Informed Attention: Delivering “The Amazon Experience” in Advancement

1. Informed Attention:Delivering “The Amazon Experience” in Advancement The University of North Carolina Advancement Conference July 27, 2006

2. Informed Attention:Delivering “The Amazon Experience” in Advancement Jon Thorsen Vice President, Professional Services Kintera, Inc.

3. Agenda • What do our supporters want? • What are they receiving? • How do we engage them positively? • How do we hone our messages? • How do we improve our results?

4. Signal to Noise • Donors receive far more messages than ever before • From more charities • From other sources competing for their time and attention • Through more media • With greater immediacy and frequency • Standing out from the crowd is simultaneously more important and more difficult

5. Registered 501(c)(3)Organizations, 1995–2005 Source: Giving USA Foundation™ /Giving USA 2006

6. Everything on the Verge ofBecoming Something Else

7. How Much is Too Much? On his way to Diego's, Jeffrey discovers a woman harmed by information excess. All the symptoms are present: bleeding from the nose and ears, vomiting, deliriously disconnected speech, apparent disorientation, and the desire to touch everything. -Ted Mooney, 1981

8. Who Wants Your Supporter’s Time & Money?

9. And You Are?

10. Who’s Choosing Whom?

11. “And You Want What?” “How many have bought an airline ticket on the ‘Net?” Toffler asks. Hands are raised across the room. “We buy our own airline tickets; we track our own packages; we do our own financial research. Many functions that we used to pay somebody to do, we now do ourselves. We can do it ourselves because our technology makes its possible. The consumer has been turned again into the prosumer. We are producing our own services.” - John Dunn, Economic Revolution

12. The Future is Here • Always on • Customer-Driven Interactions • Customer-Driven Expectations • Electronic Funds Transfer • Communication modes of choice • Greater Accountability (Tell them what you did with the money)

13. Donor and NPO expectations differ Characteristic NPO Donor Easy to use Significant content on cause Visually pleasing Memorable URL Info on getting involved Donate online Info on how donations are spent Volunteer opportunities Become member Advocate for cause Forum for discussion 1 2 3 4 5 6 7 8 9 10 11 3 1 6 9 4 8 2 7 5 10 11

14. The Future is Here • One year plan & five year vision • Solicitation by professional staff • The return of the venture philanthropist • Tax-exempt (not non-profit) • Donor stewardship at multiple levels • Distinguishing ourselves in an expanding field of choices

15. New Rules, New Responses • Kelly Mooney, Laura Bergheim

17. The Amazon Experience

18. The Customer Manifesto • I want to have a say. • I don't want to do business with idiots. • I want to know when something is wrong, and what you're going to do to fix it. • I want to help shape things that I'll find useful. • I want to connect with others who are working on similar problems. • I don't want to be called by another salesperson. Ever. (Unless they have something useful. Then I want it yesterday.) • I want to buy things on my schedule, not yours. I don't care if it's the end of your quarter. • I want to know your selling process. • I want to tell you when you're screwing up. Conversely, I'm happy to tell you the things that you are doing well. I may even tell you what your competitors are doing. • I want to do business with companies that act in a transparent and ethical manner. • I want to know what's next. We're in partnership…where should we go? (Source: Social Customer, October 26, 2004 )

20. Ask Me What I Want

21. Thanks, I’ll Get it Myself

22. The Donor Manifesto • Among donors' top expectations of any charity they support: • It will be honest in its business practices and in its relationship with donors • use their gifts only as it said it would • not treat them rudely • manage its operations well • avoid budget shortfalls • refrain from using guilt or manipulative tactics to persuade them to give. • Among lapsed donors, one in five said that not being adequately thanked or acknowledged would cause them to stop or decrease gifts, • while 35 percent said that they would curtail their giving if the charity did not treat them as a partner.

23. Opportunity Knocks – Where We’ve Set the Bar • More than 60 percent of both active and lapsed donors say they would consider reviving their giving to charities that had not met their expectations if those charities apologized or somehow made up for doing a bad job.

