Issue 4: Channel Surfing

I finally cut the cord on my cable, shifting to T-Mobile Internet and testing YouTube TV. As someone who works in tech, it may be a bit of a surprise that I took so long.?

However, there was a comfort in having the “reliability” of cable there. It literally comes out of the wall; that’s the internet. It’s what I’ve known since the first time my father set up American Online for my childhood home.?

As Dylan said, the times they are a’changing.?

I’ve been thinking about these types of behavioral paradigm shifts that are playing out across our society. Little decisions that lead to big impact, whether seen or not. Behavioral shifts take a long time to spread across the population, especially regarding technology.?

Diffusion of innovations is a theory that attempts to explain how, why, and at what rate new ideas and technologies spread throughout society, with American communications theorist and sociologist Everett “Ev” Rogers popularizing the core concepts through the lens of consumer market share, which outlines that innovation is communicated through specific channels over time among the participants in the social system.?

Organizational theorist Geoffrey Moore adapted this foundational framework to add a “chasm” that separates certain adopter categories in his famous book Crossing The Chasm, and I think there’s merit in exploring the implications of this when it comes to the nonprofit sector.?

In this week’s newsletter, we will look at channels in a few different ways to explore how small to midsized nonprofits, in particular, can approach their evolutions and behaviors around the technology they rely on.?

Generosity in Action

If there’s anyone who implicitly “gets” that myriad socio-economic influences are dictating whether we have a chasm problem in our sector, it’s going to be Philip Deng of Grantable .?

I met Philip in Denver last year at the Nonprofit Technology Conference. I have grown to find little value in vendor halls over the years, so meeting Philip and learning about Grantable was kismet, in my opinion.?

He’s come to outline a term called "sectorism" that I think is astute regarding how technology companies approach the nonprofit sector and why I feel we’ve created an artificial chasm around adoption.

Drawing from an article published shortly after the short-lived firing of Sam Altman from OpenAI late last year, he outlines:

The core misunderstanding that many technology companies have about what it means to work at a nonprofit is accelerating the resource chasm between different groups of nonprofits and the impact on fundraising operations of small shops in particular.?

Unless some drastic change is implemented, less-resourced nonprofits, in particular, are going to feel even further pressure to adopt Hail Mary digital tactics due to their supposed cost-effectiveness. In contrast, more mature nonprofits that embrace technology as an accelerant to existing strong trust-building foundations and not an answer in itself will likely see the most success in their work.?

I strongly encourage you to listen to the Untapped Philanthropy podcast season finale with Philip to hear why centering equity is at the heart of how we can truly level the playing field for all nonprofits.?

Tips & Tricks

Which is better - direct mail or email?

Both! If you’re looking to design magical generosity experiences properly then you’re going to want to deeply understand when, where, and why a specific communications channel is going to be best used. Let’s give a quick overview of when to best lean into direct mail and email marketing for your nonprofit.

When Is Sending Mail Best?

Direct mail is not the right channel for every single communication.?

Compared to nonprofit email marketing, printing direct mail is more expensive and time-consuming. If you were to achieve the level of personalization mentioned above, it would be especially unwise to rely solely on direct mail. However, it can be very effective for recapturing old donors, delighting new donors, and standing out to young people.

1. Recapturing Old Donors

Donor acquisition is costly, and that makes retention invaluable. Direct mail for nonprofits can be a powerful retention strategy.?

Use direct mail marketing materials to not only remind donors of the work your organization is doing but to show how much you’ve grown and how they helped.?

Take advantage of the physical nature of the materials to show that you’ve been making an impact and could do more with their support. You can do this through quality design, personalized messages, and powerful stories. Show passion, express gratitude, and invite confidence.

2. Delighting New Donors

You may have garnered enough trust to get a donation, but make sure to follow through to keep donors’ interest and establish a relationship.?

Physical media leaves a deeper mental imprint than digital media. Quality correspondence expressing gratitude and illustrating the impact of the donation, coupled with a personal touch, can deeply resonate and extend the good feelings from the initial engagement.

3. Standing Out to Young People

Contrary to popular belief about the digital-native generations, young people appreciate physical marketing communications. Perhaps it is because they are so inundated by messaging in their digital lives, but young adults under 24 were among the most responsive to direct mail.?

The USPS found that millennials are “far more likely than non-Millennials to read and engage with direct mail.”?

Break through the clutter of their digital lives and offer something refreshing and sincere.

When Is Email Best?

Now you might be thinking: If direct mail for nonprofits is so great, does that mean I should scrap email marketing? Absolutely not! Direct mail can be a powerful way to reignite old relationships or attract and surprise new ones, but the expense and time required are not suited for regular communications.?

During our research for The Nonprofit Email Report: Data-Backed Insights for Better Engagement, we found that 48% of donors cite email as their preferred method of hearing updates and appeals from an organization.

Nonprofit email marketing is also far more measurable than direct mail. Therefore, it’s easier to develop a marketing strategy with email because you have access to behavioral insights for your audience.

Coupled with the affordability it offers, a robust nonprofit email marketing strategy can have a strong ROI even for smaller or newer organizations.?

