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Does Your Nonprofit Need Better Sales or Better Marketing?

September 12, 2016 by Dennis Fischman Leave a Comment

customers

Donors are your nonprofit customers

If your nonprofit organization has business people on the Board, some of them may be in marketing. Some may be in sales. And all of them will know the difference.

You should too.

 

Marketing vs. Sales: The Difference

According to Laura Lake, the author of Consumer Behavior for Dummies, business people can see a clear line between marketing and sales.

If we broke it down to the basics, marketing is everything that you do to reach and persuade prospects and the sales process is everything that you do to close the sale and get a signed agreement or contract. Both are necessities to the success of a business.

Let’s translate this into nonprofit language. Nonprofits market their services to donors. Donors are the ones who pay you to do what you do, even if someone else (a consumer or client) receives the service.

Marketing is communicating with your donors. Sales is appealing to them to give money.

Are You Marketing to Donors, or Just Selling?

Marketing and sales are both necessities for businesses. “Without marketing,” Lake writes, “you would not have prospects or leads to follow up with, but yet without a good sales technique and strategy, your closing rate may depress you.”

Communications and fundraising are both essential for nonprofits.

Without donor communications:

  • Your first-time givers will forget why they gave…or even that they gave.
  • Your repeat donors will wonder what you did with their money and whether it made a difference at all.
  • Your retention rate will fall. You will have to spend seven times as much money to acquire a new donor as it would have taken to keep the donor who supported you before.
  • You will raise less money.

But without a good fundraising appeal (your sales pitch!):

  • Donors will give to other organizations and not to you.
  • Donors to your annual appeal may never consider giving a major donation, or giving monthly, or giving in their wills.
  • You will raise less money.

Marketing Leads to Sales. Communications Leads to Gifts.

Too many nonprofit organizations focus on the sales aspect of their relationship with donors–to the exclusion of the marketing aspect. We buff our fundraising appeals to a high shine…when what really makes those “asks” successful is the relationship we build in between. The way you build relationships is through donor communications.

Communicate! Consulting can help you do both. If you want consistent, loyal support from the people who keep your nonprofit in business, write me: [email protected]. Because marketing and sales are too important to leave to stores., and you can do them well.

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TY Thursday: An Open Letter to Nonprofits from Your Donor

September 8, 2016 by Dennis Fischman Leave a Comment

Dear nonprofit, Can we talk?

Thanks for the amazing work you do. I mean it. And you know I mean it–because I sent you a donation. But maybe I made a mistake.

I’ve been giving to you for years, always at the same time of year. You send me a thank-you note whenever you get around to it…if at all. Sometimes the thank-you note arrives after the next time you ask for money. (Tacky, my friends, tacky.)

Between my gifts, you send me newsletters that do nothing but pat yourself on the back. I don’t want to know how great you are, even if you can prove it with statistics. I want to know what difference it makes to the cause I care about when I give. You’re not telling me that.

You asked me to follow you on Facebook. I did. But all I see there is the exact same articles you included in your newsletter, in the exact same format. I know that’s easier for you, but it does nothing for me.

Let me tell you a secret: I have a little list.

It’s the list of organizations I give to every year. You’re on that list because of the work you do–but there are other groups that do equally good work. I can’t give to all of them, and with the way you treat me, I wonder if I should drop you and add one of them to the list instead.

Now, here’s another secret: you could get me to keep you on the list and maybe even give to you more than once a year. But you’d have to change your ways.  How?

Thank me early and often. Write personally to me and tell me a story I haven’t heard yet that will convince me I gave to the right group.

Write newsletters I’ll want to read. If it’s only in there to make the Executive Director look good or the Board feel good, leave it out! Help me understand the real-world problems that my donation empowered you to solve.

Be social on social media. Don’t just post: ask questions and invite me to answer them. Reply to my answers. Comment on my posts. Let’s have a conversation, and it’s on you to inform me, entertain me, and make me glad I talked with you.

That sounds like a lot of work? Well, I’m worth it.  I and all the other donors who feel the same way.  We’re on your list…but make your communications as impressive as the program work you do if you want to stay on our list this year.

