The New Formula: R + M = IR2
Show me the money
Right about now, people are wondering whether they should keep reading this article. Someone else is saying, "Sure, but it feels very new, and even worse, it sounds very vague."
Or, how about this: "My direct-marketing strategy is a machine built upon success and performance, and my CEO has low tolerance for fluff or failure due to testing."
Here's a reason to keep reading: Millions of dollars in revenue are lost every year and in some cases simply left on the table because we're focused on the wrong end of the marketing formula.
Using statistics from a national commitment study across 50 brands in the nonprofit industry, the difference in giving from a low-commitment donor to a high-commitment donor was 130 percent. Based on these national statistics, the lowest-level committed donor had a three-year value of $85 compared to the highest level of commitment with $349. And with more than 50 percent of the donors surveyed falling below "high commitment" into the other three categories, it's easy to run the numbers on any size file to draw the conclusion that understanding the attitudes of your donors is the difference between losing money and raising money.
Now ask yourself, in your direct-marketing program what part of your segmentation, creative or messaging strategy is informed by or trying to affect and improve how people feel about the brand? How about the experience they have with the brand? Allow yourself to put aside all of the joint cost allocation arguments for a minute — what part of the communication your donors receive feels like more than just getting the next gift out of them?
If you're like the majority of people I've interviewed over the last 90 to 120 days, the answer is "very little to none" because everyone is trying to achieve the transaction instead of actually understanding why people transact. Why do your donors make those donations, come back every year, increase their investment in your mission?
Vice President, Strategy & Development
Eleventy Marketing Group
Angie is ridiculously passionate about EVERYTHING she’s involved in — including the future and success of our nonprofit industry.
Angie is a senior exec with 25 years of experience in direct and relationship marketing. She is a C-suite consultant with experience over the years at both nonprofits and agencies. She currently leads strategy and development for marketing intelligence agency Eleventy Marketing Group. Previously she has worked at the innovative startup DonorVoice and as general manager of Merkle’s Nonprofit Group, as well as serving as that firm’s CRM officer charged with driving change within the industry. She also spent more 14 years leading the marketing, fundraising and CRM areas for two nationwide charities, The Arthritis Foundation and the American Cancer Society. Angie is a thought leader in the industry and is frequent speaker at events, and author of articles and whitepapers on the nonprofit industry. She also has received recognition for innovation and influence over the years.