Transcript Building Donor Relationships

Building Donor Relationships:
It’s a Process, Not an Event!
Larry P. Stelter
President/CEO
The Stelter Company
[email protected]
Presentation Objectives





Prospect identification
Obstacles to your success
Donor-focused behavioral model
Face-to-face communication system
Key to success
A. Identification of Prospects
1. Giving history of your donors - consistent
2. Age of donors – 60+
3. Research income & wealth of donors
4. Targeted groups – seniors, women & advisors
5. Lapsed, older donors –still love you but on fixed
income
B. Obstacles to your success
1. Procrastination
2. Turnover of fundraising staff
3. Immaturity of donor base
4. Patience & involvement of board
5. Technical paralysis
6. Communicating your mission
C. Communication Methods:
1. Direct mail & expectations
A. Educates & builds awareness of giving
options - NCPG survey - 5% in 1992 and
34% in 2000 heard about planned giving
from charities via direct mail-63% for CGA
B. Lead generation - measurement of
success (MOS) - follow-up on response
cards
Communication Methods:
C. Motivate to seek more advise from
professional advisors - MOS - recognition
club growth and networking - NCPG
survey - 21% heard about PG options from
advisors
D. “Break the ice” - MOS - make calls NCPG survey - 11% heard about PG
options from charity representative
Communication Methods:
2.
3.
4.
5.
6.
Wills/estate planning seminars
Recognition clubs – charitable intent
Gift receipt enclosures – buck slips
Organizational magazine articles
Internet - 55+ are fastest growing group
to use the net - wealthy, educated & they
have the time
Online Giving Trends
$250 million was contributed in 2000 up
from $10 million in 1999
$1.9B estimated given in 2003; $3B in ‘04
Harvard Univ. predicts that by 2010, 1/3 of
all gifts will be given online, representing
approximately $64 billion
Why Use the Internet?
Seniors are online:
55 to 64 age group – 57% regular users
65 to 74 age group – 36% regular users
75+ age group – 16% regular users
Get in front of all your prospects more frequently
at low cost & limited effort
Baby boomers (40 to 57 years of age) are already
into the web
Planned Giving Web Essentials
Content, content, content – rules the web
Embed interactivity in content –
calculations and material requests
Update your content frequently
Make it easy to contact you via the web
Create internal navigation
Measure your marketing results
Essential #1 – Content Rules
Senior visitors have time to read – let
them choose how much to read
Offer the visitor enough content so they
will stay and/or return
Change articles for return visits
Email address book - let them know when
new content is available – new testimonial
or law change – avoid email fatigue
Essential #2 – Interactivity
Offer gift calculator on home page
Embed gift calculation opportunities
within content
Give visitor opportunity to request
additional material – ebrochures
Involve visitors with quizzes, interactive
decision tree and gift matrix
Make it easy for them to contact you
Essential #3- Navigational Loops
Create loop to recognition page
Connect to “sample bequest language”
Connect to “contact us” pages
Loop to testimonial/donor profiles pages
Loop to “giving online” page
Connect to “professional advisors”
content
Internet Marketing Challenges
Poor navigation – clicks & words
Too many clicks to find it
Key words don’t define link
Inadequate marketing
How to measure results?
Challenge #1– Poor Navigation
You missed the internet marketing
meeting or webmaster doesn’t like you
Your webmaster doesn’t know your
department exists or doesn’t realize its
value
Visitor can’t find development page - let
alone planned giving content
Challenge #2- Labels
Word links don’t define where you want
your visitor to go next
Alumni and friends – events, calendar
or gifts?
Make a donation – too aggressive if first
link
Planned giving – how many visitors
understand this term?
Challenge #2 - Label Options
Supporting _________
Give later
Foundation
Ways to give
Giving opportunities
Future gifts
Philanthropy
Challenge #3 – Promote It
Must promote by traditional means the
existence of the internet option
Use your current PG newsletter & reply
card to promote availability of more
information
Use “free ride” space for promoting
1. Organizational newsletters
2. Buck slips or gift receipt enclosures
3. Postcards
Challenge #4 -Measurement
Measurement – Returning Visitors
In 2004, total number of new visitors
increased by 63%
In 2004, the number of returning
visitors accounted for 31% of visits
Average visitor stay time:
11 minutes in 2002
14.5 minutes in 2003
over 20 minutes in 2004
Measurement – Real Gifts
$1.5M bequest from 75 Yr. Old - $50/yr donor
$4,000,000 gift from “Legacy” page - 65
$325,000 CRUT from advisor & alum – 63
$2.5M deferred CGA – university donor
$100,000 CGA - 84 year old, non- donor alum
$1.5M CGA – hospital donor – 87 years old
$200,000 CGA – Harley-Davidson
Communication methods
Personal contacting
Follow ups to marketing efforts
Personal interviews with donors/clients
Stewardship after giving decisions
Brain-to-Brain Communication
Sender
Receiver
6.
