Marketing
Do NOT Pull Back...
Dec/28/10 12:30 PM
By Barry McLeish
It is clear many non profit organizations are suffering financially. Even in the final quarter of the year when many donors tend to give - if they are going to give at all – a large number of agencies are in trouble. The empirical data suggests that cumulatively organizations are down financially about 6% but many more are down much significantly more than that.
As hard financial times threaten everyone and becomes part of the “new normal” it is not unusual for agency executives to begin to cut fund development and marketing initiatives, cutting everything from field rep slots to direct mail acquisition efforts to brand building initiatives.
While there is always pressure to cut anything and everything that is moving during hard financial times, many successful for profit organizations do just the opposite. Instead of cutting their operations across the board, they aggressively boost their marketing and advertising expenditures during economically challenged times.
Why?
When many organizations are cutting back, those that aggressively go after the attention and investment of customers – both current and new customers – often win greater market share. They stand out by their activity pattern. Couldn’t the same logic work in the nonprofit world?
I know that there is more at play in the nonprofit world here than this simple logic. When times are difficult donors evaluate their giving more stringently, saying “yes” to some nonprofit agencies and “no” to others. Priorities and values can often shift dramatically and in making these shifts, donors can create both new organizational leaders as well as new followers.
However, in spite of the tendency to want to pull back and hunker down, I think the worst thing a nonprofit agency can do during times like these is to pull back its promotional efforts and become more of a commodity, looking and sounding like everyone else.
Use this time to become very close to your donors and customers. Differentiate your organization by speaking into different niches that may be underserved in the marketplace and grab the attention of new potential donors. Most importantly, constantly remind your stakeholders of the value that their gift is giving to not only those they want to help and need the help, but the value they accrue to themselves.
During these final days of the year, I wish you my personal best and I hope that you will end the calendar year in the black.
It is clear many non profit organizations are suffering financially. Even in the final quarter of the year when many donors tend to give - if they are going to give at all – a large number of agencies are in trouble. The empirical data suggests that cumulatively organizations are down financially about 6% but many more are down much significantly more than that.
As hard financial times threaten everyone and becomes part of the “new normal” it is not unusual for agency executives to begin to cut fund development and marketing initiatives, cutting everything from field rep slots to direct mail acquisition efforts to brand building initiatives.
While there is always pressure to cut anything and everything that is moving during hard financial times, many successful for profit organizations do just the opposite. Instead of cutting their operations across the board, they aggressively boost their marketing and advertising expenditures during economically challenged times.
Why?
When many organizations are cutting back, those that aggressively go after the attention and investment of customers – both current and new customers – often win greater market share. They stand out by their activity pattern. Couldn’t the same logic work in the nonprofit world?
I know that there is more at play in the nonprofit world here than this simple logic. When times are difficult donors evaluate their giving more stringently, saying “yes” to some nonprofit agencies and “no” to others. Priorities and values can often shift dramatically and in making these shifts, donors can create both new organizational leaders as well as new followers.
However, in spite of the tendency to want to pull back and hunker down, I think the worst thing a nonprofit agency can do during times like these is to pull back its promotional efforts and become more of a commodity, looking and sounding like everyone else.
Use this time to become very close to your donors and customers. Differentiate your organization by speaking into different niches that may be underserved in the marketplace and grab the attention of new potential donors. Most importantly, constantly remind your stakeholders of the value that their gift is giving to not only those they want to help and need the help, but the value they accrue to themselves.
During these final days of the year, I wish you my personal best and I hope that you will end the calendar year in the black.
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Strategic Uncertainties
Nov/28/10 09:09 PM
by Barry McLeish
I have met many donors in the last year who believe that events in their lives can no longer be controlled the way they once were. This has led some to a type of despair and others to question their values and beliefs.
I believe this general perception of a loss of control is most likely going to continue in America amongst many individuals, including some who are your organization’s donors.
