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Fundraising Challenges Include Gen Z, E-mail, AI

For AccuList USA’s nonprofit fundraising clients and fundraising consultants, 2019 will be another challenging year. Successful direct marketers will need to adapt to changes in demographics, technology and donor targeting, to name just a few trends recently cited by the Donorbox Nonprofit Blog.

Move Over Millennials; Here Comes Gen Z

Donorbox is sounding the alert ahead of the next demographic wave. While the Millennial generation is still the biggest cohort in the workforce, Gen Z is arriving. Born after 1996, they now make up an estimated 27% of the population and will account for 40% of all consumers by 2020. How are they different? The “2017 Global Trends in Giving Report” found that Gen Z members are interested in giving to many different causes, especially those involving youth, animals and human services. But to win the attention of these digital natives, messaging must be concise and engaging, offering an immediate experience that cuts through the marketing noise they routinely filter out. Gen Z is also the first mobile-only generation, so website, e-mail and donation forms must all be optimized for mobile. Plus, Gen Z likes visual-based platforms, so fundraising creative should use photos, videos and infographics to tell stories that grab attention.

Donors Expect Hyperpersonalized, Targeted Messaging

Accustomed to sophisticated digital technology that tailors messaging a la Amazon and Netflix, today’s donors expect a personalized, targeted approach that takes into account demographics, giving history and even psychographics. A generic appeal will fall flat. That means segmenting donor and prospect lists and using variable data printing to specialize messaging to account for generational differences and other demographics. It means tailoring the “ask” to the prospective donor’s income and giving history. It means refining giving/donation pages to highlight projects and wording that will resonate with the target donor group.

Donors Embrace E-mail Fundraising If Done Well

E-mail has gotten a bad rap recently because of crowded mailboxes, spam filtering and low response rates, but there is a lot to be said for revisiting e-mail strategy in 2019. For one, research shows that donors willing to donate through e-mail rose from just 6% in 2012 to 28% in 2018. Second, low-cost e-mail has an ROI of 122%, much higher than direct mail, social media and paid search. Finally, a backlash against social media abuses, including among the mobile-first generation, is improving e-mail’s digital appeal. But e-mail needs to be done well to deliver donors. Personalization and targeted messaging is expected, so, again, segment the audience by demographics, desired communication frequency, giving status, etc. Make sure there is a clear call to action, a compelling subject line, simple attractive visual design, and, most of all, impactful storytelling.

AI Can Help Turn Data Into Dollars

Artificial Intelligence (AI) is on its way to becoming ubiquitous in our society, and that will include fundraising. AI broadly refers to programs, computers and machines that perform “intelligent” tasks such as planning, learning, problem-solving, communication and more. AI can help nonprofits gather more data and use it better to advance missions and marketing. For example, one of the simplest uses of AI is a chatbot that interacts via messaging services like Facebook Messenger, Slack, Telegram, etc. A nonprofit can create a chatbot to handle donations, register members and distribute information about programs and services. AI also can be used to personalize donor journeys with tailored, personal messages based on real-time donor behavior and timed to encourage contributions. Finally, AI can weaponize data for more cost-effective donor development and marketing. For example, a donor’s giving and volunteering history, event attendance, affiliations, relationships, and data from wealth screening tools can all be analyzed to predict a potential donor’s likelihood to give a major gift.

See the complete list of eight fundraising trends identified by Donorbox.



fundraising trends for success

Want E-mail Marketing Success? Here Are Some Basics

E-mail is a key part of most omnichannel marketing strategies, and AccuList USA supplies data and support for a growing list of e-mail marketing clients. Yet dodging spam filters and reeling in responses from crowded inboxes is an ongoing challenge. A recent Direct Marketing News article laid out some basic tips on how to get the most out of e-mail marketing:

Data Is Key to Deliverability, Targeting

As a data broker, AccuList USA naturally stresses that data matters. The DM News article listed data last among its tips, but we’ll put it first. Even the most well-crafted e-mail will end up in spam folders if delivered to an e-mail list with too many duplicates, outdated addresses, missing permission hygiene, spam traps, etc. Quality e-mail data is essential to deliverability, which means regular cleaning and updating of house lists, or carefully vetted rental lists (sponsored e-mails) for prospecting. Quality data is also key to the targeting that maximizes response, using segmentation and personalization to tailor offers and messaging to specific audiences and individuals.

