In the nonprofit world marketing is fairly misunderstood. “Marketing” is the act of segmenting the potential market for your products or services and then targeting the right segment(s) in order to convince them to “buy.” While in the for-profit world there is typically just one customer, in the nonprofit world there are (at least) two distinct customer groups:
- Those benefitting from your products or services (“Clients”) and
- Those buying your products or services (“Funders”)
Often, marketing to Clients is less tricky because demand is so high for a nonprofit’s services. So the real challenge is to create an effective marketing strategy to attract Funders. But even within that category there can be many different types, depending on a particular nonprofit’s business model. Marketing to foundations vs. individuals vs. earned income customers vs. government contractors — it can get quite complex.
Which is why it is so important for nonprofit leaders to understand some basics about how marketing works.
You Must Know Who You Are Marketing To
Market segmentation is thinking strategically about which specific people you are trying to reach within the vast universe. Anyone who has money should NOT be the target of your nonprofit’s fundraising efforts. Instead, you have to think about what distinguishes people who have an affinity for your work from the rest of the world. Clearly define their particular demographic (age, gender, income, job) and psychographic (lifestyle, interests, attitudes) characteristics. Create some “target personas” (HubSpot has a great tool for this) that define your target group(s) along different dimensions and then tailor your marketing efforts to where they are and what specific messages will compel them to act.
There’s No Such Thing as “Raising Awareness”
I can’t tell you how many times I’ve heard a nonprofit leader say that they are holding an event, or trying to generate media coverage, or sending out a mailer in order to “raise awareness.” Let me be blunt — that phrase is meaningless. Whose attention (specifically) are you trying to capture (see #1 above)? And are you trying to get their attention in the places they already are? And are you talking with them in a way that is meaningful and will encourage them to act? When you attempt to “raise awareness” without a specific and targeted strategy you are just shouting in the wind.
The Market Is Increasingly Crowded
And now more than ever you are shouting in the wind because of the rapidly changing digital environment in which we all live. We are bombarded with an exponentially increasing amount of messages every day. It is completely overwhelming. So unless you get really specific about who exactly you are trying to reach and how exactly you are going to compel them to act (again, see #1 above), you are hopelessly lost.
Push Marketing is Dead
And because of this rapidly changing digital environment, push marketing — the traditional approach of sending out a press release, putting an ad in the paper, sending a direct mail piece, or any other way you PUSH out a message and hope people will act — has become completely ineffective. Instead you want to use PULL activities where you create and participate in communities where your target personas are already present. You connect with them, empower them to get involved and then let them tap into their own networks to help your jointly held cause.
You Must Embrace The Network
In the end you must create a completely different philosophy about marketing. Stop creating your mission in a vacuum and then begging for any and all support to make it happen. Instead, you must break down the walls of your organization and tap into networks outside that have similar social change goals and who can work with you to make that change happen. Rather than investing in an advertising campaign, use those resources to create a network strategy to identify key influencers who can help move your goals forward and connect with them to figure out how you can work together. We live in an increasingly networked world and only those who connect with it will thrive.
You must reinvent your marketing approach. Instead of shouting a message and hoping someone will listen, get strategic about identifying people who can become partners in making a joint social change vision happen.
Photo Credit: pexels.com
Heather Mansfield’s newest book, Mobile for Good, is a nice complement to her 2011 book, Social Media for Social Good. This time around, she adds mobile to the “new media” mix and gives a detailed approach for nonprofit leaders ready to embrace changing technology.
In Mobile for Good, Mansfield sounds a warning call to nonprofit leaders. The tide of new media is swift and those nonprofit leaders who don’t embrace it will be left behind:
“Your nonprofit would be wise to assume and act upon the fact that more than 50 percent of your website traffic will occur on screens varying in sizes from one to six inches by 2016.”
And, contrary to popular belief, this shift is not just among the youngest generations of potential donors. Every generation – from Silent, Baby Boomers, Gen X, Millennials, to Gen Z – is increasingly discovering and giving to nonprofits online.
But Mansfield is not suggesting that nonprofits chuck all fundraising vehicles in favor of a singular new media approach. Rather, she urges nonprofits to embrace a multi-channel fundraising strategy, “using print, web, and email communications, and mobile and social media in order to appeal to donors of all ages and socioeconomic backgrounds.”
And in fact, reports on the death of email are unwarranted. In fact, it’s enjoying a rebirth:
“Email is not dying. It’s growing. Furthermore, every email address that your nonprofit accrues translates into $13 in online donations over a one-year period. If you think this trend is isolated to Gen X and older, it’s worth noting that 65% of Millennials subscribe to nonprofit e-newsletters.”
