October 2008

2. Online video?

By Tom Belford

Here’s some data that may surprise you about online video from BrightRoll, the Internet’s biggest online advertising network:

Tom Belford writes the daily blog The Agitator with Roger Craver. This article is reproduced with permission from a recent post.

3. What’s in a phone script? (Part 2)

By Joe White

Editor’s note: In this second article of a three-part series, veteran telephone fundraising consultant Joe White critiques a second telephone fundraising script prepared for one of his nonprofit clients’ fundraising campaigns. The script itself is reproduced here, with Joe’s analysis following it.

INTRODUCTION

Hello (PROSPECT), this is ____ calling from Telemarketing for Change on behalf of the Citizens For Free Hydro. I’m a paid solicitor, and the Telemarketing for Change is a professional fundraiser, who will receive as costs, expenses, and fees, a portion of the funds raised through this solicitation campaign. This call may be monitored or recorded to ensure quality.

I’m calling to give you a brief update on our work, especially concerning the recent rate increases for Mega Edison and Giant Electro customers. Is this a convenient time to talk? I promise to be brief.

FIRST ASK

First of all, I want to thank you for your past support of FREE HYDRO. With the support of utility ratepayers like yourself, FREE HYDRO has had a long history of successfully fighting to keep electricity rates affordable for county residents. Since 1984, FREE HYDRO has saved customers about $10 billion.

But now we face a new battle, and we need your help. You may have read recently that your Utility (NOTE TO FUNDRAISERS: reference information on the dialer screen to learn whether the donor is a customer of Mega Edison or Giant Electro) will be pushing for a rate increase (26%, $160/year for Mega Edison customers; 55%, $338/year for Giant Electro customers) because the utility is now purchasing power via an auction process. These are increases that many households simply can’t afford.

So, FREE HYDRO is working in two ways: FREE HYDRO is working through the courts, appealing to the state appellate courts to overturn the hike, and as well pushing for legislation in [State Capital] that will extend the current rate freeze another three years, to protect consumers from these unfair rate increases. FREE HYDRO is building a statewide coalition of community groups, residential customers, and political leaders to extend this freeze. But we need your help. We are calling past supporters of FREE HYDRO and asking them to help with a generous contribution of [2x MRC, or $100 minimum], making you a FREE HYDRO Consumer Champion. Is that something that you could do?

(IF YES, go to CREDIT CARD ASK, below; IF NO, continue…)

I understand, that is a lot to ask for. I only start at that level because there are those who can help at that amount, and I’d hate to miss them by not asking.

As soon as word of these rate hikes came down, FREE HYDRO sprang into action in a way that no one else can: FREE HYDRO’s Action Center on our Web site has information on citizen lobbying. We’ve been working to get word out about these unfair rate hikes into the press, and our working to hold politicians accountable to the needs of ratepayers all over the state, as opposed to utilities that are awash in profits right now, before any rate hike has gone into effect.

When the State Legislature created FREE HYDRO in 1984, aside from a small seed stipend, it was mandated that no state funds could be used to run the organization. So, we’ve accomplished all of our work through the generous support of rate payers like you, who understand that working together we can make a difference fighting rate hikes, unfair regulations, and many other activities.

Can you help with a contribution of [1x MRC, or $50 minimum],
(IF YES, go to CREDIT CARD ASK, below; IF NO, continue…)

THIRD ASK

I know there are a lot of good organizations out there, but we are asking because the need right now is so very great. If we don’t do anything, these new rate hikes will go into effect on January 1, 2007. But we’ve seen in the past that when everyone works together, we can make a difference. If you could support our work with a small, $25 contribution, it will go a long way to freezing these utility rates. Can you help at that level?

(IF YES, go to CREDIT CARD ASK, below; IF NO, continue…)

IF NO:  Well, thank you in any case for your time, maybe you can help us at another time. Bye bye.