As a consequence of this lack of perceived personal power, the level of complaint as well as a persistent negativism in America is also on the rise. There are obvious reasons for this type of concern. Tremendous job insecurity is omni-present; in the past three decades income for the poorest fifth of Americans has risen marginally, while income for the richest fifth has risen by substantial amounts; and housing prices have fallen almost uniformly across America.
How do we relate to our donors during this time of upheaval, personal loss, and anxiety?
Listen to your constituents more than you ever have before. Become the master of the short conversation with them and look for data points that you did not realize before. Likewise, during a time of crisis shortcomings in your organization’s strategy often become obvious. Fix these errors quickly.
A series of questions, honestly asked and answered, can help put your strategy back in focus:
1. Is your organization still on mission or have you allowed “mission creep” to influence your strategy?
2. How is societal adversity affecting your donors’ values and their desire to be involved with you?
3. Are your assumptions about your donors still right, or has societal turmoil invalidated your basic strategic premises?
4. Have you engaged your employees, key stakeholders, and board members in face-to-face debates about how best to reach your donors and influence them while collaborating with them?
Most importantly, don’t waste time if your strategy needs to be put back on track.
My personal best to you in the days ahead.
I have met many donors in the last year who believe that events in their lives can no longer be controlled the way they once were. This has led some to a type of despair and others to question their values and beliefs.
I believe this general perception of a loss of control is most likely going to continue in America amongst many individuals, including some who are your organization’s donors.
As a consequence of this lack of perceived personal power, the level of complaint as well as a persistent negativism in America is also on the rise. There are obvious reasons for this type of concern. Tremendous job insecurity is omni-present; in the past three decades income for the poorest fifth of Americans has risen marginally, while income for the richest fifth has risen by substantial amounts; and housing prices have fallen almost uniformly across America.
How do we relate to our donors during this time of upheaval, personal loss, and anxiety?
Listen to your constituents more than you ever have before. Become the master of the short conversation with them and look for data points that you did not realize before. Likewise, during a time of crisis shortcomings in your organization’s strategy often become obvious. Fix these errors quickly.
A series of questions, honestly asked and answered, can help put your strategy back in focus:
1. Is your organization still on mission or have you allowed “mission creep” to influence your strategy?
2. How is societal adversity affecting your donors’ values and their desire to be involved with you?
3. Are your assumptions about your donors still right, or has societal turmoil invalidated your basic strategic premises?
4. Have you engaged your employees, key stakeholders, and board members in face-to-face debates about how best to reach your donors and influence them while collaborating with them?
Most importantly, don’t waste time if your strategy needs to be put back on track.
My personal best to you in the days ahead.
The Emotional Bank Account
Oct/08/10 11:30 AM
By Barry McLeish
Do you remember how Stephen Covey in his best-selling book The 7 Habits of Highly Effective People used the phrase “emotional bank account” to describe the amount of trust individuals can build up in relationships?
When nonprofit agencies – or their development or marketing officers - are in a panic for quick funds, or are hurried in their approach to fund development, they often seek to withdraw more relationally than has been built up through their urgent appeals for funds. I have learned the hard way that relationships require a regular and constant deposit in the form of relational building activities if they are ever going to survive and prosper.
The good news is that the relationships you and your organization make with individuals can have a transformative effect upon them, upon you, the attitudes you have towards each other, and the way you involve yourselves with each other.
The bad news is that it takes more time to build these relationships than most of us ever believe it will. Because most marketing and development directors inherit their strategies from previous administrations, if the previous administration did not spend much time building relationships on behalf of the organization, or simply did not budget the necessary time to accomplish this task, you and your organization are going to be hurt tactically and relationally.
You and I live in a world of urgency and immediacy. This cultural fact mitigates against building long-term relationships. And yet, long-term relationships allow nonprofit agencies to not only survive in downturns and times of economic instability, they also allow organizations to thrive and grow. The “emotional bank account” you build with long-term friends allows your agency a type of latitude that short term relationships do not have. These friends stay involved longer, give more than others, tell their friends about your organization, and stay involved during times of crisis and abundance. They simply are invaluable.