The key, however, is making sure that everything (your website, your e-newsletters) is responsively designed, meaning that it automatically converts to fit whatever is being used to view it (laptop, phone, tablet).
Mansfield urges nonprofit leaders to invest in new media. The nonprofit sector’s desire for free or very cheap technology solutions isn’t realistic anymore:
“It’s imperative that you find the funds and the tech know-how to position your nonprofit for future survival…One of the downsides of the rise in social media is that it has inadvertently resulted in nonprofits becoming overly accustomed to and dependent upon “free” online tools. This mindset is becoming destructive to the sector istelf…The era of free is over.”
Mansfield devotes a chapter to each of the main social media networks and gives tips and best practices for each. The problem with writing a book about such a quickly evolving space, however, is that it becomes out of date before it even hits the shelf (for example Facebook’s recent organic search changes, and LinkedIn’s discontinued Products and Services tabs). So you must view Mansfield’s tips in a larger context, and for real-time updates you can check out her Nonprofit Tech for Good blog.
Overall I think the book holds a good deal of value for nonprofit leaders, however, I do have two criticisms.
First, for the nonprofit leader already overwhelmed by new media Mansfield doesn’t effectively prioritize where to focus. By including all major social media networks and all new fundraising tools (including untested ones like Crowdfunding) she leaves the impression that there is an endless and equally valuable list of innovations to embrace. Without a framework for prioritizing where to focus it is easy for the already overwhelmed nonprofit leader to give up. She could have discussed the merits of focusing on some of the bigger bang for your buck social media networks (like Facebook) while letting others (Pinterest) go if time doesn’t allow. Or thinking through a nonprofit’s target audience and their habits and preferences in order to prioritize staff time.
Second, I must take Mansfield to task for perpetuating the nonprofit overhead myth – the idea that nonprofits should separate their “program” and “overhead” costs. As I’ve mentioned before, this myth is incredibly destructive to nonprofits by forcing them to hide or ignore the true costs of their work. In Mansfield’s “Online Fundraising” chapter, she lists 10 best practices, of which #6 is to “Include Program Versus Operating Expense Graphics,” suggesting that nonprofits create “a pie chart graphic that shows your low fundraising and operating costs.” She goes on to mention the Overhead Myth Campaign in passing, with no irony about how she is perpetuating the myth itself. Ugh.
At the end of the day, Mansfield provides a nice overview of the rapidly changing new media landscape and some great steps for what nonprofits can do to keep up.
Photo Credit: nptechforgood.com
In this month’s Social Velocity blog interview, I’m talking with Wendy Harman. Wendy is the Director of Social Strategy at the American Red Cross. Her goal is for the Red Cross to be a social organization ready for 21st century humanitarian work. She is responsible for their national social media presence, including the listening program, social content and community engagement.
You can read past interviews in our Social Innovation Interview Series here.
Nell: The Red Cross has fully embraced social media. How specifically has it helped you get closer to achieving your mission?
Wendy: Our social engagement philosophy centers around using social tools to execute our mission. That is, moving beyond using social engagement for communications and marketing purposes and onto using these tools and our increased ability to network horizontally with huge communities for service delivery. The Red Cross has five main service areas: disaster services; international services; serviced to the Armed Forces; preparedness health and safety; and biomedical services (blood). We have probably made the most headway in operationalizing during disasters. For example, we’ve created the Digital Operations Center (funded by Dell) in order to holistically see and synthesize social conversations from disaster-affected areas. So far, we’ve found three main purposes for the center:
- We use the center to provide real-time and anticipatory situational awareness. This means we can provide all decision makers in the Red Cross disaster services, as well as many of our partners outside the organization, with real-time trends from the affected areas. We can identify gaps in service, the biggest needs, the most talked-about subjects as they relate to the disaster, and more. This helps us know what’s happening on the ground in the moment and also can help our experts anticipate service delivery that will be needed in the coming days or weeks.
- We use it to route needs. When we see an individual tweet that says, “I need a peanut butter and jelly sandwich. I haven’t eaten in days because of this hurricane,” we can route this information to our teams on the ground who are organizing our mobile feeding efforts.
