Are You Paying Enough Attention

To Your Mid-Level Donors?

Kerri Kerr, Avalon Consulting Group

Myles King, The John F. Kennedy Center for the Performing Arts

Sarah Stallings, National Geographic Society

Speakers:

Myles King

Manager, Annual and Digital Fundraising

Kerri Kerr

Senior Vice President

Sarah Stallings

Senior Director of

Annual Giving

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Mid-level Donors Defined

Why Upgrading Matters

Upgrading Tips & Examples

How to Continue to Engage Mid-level Donors

Kennedy Center Program

National Geographic Society Program

Questions?

What we’ll cover:

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Acquire/Reinstate

Renew or Lapse

Appeal gifts

Upgrade/Mid-Level Donors

Major Gifts

Member Evolution

Steward + Cultivate

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Membership is a pipeline to major gifts

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Typically 35-50% of high-dollar multiple-gift members join the file with an initial gift

less than $100

Why?

• Increase fiscal year income

• Strengthen member commitment through elevated experience and stronger

relationship with organization

• Set stage for major gifts and planned giving

When?

• Renewal series

• Regular appeals (3-6 months after previous gift)

• Specific upgrade campaigns

Why & when to upgrade

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How?

• Direct Mail

• Telemarketing

• Email

• In Person

• Post-event

How to upgrade

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Elements of Compelling Copy

Identify problem or opportunity

Include a Deadline/Urgency

Identify the Enemy

Be relevant

Be specific

Be emotional

Be the solution

Same direct marketing “rules” apply to upgrading

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Also, name the mid-level giving program and ask donors to join this exclusive group of generous supporters.

Write copy that is donor-centric not

organization-centric.

Repetition is key – the introduction and

the PS are the most-read passages;

highlight key points in these sections

Use bold, indented, or underlined

sections to draw attention to key points. Be

careful not to overuse this technique.

Use a strong mix of benefits-oriented

language and philanthropic language.

If possible, tailor parts of the letter to the

specific donor – e.g., highlight programs

that will interest the donor or an upcoming

event that he/she has attended in the past.

You are not your donor. What you like may not get the best response.

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Although most donors will not read the

full letter, a longer letter indicates that

you have something substantial to

say.

Consider sending your first

communication with a longer letter (four

pages) and then follow-up with shorter

two-page or one-page letters.

In direct marketing, four-page letters

typically win in tests against two-

page letters. Four-page letters become

more common as the value of the file

and donor increase.

Consider letter length when drafting copy.

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Brand your pieces to your organization

and use consistent logos and colors.

Simple designs not only perform better

in the mail but also have a clean look

that gives it a high-touch feel.

Consider adding high-end touches like

closed-faced envelopes, pre-stamped

reply envelopes, first-class postage, and

handwritten addresses.

In brochures, use photos that show

your donors at events so that the

donors can picture themselves in that

environment.

Use high-touch elements in your design

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Donors respond best to clear titles. The higher up the title, the better the performance because

the title carries with it the weight of prominence. Consider adapting titles to those that clearly

allow a layperson to understand the signer’s importance within the organization.

Use a known signer

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EXAMPLE: Smithsonian’s Castle Circle and JSS

Appearance of an exclusive program,

setting it apart from current membership

Highlight benefits and impact, use of the

word "you," longer copy to better sell the

upgrade, acknowledgment with the

certificate

Successfully mail both stand-alone upgrade

packages as well as spinoffs of the

standard appeals package

Ask higher-dollar members to renew at the

Castle Circle level in the R1

Test upgrade strategies in other programs

like Acquisition and Appeal

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The 1891 Society Invitation

package was mailed as a

version of standard

February Appeal.

This appeal raised more

than 3x the expected

revenue.

EXAMPLE: The Trustees Bridge Appeal

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EXAMPLE: NPCA Trustees for the Parks Upgrade

Upgrade appeals

should include

insider

information –

such as in-depth

briefings and

memorandums –

and list exclusive

program benefits.

Renewal efforts

early in the series

are cost-effective

ways to upgrade

higher-dollar

donors.

