Posts Tagged ‘marketing’

Interview with Steve MacLaughlin about Data Driven Nonprofits

The nonprofit sector has grown dramatically in the last two decades and part of that trajectory has involved the growing use of technology. However, author Steve MacLaughlin argues that nonprofits aren’t using data nearly as much as they could be to move their missions forward.

His new book, Data Driven Nonprofits, focuses primarily on fundraising as the critical element needed to advance an organization. In each chapter, MacLaughlin uses interviews and case stories to explore the variety of ways in which nonprofits, big and small, use data to accelerate change.

We asked MacLaughlin about his favorite example of a nonprofit that uses data to move their mission forward. Learn more about his answer to this question and others below:

CausePlanet: What case story or interview about making the “data leap” is your favorite and why?

SM: There are a lot of really great stories of organizations that have been able to transform their performance through better use of data and analytics. One of my favorites is Denver Rescue Mission, which was founded in 1892, and up until the late 1980s had a staff of four people and total revenue of about $200,000. Today, they raise more than $32 million—so much of that growth has come through being data driven with a growth mindset.

CausePlanet: Where do most nonprofits typically falter when trying to take their initial steps toward using data effectively and why?

SM: One of the biggest mistakes is trying to take on too much, too soon, with expectations that are too high. Nonprofit organizations are much better served by picking a specific question they want to answer or outcome they want to achieve. That first project should be big enough for others to care about, but not so big that it becomes controversial or bogged down in bureaucracy. Time box the team to 30 days to work on that question or outcomes, then come back with recommendations. Over time, you’ll build the right habits and processes to take on the next important problem.

CausePlanet: In your book, readers learn a great deal about how data-driven nonprofits look and behave (e.g. Test, Share, Grow, etc.).

SM: Yes, a big finding from my research and interviews for Data Driven Nonprofits was how big a role organizational culture plays in the success of being more data driven. As you noted, some of those culture types are around testing, sharing, and growing. The bad news is that a nonprofit’s culture must align around and value data. The good news is that nonprofits can have different culture types and still achieve their goals.

CausePlanet: Many important changes or initiatives require buy-in at the top. What three reasons should our readers present to their boards as to why they need to be data-driven?

SM: It’s important, but it’s not the most important thing to being successful. The most important things people can show to senior leaders or their board are examples of how using data produces a better decision or result than just an opinion. Speak softly. Bring data.

CausePlanet: What single idea would you like readers to know about your book?

SM: Equifinality. That’s the single idea that readers should take away from the book. (Pausing for reaction) It turns out that you can have the best data, the best tools, the best people, and still not be successful with data. Organizational culture can undermine any of those efforts. But thanks to equifinality there is hope. Equifinality is the principle that a given end state can be reached by many potential means. Nonprofit organizations have different culture types and still become more data driven. They can start in different places and arrive at the same positive place.

Learn more about this book, related books and our summary:

Measuring the Networked Nonprofit

 

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[Podcast] Tapping into your donor’s subconscious with Roger Dooley

Leading scientists who focus on brain activity say 95 percent of all thoughts, emotions and learning happen before we are aware of them. Author Roger Dooley says that unfortunately, most marketing efforts bypass the immense subconscious and instead target the rational conscious mind.

Dooley claims that if you want to promote your cause more effectively, it’s time to stop focusing on just five percent of your donor’s brain. Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing is Roger Dooley’s homage to the value of applying brain and behavior research to better understand the decision patterns of those you seek to influence.

The book contains key strategies—100 to be exact—to target your constituency through face-to-face, online, print and other marketing channels. Dooley answers three of our questions below in a recent podcast.

CausePlanet: Would you please comment on why incorporating “sensory features” into your donor marketing is so important?

Listen to his podcast answer here or read his answer below: Roger Dooley on sensory features

Dooley: Whenever we can engage multiple senses, our marketing is more impactful and memorable. Often, these additional senses offer a direct pathway to the donor’s brain. A scent, for example, can evoke memories or emotions, even without the person consciously processing the scent or even being aware of it. In some media, like print, it’s hard to engage multiple senses. In these cases, sensory words can be used. For example, the word “rough” lights up an area of the brain associated with touching, even when the word is used as a metaphor, as in a “rough day.”

CausePlanet: At what stage do most nonprofit marketers fail when trying to apply neuromarketing strategies?