Making the tactical decision to build these types of relationships alters the way you work strategically. Allowing these friendships with their intrinsic values to mature over time provides an organization with durability and a better future by allowing donors and friends to build a legacy with the organization, create an impact, and do something that is truly substantive. Frederick Reichheld author of The Loyalty Effect suggests, “The growth of any organization is simply the accumulated growth of the individual relationships that constitute it.”
Today in our lives there is a habitual tendency towards the short term. Reverse this trend in your organization and you will create a relationship reservoir that will continue in the life of your organization long after you are gone.
Do you remember how Stephen Covey in his best-selling book The 7 Habits of Highly Effective People used the phrase “emotional bank account” to describe the amount of trust individuals can build up in relationships?
When nonprofit agencies – or their development or marketing officers - are in a panic for quick funds, or are hurried in their approach to fund development, they often seek to withdraw more relationally than has been built up through their urgent appeals for funds. I have learned the hard way that relationships require a regular and constant deposit in the form of relational building activities if they are ever going to survive and prosper.
The good news is that the relationships you and your organization make with individuals can have a transformative effect upon them, upon you, the attitudes you have towards each other, and the way you involve yourselves with each other.
The bad news is that it takes more time to build these relationships than most of us ever believe it will. Because most marketing and development directors inherit their strategies from previous administrations, if the previous administration did not spend much time building relationships on behalf of the organization, or simply did not budget the necessary time to accomplish this task, you and your organization are going to be hurt tactically and relationally.
You and I live in a world of urgency and immediacy. This cultural fact mitigates against building long-term relationships. And yet, long-term relationships allow nonprofit agencies to not only survive in downturns and times of economic instability, they also allow organizations to thrive and grow. The “emotional bank account” you build with long-term friends allows your agency a type of latitude that short term relationships do not have. These friends stay involved longer, give more than others, tell their friends about your organization, and stay involved during times of crisis and abundance. They simply are invaluable.
Making the tactical decision to build these types of relationships alters the way you work strategically. Allowing these friendships with their intrinsic values to mature over time provides an organization with durability and a better future by allowing donors and friends to build a legacy with the organization, create an impact, and do something that is truly substantive. Frederick Reichheld author of The Loyalty Effect suggests, “The growth of any organization is simply the accumulated growth of the individual relationships that constitute it.”
Today in our lives there is a habitual tendency towards the short term. Reverse this trend in your organization and you will create a relationship reservoir that will continue in the life of your organization long after you are gone.
Redefining the Game
Jul/10/09 10:49 AM
By Barry McLeish
Every organization wants to be noticed in some new way, hoping to break out communicatively from the pack. However it’s not as easy as it sounds. Here’s a recent nonprofit story that should inspire us all to think more creatively:
A longstanding cause that had sponsored a walk-a-thon on a yearly basis for the last twelve years was increasingly seeing its centerpiece fundraising event slipping in both popularity and dollars pledged per walker. I don’t know about you but in my part of the world, these type of events are a dime a dozen. While almost all of the “thons” represent a worthy cause, they are typically not differentiated very well from each other. Another way of saying this would be to suggest that these causes have become commoditized in their presentation. To the stakeholder they often appear the same. One walk-a-thon seems like another.
When this happens to a cause, you know the cause and its fundraising machinery are in trouble.
So, finding their organization and themselves in this predicament, what did the cause’s leadership decide to do? Did they give up? Abandon the idea of a walk-a-thon?
No, in fact they did something far more creative and satisfying.
First they re-branded their walk-a-thon by renaming it and changing its appearance. Then, rater than abandoning the walk–a–thon concept they redefined it. Where in the past the event had required the participant to walk one, two, or five miles, the event was now going to be a uniform three city block walk right through the center of town. This move was surprising to me. That meant the walk was now not very far and certainly did not require much athletic prowess - in fact, anyone could now do the walk.
The second change the organizers introduced was the element of real fun. Where you would normally expect a longer walk-a-thon or a run to have water stations or refreshment stations along the route offering water, Gatorade, or fresh fruit, the organizers hilariously put refreshment stations every 100 feet or so, offering donuts, bratwurst, pizza, and everything that a serious walker or runner would never want during an event. There were grills smoking, smells wafting and ketchup flying.
