should support our organization, and acting as the point of “closing” for appeals 29 Knocking Down Walls Going in through the Screen To be able to use your Web site as a response channel, it is advisable to ask yourself some questions: How would I respond to being asked for a donation? What channel would I use to respond? Would I prefer to respond by telephone? Would I prefer to send a fax? Would I like to fill in a coupon to be sent by mail? Would I want to make my donation online using a Web site? In my experience of working on a global level, from the 1990s up to now, having contact with fundraising professionals from all over the world, I have seen a strong and growing trend in the use of online media as a response channel. In fundraising programs where a choice of options to make donation is given, including online, there has been a significant increase in the number of people who respond via the Internet, in detriment to traditional channels, such as by post, fax, or telephone. This trend will continue to rise over the next several years. Demographic changes have shifted the power to kids—who are practically born with a PC in their crib. These will be the core targets of most organizations (see Exhibit 3.2). Responders Evolution 1990s Phone-fax-post responders Online responders Responders Evolution Today Phone-fax-post responders EXHIBIT 3.2 Tracking Core Targets Source: Greenpeace Argentina Online responders 30 MULTICHANNEL MARKETING Let’s analyze a case from a quantitative point of view. In Greenpeace Argentina’s January 2000 multimedia campaign (see Exhibit 3.3) against whaling in the Antarctic, 25 percent of total supporters who responded preferred to make their donation via our Web site, even though our messages were transmitted from various offline media such as television, radio, billboards, and press ads, among others. Thus, 75 percent of donors responded through offline channels, such as telephone, fax, or mail. The results obtained in that campaign has established guidelines and standards that are still used today. Some results obtained were as follows: 21 percent of total donors who saw a 36-second television spot preferred to join through our Web site, and the most surprising, 34 percent of donors who heard our message by radio joined via the Web site. Let’s analyze this campaign from the viewpoint of online donors. What media had more influence on these donors? Was it the offline ones, such as a 36-second TV spot, newspapers, magazine and posters advertisement, those by radio, or the online ones with an intensive banner campaign in the main portals? Which ones would you bet on? If you bet on the offlines—then you’ve won. Of total online donors, 67 percent had seen our appeal for donation through the offline medias. The other 33 percent responded to our intensive banner and article campaign with Web site links. This is not a surprising result given that we spend most of our lives living our “material world” offline. Let’s look at what these online donors thought about their online experience. From a qualitative point of view, it is interesting to note the comments of some of these donors, who later formed part of a focus group on satisfaction. Some of their com- APPEAL EXHIBIT 3.3 Response Channel % Online Offline TV spot Web + Portals + Banners Press ads Radio Billboards PR Newspapers and magazine inside Inserts Free postcards Spontaneous 21 73 17 34 26 17 62 16 5 0 79 27 83 66 74 83 38 84 95 100 TOTAL 25 75 Whaling Campaign 2000—General Results Source: Greenpeace Argentina Knocking Down Walls 31 ments, in relation to the response channel, were surprising: “It is so easy, you just fill in the form on the site and you donate right away.” “It was the only way to join. If it hadn’t been so simple, I would have never joined.” This research proves that they would not have made their donations if there hadn’t been the option of donating via our Web site. This result is also backed up by our daily experience in our Supporter Service Area. Another fundamental reason to integrate your Web site as a response channel is that it allows you to attend to hundreds of requests per second. This makes any campaign that uses a mass-media strategy such as DRTV—Direct Response Television— a natural partner to online response mechanisms. Television spots generate a huge volume of “calls/hits/requests” in the first few seconds of an appeal, be this a 60-second spot or a telethon of various hours. People respond impulsively and immediately. A Web site allows you to process a volume of transaction that is impossible for any traditional call center to attend to in the same space and time. The UK Comic Relief Case, www.comicrelief.com shows that in their 2002 yearly telethon, they succeeded in processing 47,000 online transactions between 9:30 P.M. and 10:30 P.M. That is 783 per minute! Using your Web site as a response channel, when responding to offline medias, also has other fundamental attributes. It is open 24 hours, 365 days a year. This advantage was fully utilized in a 2003 Pan Regional Greenpeace International campaign covering 23 Latin American countries, that I ran, combining the use of satellite television and the Internet as the response channels, running a series of messages on a rotative basis, covering the different time zones and effective use of nighttime and early hours. One remarkable fact is that online donations have a higher average than those made offline. In the case of one-off gifts, online donations have been 50 percent more than offline, as in the September 2001 Telethon case, “America: tribute to heroes,” where average offline gifts were $100 (U.S. dollars), while online gifts were $150. In my experience of working with monthly and automatic donations, online donations are between 10 percent and 20 percent more than offline. Welcome to . . . The second strategic component in the integration of media is the possibility to consolidate the reasons why people should support our organization. Our Web site has the job of “closing” our offline request. The Internet offers tools that fundraisers have dreamed about: to be able to penetrate the mind, inspire, and seduce people into how worthy it is to support our cause. A Web site can use almost all the creative resources of other mass media, amply surpassing their normal effectiveness when used interactively. Let’s look at some examples: A direct-mail pack can be made more powerful by being combined with an unforgettable online experience. The contents of a press ad, or a radio or television spot can be amplified to a degree that is impossible to communicate on a page or otherwise in a few seconds. There is also one vital point to be noted. A Web site offers the chance to start a dialogue that can last for life. If we invite visitors to the site to leave their e-mail address,
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