What Do You Wish You Had Done Last Year to Prepare for Today?
As the leader of Masterworks’ Strategic Insights and Planning team, I was recently asked what to do today to prepare for next year. And in the ever-changing landscape of direct response fundraising, being proactive and forward-thinking is essential. But the question actually got me looking backward. Hindsight is a powerful teacher, and examining the lessons of the last few years can better help us be motivated to prepare for the future.
As I reflected on this question, here’s what came to mind…
Expanded Giving Options
The digital landscape is constantly evolving, and its role in our lives is ever-expanding. And as we have all felt, the COVID-19 pandemic accelerated this in our industry. Every day, people are engaging with technology more than ever before and less than they ever will again. Combine this with media coverage of increased rates of mail fraud, and we can easily see a future where return envelopes and checks will be used less and less.
In fact, for our clients that track payment types, we have already seen a decrease in the percentage of gifts given through checks and an increase in those given through credit cards in the first nine months of this year. In CY2022, they averaged 26% of gifts via credit card and 55% via checks. This year, they have seen credit card gifts grow by over 35% while the percentage of checks decreased by 16%.
While fewer clients track emerging payment types (like Apple Pay, Google Pay, or even PayPal), those that both offer and track them saw that upwards of 5% or more of their transactions were made utilizing these payment types in the first three quarters of 2023.
Although checks still reign supreme (even in 2023, they account for almost half of all transactions), their use declined.
Digital Infrastructure
As more and more of our donors move away from traditional check-giving, and more of our lives are spent in the digital space, we need to continue to increase digital communication in all areas. It also means that the technology that supports our digital work — like our email service provider — needs to be capable of more tailored communication: from simple triggered series to automated campaigns that are responsive to changes within the CRM in real-time.
We must actively build and maintain email lists, expand and test in new digital spaces, and make clean and accurate data an essential part of our work.
Diversification of Funding Sources
Relying on a single source of funding is dangerous. And this is not just direct mail vs. digital. Even in the digital landscape, diversification is important. Relying solely on email for your digital communication limits your ability to reach new and younger audiences. Just as only utilizing Meta for digital marketing limits your universe and ability to expand.
Diversification of channels helps us weather uncertainties of today's economic climate. And diversification in the digital space allows us to pivot in response to changes in privacy laws and audience movement. This allows for more agile expansion into new and emerging markets and to be front and center as people migrate to the web. Setting aside digital media dollars to test new channels, new resources, and new offers has to be a part of digital media plans. Being fearless in exploring new spaces in digital has to become routine.
Investment in Resource Development
It’s not enough to simply allocate some portion of a budget to test new digital media channels. We also need to ensure the content and delivery of the offer and message make sense in that space. To continue to reduce reliance on direct mail in acquisition and cultivation, we must invest in the right digital content.
Last year, we spoke with our clients about building digital assets by utilizing emerging machine-learning technology to help increase digital content like blogs, downloadable resources, and emails. This helped increase non-ask communication and gave the organizations authority in their space.
Another area to invest in is the building of video assets. Not only do videos perform well in the legacy social spaces, but they are also necessary in newer and emerging platforms. Videos allow you to connect more deeply with your donors, providing authentic experiences of your amazing work.
Video content can also evoke emotion and tell a more complicated story, allowing you to expand your fundraising offers. Ultimately, we find in almost all digital spaces that videos drive donations. Investing in story finding and building will help increase overall performance.
Comprehensive Emergency Preparedness Plan
One of the most significant lessons learned over the past few years is the importance of a robust emergency preparedness marketing plan. Investing time to outline what types of emergencies your ministry could face and how you would respond allows for quick pivots, as teams already have clear directions on what and where to put your message into the market. Developing these types of comprehensive plans can guide your full team through emerging crises — be it a global pandemic, an international conflict, a devastating earthquake, or a quickly approaching hurricane.
Having protocols in place for various scenarios allows for a swifter response, enables communication with donors and ministry partners, and invites those motivated to help.
Looking Forward
Reflecting on the past year can help us see missed opportunities that we can begin to work into our plans today. Taking a moment to evaluate the past tells us where we could have been today had we acted. While we cannot change the past, we can use these lessons to inform future decisions. As we look forward to 2024, prioritizing expansion in digital payment options, digital technology, cleaner data, resource generation, and emergency planning will ensure your ministry is better positioned to navigate challenges and build a more resilient and impactful future for the communities you serve.
I'd love to chat with you about your plans for 2024, and what else you are thinking about to help accelerate your organization's impact. Contact me here.