Cashing In. God Bless America.

June 24, 2013      Admin

Just a few hours ago Tom and I were engaged in our semi-weekly food fight and screaming session about what posts will — and won’t — make it for the coming week.

On one thing we agreed. Yesterday’s brilliant piece in The New York Times Magazine is a must read for every Agitator interested in a glimpse of the future of direct response fundraising.

In brief, Jim Rutenberg, political correspondent for NYT, brings us up to date with what the data whiz kids — the folks who probably won re-election for Barack Obama — are up to now that the $1 billion election is over.

In a piece titled Data You Can Believe In, Rutenberg details why and how the Obama data teams are now on the loose selling their skills and experience to the highest commercial bidder.

Frankly, I hope they make a bundle. They sure deserve it.

The reason Tom and I found the piece so fascinating — and why we really recommend you read it carefully — is the future view it provides by analogy for the nonprofit sector on the importance of data, analytics, and sheer talent. We’ll survive only if we eventually get to this point.

Just as the Obama 2012 campaign changed forever the way successful campaigns will be run, so too will our sector have to face the fact that we can continue to take the ‘Romney’ approach based on ‘gut’ and ‘instinct’ or we can go the route of analytics, measurable donor attitudes and other hard data.

Dig into this story and you’ll see how the campaign marshaled, combined and analyzed literally billions of data points to the point where they could predict the voting behavior of 15 million ‘swing’ voters … and how they targeted their direct mail and television buys so skillfully that they got nearly 50% more media for the same price as the Romney campaign.

Pay particular attention to why and how they used Facebook, particularly their match of Facebook Friends against the voter registration lists.

Frankly, if I were a list broker or data compiler that makes a living off the nonprofit sector I’d be mighty shook up. These folks — or those like them with true analytic skills, rather than hunch and BS — will eventually eat your lunch; probably sooner than later.

In 1959, the year I started in politics and advocacy, ‘high tech’ was being able to get one copy of a voter registration list. In those days the maximum available number of copies was 16—the number of duplicates that could be made by pounding very hard through sheets of carbon paper, on a typewriter. There were no computers, no Xerox machines, no demographic/psychographic selects.

That’s why it thrills me so to see how far all this has come. How much more open and transparent our technology and the democratic system it supports has become.

Of course, when you dig into this article you will — and frankly you should — be concerned about privacy issues. You may even wonder if the current NSA/Snowden and Obama campaign data mining tactics are strangely similar.

Most of all I hope you’ll be thrilled by Jim Rutenberg’s report of lots and lots of very bright younger folks mobilizing to meet the goal of re-electing a president. And, the fascinating story of what they learned in that process. A process that can now benefit us all.

As an aside, I wasn’t particularly thrilled that these 20-somethings from the Obama campaign are now looking to sell their algorithms and data mining know-how to Caesar’s Palace in search of ‘loyal’ or repeat gamblers rather than to address the issue of donor retention in our sector.

I guess times have changed.  As Tom reminded me, “In our day we put our knowledge to work for Cesar Chavez. Now it’s Caesar’s Palace.”

Roger

P.S. Cesar Chavez: For you post-modernists, we’re talking about the labor leader and civil rights activist who co-founded in 1962 and led the National Farm Workers Association (later, the United Farm Workers). His birthday is a state holiday in California, Colorado and Texas.

P.P.S. And here’s carbon paper.

4 responses to “Cashing In. God Bless America.”

  1. I remember carbon paper. I worked my way through college as a secretary at an Episcopal church. (Thankfully, they didn’t try to convert me to gods and goddesses. I learned so much about being a good secretary/admin/exec assistant and used it lots and lots in my life.)

    And how about the mimeograph machine? I could run the mimeograph, and letter folder, and clean the office simultaneously. Oh my!

    I invited Christine Chavez, Cesar’s daughter to speak at the Women’s Fund I founded in RI. And one of my favorite quotes comes from Jesse de la Cruz, Cesar’s co-founder of the Farmworkers: “L’esperanza muerto …” I cannot remember the last word. “Hope dies last.”

    Food fights?

  2. Pamela Grow says:

    And my first paying political job was typing up addresses onto something I remember as cheshire cards for mass mailings.

    The lessons from both the 2008 and the 2012 elections are fascinating. I confess that I signed up for the email lists for both parties just to gauge what they were doing. No contest. You got the impression that neither McCain or Romney were even trying. It was interesting — and more than a little creepy — to note the very personalized Obama appeals going to a friend of mine on Facebook, while a staunch supporter like myself (who actually gave quite a bit more money to the campaign than she did) didn’t get tapped for those at all. Almost like they knew I wouldn’t appreciate them…

    “Money creates change.” I get the sense that organizations are finally ready to put some serious money into retention. Maybe we will start to see some real change.

  3. Kim Silva says:

    Interesting article. Thanks.

    I think, related to privacy, that anything we share is potentially shared with others, especially if it is in writing, be it by Facebook, email, letter, or stone tablet. And I figure we should always assume someone is listening to our phone calls. Of course, I grew up in the 70s….Watergate.

    As for this comment, “In our day we put our knowledge to work for Cesar Chavez. Now it’s Caesar’s Palace.”, I think that isn’t a fair assessment. Young people have few paid professional opportunities. All of the nonprofits in town want people to work for free (of course, we don’t have any money to pay people, but we need to figure that out), so what are skilled, talented, knowledgeable young people to do? How will they pay off those piles of student loans they obliged developing and cultivating those precious skills, talents, and knowledge? I think it is great that they are becoming entrepreneurs. Maybe us old folk should work on giving them a meaningful place to put those talents, skills, and knowledge and figure out a way to pay for it? I don’t begrudge them for wanting to put food on their tables, or wanting to pay their student loans. Whatever the case may be.

  4. Dale Anania says:

    Fascinating, and I’m really glad you shared this with us. But, how does this help the average nonprofit? How can this be accessible technology (i.e., affordable) for any orgs other than the largest goodguys? Give me a crumb of hope for the little guys!