Filters - assumptions or preconceived notions
They can interfere with getting the intended
message to the receiver
Filters may relate to:
Age
Appearance
Status
Ethnicity
Gender
Color – blue or red states
Proactive vs. Reactive
Proactive Behavior
Fully responsible
Conscious
Thoughtful
Planned
Consistent with
Values & Beliefs
Reactive Behavior
Unconscious
Conditioned
Without Thought
Outside influences
Provoked by
Emotions
7.
Emotional Communication - Reactive
Reactive is usually not carefully thought
through by respondent
Can also be verbal attack at someone or
something seen as a threat
Words that describe emotional behavior:
Aggressive
Angry/Mad
Sad
Excited
Nurturing Communication - Proactive
Nurturing phrases acknowledge the other
person’s position without evaluating
Lets the other person know you are truly
listening, which is the first step in building
trust.
Examples:
“The way I hear it is…”
“You seem to be troubled by…”
Nurturing Communication - Proactive
Summarize the content of the message AND
the feelings of the other person, especially
when there seem to be emotions interfering
with the communication process
Examples:
“You sound pleased with the way it turned
out.”
“It sounds like you’re concerned about that.”
Nurturing Communication - Proactive
Nurturing phrases are often accompanied by
questions.
This is helpful in encouraging others to say
more about their position and why they feel
the way they do.
Examples:
“I’m glad to help with that. How would you…?”
“I think I understand. Could you expand a bit
more?”
Rational Communication - Proactive
Involves stopping and thinking about your
response
Deal with the emotions first – people can’t be
rational until they are through the emotion
Rational communication may include:
Providing information in an objective way
Asking questions to clarify
Summarizing
Offering an opinion and then asking for a
reaction
Understanding Behavior
Makes Us More Proactive
If I know what to look and listen for, I can
PREDICT how you’ll react.
If I understand myself, I can better
CONTROL the messages I send.
Developing the Relationship
Finding out whether you and your donor can
trust and respect each other to take the
relationship to a level that will allow you to
provide the donor with what he/she wants.
Discovering who the person is inside and how
the donor got to be where he/she is, both
personally and professionally.
DISCOVERING THEIR PASSION!!
D. Donor Behavioral Model
More
Powerful
Hostile
Environment
“D”
“I”
Dominance
Influence
Favorable
Environment
“C”
“S”
Conscientiousness
Steadiness
Less
Powerful
“Dominance”
OBSERVED BEHAVIOR
Task oriented
Extrovert
Direct
Risk Taker
Doesn’t listen
Knows it all
10%
WANTS
Authority
Prestige
Control
Status
Choices
Quick Decisions
“Influence”
OBSERVED BEHAVIOR
People Oriented
Extrovert
Expressive
Meanders
Very agreeable
30%
WANTS
Social
Recognition
Popularity
Approval
Quick Decisions
“Steadiness”
OBSERVED BEHAVIOR
People
Oriented
Introvert
Hate Conflict
Great Helpers
35%
WANTS
Security
Status Quo
Loyalty
Appreciation
Slow Decisions
“Conscientiousness”
OBSERVED BEHAVIOR
Task Oriented
Reserved
Direct
Analytical
Cautious
High
compliance
25%
WANTS
Autonomy
Facts
Personal Attention
Loves to be Correct
Consistency
Very Slow
Decisions
Trust Builders
Dominance – High D
Minimize chitchat
Get down to
business
Just a few comments
on surroundings
Stick to business
Formal is safe
Influence – High I
Be warm and friendly
Comment on &
compliment their
surroundings
Being social is more
important than
business
Be informal
Trust Builders
Conscientiousness–
High C
Be straightforward
A little chitchat, then
business
Common
experiences are less
important than
common values
Be more formal
Have an agenda
Steadiness – High S
Don’t rush to
business
Talk about family and
long-term
relationships
Common interests
are important
Be patient – they may
be slow to warm up
Be informal & casual
A Donor- centered System
Donors talk MORE than you do.
