AMA NONPROFIT MARKETING CONFERENCEJuly 19-21, 2004

WHY Innovate?

• Key Trends• Reduced corporate & government support • Aging donor base & need to attract younger

donors• Growth in online transactions (shopping,

giving, advocacy, etc.)• Technologically-savvy baby boomers• Increased marketplace “noise” (email,

websites, etc.)• Growth in consumer empowerment (ability to

punish/reward companies based on their social responsibility)

• Value of innovation in brand development• Urgency & risk of late adoption• Bottom line: Innovate or become extinct

Those Who Missed the Point

“Nonprofits will never generate enough money with these ‘shop & give’ concepts – we saw that in the tech bust of the late ’90’s” VP Marketing & Development, Anonymous Nonprofit, 2003

“This telephone has too many shortcomings to be seriouslyconsidered as a means of communication. The device isinherently of no value to us.”

Western Union Internal Memo, 1876

“I think there is a world market for maybe five computers.” Thomas Watson, Chairman, IBM, 1943

“There is no reason why anyone would want a computer in their home.” Ken Olsen, Founder Digital Equipment Corp., 1977

ASSESS Your Situation

Where’s Your Pain?• Shifting donor dynamics• Budget & resource cuts• Outdated technology systems

Know your culture• What are your organization’s

strengths & weaknesses?• Is your organization more like a

chameleon or a dinosaur?

The Chameleon Mentality:• Adapts to change, early to mid-stage adopters,

encourages/rewards innovation, open to (calculated) risk-taking

The Dinosaur Mentality:• Slow to adapt, joins reluctantly at end of

product/concept lifecycle, key staff build internal silos, eventually becomes extinct or irrelevant in marketplace

Where does your organizationfall on the innovation scale?

EVALUATE Your Options

• What are your options?

• What marketing mix makes sense for your organization?

The Landscape

Loyalty Marketing: Large and Growing Market

• $236 billion media spending • Ad agencies, consultants and other services $141 billion+• Loyalty and incentive industry estimated to be $85 billion

• Cause Marketing is expected to eclipse $1 billion in 2004

• The time is right: • Convergence of 3 key trends: changing consumer, technological advances and corporate

philanthropy• NPOs should consider “Cause-Related Loyalty Coalition” as an option in integrated mktg.

plan• Urgency – act now

• Someone is going to own this space – we’re positioned to be leader• 100+ retailers and merchants with brick & mortar on horizon• LOIs with nationally recognized nonprofits and unsolicited enrollments

Cause-Related Loyalty Coalition An Innovative Evolution of Proven Methods

The New Landscape

Benevolink: How it Works

For consumers…

For nonprofits…

• Boosts bottom line • Raises brand awareness • Creates infrastructure for partnering • Taps into corporate funding• Efficient, national and localized• Leverages new support from current contributors • Generates interest from new donors• Engages supporters 4 times per year • Limited and targeted engagement of staff & volunteers

Benefits of Partnering with Benevolink

Best of all, it’s absolutely free to your organization and supporters!

Enrolled, plan summer mailing with back-to-school theme to its parentbase, live demos and parent/consumer enrollment campaign at it’s FallFestival and engagement of volunteer “champions” – all to drive shoppingand giving during Q4 holiday season

Benevolink Example

The Atlanta International School, comprised of 500+ HH’s, seekingalternative fundraising tool that will increase unrestricted giving andengage first-time donors

WHAT:

HOW:

&Atlanta

International School

ACT Now!

• Innovate or become extinct!

• Must become marketers

• Think in terms of web years vs. calendar years

• To paraphrase Nike, “Just Do Something”

REPEAT the Process

• Principle of ‘Kaizen’

• Continuous improvement, innovation

• Innovation is an ongoing process

• Size doesn’t matter (really!)

• Attitude vs. size drives action

• Do what works best for your organization & resources available

• Technology coupled with guerrilla tactics create impact

Questions