8/13/2018 Cracking the Code of Fundraising Jon Powell Sr. Director, Research and Education NextAfter @jonpowell31 1
8/13/2018 Your worst enemy? 2
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8/13/2018 And the Likes kept on piling up… 6
8/13/2018 “But I didn’t get in early on the whole ‘Facebook Like thing’ and I don’t have any fans— will this webinar still work for me? ” GOOD NEWS! You can turn LIKES into DONORS even if they are not your own 7
8/13/2018 = Data Point 8
8/13/2018 Most of us have already tried this… The Donation The Ad Ask ...and experienced this: $0 Donations The The Ad Donation Ask 9
8/13/2018 Your worst enemy? But hold up… Maybe we have been doing it WRONG. 10
8/13/2018 New Donor Acquisition Test (A/B/C/D) The Testing Partner A national faith-based educational institution The Testing Objective Determine which source/channel produced the lowest cost per acquired donor. The Testing Approach Four different new donor sources were tested against each other equally Which gets the lowest cost/donor? List Owner 1 List Owner 2 List Broker Same Offer 11
8/13/2018 Key Success Metrics Names (Emails) 1. Total Emails (Leads) Acquired 2. Gross Cost Per Email 3. Net Cost Per Email Donors 4. Total Donors Acquired 5. Instant Conversion Rate 6. Gross Cost Per Donor 7. Net Cost Per Donor Dollars 8. Average Gift Size 9. Total Gross Cost 10. Total Revenue 11. Total Net Cost Here’s what we DISCOVERED 12
8/13/2018 Facebook Yielded the Most Emails Names 6000 5279 5000 4000 3000 1803 2000 1055 961 1000 0 List Rental 1 Facebook List Rental 2 List Rental 3 Compared to the nearest competitor, Facebook produced 193% more leads. Facebook is also the Cheapest Source Names vs. Spend 6000 $7,000 5279 $6,575 $6,000 5000 $5,007 $5,000 $5,000 4000 $4,000 3000 $2,818 $3,000 1803 2000 $2,000 1055 961 1000 $1,000 0 $0 List Rental 1 Facebook List Rental 2 List Rental 3 Names Cost Compared to nearest competitor, Facebook had a 44% lower gross cost. 13
8/13/2018 Facebook Yielded the Most Donors Donors 180 154 160 140 120 100 80 60 40 33 40 14 20 0 List Rental 1 Facebook List Rental 2 List Rental 3 Facebook produced 285% more donors than closest competitor. Lowest Gross Cost Per Email Gross Cost Per Name $8.00 $6.84 $7.00 $6.00 $4.75 $5.00 $4.00 $2.77 $3.00 $2.00 $0.53 $1.00 $0.00 List Rental 1 Facebook List Rental 2 List Rental 3 Leads acquired through Facebook had a 419% lower cost to acquire. 14
8/13/2018 Lowest Gross Cost Per Donor Gross Cost per Donor $400.00 $357.65 $350.00 $300.00 $250.00 $200.00 $164.38 $151.52 $150.00 $100.00 $50.00 $18.30 $0.00 List Rental 1 Facebook List Rental 2 List Rental 3 Cost per donor acquired was 728% lower on Facebook. Acquiring Emails at a Net Profit Net Cost Per Name $5.00 $4.45 $3.74 $4.00 $3.00 $2.00 $1.49 $1.00 $0.00 List Rental 1 Facebook List Rental 2 List Rental 3 -$1.00 -$1.64 -$2.00 For every name we acquired on Facebook, we made a profit of $1.64 15
8/13/2018 Acquiring Donors and Making Money Net Cost Per Donor $281.93 $300.00 $250.00 $200.00 $150.00 $107.00 $81.67 $100.00 $50.00 $0.00 List Rental 1 Facebook List Rental 2 List Rental 3 -$50.00 -$56.19 -$100.00 Facebook produced a net profit of $56.19 for every donor we acquired. Facebook as your new acquisition source? • 192% More Emails (Leads) Acquired • 44% Lower Initial Investment • 285% More Donors • 419% Lower Cost-per-Email Acquired • 728% Lower Cost-per-Donor Acquired • 398% More Revenue 16
8/13/2018 Your worst enemy? #Besties So why aren’t fundraisers getting those results? 17
8/13/2018 We’ve become so obsessed with being LIKED that we’ve forgotten what it’s like to be LOVED 18
8/13/2018 Love can be Measured 1. Emails 2. Donors 3. Dollars About NextAfter Combines the perpetual learning of a marketing and fundraising Research Lab with the practical application of a Consultancy: • 1,100+ unique experiments spanning a combined sample of more than 8 million donor interactions. • Research with 158 not-for-profit organizations to-date • 5 Major studies, 6 Whitepapers, 19 Instructional videos and Database of over 54,462 messages 19