CREDIT CARD ASK

1st CC ASK IS “ASSUMPTIVE”: Great—thank you so much! We’re processing gifts today using [accepted credit cards] . . . which would you prefer to use?

2nd CC ASK IS “EXPLANATORY”: I understand. The reason I asked for a credit card is that it’s the most efficient way to process your contribution—there’s less administrative time, paperwork, and postage involved and more of your contribution goes towards our programs. Would you help in this way?

IF STILL NO: That’s fine. We’d be happy to process a check pledge. I’ll send you a card and reply envelope in the mail.

FUNDRAISERS: MAKE CERTAIN TO TAKE ALL CREDIT CARD INFO BEFORE RECORDING BEGINS

RECORDED CONFIRMATION OF PLEDGE AMOUNT AND TYPE

Let me confirm this again please.

1) CONFIRM PLEDGE AMOUNT, TYPE and RETURN DATE (for check pledges)

CHECK: You have agreed to make a [pledge/contribution/gift] of $____ to FREE HYDRO. Is that correct? [Note: must get a yes or no response.]

We’ll send you a card and reply envelope in the mail—it has a [describe envelope] on the outside of the envelope so you can identify it easily. May I count on you to return your gift within [3 to 4 days/the same day/the next day/within 2 days of] receiving the envelope?  

Return date must be an exact time frame. If they do not make such a commitment, it is not a valid pledge and should be recorded as a refusal.

CREDIT CARD: We'll send you a confirmation for your pledge/contribution/gift of $____ to FREE HYDRO. I have recorded that you have asked to have it charged to your [VISA/Amex/MC] account. Is all that correct? Must get yes or no.

2) CONFIRM ADDRESS: And let me just confirm your mailing address. Are you still at [read address on screen]? Must get yes or no.

3) DISCLAIMER / TAX STATUS LANGUAGE (when applicable): Just one last thing—I need to let you know that donations to FREE HYDRO are NOT tax-deductible.

4) THANK DONOR FOR THEIR GIFT AND SUPPORT! Thank you for your generous gift of $____ and for your support of FREE HYDRO—your help makes our work possible! 

 
MAKE SURE THE DONOR HANGS UP FIRST!

Here’s Joe’s analysis:

I don't think calling people for “a brief update on our work” is very compelling. In this script, why not lead with “I’m calling to talk to you about the pending increase in electric rates. The increases are outrageous.” Interject some emotion—that's what turns people on.

It’s good to remind donors (especially lapsed ones like those addressed in this script) that they have benefited (saved money) because of the group's efforts.

$10 billion is hard for most people to grasp. Instead, I'd say “FREE HYDRO has saved ratepayers like you and me about $120 per year.” Wow! This gets their attention and their gratitude.

The first sentence in the 3rd paragraph is 52 words long! This does not resemble any conversation I’d be likely to get into. See if you can shorten this sentence and make the information punchier. For example: “FREE HYDRO is working to help you by suing in court if we have to. We’re lobbying the politicians. We’re putting pressure on the decision‑makers.”

When you’re trying to come across as having a personal, one-on-one conversation, don't use the third person (“We are calling past supporters of FREE HYDRO and asking them to help with a generous contribution . . .”). Write instead something like “I’m calling you because you have supported us to keep utility rates down. I'm calling you for your help again now to . . .”

In the Second Ask, don't apologize for asking for financial support. Be proud: You’re working for a great and important cause. Make sure your scripts get this across. (What kind of statement is this?  “. . . and I'd hate to miss them by not asking.”)

Try this instead: “This is a great cause. I’m sure if you were able to you might consider a gift of that amount. I’m sure we can find a good level for you."

Notice the language “working to hold politicians accountable” vs. “we're holding politicians accountable.” Why double verb it? Be direct, assertive, proud, confident. People give to urgent, exciting, dynamic causes.

The Third Ask is lame. I’d rather go right to “Thanks very much for your time. Before I go, will you match last year's gift of $25 to help us make a difference?” You've done all the explaining and this person just wants to get off the phone by this time. Give her a chance to feel good, get it over with, and make a gift.

