Trust in Influencers

 

The for-profit world has been placing value in peer-to-peer influencers or “online ambassadors” for years. And the results show that trust in ambassadors is paying off for many companies.

In fact, “trust” has a lot to do with why ambassadors are so effective in modern marketing and communications.

CHECK OUT THIS LINK FOR SOME STUNNING ONLINE AMBASSADOR STATISTICS

People buy based on what their friends tell them, because of trust. When a relationship starts with trust, it tends to last longer. Consider these stats from the above link:

• 92 percent of people trust recommendations from individuals (even if they don’t know them) over brands
• 74 percent of consumers use social media to make purchase decisions
• 37 percent better retention is reported for customers acquired through word-of-mouth advertising

What does that mean for donor acquisition? …and retention? The fact is, online ambassador communication works just as well – maybe better – in the nonprofit world.

In reviewing online ambassador activity that that took place on the ScaleFunder giving day platform in 2016, each ambassador would, on average, raise $125 during a giving day.

Perhaps even more staggering is this 2015 Blackbaud study that found 1 in 4 emails from online ambassadors led to a gift – a whopping 25 percent conversion rate. That’s compared to 1 in 1,250 emails from the organization that led to a gift – a paltry .08 percent conversion.

Again, for those keeping score, that’s a 25 percent conversion rate for ambassador-sent email versus a .08 conversion rate for emails sent by the organization.

It almost makes you wonder if you should ever send a solicitation email that is not from an online ambassador?

And it works for major donors, too. Check out the video below that details how the higher the price tag (a major gift, for example), the more peer influence impacts the decision.

Now here’s the catch – it’s not easy. Online ambassador programs are volunteer programs and they require careful and frequent management …but if you do it right, you have the potential to transform your development operation for the 21st century.

And guess what? Groundwork Digital has built dozens of online ambassador programs. Click here to send us a message and set up a time to talk about how we can help revolutionize your development operation with peer-to-peer fundraising.

 

HOW TO Build a Digital Major Gifts Program

I love it when anecdotes plus statistics lead to predictions, which then become real life case studies and finally evidential proof.

In 2012, we first witnessed major donors taking notice of online campaigns when a dozen major gift prospects made their first gifts ever to Florida State University during the school’s inaugural “Great Give.” These were prospects who had never made a gift of any size or type, but felt compelled to do so for the first time during the online giving day micro campaign. (Most gifts were made online in the $500 to $5,000 range with one coming in offline as a $100,000 pledge)

Major gift donors and prospects often give four- and five-figure gifts through ScaleFunder’s crowdfunding and giving day modules without being specifically solicited.

Flash forward to the nearly 900 crowdfunding projects and online giving days ScaleFunder’s team has helped to launch and the refrain is similar in many cases – big gifts come from major donors and prospects, often unsolicited.

But those big gift donors should have been solicited, because we know:

• 85 percent of millionaires use social media, text messaging, AND smartphone applications. (Fidelity Investments study of millionaire investors)
• Online donors have higher household incomes than those who only give offline. (2012 Convio study)
• Online-acquired donors give twice the average size of gift compared with donors acquired via mail. (2012 Blackbaud study)

The statistics tell us the more money a person has, the more likely it is they are engaged online and via social media. Past experience tells us big donors are excited by innovative online giving efforts. For these reasons, digital is quickly becoming a staple of the best major gift programs. With that in mind, here are a few tips for injecting digital energy into your traditional major gifts program:

Train gift officers to be active in the digital space

This is not a mandate that every single gift officer opens and maintains Facebook, Twitter, and Instagram accounts for engaging donors. Instead, find those gift officers who are already active online as well as those who have an interest in increasing their digital footprint for fundraising. Build a training program for the willing gift officers that helps the novices get started and the pros polish their online appearance.

The same goes for your institution’s leadership. For the right donor, having a president or chancellor comment on that donor’s Facebook photo of their granddaughter’s graduation could be monumentally effective at strengthening that donor’s affinity for the institution. Again – provide training for your administration so those opportunities can be identified and leveraged.

Provide digital opportunities for major gift donors

From offering innovative matching and challenge opportunities to branding a giving day theme in the name of a specific donor’s family, online giving campaigns can serve as virtual naming rights for your digitally active major donors and prospects. Whether it’s a giving day theme or a crowdfunding perk, think about how you might build your biggest donors into your online campaigns in visible and meaningful ways.