Listen to his podcast here or read his answer below: Roger Dooley on when marketers fail

Dooley: Marketers tend to focus on facts and figures, features and benefits, and other logical appeals that are intended to persuade the donor or customer to act. Appealing to non-conscious motivators should be part of the process from start to finish. Using brain-oriented strategies is particularly important for nonprofit marketers. Usually, we buy products because we need them. We don’t have tangible benefits when we make a donation or volunteer our time. If product marketing is half psychology, nonprofit marketing is 100 percent psychology. It’s essential to identify and use the right triggers to get donors and volunteers on board.

CausePlanet: What interesting developments have you’ve discovered since Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing was published and that our nonprofit readers might find useful?

Listen to his podcast answer here. Roger Dooley on new developments

Want to learn more about how to apply Roger Dooley’s best practices to your donor communication? Follow him on Facebook, Twitter (@RogerDooley), subscribe to his newsletter, or listen to a podcast. You can also learn more about his latest book, The Persuasion Slide: A New Way to Market to Your Customer’s Conscious Needs and Unconscious Mind.

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The value of your nonprofit brand: Are you making the most of it? 

To many, “brand” is a corporate sector concept. While you may not think of your nonprofit as having a brand or a “brand identity,” it does. Overlooking this is a huge mistake, not to mention a major missed opportunity. It’s not enough to have a brand; organizations need to understand the value of their brand and how to maximize this value.

Why should nonprofits care about the value of their brand? Simple. It’s a key competitive advantage and a significant asset.

In the nonprofit sector, brand value is derived from and measured in large part by the support of volunteers, donors and community members. In addition, media visibility is an important component of generating support, as well as being a measure of it. Nonprofits can both leverage and strengthen their stakeholders’ support. In the process, they can enhance the value of their brands and the resources these brands attract. A communications strategy is an important tool in achieving these outcomes. And, in today’s increasingly technology-dominated world, social media is becoming an essential component of an effective communications strategy.

The importance of brand in the nonprofit sector

This article draws on the findings of a study conducted by Cone Communications and Intangible Business, published in the report, The Cone Nonprofit Power Brand 100, to illustrate the importance of brand in the nonprofit sector. It discusses the role of communications in building and strengthening brand value, and highlights corporate-NGO partnerships as an example of situations where nonprofits can leverage their brand value to attract resources to advance their missions.

Defining your brand

While no one bats an eye when we speak of a corporation’s brand or the brand of a consumer good, people often look confused when we talk about “nonprofit brands.” However, the concept applies equally well to nonprofit organizations. Every nonprofit has a brand.

On the surface, your brand is your organization’s name, logo, tag line and other descriptors. But, it goes much deeper than this. Your brand is what your stakeholders experience when they see your brand images, hear your name and read your tag line. It’s the emotions they feel, the thoughts they have and the mental images they see. Strong brands create positive experiences and stimulate positive emotions. They have the capacity to attract resources, not only financial ones, but the support of customers, volunteers, community leaders, influential spokespersons and the media. The support they generate is self-reinforcing.

Measuring your brand value

A strong brand is a major asset. As the Cone report reveals, the nonprofit sector in the United States wields significant “brand power.” The top 10 nonprofit brands alone have a combined “brand value” of more than $29 billion. By attempting to measure the value of nonprofit brands, the study highlights the benefits of having a strong brand identity and the importance of communication in building and maintaining this identity.

In the study, Intangible Business applied a process, called “brand valuation,” to calculate the tangible value of a brand. This involves assessing three things:

  1. Brand image
  2. Revenue in the most recent fiscal year
  3. Projected future revenue
  4. Brand image is measured by visibility (media coverage), accessibility, volunteer involvement and support, operational efficiency and diversity of funding (individual contributions versus foundation and government support).

While the calculation of a nonprofit’s brand value is similar to that used for corporate brands, what is different is the assessment of volunteer, donor and community support. Strong nonprofit brands have a broad base of engaged stakeholders. To achieve this, an organization must invest in developing and nurturing relationships with its stakeholders. This requires developing and implementing an effective communications strategy.

Building your brand value

The report lists “10 Essentials for Enhancing Brand Power.” These are interrelated strategies for increasing stakeholder engagement and securing needed financial, in-kind and advocacy-related resources. The majority of the essentials are communications-related.