Stay tuned for Joe’s analysis of another telephone fundraising script!

Joe White, President of Left Bank Consulting, is an international telephone fundraising consultant based in Toronto. Phone (647) 477-1754 or (413) 774-7666, e-mail jwhite@sharegroup.com.

4. Prospects?

Looking to today’s 50- and 60-somethings as promising candidates for your fundraising program? If so, you might want to re-think your projections. According to an AARP study of the current financial well-being of Americans, as discussed in the AARP Bulletin, a good number of these people are being hurt by the poor economy. The survey finds that nearly one in five people aged 55-64 plans to put off retirement because of the downturn in the economy. Eighteen percent of those in this age group blame falling home values and one-third of similarly aged workers cite their shrinking stock portfolios.

5. Destination Marketing

By Tom Gaffny

At the 2008 DMA Nonprofit Conference in Washington DC, late in January, Tom Gaffny, then Executive Vice President at Epsilon, delivered an extraordinary workshop, relating the findings of his year-long study of online best practices. The presentation included a staggering 192 slides and revealed so much about the state of fundraising online today that it was virtually indigestible at one sitting. Tom graciously agreed to allow us to publish his findings piecemeal as a new column in this newsletter. What follows is the seventh installment.

In my year-long study of the online practices of 144 nonprofit organizations, I learned about 12 ways that charities are using the online medium to bring donors closer to the cause . . . again and again. They’re thus making their organizations more relevant, more provocative, more stimulating, and more engaging.

Here, once again, are those 12 techniques:

• Be relevant—be local
• Highlight the video
• Engage constituents
• Leverage techniques that work in the mail
• Send information in bite-size chunks
• Work at channel integration
• Personalize your organization
• Be visual—be provocative
• Say "thank you" in different ways
• Ask friends to "get the word out"
• Be timely—be there
• Highlight your partners

In my previous columns, I addressed the first six of these 12 approaches. This month I’ll cover the seventh.

Personalize your organization

“Personalization” is a word of many meanings. In direct response fundraising, we might mean embedding into an appeal personal information about an individual donor that has been recorded on the donor database—not just name and address, but also, perhaps, information about the donor’s expressed preferences, donor history, or personal circumstances. Alternatively, personalization might simply connote injecting human interest into an appeal, bringing an issue or a problem into sharp focus—or dramatizing the value of an organization’s services—by  demonstrating its impact on a sympathetic individual. The very best personalized appeals combine both elements.

This example from the American Lung Association comes close. The story of Thelma certainly highlights the issue in a very personal way. Take special note of the copy that reads as follows:

You probably know a child who suffers from this chronic disease. A promising teenager like Thelma or a precious grandchild. Maybe even one of your own children lives with the difficulties of asthma every day.

In the most basic sense, this appeal is also “personalized,” since it’s addressed “Dear Thom.” (Presumably, the American Lung Association didn’t have anything more substantial than my first name to embed into the appeal.)

However, there is a third element of personalization in this appeal:

The photo and personal signature of the Association’s CEO add another element of human interest, helping bring this appeal to life.
Stay tuned to this column for future chapters in the continuing saga of best practices in e-mail fundraising!

Tom Gaffny can be contacted at Tom Gaffny Consulting, 71 Cliff Road, Wellesley MA 02481, phone (781) 685-6825, fax (781) 685-0817, e-mail
tomgaffny@hotmail.com

6. Ask Mal

Since 1994, when the Mal Warwick Associates Web site went online, Editor Mal Warwick has answered fundraising questions posed by visitors to the site. Hundreds of those Q&As are available here. In this feature, we'll spotlight one Q&A from the most recent month.

Question: How can we recruit more monthly donors?

Eighteen months ago we started a monthly giving programme. Because we wanted to grow it fast, we contracted an agency that goes door to door to sign people up. This is the only agency that currently does this. We sign people up on a direct debit.