Create a subgroup of major donor online ambassadors

We’ve seen major donors set up crowdfunding campaigns that have brought in $60,000 in a matter of days. More importantly, those major-donor-led crowdfunding campaigns have identified new major donor prospects through the networks of the major donor ambassadors who launched the campaigns. Which makes perfect sense – major donors often have major donor prospects in their networks (online and offline). Leveraging a major donor’s support as both a donor and recruiter can more than double their impact.

Major donors are proving to us they want to be involved during online campaigns through their actions during those campaigns. On Wednesday January 20, RNL/ScaleFunder’s Vice President of Digital Fundraising Strategy, Justin Ware (that’s me), led a webinar with tips and tactics for building digital into your major gifts program. Click here for the recording, slides, and infographic of that webinar.

4 Things You Need to Know About Online Giving Platforms

We’ve seen it happen — a great deal of communication planning, online ambassador work, and major donor involvement takes place, but the organization’s online giving day is a struggle due to not having an solid platform in place to host the giving day and manage gift transactions.

We can’t say it enough — without solid tech, you’re sunk. It doesn’t matter how well you do all the other things (of course, the other things matter, too). Simply put, if donors can’t access or navigate the online giving process, they won’t give.

Fortunately, there are a growing number of competent online giving options and platforms to fit just about any budget. But before you latch on to a vendor, there are a few things to consider. So here is what you should be contemplating as you select a vendor or platform to host an online giving event:

Real time updating of donor and dollar activity

Challenges drive online giving days. The ability to structure a challenge around a certain number of gifts, donors, or dollars given creates excitement and gamifies a campaign. The “we just need 27 more gifts this hour and we’ll receive an additional $25,000!” messaging line is a tried and true trick that is familiar to any of us who listen to public radio. And it works wonders for online giving days, as well. Of course, if your online giving site doesn’t provide for real-time updating – in other words, doesn’t accurately reflect the number of donors and dollars given up to the minute – the donor activity tracking that is required for this type of challenge isn’t possible. If your giving day microsite or homepage doesn’t accurately reflect the acitivity around challenges in a dynamic, real-time way, how are your donors supposed to follow the “game?” And if they can’t follow it, they won’t be enticed to give.

In addition to a dynamic challenge environment, real time updating also allows for real-time stewardship. The record breaking Columbia University giving day team monitored real time giving activity for two things – big gifts and big donors making big gifts. This allowed Columbia to connect the donors with gift officers who could provide real-time thank yous to these most important donors.

Finally, real-time updating allows you to know when there’s a lull in giving activity, so you can insert a new Facebook post, email, or challenge to reignite the giving activity.

User-friendly, image-driven design

You’ve probably read some of the absurd statistics that show how important images are in catching someone’s attention. Some studies suggest the human brain processes images 60,000 times faster than text. If that’s even remotely accurate, you should consider an online giving page that is almost entirely image-driven with the bare minimum in text. And don’t forget, according to a recent Google study, 57 percent of those who watch a video from a nonprofit will eventually make a gift to that nonprofit. Images and videos should always take priority over text on your giving pages and microsites.

The University of Sydney’s “Pave the Way” campaign was successful in part due to it’s image and video-drive landing page.

An easy path to your donor database

This is probably the toughest obstacle for many organizations. Truth be told, you’re almost always going to have to burden your gift processing team with a little extra work after a successful online giving event. Most of the leading platforms don’t come with their own databases or with turnkey data uploading processes for leading databases (Blackbaud’s Raiser’s Edge, for example). So, you need to be sure whichever platform you choose is able to cooperate with your database in the best way possible and has staff who are willing to work with your gift processing team to make their lives a little easier.

Verify your gateway

Gateways and vendors don’t always get along. Before signing any contracts, verify – in writing – that the vendor can work with your organization’s chosen payment gateway. Don’t just take the sales rep’s word that their platform plays well with your gateway. Verify it. In writing. (As you can probably tell, we’ve had some fairly negative experience with this…)

Again, there’s a lot that goes into a successful giving day. Before you land on a theme for the day, hash out a communication plan, or start talking with major gift donors about the effort, get your technological house in order to ensure your giving day is built on a solid foundation.

Have other questions about your upcoming giving day? BWF_social has planned more than a dozen six- and seven-figure online giving events. To learn more about our services, contact BWF_social’s Justin Ware.