- We provide individualized information. We have built a digital volunteer role and now have trained volunteers who can “deploy” in place and help to get information, resources, shelter locations, mobile feeding locations, real time tips, and a bit of confidence and support to people who need it. For example, during tornado warnings we often see a big increase in tweets from people hunkered down in their basements or bathtubs—and they are scared. The Red Cross has a lot of expertise on exactly what to do when you find yourself in this situation, and we’re able to provide those tips in the exact moment people need them. In addition, a big part of our mission is to provide hope and comfort in people’s worst moments, so we’re also encouraging the digital volunteers to offer that hope and comfort via digital “hugs,” or words of support.
Nell: How do you manage the ever-changing and ever-expanding social media environment? How do you determine where to spend your time and when to change your approach?
Wendy: The age of the social web has affected the role of the nonprofit sector in general and the role of the Red Cross, particularly during disasters. We are expanding from an organization that executes discrete relief activities with trained experts and volunteers, to an organization that acts as a platform to connect and mobilize people affected by disasters. We are tool agnostic; the foundation of our social engagement program centers around listening to, engaging with and acting on social conversations. This way we stay nimble in our content, and we can adapt quickly with the public.
Nell: The Red Cross is a huge nonprofit and has more resources to put behind social media. How do you suggest small nonprofits logistically work social media into their marketing mix?
Wendy: Huge doesn’t necessarily translate to big budgets for social engagement. We are lucky to have three staff members dedicated to social engagement, but we’re really trying to work our way out of our jobs. In other words, rather than having the three of us triaging thousands of conversations per day, we’d like to see social engagement become part of every Red Crossers’ workday. My more concrete advice is to do what you can do well—you don’t have to be everywhere, you just have to really be in the places where you say you will be.
Nell: In some ways your role at the Red Cross is to help an aging institution embrace change and the new realities of the world we live in. Why do you think the Red Cross has been open to change when other large and seasoned nonprofits have not?
Wendy: I think innovation and adaptation has always been baked into the DNA of the Red Cross. One of my favorite Clara Barton quotes is, “I have an almost complete disregard of precedent, and a faith in the possibility of something better. It irritates me to be told how things have always been done. I defy the tyranny of precedent. I go for anything new that might improve the past.” No doubt we have built up institutional walls over the years, but at the same time, we have broad recognition of the value of partnerships and collaboration, and we’re working to be sure we make openings in those walls so everyone can participate in the Red Cross network and our humanitarian mission. We’re also getting quicker at adopting new technologies, but I think the openness in our organizational culture to strive to be better is more of a key indicator about our relevancy than our adoption to a particular technology.
Nell: Some nonprofits will embrace social media if they think there is a fundraising payoff, but the Red Cross has obviously found a huge mission payoff as well. How do you explain to nonprofits that are hesitant to spend time building communities what the payoff could be and how to be patient in finding it?
Wendy: This is the million-dollar question. I think my favorite quote about this is from Socialnomics author Erik Qualmann who says, “The ROI of social media is that your business will still exist in 5 years.”
There’s a key practice in business marketing, creating buyer personas, that I think nonprofit fundraisers would be wise to adopt. It is a great fallacy of nonprofit fundraisers to think that anyone with money is a potential donor to their organization. Nothing could be further from the truth.
If you want to really succeed in bringing new donors in the door, you need to get smart and strategic about reaching the right target markets for your specific nonprofit, which is the topic of today’s post in the ongoing Financing Not Fundraising blog series.
Smart marketing is about reaching a specific target of people whose values intersect with your nonprofit’s unique ability to address a community need, like this:
This means that you don’t want to send your message out to everyone and anyone. Rather you want always to target a specific communication to those unique people for whom it would resonate.
In the business world, this is called creating “Buyer Personas.” And I think nonprofit fundraisers should develop “Donor Personas.”
Creating Donor Personas means organizing your donor base into groups of people based on demographics, interests, lifestyle choices, etc. Then you want to find out as much as you can about those groups in order to clone them.
So, for example, an animal shelter might have the following beginning list of Donor Personas:
- Animal Activist
These donors are 16-30 years old, highly motivated, interested in advocacy and changing laws and systems to make the world a safer place for animals.
- Pet Lover
These donors are 25-65 years old and have adopted a pet from the shelter in the past few years. They aren’t politically active, but rather are very grateful for the newest member of their family.
- Dog Devotee
These donors may have may or may not have adopted a pet from the shelter, but they are fierce dog lovers. They don’t understand cats and are not interested in them.
- Cat Fanatic
Again these donors may or may not have adopted a pet from the shelter, but they are obsessed with cats and their welfare.
