Fundraising, It s Not Just Direct Mail How Other Areas of Fundraising Impact Each Other

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1 Fundraising, It s Not Just Direct Mail How Other Areas of Fundraising Impact Each Other

2 Kristy Hensel Director, National Development Office Boy Scouts of America Fiona Dolan, USGA Membership, Managing Director

3 Session Overview How direct mail fits into the overall fundraising ladder and areas of fundraising work together Kristy Hensel USGA A case for benefits of a direct mail program as part of fundraising Fiona Dolan Q/A 3

4 How Direct Mail Fits in the Overall Fundraising Plan Kristy Hensel, Director, National Development Boy Scouts of America 4

5 Traditional Fundraising Pyramid 5

6 Today s Challenges Donors Are Busy Not Actively Looking to Support New Programs or Increased Engagement Limited Budgets and Every Increasing Expectations Evolving Technologies Offer More Choices to Create Awareness, Educate and Achieve Responses Critical to Reevaluate Our Traditional Fundraising Model for Success 6

7 New Pyramid 7

8 Why the Change? Need to go where Donor s are: Consumer Convenience, Choice & Relevance Leverage New Opportunities to Reinforce Brand, Messaging and Frequencies Need to Invest in New Technologies and continue to Reinvest in the tried and true Ultimate goal is to engage and build lifetime relationship with your constituents 8

9 Changes in Revenue Generation Strategies: Must create a integrated experience for donors in order move up the fundraising pyramid and increase life time value Traditional targeting no longer good enough Know your constituents Demographics Generational Differences 9

10 Changes in Revenue Generation Strategies Keys to Understanding this New Pyramid Know your constituent Think like your constituent Communicate like your constituent Respond like your constituent 10

11 Reasons to Support Direct Mail Program in a Changing Fundraising Landscape Decreased size of donor base Impact on the brand Impact on estate donor Organization ability to support w/out a donor strategy Cost to cultivate w/out a DM strategy is significantly more Building a relationship 11

12 What Does This Mean to Our Future and Direct Mail? Think Direct Response Marketing and Multi Channel Marketing, not direct mail Deliver for your Constituency if you don t, someone else will Crisp, Consistent Messaging and Case for Support No Strategy is Independent of the Other Accessibility is critical 12

13 Fiona Dolan Managing Director, Membership United States Golf Association 13

14 USGA Members Program The program formed in 1975 with a Mission to bring the USGA to the Individual and support the USGA activities to keep the Game Great. Annual contributions help fund a wide range of programs that aim to enhance everyone s enjoyment of the game and to ensure its future. Then President Gerald Ford was enrolled as the USGA s first member at a White House ceremony. Arnold Palmer serves as the program s National Volunteer Chairman. 14

15 USGA Members Program Direct Mail is the powerhouse that built the Membership Program Total Active Membership: 800,000 and growing Since its inception, the Membership program has executed few fundraising campaigns, however, the re launch provides ample opportunity to increase our fundraising efforts 15

16 USGA Members Program USGA Members are: Affluent 40% earn over $100K Educated Members earn more college degrees than US population Spend more across key luxury and lifestyle categories then average E Savvy 82% use the internet and 65% have visited usga.org Philanthropic on average USGA Members donate to 8 charities annually 16

17 Market Situation The USGA and its Members Program operate in a market that has been influenced by: A FLAT GOLF CATEGORY over the past five years INCREASING COMPETITION for the individual s time, attention and share of wallet USGA Members Program had plateaued The USGA s traditional direct mail revenue source will not sustain the membership program over the long term 17

18 Market Situation In response, the USGA identified a need to redefine the Members Program This Re launch of the Members Program will seek to: REDUCE program complexity and operational inefficiencies ENCOURAGE incremental donations in a seamless, integrated way ENGAGE members with revised benefits INCREASE the perceived value of USGA membership BUILD a stronger connection between the USGA and the member BROADEN program appeal without alienating core constituents INCREASE the return on investment 18

19 Re Launch Positioning OBJECTIVE: Raise consciousness of the philanthropic reasons for membership while keeping member self interest at the forefront TACTIC: We have developed an internal statement that will lead to this desired perception: The USGA has a mission I care about because it s consistent with my values and aspirations. The Members Program rewards me for supporting this mission with benefits and opportunities that only the USGA can provide. 19

20 Re Launch Value Proposition OBJECTIVES: Increase perceived value and member engagement Broaden appeal Encourage migration (i.e., more members at higher levels) Position donation element as an integral part of membership TACTICS: Benefits research was conducted Internal and external assets were audited A new, streamlined Membership Structure was devised 20

21 Re Launch Components THE NEW STRUCTURE reduces complexity (from 7 tiers to 4) while encouraging additional donations $25 Level 1: Individual Members $50 Level 2: Champion Club Members $115 Level 3: Eagle Club Members $300 Level 4: Patron Club Members 2010 fundraising results have shown that stand alone donation solicitations have had no negative impact on membership or renewal revenue 21

22 Evolution of Benefits ALL TIERS will receive this base package of benefits: Existing U.S. Open Hat, Rules Book & Bag Tag Advanced Priority to Purchase U.S. Open Tickets Preseason/U.S. Open Publication New USGA Education Series and Customer Events Donation/Tribute Opportunities Online Community: USGA Golf House Platform to provide access to Golf and special offers 22

23 Exciting New Offers Our re launched program will engage Members with enhanced benefits and services that include: NEW: An expanded collection of value added offers from corporate partners, third party affiliates and Member Clubs and Courses New Fundraising Solicitations carefully integrated across DM, and online channels We will deliver via an exciting new online portal for Members that will bring these offers to life: USGA Online Golf House 23

24 USGA Online Golf House will become A Virtual Community for our Members with enhanced social networking and interactive capabilities to encourage frequent visits A new marketing channel for our Partners and USGA Departments who will use this online portal to offer our Members access to special offers, discounts, Stay & Play opportunities, and other value added products and services. An effective, cost efficient new channel for our partners to have access to more than 800K Members to support our mutual marketing goals. Our new technology platform will support this initiative by integrating our data from direct mail, online and other sources more effectively to allow for a single view of the customer. 24

25 The USGA Online Clubhouse My Golf House will opportunity USGA Members and fans to personalize their profile page, search courses and preview exclusive offers. 25

26 Ultimately, with this new platform, the USGA can develop custom offers to support marketing objectives while building an increased brand loyalty and perceived value within the minds of our Donor/Members. Success will be measured by: Overall revenue from existing Acquisition, Renewal and Fundraising Promotions; Revenue per Member Strong engagement within new Golf House Platform (registered members and fans, traffic trends, # return visits, time on site, etc.) Member Club and Course participation (enhanced profiles and promotions) An increase in the number of Members who leverage new valuable offers from partners and USGA departments. 26

27 Membership Loyalty Ladder Member Engagement and Loyalty has a direct bearing on driving USGA Revenue. As a golfers commitment to the organization increases, so does Revenue. 27

28 Questions? 28

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