Telefundraising Reveals The Pulse
I can’t even remember the last time I read a decent article on telefundraising. Can you? If so, please pass along the link!
So I’m thrilled with this excellent piece by Colin Bickley — Can Telefundraising Survive the Cellphone Age? — published in NonProfitPRO.
Colin is properly balanced in his analysis, covering the growing hurdles that telefundraising faces — chiefly, cellphones, compliance issues, and changing consumer attitudes associated with intrusive communications — but noting the opportunities that still exist.
Contact rates have declined from 60% in ‘the good old days’ to 35% tops today. Fewer people answer their phone, and there are fewer numbers to call.
Cellphones cop most of the blame for this — 41% of US households have only cellphones. And unlike the landline (probably shared with other family members, flatmates), cellphone owners seems to have a different sense of their cellphone as a personal private appendage … even as they use it avidly as a tool for messaging, social media and online browsing.
Still, there are applications where telefundraising is still efficacious and cost effective.
Colin cites Phil Grams of the Human Rights Campaign, where telefundraising has been downsized, but is still important. “Sustainer invites to first-time new joins, maintenance calls for sustainers (updating declined credit card information, etc.), renewals and lapsed reinstatement is where the bulk of calling resources are allocated,” says Phil.
Colin offers data from Jim Harris at Harris Marketing Group: Cellphone donors respond at dramatically lower rates (5% to 7% less) on all nonpolitical campaigns, and fulfill even worse (6% to 8% less).
But consider this observation from Sierra Club’s Vicky Barrett-Putnam: “…the fact is that if you do reach them, it boosts all other channels—a donor that receives a telephone call from us has a 20% higher lifetime value whether they gave money on that call or not.”
Doesn’t that make you think again about finding a place in your strategy for telemarketing? To me, it’s fascinating that people will stoutly resist the intrusion of an unexpected phone call (I sure do), yet come away (if the call is well-handled in a proper context) with some genuine, bonding ‘warm & fuzzies’ for the calling organization.
We haven’t lost our desire for connection. A phone chat with my daughter in a distant city beats the hell out of a text message … and a video chat is even better!
Certainly telefundraising as a tool must pay its way, like any other channel. That said, I like what Colin says about the less tangible benefits of actually speaking with real live donors …
“As anyone with experience in telefundraising for nonprofits will tell you, the donor conversations are typically engaging, inspiring and positive. Results are real-time and exciting. And the channel is dynamic, fast-paced and on the front-lines of fundraising. Even aside from the dollars and positive donor cultivation, telefundraising is also an immediate, laser-focused marketing research vehicle. Telefundraisers know the pulse of your donors like no one else.”
Is your finger on the keypad pulse of your donors?
Solid article Colin … you get an Agitator Raise!
Tom
4 responses to “Telefundraising Reveals The Pulse”
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As someone who passionately hates being called – I will hang up abruptly if you call again after I ask not to be called – I’m always torn. Why? Because I’ve seen a good program do good work and please donors.Underline the last part.
But it’s hard – not just because it’s tougher to reach people. It’s hard because there’s so much bad telefunding going on. Scam calls from police, organizations that do not keep clean lists and keep calling and calling and calling… they dirty the waters, for sure.
I like thank you calls for that reason. It’s not only solidly focused on the relationship-building side of things, it also helps tilt the balance from “all calls are a pain and just looking for something” to “well, some organizations might actually give a hoot about me”.
But in case anyone I give to is reading this: no, really. Don’t call. 🙂
I spent 20+ years owning, managing & selling for tele-fundraising agencies — and helped raise millions for clients. It’s a tough business that’s only gotten tougher. Kudos to Colin for providing current insights and data from other experts.
My partner Steve Hubley and I use TM as an integration tool/strategy to broaden donor communications & raise more targeted funds — similar to what is suggested by others. We use it in our monthly Loyalty+ programs to thank donors & maintain sustainers. We’re still using Canadian call centers for US clients — managing currency differences.
We focus more on TM-responsive $50+ donors to raise boost net revenue. Integrated appeals usually include 1 or 2 advance emails to capture online-responsive donors & follow-up mail to capture DM-responsive donors.
We use recorded Thank You calls that land in voicemail without the phone ringing — so donors aren’t bothered. We target donors who’ve not remitted their TM pledge or given to the DM portion of the appeal. It’s a “thank you” call, no mention of pledge or making a gift. We see a good bump in revenue. MARY — we’ll leave you a warm, fuzzy thank you msg & you’ll never hear the phone ring. 🙂
Since the early 1980s, I’ve heard so-called experts predicting the extinction of telephone fundraising. Interestingly, many of these same folks also predicted the demise of direct mail.
They were wrong then, and they are wrong now. Neither mail or phone are as effective as they once were. However, smart organizations have evolved their use of both. The outcome is that these organizations are still able to produce worthwhile results by both mail and phone. It’s not about extinction; it’s about evolution and innovation.
I thank Colin Bickley for his balanced analysis.
Several years ago, my former business partner and fellow phone-fundraising pioneer Stephen F. Schatz wrote a comprehensive book about telefundraising: “Effective Telephone Fundraising: The Ultimate Guide to Raising More Money” (http://astore.amazon.com/mlinn-20/detail/0470560592). Anyone serious about phone fundraising should read it. You should also read his blog post “5 Things Never to Do in Your Phone Fundraising Calls” (https://michaelrosensays.wordpress.com/2011/10/28/5-things-you-should-never-do-in-your-phone-fundraising-calls/).
Joe: that sounds like the kind of call I could handle! 🙂