8/13/2018 A New Type of Organization Combines the perpetual learning of a marketing and fundraising Research Lab with the practical application of a Consultancy: What have we learned from over $12,465,390 • 700+ unique experiments spanning a combined sample of more than 8 million in nonprofit research? donor interactions. • Research with 158 not-for-profit organizations to-date • 4 Major studies, 6 Whitepapers, 19 Instructional videos and Database of over 54,462 messages KEY POINT 1 People do NOT go online to GIVE they go online to GET 20
8/13/2018 “We’re in the relationship business… fundraising always happens in the context of a relationship. ” -Tom McCabe KEY POINT 2 People give to organizations they ALREADY AGREE WITH and TRUST 21
8/13/2018 The “Yes” Ladder As we make multiple small commitments to someone/something, or even if we just perceive similarity through agreement, we’re more likely to make a larger, unrelated commitment later or even immediately after (which we may not have originally made). KEY POINT 3 The SIZE and QUALITY of your EMAIL LIST is the most important factor that will influence your ability to raise money online. 22
8/13/2018 What Not-for-profit data says… Here’s What We Learned by Examining Google Analytics for Four Very Different Nonprofit Orgs An Education Organization 23
8/13/2018 An Association A Faith-based Organization 24
8/13/2018 An Advocacy Organization THEREFORE… 25
8/13/2018 KEY POINT If you want to acquire donors on Facebook, you must first focus on EMAIL ACQUISITION NOT on donor acquisition About this Test Partner Background Founded in 1844, Hillsdale College is an independent liberal arts college with a student body of about 1,400. Hillsdale’s educational mission rests upon two principles: academic excellence and institutional independence. The College does not accept federal or state taxpayer subsidies for any of its operations. As part of their service, they offer free courses, such as Constitution 101, as a service to the public. Like other not-for-profits, they need donations to survive . 26
8/13/2018 How Do We Get More Donors? Version A How Do We Get More Donors? Version B 27
8/13/2018 How Do We Get More Donors? Version A Version B What Happened ∞ % Increase in DONATIONS Version S1 Click Rate Donation Rate Avg. Gift Version A (2-Step) 0.41% 0.000% $0 Version B (3-Step) 1.26% 1.18% $58.33 ∞ ∞ 209% Relative Difference 28
8/13/2018 Not This… The Donation An Ad Ask But This… An The Email Ask Donation An Offer An Ad Ask 29
8/13/2018 What’s the most important part of each step? On the Offer An The Email Ask Donation An Offer An Ad Ask 30
8/13/2018 OFFER /’ôfər,ˈäfər/ 1. Something of value that your fans would be willing to trade their email for. 31
8/13/2018 OFFER /’ôfər,ˈäfər/ 2. Something attractive that helps my ideal donor see that we could be the solution to the problem they want to see solved. JUST A SPOONFUL OF SUGAR 32
8/13/2018 Example 1: Quiz Example 2: eBook Unpacks the horrific human rights atrocities happening within North Korea. 33
8/13/2018 Example 3: Resource Center Free online archive of 66,000+ articles about Texas History after email registration. Example 4: Free Online Course 8-week free online course with video lessons delivered via email. 34
8/13/2018 It is NOT your organizational value proposition. It is NOT a request to help you. An EXPRESSION or DEMONSTRATION of your organizational value proposition in action, be it through knowledge transfer, an action on the visitor’s behalf, or even a tangible. 35
8/13/2018 THE OFFER ATTRACTS your ideal donor to EXPERIENCE your organization’s value proposition firsthand. There is one caveat… 36
8/13/2018 Time Effort Aggravation Distraction Perceived Offer Value Your offer has to deliver more value than it mentally costs to get it. The Ad and Landing Page An The Email Ask Donation An Offer An Ad Ask 37
8/13/2018 Text [Description] 1 Image / Video 2 Headline [Call to Action] 3 and News Feed Link Description The Research Process After examining our library of 1,100+ published experiments, we’ve discovered 70+ Facebook Ad experiments to help us understand patterns of successful Facebook ad messaging. 38
8/13/2018 Do people really read the description? Does it really matter, especially with Facebook being such a mobile medium? Do people really read all that text? From this To This ….. see more 21.5% Emails Acquired 39
8/13/2018 Do people really read all that text? From this To This 316% Emails Acquired Do people really read all that text? From this To This 426% Clicks 410% Emails Acquired 40
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