What I'm finding now 18 months down the track is continued high attrition that is like a cancer in this programme. In the first year we had a 35% cancellation. In the first six months of the second year we have had a further 10%.

A lot has to do with who was signed up and the tactics the door-to-door people used to sign people up. For example, many thought they were giving just one donation or felt pressured into giving. Many were signed up who shouldn't have been.

I would love to break free from using this agency but am at my wit’s end as to what to do next to continue growing our programme and reaching the targets set.
Has anyone had success at using direct mail to grow monthly giving? Any tips? What about an acquisition mailing to grow monthly giving?

Mal answers: The door-to-door recruitment technique you mention—or, for that matter, any sort of face-to-face recruitment effort—typically produces substantial attrition. I'm not familiar with a wide enough range of experiences to know whether the attrition statistics you cite are out of the ordinary, but they don't sound outrageously high.

There are three things I suggest you consider reviewing in your current program before you shut it down and turn to another channel to recruit monthly donors:

1. Take a close look at the fundraisers' tactics at the door. If, in fact, they're deceiving people, you should, of course, shut them down. That's the worst sort of publicity for your organization. If, however, what's happening appears to be merely a lack of training, I think it would be advisable to help the contractor improve the training program. After all, you're essentially partners in this enterprise.
2. Review carefully the ways you communicate with newly recruited monthly donors. What's the first thing they receive following their agreement to join the program? Who sends it? How quickly? What's the second thing? The manner in which new donors are greeted and thanked can make a very big difference in renewal (or attrition) rates.
3. In addition to a door-to-door recruitment effort (assuming all it requires is fine-tuning), I suggest you consider a combination of direct mail and telemarketing. First, and most important, you should explore the potential of your one-off donors (if any) to join your monthly giving program. Direct mail can be an effective first step in such an effort. The telephone, however, is typically a more effective tool for recruiting monthly donors. Second, if you already prospect for new one-off donors by mail, test adding an option for monthly giving. In some countries, this has proven effective. (In others, it depresses returns and isn't cost-effective.)

7. Obama takeaways

By Deborah Block and Paul Karps

Okay, we admit it. We’re suckers for great oratory. And in our book, at least, Barack Obama’s acceptance speech at the Democratic National Convention was a stellar example of the power of speech. The goal? To explain and persuade, inspire and motivate.  But, you may be asking, what does all this have to do with direct mail fundraising copy?

Well, think about those verbs: explain...persuade...inspire...and motivate. That’s pretty much what copywriters do for a living. And why, as we’ve said in this newsletter time and again, a good direct mail letter should read like a good speech.  So here are just a few of the many ideas we can all take away from Obama’s speech and effectively apply to the art of writing fundraising copy:

Develop a theme and carry it through

Obama began by talking about the “American promise” and consistently came back to this theme throughout his speech. He then came full circle, closing his remarks by referencing that same “American promise.”

Similarly, we try to weave a package’s Marketing Concept throughout the letter—as well as incorporating it in all of the other components, from the outer to the reply envelope. Whenever possible, we also prefer to tie the beginning of the letter to the end, either in terms of messaging or phraseology. It’s our way of closing the loop in whatever argument we’re making as to why the recipient should make a gift.

Talk with your audience, not to your audience

We felt Obama was particularly good at connecting with his audience. It’s as though he was having a conversation with people, talking with them and not to them. That’s the basic difference between a speech and a lecture—a distinction some politicians have trouble making.

In the same way, a good direct mail letter should be warm, personal, and conversational in tone. And yes, that means contractions, fragments, and short sentences. It also means steering clear of sounding too preachy, self-righteous, or boastful.

It’s all about “you”

Obama got it just right. “This election has never been about me,” he said. “It’s about you.” And just to make sure people heard that, he repeated, “It’s about you.”
The same, of course, is true in a good direct mail letter. Aside from using the word “you” as many times as humanly possible, make sure the copy is written from the perspective of the reader and how she stands to benefit from making a gift.   