These are largely common knowledge, but it’s striking how frequently they are overlooked:

  1. Build brand stewards: This refers to assuring that “you have aligned your entire internal staff, volunteers and board around your brand and your brand meaning.”
  2. Establish (and adhere to) brand guidelines: Here, the most important part is between the parentheses. All too often, guidelines are tucked away in a folder on someone’s computer, rather than being integrated into all messaging – both internal and external.
  3. Create a dialogue with brand ambassadors: This builds on the previous tip. The key here is the importance placed on two-way conversation and listening; the latter is an oft-overlooked and under-valued skill.
  4. Deliver crisp communications: Enough said.

Two of the tips specifically urge nonprofits to be strategic, to look outward and forward, and to be nimble. These involve strategic communications, as well:

  1. Develop quick reflexes: Nonprofits need to place themselves in the context of the external environment (or market) and ensure that they are relevant.
  2. Issue a rallying cry: Through the positive social change that they create, nonprofits are inspirational. Successful nonprofits know how to connect emotionally with their constituents and deliver on their brand promise. They know how to seize critical moments in time and engage constituents on behalf of their causes.

Incorporating social media

While nothing will ever replace face-to-face communications in terms of its ability to cultivate lasting relationships, in today’s world organizations must leverage the power of social media. With its relatively low costs and growing accessibility, social media reduces traditional barriers to reaching and expanding stakeholder communities. It provides opportunities for building deep and broad support, and to remaining top-of-mind.

Easy as it sounds, engaging in social media is no simple undertaking. It requires a sound strategy, a sincere commitment to continual involvement and to two-way conversations, as well as a high level of transparency. These are all long-standing components of best practices in communications. They are essential in the highly visible and fast-paced world of social media.

Being true to your brand

A strong brand is built over time. However, it can be compromised and even destroyed in the blink of an eye. While marketing, communications and media relations can contribute to building awareness of and support for an organization, they can only go so far. If an organization doesn’t deliver on its promises, the best marketing efforts will fall flat or, worse, backfire. The result is a cascading effect with others’ communications in the driver’s seat.

While the loss of financial resources may be the most visible outcome, far worse is the loss of positive brand experience and brand image. A damaged reputation may be irreparable. This is increasingly the case in today’s closely connected global community where information is readily accessible in even the most remote areas, and where stories are spread with the click of a mouse and then retained in virtual perpetuity.

Leveraging brand value in partnerships

The final “essential” is:

Build corporate partnerships: This advice is particularly noteworthy. It’s an example of how nonprofits can and should leverage their brand power. It acknowledges the power that nonprofit brands have – not only in attracting revenue to support their work, in the same way that corporate brands attract investors, but also in attracting essential non-financial resources. The latter include customers, volunteers, community leaders and media attention. Nonprofits with strong brands typically have significant community support. This is a resource that many corporations do not have, and it is a resource that they want and need.
In essence, for the nonprofit that wants to secure corporate support, its brand value provides a rationale for why a business should consider partnering with it. Brand value provides a measure of the assets the nonprofit brings to the table and puts it on an equal footing in the relationship. As the report states, “Valuing brands gives organizations a license to demonstrate to companies and other partners that there is an established and justified cost to aligning with nonprofits.”

This is not something that only the “big guys” (e.g., the nonprofit “power brand 100”) have access to. In fact, community-based nonprofits typically have significant brand value, as demonstrated by the strong support they derive from their local communities. In the context of cross-sector partnerships, this can be leveraged effectively with local businesses and corporations.

A note regarding cross-sector partnerships: Before entering into a partnership, a nonprofit should carefully assess the potential corporate partner’s brand value and determine if there is a good match between their brands.

In sum, every nonprofit has a brand. It is an essential asset that should be developed, protected and leveraged. It reflects the nonprofit’s mission, vision and values, and the impact it has in making our world a better place. Through their work to create positive social change, nonprofits are able to cultivate deep and lasting communities of supporters. This is a significant component of nonprofits’ “brand power” and an important factor in securing the resources nonprofits need to advance their missions.

See also:

Breakthrough Nonprofit Branding: Seven Principles to Power Extraordinary Results

Marketing Series–Volume One: Building a Persuasive Case, Seven Transformative Branding Principles, Multi-faceted Strategies and Bonding with Brands for Life

Measuring the Networked Nonprofit

Brainfluence: 100 Ways to Persuade and Convince Consumers with Neuromarketing

Image credits: r2integrated.com, brandequity.com, photosfine.wordpress.com