fast, cheap, and under control

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10/1/2013 #bbcon 1 Fast, Cheap and Under Control Online Advocacy as an Acquisition Engine PRESENTED BY SARAH DIJULIO & CLINT O’BRIEN

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Page 1: Fast, Cheap, and Under Control

10/1/2013 #bbcon 1

Fast, Cheap and Under Control Online Advocacy as an Acquisition Engine

PRESENTED BY SARAH DIJULIO & CLINT O’BRIEN

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10/1/2013 #bbcon 2

TWEET ABOUT THIS SESSION

#FASTCHEAP @MRCAMPAIGNS @CARE2

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• Largest community of engaged people taking action daily to support causes they care about

Ranked among 150 most highly trafficked U.S. web networks, by Quantcast

• Care2’s nonprofit clients also reach an additional 150 M people via Care2’s revenue-sharing media partner program, which includes Mother Jones, AlterNet, Ms. Magazine, eNature.com, The American Prospect, National Memo, VolunteerMatch, LeftAction, Democrats.com and 200+ more partners

• 23 million members • 75% Women • Avg Age = 42 • Educated • High HH Income

• Monthly unique audience of 16 M people

About Care2

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Source: Target Analytics donorCentrics Q1 2013 Index of National Fundraising Performance

The Problem: Direct Mail Acquisition of New Donors Is Declining

Consistent decline since 2005

Nonprofits need new ways to find new donors

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Online Donor Acquisition Strategies -- Compared

PRICE

VOLU

ME

SEM Google Grants

SEO

Email List Sharing

Social Media

Email Append

Paid

Acquisition

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The Paid Acquisition Model

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Paid Acquisition – of Warm Donor Leads • Goal = Recruit multi-channel donor prospects and

supporters who are warm – i.e. “pre-qualified” to boost likelihood of conversion into actual donors

• Only pay for actual captured leads – not for “branding,” “awareness,” impressions, exposure, advocacy, etc.

• Tap existing communities of people who already care about my cause – preferably w/ good demographics, income, etc.

PLUSES

• High volume. High quality. Fast. Proven model

• No real work involved, until leads delivered

MINUSES

• Upfront cost

• You still must cultivate, convert leads into donors

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+ =

• No duplicates. All leads are new to the nonprofit, not supporters they had already

• Cost per lead pricing. Nonprofit pays only for actual leads delivered

• Multichannel leads. Nonprofit receives email address AND postal address. Sometimes phone numbers, too

Prequalified “Warm” Leads

Paid Acquisition Model (cont’d)

Behavioral Targeting

Permission Based

Marketing

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Online Community of Engaged “Do Gooders” Who Take Action Every Day to Support Causes

Behavioral segment that cares about YOUR cause

Subset that takes YOUR branded action

Sub-subset that signs up for YOUR list

Multi-Channel Donor Leads, Asking to be in Relationship with YOUR Nonprofit

Paid Acquisition Model (cont’d)

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• The host of an online community sends email alerts to members, urging them to click through to take actions

• Actions may be pledges,

petitions, surveys, polls, quizzes, photo contests

How it Works

Paid Acquisition Model (cont’d)

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The contact info captured includes full name, email, street address, state and zip code.

• Landing page features action that member is being urged to take

• It includes the nonprofit’s branding and approved content

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• After taking action, the person is invited to take the extra step of signing up for the nonprofit’s email list

• The invitation to subscribe includes the nonprofit’s logo and a sentence or two describing the content that the person will receive

Paid Acquisition Model (cont’d)

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October 2012 Event: Hurricane Sandy Hits New York and New Jersey Hard

• Huge news coverage

• Covenant House decided to launch an “emergency donor appeal” targeting (among others) 40K just-recruited Care2 members

“Seizing the Moment”

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• Covenant House in Sept/October of 2012 acquired 40K Care2 supporters

• CH received 624 donations, worth $24,000, after 3 mo.

• 11 of the new donors were monthly donors

• Total Cost = $70,000

• Profit = ($46,000)

• Investment per donor acquired (after 3 mo.) = $73.70

• ROI = Still negative but trending well; should turn positive by Jan. 2014.

Covenant House Hurricane Sandy Campaign - Results

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Ongoing Major Event: Civil War in Syria

• Huge news coverage.

• IRC decided to launch an “emergency donor appeal” targeting IRC supporters and Care2 members

• Appeal sent in early September 2013 (last month)

“Seizing the Moment”

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• Chaperoned, IRC-branded email sent to 235,547 Care2 members who took prior disaster relief action

• 48,645 opens (21.08% open rate)

• 1,288 clicks ( Click-to-Open Rate = 2.59%, Click-to-Sent Rate = 0.55% )

• 74 donations, worth $7.733 (avg gift = $104.50)

• Total Cost = $7,500

• Profit = $233

• ROI after 1 mo. = 3%

• All donors were new donors for IRC

IRC Syria Campaign - Results

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March 2013 Event: Poachers slaughter 86 elephants in Chad

• Some news coverage by The Guardian, National Geographic, etc.

• IFAW decided to launch an “emergency donor appeal” targeting IFAW supporters and Care2 members

“Seizing the Moment”

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• Chaperoned, IFAW-branded email appeal sent to 276,705 Care2 members who had taken action previously to help wildlife

• 85,141 opens (30.77% open rate)

• 4,456 clicks ( Click-to-Open Rate = 5.23%, Click-to-Sent Rate = 1.61% )

• 949 donations, worth $34,712

• Total Cost = $10,000

• Profit = $24,712

• ROI = 147%

IFAW Elephant Campaign - Results

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Trying to Shortcut the 2-Step Fundraising Process: “End-of-Funnel” Donation Ask

• Petition action; good for advocacy AND acquisition

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“End-of-Funnel” Donation Ask (cont’d)

• Shown AFTER supporter signs up for list – so lead captured already • Avoids recruiting least likely prospects – prompts them to unsubscribe • Good cultivation for ALL prospects to see – not just those who donate • But typically very few prospects are ready to donate yet, at this point

Page 21: Fast, Cheap, and Under Control

Welcome Email

Message to Online-

Acquired Supporter

• Timeliness counts. Should be sent out within 24 hours of the new supporter’s having signed up for your list

Page 22: Fast, Cheap, and Under Control

6.4 million Advocacy Actions $61.3 million in 12 Months

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Spend smart.

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A Few Paid Advertising Advocacy Options

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Paid Ad(vocacy) Return on Investment (ROI)

$1.31

$2.09

$1.54 $1.43

$1.60

$1.31

$0.40

$-

$0.50

$1.00

$1.50

$2.00

$2.50

2006 2007 2008 2009 2010 2011 2012

Online Offline

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Paid Ad ROI: 2006 Buys

$4.11 $3.84 $3.69

$2.43

$1.35

$0.80

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

Online Offline

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Facebook Promoted Posts

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Turn on a dime.

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Breaking: President Obama’s Marriage Announcement

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Pedal. Harder.

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Advocacy Lightbox

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Advocacy Lightbox

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Advocacy Quiz

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Optimize Your Advocacy Form

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Optimize Your Post-Action Form

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Cross-Promotion

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Cross-Promos vs. Paid Ads $ Raised / Subscriber

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00

2006 2007 2008 2009 2010 2011 2012

Paid Ad Cross Promotion

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THANK YOU!! SARAH DIJULIO

[email protected]

202-478-6170

CLINT O’BRIEN

[email protected]

202-785-7308