The third change the organizers delivered was in the number of volunteers. They almost tripled the number of volunteers, each wearing a bright, branded t-shirt on the day of the event, each individual highly noticeable and remarkably energetic. It seemed they were everywhere.
Finally and perhaps most importantly, the organizers allowed many more to enter the event than a typical walk might have. On the day of the event, you had those decked out in sportswear, you had men and women walking having just left their office, you had shopkeepers wearing their store’s logo wear – everyone was welcome. And remarkably, most of the walkers had sponsors.
The event warranted front page in the “City” section of the local newspaper. What’s more, a sidebar column was devoted to talked about the disease whose eradication was the real reason for the event,
More money came in for the cause than had come for each of the previous eight walk-a-thons. There was tremendous publicity for the cause in the town and wonderful good will. My guess is that they will not have a problem in redoing this event next year.
It is a great story isn’t it? And, it has a couple of lessons for me:
Every organization wants to be noticed in some new way, hoping to break out communicatively from the pack. However it’s not as easy as it sounds. Here’s a recent nonprofit story that should inspire us all to think more creatively:
A longstanding cause that had sponsored a walk-a-thon on a yearly basis for the last twelve years was increasingly seeing its centerpiece fundraising event slipping in both popularity and dollars pledged per walker. I don’t know about you but in my part of the world, these type of events are a dime a dozen. While almost all of the “thons” represent a worthy cause, they are typically not differentiated very well from each other. Another way of saying this would be to suggest that these causes have become commoditized in their presentation. To the stakeholder they often appear the same. One walk-a-thon seems like another.
When this happens to a cause, you know the cause and its fundraising machinery are in trouble.
So, finding their organization and themselves in this predicament, what did the cause’s leadership decide to do? Did they give up? Abandon the idea of a walk-a-thon?
No, in fact they did something far more creative and satisfying.
First they re-branded their walk-a-thon by renaming it and changing its appearance. Then, rater than abandoning the walk–a–thon concept they redefined it. Where in the past the event had required the participant to walk one, two, or five miles, the event was now going to be a uniform three city block walk right through the center of town. This move was surprising to me. That meant the walk was now not very far and certainly did not require much athletic prowess - in fact, anyone could now do the walk.
The second change the organizers introduced was the element of real fun. Where you would normally expect a longer walk-a-thon or a run to have water stations or refreshment stations along the route offering water, Gatorade, or fresh fruit, the organizers hilariously put refreshment stations every 100 feet or so, offering donuts, bratwurst, pizza, and everything that a serious walker or runner would never want during an event. There were grills smoking, smells wafting and ketchup flying.
The third change the organizers delivered was in the number of volunteers. They almost tripled the number of volunteers, each wearing a bright, branded t-shirt on the day of the event, each individual highly noticeable and remarkably energetic. It seemed they were everywhere.
Finally and perhaps most importantly, the organizers allowed many more to enter the event than a typical walk might have. On the day of the event, you had those decked out in sportswear, you had men and women walking having just left their office, you had shopkeepers wearing their store’s logo wear – everyone was welcome. And remarkably, most of the walkers had sponsors.
The event warranted front page in the “City” section of the local newspaper. What’s more, a sidebar column was devoted to talked about the disease whose eradication was the real reason for the event,
More money came in for the cause than had come for each of the previous eight walk-a-thons. There was tremendous publicity for the cause in the town and wonderful good will. My guess is that they will not have a problem in redoing this event next year.
It is a great story isn’t it? And, it has a couple of lessons for me:
- Don’t be afraid to change a tradition if the situation warrants it. Get rid of golden cows if they have stopped providing gold for your organization.
- Be collaborative and inclusive – let as many individuals as possible be a part of your causal events.
- Create celebration and have lots of fun.
- And perhaps most importantly, when you find your cause along with others in a commodity situation “act” and change the circumstances.