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KC Circles

revenue

generated from

Membership:

under $1,200

initial join

KC Circles revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles joins

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Majority of these members came out of the direct marketing program

Continue to engage them with standard direct marketing outreach channels

(mail, phone, email), but:

Scale back number of contacts if appropriate

Increase high-touch aspects of outreach

Direct Mail – First-class postage, closed-face carrier

Telemarketing – Experienced callers only!

Add additional points of contact:

Call from in-house development team

Access to insider events

Personal notes added to direct mail packages

Newsletter highlighting the impact of their support

Don’t stop after the upgrade!

The John F. Kennedy Center for the Performing Arts

The elements of a successful mid-level program

$1,200+$60-$1,200

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The Membership-to-KC-Circles

pipeline was very strong in

FY15, with over $1.8 million

worth of Circles gifts emanating

from Membership joins (under

$1,200 joins).

That represents 62% of all

FY15 KC Circles revenue.

KC Circles

revenue

generated from

Membership:

under $1,200

initial join

Membership is the primary pipeline to Circles giving.

$1,848,471$1,121,532

All Circles (KC) Revenue in FY15

KC Circles revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles joins

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Note: $1,200+ Single

Gift defined as one gift

of $1,200 or more (not

cumulative)

Industry Ranges

Under $100: 40-60%

(This is not an exact

comparison to KC)

18%

14%

9%

6%11%

43%

< $60 $60 - $119 $120 - $299$300 - $599 $600 - $1199 $1200+

As of FY16, 57% of $1,200+ multi-gift members joined the file with a gift <$1,200.

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In FY15, the pipeline brought in more revenue but lower average gift.

$762,057

$1,848,471

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

Average KC Circles Revenue From Prior Members (Per Year)

Since 1974 FY15

$2,222

$1,884

$1,500

$2,000

$2,500

KC Circles Average Gift from Prior Members

Since 1974 FY15

Prior Members are Circles donors who

previously gave Membership-level gifts.

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I’m also calling to ask you to renew your membership

so that you can continue to experience the many

exciting benefits it offers, such as Members Only

Ticket Priority which gives you the opportunity to

purchase tickets before they are released to the public

and 10% discounts at our Roof Terrace Restaurant

and KC Café. And as a new benefit this year,

Members will also receive Ticket Priority for all new

Subscription package orders, allowing you to get the

best seats for subscriptions as well.

Furthermore, if you increase your member level to

[NEXT LEVEL UP], you will be able to take

advantage of additional benefits such as, [MENTION

1-2 BENEFITS FROM LIST BELOW]. Additionally, an

anonymous member of the Kennedy Center Board of

Trustees will match your increased gift with a

contribution to the Kennedy Center education

programs. This way you can experience some

incredible additional benefits that will enhance your

experience and help support the Kennedy Center

education programs. Can we sign you up for the

_____ level?

Upgrade opportunities

KC Circles

revenue from

KC Circles joins

R1 DM

Renewal TM

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Upgrade opportunities, cont.’d

KC Circles

revenue from

KC Circles joins

eRenewals

Appeal DM

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KC Circles

revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles

joins

Current Circles Member Renewals

KC Circles revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles joins

R1 - DM R2 - DM

R3 - Phone Call or Email

(month of expire)

R4 - DM R5 - Email

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KC Circles

revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles

joins

KC Circles revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles joins

Renewals: industry best practices combined with high-touch techniques

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KC Circles

revenue from

KC Circles

joins

Renewals: industry best practices combined with high-touch techniques

4-page letter

Full page reply

Closed-face carrier

Brochure selling Circles renewal

Personalized language

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KC Circles

revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles

joins

KC Circles revenue

generated from

Membership:

under $1,200

initial join

KC Circles

revenue from

KC Circles joins

Solicit additional gifts from Circles Members for Expansion Project

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Kennedy Center Circles Events Include:

Cast Parties Backstage Tours Private Artist Receptions Dress Rehearsals Lounge Access

In-person engagement (if possible) is also key!

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Worth the effort: Circles Members retain at much higher rates than low-dollar

Members.