24. Testing the Waters • Affluent investors ($500K+) have an average of 12 investment accounts and three checking and savings accounts. • This complexity increases for investors with more than $5M in investable assets, who have an average of 17 investment accounts. • Philanthropists support 20-25 organizations on average with the top 3 receiving 60% of the money

25. The Hierarchy of Needs I'll give you all I got to give if you say you love me too I may not have a lot to give but what I got I'll give to you I don't care too much for money – Money can't buy me love - John Lennon & Paul McCartney Money Can’t Buy Me Love

26. Time Is Money From the Attitudes & Values column of the February 1996 issue of American Demographics. "Affluent Americans report that money can buy them lots of things, but not time or happiness.” In at least one way, the rich are not so different from the rest of us. They, too, are limited to 24 hours a day. And if they had more time they would spend it with their loved ones.

27. One World • Washington, DC -- January 25, 2006 • The Internet and email expand and strengthen the social ties that people maintain in the offline world, according to a new report released today by the Pew Internet & American Life Project.

28. The Internet Improves Americans’ Capacity To Get Help • 45% of Internet users – about 60 million Americans – say the Internet has played an important or crucial role in helping them deal with at least one major life decision in the previous two years. • Helping another person with a major illness or medical condition: About 17 million said the Internet had played a crucial or important role in this. • Choosing a school for yourself or a child: About 17 million said the Internet had played a crucial or important role in this. • Buying a car: About 16 million said the Internet had played a crucial or important role in this. • Making a major investment or financial decision: About 16 million said the Internet had played a crucial or important role in this. www.pewtrusts.com

29. Kintera-Luth Survey Results • 65% of donors visit the website of the non-profit organization or fundraising event before making the donation • 50% of donors always go on-line before making the donation • 75% of donors who go on-line before making a donation say that going on-line made some impact on their decision whether or not to give • 25% said the impact was significant

30. The Katrina Effect

31. NOTE: If you followed an outside link to get to this page, please refer to the Latest Trends section of our website to ensure that you are viewing the most recent version of this table: http://www.pewinternet.org/trends.asp

32. Moving at ‘Net Speed Time to Reach 10 Million Users: Radio 20 years Television 10 years Netscape 2 ½ years Hotmail 7Months

33. CRM – The Established Model • A business (for-profit) model: Customer Relationship Management • Developed in the 1990s… • …to enable organizations to better serve their customers through the introduction of reliable processes and procedures for interacting with those customers. (CRM Today) • Reliant on (relatively static) data and information

34. Moves Management – The Non-Profit Application • Doing what’s necessary • Focus on organization – “moving” donors where we want them to go • Narrowly defined – single level of relationship • Continued reliance on (uni-directional) data and information

35. Social CRM – Moving Beyond Moves • Beyond data and information: • Knowledge platform (Staff facing) • Interactive communities (Constituent facing) • Data analytics (Benchmarking, P!N, Predictive Modeling) • Configurable data drives workflow • Focus on donors: • Novel social financial technology • Enhancing donor experience

36. The Constituent’s Perspective

37. Alumni Relations Engineering Major Gifts Athletics Development Campaign Annual Fund Arts & Sciences Law School Planned Giving Medical Center

38. Poor Reception Words are flying out like endless rain into a paper cup They slither while they pass They slip away across the universe - John Lennon, Paul McCartney Across the Universe

39. Mail/Fax In Person Phone Media Internet Communication Channels

43. Supporter Receives the Benefit of Sharing Information

44. All Together Now Even the best fall down sometimes Even the wrong words seem to rhyme Out of the doubt that fills your mindI somehow findYou and I collide - Howie Day, Collide

45. Build online relationships It’s all about online Relationships • We communicate • They respond • Community “sells” for you • You listen & analyze • Lather, rinse, repeat

46. CRM and Segmentation Reports and Forms Web Database ASP – Hosted Solution

47. Connected-Giving Database

48. If At First You Do Succeed • Breadth and depth • Mission and message • Expanding the reach • Standing out from the crowd • Beneath the numbers • Planning for success • Eyes on the real prize

49. Lifetime engagement leads to lifetime giving In its last campaign, the University of Virginia was successful at cultivating the loyalty and support of its top tier of alumni – those with capacity to make significant gifts Events, special mailings, publications, new volunteer opportunities, and presidential visits were aimed at the very top of the pyramid These activities are sure to increase in scope and sophistication as the University enters a new campaign The great majority of alumni, however, largely remain unengaged and underserved Far too many alumni have the perception that they do not matter to the institution • Targeted Content • Highly Personalized • 2-way Communication • Regular, cost effective • communications Source: University of Virginia Alumni Relations Task Force, June 2004

50. Building Engagement