You ASK more than tell.
You talk about gift-giving options later.
You tailor your communication style to
the needs of the donor.
E. Face-to-face Communication System
1.
2.
3.
4.
5.
6.
Opening the meeting
Probing for personal needs
Explaining donor benefits
Nurturing concerns and objections
Understanding the “win-win” commitment
Preserving the relationship
Donor Meeting Preparation
Analysis donor’s behavioral style
What else do you know about the donor
Set realistic meeting objectives
Plan the questions you’ll ask
Plan for emotional responses, issues or
concerns
Step 1: Opening Donor Meetings
Check personal appearance before visit
Ask for permission to enter/where to sit
Address the donor formally
Add special care for those donors living
alone
Perform “sensory” checks
Step 1: Opening Donor Meetings
If hearing is a problem, don’t yell
Be sensitive to those who are forgetful
Be patient with repeated stories
Adjust your approach to behavioral style
of donor
State the purpose of the meeting
Get permission to ask questions.
Step 2: Probing for personal needs
People do things for their own reasons!
We must discover:
Emotional Needs
Financial Issues
Decision making Process
Probing for Emotional Needs
What are the reasons people become
donors to your organization?
Emotion = $$
Develop the emotional need before
presenting gift-giving options.
Probing for Financial Issues
The size of the Emotional Need
determines the size of the gift.
(Postpone if you can until you’ve
explored emotional needs.)
Discussing Financial Issues requires
HIGH TRUST.
Probing for the Decision Making Process
Know all the “players.”
How? When? Who?
Decision Making Roles:
Gatekeepers
Champions
Influencers
Decision makers
Tools For Probing
Rephrasing
Reflecting Feelings & Content
Open Questions
Closed Questions
One Word Questions
Step 3: Explaining Donor Benefits
What you need before you present:
Complete list of issues and needs
important to donor
An understanding of the decision
process
Mutual expectation that the donor will
agree if all the issues and needs are
met satisfactorily
Donor-Centered Benefit Statements
Present only options that will solve
issues or needs expressed by the
donor.
BENEFIT STATEMENTS relate your
offerings to what the donor really
wants
Creating a Benefit Statement:
Personal needs – “Mr./Mrs. Smith, I know that
____________ is important to you.”
Feature – “I’m proposing that ______.”
Benefit to Smiths – “What this will do for you
is ______________________.”
Step 4: Nurturing Concerns & Objections
NASA is a process for helping donors
understand and resolve their concerns
Nurture
Ask Questions
Solution
Agreement
The NASA System
Defensiveness is often our first impulse
when we hear objections.
We may feel the objection is directed at us
personally.
The donor must overcome his/her own
objections.
NASA Steps
Nurture – first actively listen, then respond from your
nurturing position. Build trust by taking care of their
emotions first. Never defend.
Ask questions – make sure you understand and that
they know you understand. You may have to ask a
variety of questions to fully uncover concerns.
Solve – provide a solution that is concise and relates
to “what’s in it for the donor.”
Agree – never move forward until the other person has
agreed that your solution is satisfactory.
Step 5: Understanding the “Win-Win” Commitment
Summarize how gift will meet the donor’s needs.
Review the major benefits and the good that will
result from the contribution.
Request the commitment, then WAIT for the
answer.
Manage any resistance, and ask again.
Thank the donor again!
When to Ask
When Steps 1-4 have been handled correctly
When donor understands and accepts:
Benefits of making a commitment
How emotional & financial needs are
satisfied
Gift alternatives
When all resistance has been managed
Questions used to gain commitments:
“Have I provided you with enough
information to assist you with that
bequest decision?”
“Is there any particular method we
have discussed that appeals to
you?”
Step 6: Preserving the Relationship
Thank the donor repeatedly
Let the donor express his/her excitement (use
active listening)
Set up a follow up plan
Check in frequently to update donor
Find additional ways to keep donor involved
Use NASA if concerns arise
Provide recognition/additional “thank you”
Follow-up Ideas
Time management & contact management
software
Setting re-entry conditions –
“What would you like me to do next?”
“What is the next step you will take?”
F. Success can be achieved by:
Realizing the POTENTIAL before you
Finding the right PROSPECTS
Having a PASSION for your organization
Discovering the PROSPECT’S PASSION
Using a PROVEN PROCESS
Being PERSISTENT with your follow-ups