The NonProfit Times - June 15, 2008 - (Page 8)

MULTI-CHANNEL CHIP GRIZZARD Lights. Camera. Action. If a picture is worth 1,000 words, online video is 100,000 S uzanne is 45 and works as a family therapist in Southern California.And despite her busy life, she reads every piece of mail, beginning to end, from every organization that wants her time and money.Yet, she never gave to a direct mail appeal until recently, when a letter she received from a local rescue mission invited her to go online and watch a video. The video showed how the mission helped transform a man from a homeless alcoholic to a successful, sober man with new hope for his career -- and renewed connection with the family he thought he had lost. Suzanne wept.And after watching the video, she clicked that magical button:“Please give today.” That is the power of online video that nonprofit organizations need to harness today. And more importantly, when online video is integrated with direct mail, it is one of the most effective ways to raise funds and deepen donor loyalty at the same time. Let’s get it right, up-front: Direct mail still rules. Nonprofits still raise most of their donation revenue from direct mail because it works, and it has for almost 90 years. But let’s face it, direct mail isn’t working as well as it used to, especially among Boomers, who are now entering their prime giving years.They simply are not responding to traditional direct mail in the same way as previous generations. Most charities that rely on traditional direct mail are losing more donors every year and attracting fewer new supporters. The average nonprofit loses slightly more than 52 percent of its contributions each year, and then gains less than 62 percent in new or upgraded donations.They’re barely breaking even. So what do most fundraisers do? Fundraisers try to mail smarter and use more targeted lists -- and then wonder why using the old tried and true methods of raising money are not working. No doubt, you’re familiar with that old definition of insanity: doing the same thing over and over and expecting different results.Are you going insane? IT’S TIME FOR A NEW MODEL So how do you get mail to work better when the success rate for mail has been declining for the past decade? How do you engage donors more effectively in today’s world? The frontiers of direct marketing are about turning our “appeals” into content that is so compelling, relevant, and even “entertaining,” that donors and other constituents seek it out and share it with friends. It’s all about sharing great content and finding strategic ways to embed it into the fabric of where people are hanging out and interacting. It’s time to figure out how to best serve the constituents of organizations by giving them what they care about -- compelling information, relevant content, and the opportunity to feel and experience something deeply. If we give them what they want, we’ll earn the right to ask them to support our causes. And what do people want? Online video. ONLINE VIDEO IS HOT According to a recent Pew Internet report, the number of people watching online videos in the past year has grown an incredible 48 percent during the past year.An astonishing 141 million Americans watched online videos during just December 2007 -- 77 percent of all users. When you hear “online video,” you’re probably thinking of YouTube, skateboarding teenagers, and celebrities behaving very badly. But, most of the people watching all those online videos are exactly the people with whom you need to connect -- people who are in their prime giving years. More than twice as many people age 45 and older are watching online videos today than younger users, according to the report. Yes, that means Boomers, especially women, college graduates, and those in the highest income brackets. And not only are they watching videos, they’re taking action. Some 64 percent of Boomers who watch online videos are forwarding those videos to friends and family, search for more information, or even give to the organization featured in a video. So people in their prime giving years are spending a lot of time looking at video, whether it’s news or whatever. CREATING EXPERIENCE AND BUILDING RELATIONSHIPS Traditional mail is very one-dimensional. It is one-sided communication that offers limited opportunity for readers to experience what a charity sees and feels every day. Online video, however, can do just that.Video involves more of a person’s senses than just reading. It connects people much more deeply to the heart and soul of an organization. Videos help donors experience powerful, emotional stories that move them to take action -- and build long-term relationships with the organizations they support. And, most charities need to create that kind of connection. More and more, nonprofits are experimenting with online video because they understand that great visual storytelling can transform a cause from an idea to a real story starring real people in real life. But the bottom line is, how do we turn all those Boomer video watchers into donors - direct mail. INTEGRATING VIDEO WITH DIRECT MAIL Think about the catalog industry.We live in a world where the old rules of marketing are being transformed, but people still love browsing those “old-fashioned”catalogs. They love lingering over the pictures, reading the captions, considering their choices. But what do those catalog readers do when they want to purchase something from the catalog? They go to the catalog’s Web site or call the convenient toll-free number. The catalog is merely a trigger that drives people online. But, those paper catalogs aren’t going to go away soon. Direct mail is going to be the same way. During the past 90 years, direct mail has been used to persuade people to give to charities and causes. The mail has been used to invite people to engage in a transaction. But people no longer want to feel like an ATM machine. They want to experience something. Direct mail must evolve from a transaction device to a trigger that compels people to go online for a uniquely engaging media experience -- and to give. More effective direct mail can be created if the mail is transformed into invitations for people to experience something deeper about the charities. Use mail to drive people online to experience what charities are all about.The most effective way to do that is compelling online video. In other words, you must find a way to combine the strength of direct mail and the power of online video - what you can call Direct Mail Integrated Online Video (DMIOV). DMIOV is integrated, multi-channel fundraising that involves video. It’s not enough just to create a video and expect everyone to run flocking to see it. The key is to create video content that people want to see -- with content that is compelling, relevant, interesting, emotional, or funny -- and then make sure we drive people to where they can interact with it. OVERALL INTEGRATED STRATEGY More and more marketers understand today that effective fundraising depends on creating a well-rounded, integrated, multi-channel strategy that supports, cultivates, nurtures, educates and builds more loyal and knowledgeable donors and persuades them to act. Mail is no longer enough.Video by itself is not enough. But used together, along with email, radio,TV, billboards, space ads, and other channels, you can revolutionize fundraisMulti-Channel, page 9 8 JUNE 15, 2008 THE NONPROFIT TIMES www.nptimes.com http://www.nptimes.com

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The NonProfit Times - June 15, 2008 Fundraising Fizzles For Myanmar And China Complaints Filed Against Grant Institute Nonprofit Styles Aren't Out Of Fashion Contents Lights. Camera. Action. Calendar New Boss At Gates Approaching Businesses Big Isn't Always Better Obama And You 'Always Do Right' New Boss At NCNA Three Networks Will Air $100 Million Cancer Fundraiser NPT Jobs Resource Directory

The NonProfit Times - June 15, 2008

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