20%

30%

40%

50%

60%

70%

80%

90%

100%

Overall Overallw/Reinstates

Multi-Year First-Year

Membership Circles

Industry Ranges

MY: 50-70%

FY: 20-40%

Overall: 45-65%

FY15 Retention Comparison

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Next steps for the Circles program

Continue to mail Circles renewals in a timely

manner.

Test to improve performance (signer, stock color,

etc.).

Develop an evergreen Acquisition package to be

sent on a quarterly schedule to warm Circles

prospects.

At the end of the fiscal year, refresh letter copy to

refer to the Expansion Project.

Prepare to roll out new branding in Fall of 2017.

Monitor program performance via bi-weekly

reports and compare year-over-year trends.

Circles Acquisition Brochure

and Reply

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National Geographic Society

Adding expanded mid-level outreach

to build on a new program

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Build on the success of October 2013 pilot donor acquisition program

Using “Contributing Member” and “Contributing Membership” language

Providing a philanthropically-based option to further engage existing members (subscribers) and prospects

Bringing new audiences to National Geographic

Create a high-value donor file by:

Emphasizing pure philanthropic giving

No use of low-value back-end premiums or benefits

Grow the donor program through:

Multi-channel outreach

Creating a pipeline to mid- and major-level giving

Launching a Membership Program: Goals

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Resulting program is on an incredible trajectory!

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Program is proving to be great pipeline for higher-level giving

$300 $84,900 $122,100 $185,422 3

55

80

116

2013 2014 2015 2016

GrossRevenue

Numberof Gifts

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$1,000+ Gifts from Acquisition

Since 2013, 229 new joins at

$1,000+ level have been

acquired via direct mail

acquisition.

333 new joins acquired at

the $500-999 level and 841

at $250-499.

Creating great

prospects for future

upgrade asks.

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25 Contributing Members upgraded to $1,000+ from

appeals and annual renewals

Contributing Membership Program proving to be great pipeline

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FY17 is first year of rolling renewal series

Current high-level members asked to upgrade

to Grosvenor Council at the beginning of their

renewal cycle

FY17 strategy includes 3 CM appeals to be

versioned into GC upgrades

Renewal/Appeal Upgrading Plans

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The Grosvenor Council

Named for one the first editors of National Geographic magazine, the Grosvenor Council is a group of

unwavering supporters who have partnered with the Society to ensure a lasting impact on the world. With an

annual gift of $1,000 or more, Grosvenor Council members generously support the National Geographic

Society’s work at the cutting edge of science, exploration, education, and storytelling.

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GC benefits provide recognition, access, & opportunity

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GC annual schedule includes touch points in all channels

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GC communications have high-touch elements

First-class postage

Heavier paper stock

Detailed language about program initiatives

Gang print with Contributing Member packages

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GC receive stand-alone cultivation touch points & versioned appeals

Year-End GC version was sent to major

gift officer to add a handwritten note for

increased personalization.

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Going forward

Continue to look for gang print

opportunities to keep costs down

Test GC invitation to $100+ CM’s

Develop strategy for lapsed GC members

Handwritten notes on acknowledgments

Benefits audit to improve upgrading within

GC

Enhance cultivation – calls, notes,

invitations, emails

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Leverage RFM and analytics on the front end to identify high-potential

donors and ensure they receive specialized direct marketing treatment and

cultivation to move them up the giving ladder.

Donors who are direct marketing responsive do not stop being responsive to

direct marketing techniques once they give a larger gift.

Use high-touch techniques but balance them by cost-effectively

communicating with mid-level donors by basing upgrade and mid-level

packages on existing packages.

Overlay direct marketing outreach to mid-level donors with personal touch

points, increased information sharing, and access to your mission at work.

In conclusion: Pay attention to your mid-level donors!

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Questions?

Kerri Kerr, Avalon Consulting Group

kerrik@avalonconsulting.net

Myles King, The John F. Kennedy Center for the Performing Arts

MCKing@Kennedy-Center.org

Sarah Stallings, National Geographic Society

sstallin@ngs.org

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