In our work we emphasize the need to study the marketplace. You need to be sure that the market you are counting on is a reality. But things change and the “reality” we perceive can turn out to be an illusion. Here’s one example we need to be particularly wary of: the hope that as they age, the Baby Boomer generation will give a much needed boost to our fundraising programs.

Yes, many of us are waiting for the retiring Boomers to become our big new group of contributors. But who will save the Boomers? It seems that as a group, Boomers were pretty poor planners for their futures and many are in real trouble. Whatever the exact statistics, we can probably count on only a modest percentage of them being able to support non-profit organizations, while the others may need help. We need to find and target those boomers with the dependable income to support us.

“New Poll Reveals a Future of Financial Worries For Many of Us” states a headline from an article about Boomers’ retirement and investment plans. In this poll, among the noteworthy findings for fundraisers are:

• 44%  of Americans born between 1946 and 1965 are not confident that they will have enough money to live comfortably in retirement.
• 57% say they lost money in the economic downturn and have to delay retirement.
• About 55% have some confidence that they’ll be able to live comfortably during retirement.
• More than two-thirds of these with higher income feel ready for retirement (we’d better learn how to find these people).
• Median retirement savings is at $40,000 (due to a quarter of this population having saved nothing). Among those who have saved something, the median savings is $100,000. (Again we need to find the group above the median.)

According to this article there are about nine things Boomers could do right now to help themselves. You can read about the eight others in the article, but one is: What you’re paying for in comfort today, you won’t be able to afford tomorrow. So scale back your lifestyle!

Well, I don’t need to tell you we need to make sure that “scaling back your lifestyle” does not include curtailing giving to non-profit organizations. And we definitely need to identify those who do NOT have to scale back.

This is a good illustration of how important it is to know what is and isn’t our market and how it can change, and to make sure what we perceive is not an illusion. Most importantly, we must adapt our planning and execution to what is happening rather than to what we wish were happening or the ways things used to be. That’s the only way to succeed. Otherwise, we’ll always be looking for reasons why something didn’t work.

If you would like to share any of your experiences in dealing with the real or illusory marketplace, please pass them along to us or comment below.

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In this difficult economy we often hear from fundraisers who are considering trying to offset a loss of income by raising their basic membership level or lowest gift ask.

We’ve been asked for advice on this critical pricing decision, and here it is: Don’t. Instead, you need to think about how to upgrade the gifts of high dollar donors, while discounting the basic rate so those who want to support you can find an acceptable level and frequency of giving – acceptable both for their pocketbooks and their pride.

Recent articles in the press, surveys and research back up this recommendation. “As Middle Class Shrinks, P&G Aims High and Low,” a Wall Street Journal article from September 12, 2011, details marketing plans of giant marketer Proctor & Gamble. Another Wall Street Journal article, from September 19, 2011, “Coke Tailors Its Soda Sizes,”  reports on a shift in product development and pricing in reaction to the unfortunate trend of the shrinking middle class, and of middle class shoppers trading down to lower-priced goods.

The shrinking middle class is the bad news. The good news is that people who have money aren’t skimping on their purchases. They are being up-sold, with more costly products designed for their pocketbooks and tastes.

So P&G offers Charmin Ultra-Soft for affluent shoppers and Charmin Basic for cash-strapped customers. Coca Cola is coming out with “Mini Cans,” dropping the price by 20% to lure more customers who are counting their pennies. For those who want more beverage (and calories) and have the money to pay for it, not to worry; Coke expects stores to increase prices on its 16oz., 20 oz. and one liter bottles.

These giant corporations are pretty knowledgeable when it comes to their markets and sales planning. So we fundraisers need to take heed. This would be the wrong time to increase basic rates; middle class people are strapped for cash. And even if they really aren’t, they feel they need to be careful in how they spend their money. Plus there are fewer of them as the economy takes its toll.

I would venture a guess that people who are having a hard time financially or may be unemployed in part populate our growing lapsed files. So we want to go easy on them. Now is not the time to antagonize them by pouring salt on their wounds.

A case in point is the saga of what happened to Netflix, as reported in the NY Times, September 19, 2001. Before their plans to split into two companies, Netflix announced a $6 monthly price increase for their dual services of Internet Streaming and DVDs by Mail. As a result the company very rapidly lost 1 million of its 25 million customers.

Many fundraisers are actually accommodating the middle class donor who increasingly feels pressed, by offering introductory discounts of $25 to $30. This is working well; tests show that net revenue from these lower asks are better than those of $35 or $40.

As for the higher dollar donors, it appears they are happy to spend more on products and services that confer status and make them feel good. So let’s give them the opportunity to feel really special. Let’s think of ways to confer greater status by upgrading their gifts and/or by giving more frequently as Sustainers. Let’s invite them to glamorous events. Perhaps we should even consider bestowing titles on them no one else has; has any one tried “Sir Donor,” “El General Contributor” or “Princess Giver?”

We trust that these thoughts will provide guidance for you in your planning. Please let us know of any experiences you have had with both high value and lower dollar donors, and any conclusions you have come to.

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Direct response testing allows you to find out, on a small budget and with a limited sample size, what will and won’t work on a larger scale – in what we call the “rollout” campaign. At CBA we test creative approach, prospect and donor lists, incentives, offers and more to find the best performer, which will becomes the “control” mailer or email or phone message.

