What Is Integrated Marketing?
Integrated marketing. We’re all for it, aren’t we? But exactly what do we mean?
Here’s a definition offered by Convio’s Chief Technology Officer, Dave Hart:
“In the nonprofit world, true integrated marketing is centered around the concept of having a comprehensive view of the constituent. Ideally, the organization has full access to online engagement data for mining and can use that data to engage constituents both offline and online. There is also a need to have robust reporting capabilities that enable a nonprofit to plan and execute integrated campaigns, and create engagement pathways. This meeting of the offline and online channels – and ensuring consistent, coordinated communications across both of them — represents true integrated marketing.”
Of course, individual donor/member transaction and interaction data, combined in one donor record, and readily accessible to drive subsequent contacts (and respond to donor-initiated contacts) is the linchpin.
A baby step toward a holistic approach for most nonprofits is simply driving future individual asks on the basis of the donor’s past response profile. Even direct mailers do this much — e.g., customizing the dollar stream on a donor’s reply card according to previous giving history. Or more broadly, segmenting appeals by topic based upon previous demonstrated interest.
But then online interaction (including social nets) comes along, enabling more frequent interaction with donor/members, including non-fundraising engagement, as well as more engagement initiated by the donor. And generating piles of individual donor data.
Marrying the offline (mail and telephone) engagement data to the online data (which, as noted, can include robust information on donor interests and preferences), and now mobile, becomes the holy grail. Accomplishing that enables fully personalized interaction with the individual donor, through the optimum combination of channels. Some simple examples …
- A direct mail appeal can be targeted at a member who signed up online for a program-specific e-newsletter or blog feed.
- Responses to online action alerts can drive segmented fundraising appeals … in any channel.
- A initial direct mail donor, who proves responsive to online contact, can be engaged through both channels, with the likely result of increasing his/her total giving (see below).
- A renewal time, a donor/member can be reminded and thanked for all their interactions over the previous year, both giving and other engagement.
- A strong record of interaction, both giving and other engagement, might identify excellent prospects for major gift solicitation (i.e., human contact!).
These days, the trick is no longer the mechanics of data integration. Sure, that’s a challenge, but the fundraising software is out there, and plenty of experience with it.
The real trick is finding fundraisers who know what to do with the sea of data now available to them — what to try, what to test, where’s the low-hanging fruit, what have others already found to work with some consistency.
Is integrated marketing worth the effort?
Here’s the conclusive finding of a white paper prepared by Convio and StrategicOne waaay back in 2007:
“Offline Only w/ eCRM donors gave more than twice as much (means of $694 vs. $314) as did those who did not receive electronic communication. The Dual-Channel donors had higher lifetime values still ($877). Dual-Channel donors gave as much through offline sources as offline only donors, indicating that the online channel does not cannibalize revenue from direct mail.”
That’s what I call an open and shut case!
Tom
I enjoyed the post on integrated marketing and the points highlighted from Dave Hart’s report, but I think there is a missing element that should be highlighted, that of the 360 degree view of the donor. Dave highlights the ‘meeting of the offline and online channels – and ensuring consistent, coordinated communications across both of them’ but you need to highlight the basic challenge of developing an integrated view of: cash, time, gifts-in-kind, voice, influence and lifestyle change interactions.
Dave talks about the single donor record as the centre for integrated marketing but this fails to recognise the complexity most charities face in internally capturing, sharing and storing relevant data to build a truly integrated view of your key donors.
It can sound too easy and too systematic to focus on the data challenges without recognising the organisational challenges of bringing everything together. The enlightened charities in the UK are fully engaging in the theory of integrated marketing but are having to accept compromises in the practice of integrated marketing. Not enough emphasis is given to culture, structures and the people involved inside a charity to achieving this vital approach moving forward.
The real trick is getting an internal champion who understands the importance of an holistic view and is willing to fight through the systems, people and history to get the charity to a better place of operation and outlook.