So how do you go about developing your Donor Personas? Start with these four steps:
- Group Current Donors
Take a look at your current donor base. Can you place people into profile groups like I did with the animal shelter above? What do some of your donors have in common? Do patterns and groupings start to emerge around a combination of demographics, lifestyle choices and/or worldviews?
- Ask Questions
Select a handful of current donors in each donor persona group and give them a call or send them an email. Tell them that you simply want to understand their motivations for giving so that you can find more like-minded people. Ask them a handful of questions like “Why do you give to us?” “Where did you hear about us?” “What do you do in your free time?” “What’s the best way to communicate with you?” Anything that will help you understand better what motivates them to give, how they make decisions, where they hang out, etc.
- Create Profiles
Armed with a deeper understanding of what makes these different groups tick, flesh out your donor personas. Give each group a descriptive name, like “Pet Lovers” above, list their various characteristics (demographics, interests, anything you know about them). Then circulate these donor persona descriptions to your staff and board. You might even want to attach a fictional picture to each persona to make it more visually captivating.
- Market to the Personas
Now that you understand your donor groups better, create different content and opportunities that resonate with these different groups. For example, you might want to engage your “Animal Activists” via social media when the city council is threatening to pull some of your shelter funding, but you might ask “Pet Lovers” to virtually adopt shelter animals with a monthly contribution. Now that you know your Donor Personas better make sure you target all of your marketing and fundraising activities accordingly.
Stop telling your story to anyone and everyone. Start figuring out what motivates those who already love you and use that information to build an army of additional supporters.
If you want to learn more about finding individual donors, download the Creating a Major Donor Campaign step-by-step guide. And if you want to move your nonprofit from fundraising to financing, check out the e-books, guides and webinars that can get you started on the Financing Not Fundraising page.
Photo Credit: Camera John
September was an amazing month in the world of social innovation. There were so many great articles and conversations that I really had a hard time narrowing down to 10 great reads. My original list was 50+.
I know we are all busy and keeping up with the chatter grows increasingly difficult, but this month provided some really thoughtful, long-form pieces that are well worth the read. I think change happens in fits and starts and this month was perhaps about taking a step back and contemplating where we’ve been and where we’re going. And I love it when writers force that kind of reflection.
Below are my top 10 picks for what was worth reading in September in the world of social innovation. But please add what I missed to the comments. And if you want to see an expanded list, follow me on Twitter, Facebook, LinkedIn or Pinterest.
You can see the 10 Great Reads lists from past months here.
Here is my pick of September’s 10 Great Reads in Social Innovation:
- In a beautiful New York Times op-ed titled When Capitalists Cared, Hedrick Smith describes a time in the first half of the last century when the American economy was a “virtuous circle of growth, [where] well-paid workers generated consumer demand that in turn promoted business expansion and hiring.” How did we move away from that?
- The Echoing Green blog showcases the many social innovations remaking Detroit, once a city on life support. This is an amazing transformation story where social innovation becomes an urban development savior. So exciting!
- I’m a huge proponent of the connection between strategy and outcomes, so I loved Arshad Merchant’s description of how Boston-based nonprofit Bottom Line dramatically improved student outcomes by taking a more strategic approach to their work.
- The Nonprofit Tech 2.0 Blog gives a great roundup of recent studies and reports about nonprofits, philanthropy and technology.
- Mashable highlights a very innovative campaign by UNICEF on social media network Pinterest. It really makes you think about social media, and nonprofit marketing in general, in a new way.
- Writing on the PhilanTopic blog, Derrick Feldman describes 8 trends and how they will affect fundraising. From crowdfunding, to one-click technologies, to Yelp and beyond he blows traditional fundraising out of the water.
- Social Innovation Fund Director Paul Carttar left his post in September, but social innovation is still very much a focus at the White House, given the White House Forum on Philanthropy Innovation.
- There was a bit of controversy in September about whether board members should be forced to raise money for their nonprofits. Kate Barr of Minnesota’s Nonprofits Assistance Fund argued that not all board members should fundraise. But a new study from the Nonprofit Research Collaborative found that nonprofits with active fundraising boards are more likely to meet their goals.
- And for those of you who struggle to recruit great board members, LinkedIn launched Board Connect, which looks amazing. Geri Stengel describes how to make it work.
- In a very thoughtful post on the Forbes blog, Tom Watson compares and connects two important September events in the world of social innovation: the Clinton Global Initiative and the Giving Pledge reaching 90+ members.
Photo Credit: x1klima