Sincerely,

Dennis

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Fundraising Tuesday: How to Turn Your Statistics into Stories

August 23, 2016 by Dennis Fischman 1 Comment

statistics vs. stories

Even true stats can’t match true stories

You’ve probably seen them. Maybe you’ve even written them. We’re talking about the fundraising appeal letters that are based on statistics.

“Last year we served 10,000 meals to 500 people at 5 different locations.”

“We delivered a petition to the White House with 49,000 signatures demanding action.”

“We raised $120,000 to give college scholarships to students in our community.”

These numbers matter to us…but not to our donors. They may not even read them. They will not remember them.

Why Statistics Don’t Matter

The problem with statistics is not that they don’t reveal enough. (Even though they don’t. For example: Is 10,000 meals a lot or a little? How many people stayed hungry?)

The problem isn’t that the numbers can be fudged, either.

The real problem is that statistics don’t touch the heart.

Donors decide to give because you engage their emotions. They feel the pain of a child going hungry, the pride of a community sending its brightest high school students to college. Without an appeal to the heart, they will not even pay attention. Once you move their hearts, you will get a chance to make them nod their heads, too. But not until then.

Why Stories Work

As a species, we crave stories. Like water, like food, like the air we breathe, stories are vital to us. We listen to stories to make sense of the world around us. We shape the events of our own lives into narratives to give our lives meaning.

Stories stick in the memory. Have you ever tried to memorize a grocery list? After a certain length, it becomes impossible. You can try singing the list to a well-known tune, or counting it on your fingers, or alphabetizing it, and still you’re likely to come home and realize you’ve left several items sitting on the supermarket shelves. But if you give it even a little bit of narrative structure–“We’re having pasta tonight, so I need tomato sauce and salad fixings”–it becomes so much easier.

Telling stories to your donors makes the work you’re asking them to support tangible, meaningful, and memorable. If you touch the donor’s heart, you can even make it compelling. The donor will want to give!

3 Steps to Turn Your Statistics into Stories

What if you’re used to writing fundraising letters that are full of statistics? You can learn how to take what you have written in the past and turn it into storytelling your donors will love.

Let’s take one of the sentences full of numbers I mentioned above and transform it.

“Last year we served 10,000 meals to 500 people at 5 different locations.”

Step One: Talk about One Person

Telling the story of one person moves the heart more than citing large numbers. Research has proved this again and again. So, forget those 500 people. Talk about one person, and perhaps her family. Who is this person who ate your meals? What can you tell your donors that will help them get to know her?

Example: “Maria and Joe moved to this community ten years ago to take care of Maria’s elderly mom, who needed help paying her bills and even remembering to take her medication. Joe is the friendly face behind the wheel of the Route 89 bus every morning. Maria is trained as a nurse’s aide, and she puts those skills to work taking care of her mom and her two daughters who have been born in our town.”

Step Two: Show the Challenge That Person is Facing

What changed so that your one person and her family need help? What would life be like for them without that food your donor is providing?

“In the ten years they have lived here, the cost of renting a small two-bedroom apartment has gone up and up. Joe’s wages have not increased at all. Any time they have an unexpected expense–a child who needs to see the doctor, or a new walker to help Maria’s mom get from her bedroom to her front door–then that month, they run out of food. Without the help that you provide, Maria and Joe would go hungry to feed their daughters. And there still might not be enough to go around.”

Step Three: Explain How the Donor is Helping That Person Succeed

How has getting the food for free changed Maria’s life, and her husband and children’s lives? What difference does a donation make, in tangible terms?

“Because you cared about Maria and Joe and donated to this agency, their two girls go to school every day well-fed and ready to learn. Joe doesn’t have to be an absentee parent, working extra shifts. He can drive his bus and come home to his family. Maria doesn’t have to worry about being too faint from hunger, and she can give her loving attention to her mother’s needs.”

 

You can turn any statistic into a story if you are prepared. Make sure you give yourself enough time to collect stories and bank them so you can use whenever you need them. And remember to make the donor the hero of the story. When you tell donors a tale of what happens “because of you,” you will touch the heart and move donors to give.

 

 

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