Make Good First and Last Impressions

Once an e-mail lands in the inbox, the subject line, a brand’s first impression, impacts open rates.  While there are few absolute guidelines, be aware that 50-70 characters in length is the “sweet spot” for readability, per the article. In those few characters, the subject line needs to quickly convey an offer/value and tone that intrigue the audience. Beyond avoiding words and symbols likely to trigger spam filters, A/B testing is usually the best way to find which subject line leads to higher open and click rates, as the article advises. While focusing on a first impression, too many e-mail marketers forget the importance of a closing impression. For example, after gaining response and conversion, marketers can use transactional e-mails (e-mails acknowledging a purchase, donation, sign-up, etc.) to expand customer/donor value by offering a reward (discount on next purchase as an example), a loyalty program, a newsletter, social links and more.

Design With Mobile in Mind

When it comes to design, the key to success today is the ability to translate across desktop, tablet and mobile devices. Remember, research shows that more than two-thirds of consumers access e-mail through their smartphones! Other common general guidelines include formatting within standard dimensions and fonts, creating a layout with quick-scan logic and clear call to action, optimally sized images with alt text in case of blocking, and personalized or even dynamic content.

Embrace Social Media and Sociability

E-mail isn’t usually the only method for connecting with an audience, or necessarily the channel preference of all recipients. That’s why e-mails also should highlight social media buttons, invite readers to share content, or urge them to visit appropriate social pages and profiles, notes the article. Meanwhile, with personalization, humanization and authenticity as benchmarks of today’s marketing, e-mail marketers should avoid generic messaging and deliver content in a tone that speaks to the target audience yet remains in line with a consistent brand voice across channels.

For more detail, see the complete article at https://www.dmnews.com/channel-marketing/email/article/13034539/6-email-marketing-tips-to-stand-out-in-the-inbox

Cautionary Tales: Marketing Pros Share E-mail Mistakes and Fixes

To err is human, even for the best direct marketers. So it is instructive to learn from marketing pros when they admit mistakes and then share corrections and prevention advice. A recent Direct Marketing News magazine article asked 13 experienced marketers to share their biggest goofs, how they fixed them and lessons learned. Here we’ll share just their e-mail marketing stories since we have experience helping clients address the same issues via our e-mail list brokerage support and data services.

Data Blindness: Missing Segment Crossover Creates Confusing E-mail Flood

Guillaume Cabane, vice president of growth at Internet software firm Segment, relates how he failed to take segment crossover and duplication into account. He ended up e-mailing the same user five times in a week because the user appeared in multiple different data sets of people. The subscriber was not only irritated by the flood of e-mail but also confused by “similar but different” messages. The solution? Cabane notes that using data services to exclude recipients who have recently received other communications is one way to avoid the problem.

Honesty’s the Best Policy: Making Lemonade From Subject Line Lemons

The team at Return Path, a leading e-mail data solutions provider, cites several lessons from a failure to update an e-mailed webinar promotion post-testing so that the subject line “TEST” went to the entire subscriber list. The team needed to come up with an immediate fix. They decided to send a follow-up e-mail with the subject line “Oops,” and it performed so well they ended up doubling registrations. Besides learning the importance of double-checking subject line and content, the experience also showed that an unexpected subject line can sometimes intrigue and prompt more opens, and that subscribers appreciate honesty about errors (although it’s better to avoid them).

E-mail Etiquette: Avoiding Confusing, Frustrating Shortcuts

Melody Gambino, director of marketing at Grapeshot, which improves online ad targeting via advanced keyword technology, reminds that, in crafting e-mail content, the basics of e-mail etiquette count. Using acronyms, slang, abbreviated names/personalization, and shortcut instructions or explanations can cause confusion and frustration. Gambino is especially focused on the problem further down the B2B sales funnel, when customers or prospects may get a speedy but inadequate response from a company rep instead of the clear, thorough answer they seek. She advises a conscientious effort at being thorough in e-mail questions and instructions and limiting e-mail responses from mobile devices, where the shortcut temptation is greater.

To read about 10 more marketing mistakes and their fixes, go to http://www.dmnews.com/marketing-strategy/marketers-share-their-biggest-mistakes-and-how-they-fixed-them/article/505042/