Cadence and timing

The repetition of words and phrases—sometimes in a clipped, staccato fashion and other times in a more drawn out, lyrical style—gives a speech a certain rhythm and beat. As opposed to reciting one long sentence after another.

Direct mail copy should be written with the same sensitivity to cadence and timing. Like a speech, the repetition of certain words and phrases increases the drama and impact—making the copy that much more compelling. What’s more, as we’ve harped on many a time, always read your copy aloud. If you find that a key sentence falls flat at the end, adding a word or two (that is, a few more beats) can make all the difference.

Remember: If it sounds boring and monotonous when you read the copy, just imagine what it will be like for the recipient.

Add some meat to that sizzle

Prior to his speech, Obama had been criticized for focusing too much on his broader message of change and not enough on his substantive positions and proposals. So at the convention, he added some specific details on how he would address a number of issues—phrased, of course, within the context of his overall theme.

In direct mail copy, we oftentimes get frustrated reading letters that lack any real substance. There may be lots of sizzle, but where’s the beef? Readers aren’t afraid of programmatic detail. In fact, they deserve to know what the organization is going to do with their money. Or what’s already been accomplished because of their past generosity. So, while not necessarily going overboard, don’t be shy about getting into the specifics—without getting bureaucratic in the process.

Turn up the passion

Being passionate about his cause is one thing Obama has never been faulted on. That’s one of the things that makes him such an effective speaker.
Ditto when it comes to copywriting. Be emotional. Be passionate. Don’t hold back. But at the same time, don’t back down. Don’t mince words and be apologetic about writing.

Instead, be forceful, strong, and direct about why the reader’s help and/or support is urgently needed.

Copywriters Deborah Block and Paul Karps are partners in BK Kreative, 1010 Varsity Court, Mountain View CA 94040, phone (650) 962-9562, fax (650) 962-1499, e-mail bkkreative@aol.com. 

8. Does your Web site support your direct mail fundraising?

By Rick Christ

New research published by The NonProfit Times indicates that your Web site is more important than you thought. Almost 50% of people surveyed say that they look up an organization online when they receive a solicitation from them in the mail.

Does your Web site make your direct mail prospect more or less likely to give?

The percentage of people who look up an organization online is almost double what it was when the same question was asked three years ago. In 2005, just 25% of respondents said they looked up an organization online.

Not only are more people doing research online, they're looking more places and looking more often.

• Your organization's own Web site is by far the most important, with 37% of all respondents saying they look there. 
• 24% say they look up your organization on the Web sites of “independent rating organizations.” (We believe this number is probably inflated; people think they should look up your organization there, but may not. Still, it's important that your information be up-to-date and positive at Charity Navigator, the Better Business Bureau Wise Giving Alliance, Guidestar, etc.).
• 10% go to online discussion groups and 8% go to blogs, which means that you need to look out for your organization's reputation online.

Some key steps you can take to bridge the gap between your mail and donors' online research:

1)    Post a page on your site that contains an image of the mailing you just sent. Link to it from the home page with a thumbnail of that image. On the page, answer the basic questions that prospects may have about you:

        a.     What's your mission?

        b.     How are your financials?

        c.      Show pictures or videos of your organization in action.

2)    Make sure your presence on the main charity rating sites is current. You can generally edit this information yourself once you've established a valid login.

3)    Monitor what's said about your organization online with a Google Alert. Google can send you an e-mail every time your organization's name is mentioned in a Web page, a blog, or a news release.

4)    Send a post‑mailing e-mail driving recipients to a landing page that answers their questions and provides a clear call to action.

The results of your effort will be more donations coming in online, as well as in the mail.

Rick Christ publishes the electronic newsletter e‑Fund News! from which this article was reprinted with permission. Sign up at www.npadvisors.com, or by sending mail to efund@npadvisors.com.