Knowing the statistical requirements for test volumes, we can predict with confidence the reliability of the test outcome. We’re able to project future revenue that will be generated by each fundraising campaign. Armed with this information we can help you create cash-flow budgets and annual income forecasts.

Testing is a sophisticated art and science. It must take into account your realistic budgetary constraints along with a determination of which kinds of tests will be the most productive for your needs. And the timing of testing is critical in order to get you moving in the right direction most quickly and efficiently.

Whether you’re a CBA fundraising partner or not, we invite you to contact us to discuss ideas that could bring your program to the next level.

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From The Wall Street Journal

While Procter & Gamble used to aim its marketing at the huge middle class, now it is changing many of its products and the way they are sold, because many formerly middle class shoppers are trading down to lower-priced goods.  At the same time, upper income customers are not skimping on more expensive items. So P & G is now marketing to the top and the bottom of the consumer continuum, while targeting less towards the middle.

Does this have relevance for fundraising? Absolutely. It can’t help but affect the type and sizes of gifts that nonprofit organizations can depend on now and in the future. We share the same markets with P & G and every other organization that wants dollars from the public.

(Read on …)

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Thanks to my old former colleague from Thirteen/WNET,  Stephanie Patafio, for drawing my attention to a good article this morning on her LinkedIn via Twitter (although somehow she missed Facebook).  As social media becomes apparently more important, it’s good to step back every once in a while and actually look at what we’re doing and what, if any, effect it’s having on our marketing and fundraising plans.

Those who know me will not be surprised when I post this to all my profiles and then re-post it with CBA’s profiles.  So you may be surprised to hear me say that the major account-based social networks aren’t everyone’s cup of tea.  (Read on …)

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Just a quick note: Our production team is happy to report that although some postage rates are increasing soon, the rates we use for our clients are not increasing over last year at all!  So, as you budget for the next fiscal year, keep that in mind.

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The National Association of Railroad Passengers is looking for a full-time Administrative Assistant to assist in day to day office operations, to begin immediately.  NARP is a nationwide nonprofit group that supports the development and expansion of passenger trains and transit, with over 20,000 members nationwide. NARP has worked since 1967 as a respected advocate on the national level.

The administrative assistant will work regular office hours, Monday through Friday. Duties include:

• Maintain and update the membership database daily (includes processing incoming credit card payments), and prepare and mail New Membership Packets on a weekly schedule)
• Upload daily bank transactions, enter bills and allocate funds to proper accounting codes using QuickBooks
• Serve as first point of contact for incoming calls and letters to the office, answering questions regarding membership details and upcoming Association events, routing calls to appropriate staff members.
• Organize and maintain office inventories, preparing order vouchers for vendors; supervise the maintenance of office equipment (copier, printers, etc.)
• Provide support in scheduling, booking, and organizing annual meetings, locally and nationally

For more details and requirements, view the full listing online.  If you’re interested in this opportunity or know someone who would be perfect, let us know and we might be able to recommend your work!

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Are you being pressured by your board or ED to cut your direct mail budget in favor of more “electronic” fundraising?  If so, take heart — you’re not alone.  See what Bonnie Catena of Amnesty USA had to say, courtesy of Roger Craver and Tom Belford’s thought-provoking newsletter, The Agitator.

I’m compelled to note…that the vast majority of individual donor income for most non-profits is raised through the mail…Let’s keep that in mind as we fend off our Boards and Executive Directors who don’t understand why our direct mail budgets haven’t markedly decreased. They will when the mail stops working!

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They try to raise the price of postage faster than you can lick a stamp.  And that whole “neither snow nor rain nor heat nor gloom of night” thing might soon be valid only 5 days a week and not 6.  So really, it should come as no surprise when a few local branches start closing.  Make that thousands of local branches, according to an interview with the USPS’ Dean Granholm, vice president for delivery and post office operations.  A quick search shows that this has been going on for a while now, with new lists published from time to time.

While no one of these things will destroy the direct mail business, taken together they could lengthen deliverability times and even cause major disturbances locally.  We’ve already seen several issues with some of our clients and are reinventing some of the systems we use to plan and track campaigns.  We even touched upon these postal problems in our 11 Tips for 2011.

If you suspect you’re having problems (with the deliverability of your mail — we can’t fix everything) let’s track it.  We’re looking for volunteers to give us seed and first gift dates and other data that could help.  If you’re interested in participating, let your AE know!  Our shoot us an email at partnership@carlbloom.com and we’ll get you started.

UPDATE: JUST REMEMBERED: In one of the earlier posts I link to above, I noted that the USPS actually has over 36,000 retail outlets, compared to the ubiquitous McDonalds and Starbucks which have less than a half and a third of that, respectively.  Also that FedEx has about 1,600 locations; UPS has 1,300.

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Our good friend Jack Callahan sent us this email from his local hardware store.  Notice anything odd?  That’s right, there’s no “Click here” to take action.  Or any attempt by Rocky to get Jack to go to his website (the Weather.com link is there as a courtesy).  Nope, he expects the now-snowbound to get up out of their computer chairs, get in their cars and drive down to his store to respond.  Seems logical for a retail outlet, right?  It’s also logical for a non-profit.  Or really any marketer. (Read on …)

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