In general, email is the best channel for communicating with a dedicated or expectant constituency. With your dedicated donors, you don’t need to worry so much about whether they’re checking their emails because you know that they want to hear from you.

Focusing primarily on this segment for regular communications, use email for:

1. Time-Sensitive Messages

Notices for upcoming events or special promotions simply might not make it in time through the postal service. Email marketing makes it easier for nonprofits to set up links that will send donors and members exactly where they need to go to donate or get involved.

2. Weekly Updates or Newsletters

Some donors and dedicated members want to know how your organization is progressing and ways they can continue to be involved. Sending regular updates by email works well.

3. Immediate Response

Of course, prompt letters of gratitude and confirmation are very important, even if they’re not as detailed and personalized. The first round of communications should be prompt so that you can show your constituents that you are not only thankful but responsible. Email marketing is perfect for this!

At the end of the day, print or digital, nonprofit marketing communications is all about the same end goal.?

Both should be integrated into an overarching plan (marketing pros call it integrated marketing communications or omnichannel marketing) and used strategically. Remember that direct mail or email shouldn’t stand alone for any of your marketing efforts.

Take advantage of the data analytics at your disposal and be more thoughtful about what you send and to who you send it. In order to maximize the impact of any outreach, craft a strategy that encourages continued engagement after a piece of direct mail or an email is received.

Data Dive

I came across a fantastic article that challenged the notion of choice overload, when someone is presented with too many options in a buying process that leads to increased frustration.?

A 2021 study published in the Journal of International Marketing found that choice deprivation is likely more prevalent when buyers make online decisions. The comprehensive study involved over 7,000 participants across six countries (U.S., Germany, China, Bangladesh, Colombia, and Ghana). It employed two distinct methodologies: a choice satisfaction survey and an analysis of real-world choices in online shopping. In the choice satisfaction survey, participants rated their satisfaction with the number of choices available in 13 categories, ranging from mundane (e.g., bread) to more significant (e.g., job opportunities). The survey revealed a prevalent feeling of choice deprivation, with most participants desiring more options in 11 out of the 13 categories. Notably, this sentiment was consistent across all six countries, suggesting a universal preference for more rather than fewer choices.

So, what does this have to do with nonprofits??

The nonprofit sector suffers from the dual combination of choice overload and choice deprivation when it comes to investing in the core infrastructure of nonprofit operations - marketing, revenue management, and impact analysis.?

We have an overwhelming amount of digital donation options and donor management systems attempting to corral the basics of the generosity experience. Facebook group forums alone have a constant drumbeat of the “what CRM is your nonprofit using” that becomes flooded with vendor names dropped without context and salespeople sliding into DMs. Choice overload at its most pure.?

In turn, the options for a platform approach for small to midsized nonprofits are sparse or expensive, with the vast majority of technology designed for specific tasks or portions of the generosity experience, while the well-resourced nonprofits can pour tens or even hundreds of thousands of dollars into enterprise buildouts that attempt to connect all the dots.?

None of these are ideal.?

Of course, I have a point of view on how to solve this, but I found the research fascinating and helped push my understanding of how folks prioritize the decisions they make.?

Community Spotlight

I put out an extremely unscientific poll around where nonprofits think their community is spending its time earlier this week. While I would love to have more data, based on several conversations I’m also having, I would say that there’s a strong interest in returning to in-person gatherings.?

I also have the same desire! We’re beginning to scope out some workshops and social gatherings that we’d like to put together, with the Association of Fundraising Professionals International conference (AFPICON) in Toronto, Canada, being the first bigger experience we’ll be planning around.

Will you be heading to AFPICON? We’re working on a special launch party for our recurring giving report for April 8 and would love to gather some early adoption interest to help guide what will be most valuable to our guests.?

Comment or DM me if you plan on going and are interested in what we’re doing!

Upcoming Events

I hope to see you at our first taping of Neon One’s new livestream show - Generosity Experience Live!?

I’ll be tackling the issues of professional development in the nonprofit sector and will be joined by Dr. Toni Josato (Neon One) and Keely O'Sullivan Kurtz, MS, ACNP (Nonprofit Leadership Alliance) to explore how both tech companies and capacity-building organizations can work together to tackle the talent retention crisis that our sector is facing.?

Join live, I’ll be giving out prizes!

Other Events

• January 30: How To Make Your Nonprofit Website Sparkle in 2024
• February 7: Nonprofit Tech Circle - Nonprofit Homepages
• February 27-29: ELEVATE Virtual Conference

Final Thoughts

A story outlined in the book Stillness Is The Key by Ryan Holiday has led to a mantra I keep repeating to myself.?

In 2002, Shawn Green had begun his third season with the LA Dodgers with the worst slump of his career as a Major League baseball player. He made $14 million a year and kept whiffing at everything he swung at.?

Many of us in his position would begin to worry increasingly about the pressures of not hitting the ball - his contract, the expectations of fans, the embarrassment of failing his team.?

Yet, as a practicing Buddhist, he knew the best thing he could do was clear his mind and focus on the actions instead of the outcomes. On May 23, 2002 he stepped up to the plate against the Milwaukee Brewers and began repeating a Zen proverb to himself:

chop wood, carry water

Removing all the distractions and obstacles, he focused on the action itself of swinging the bat. By the end of the game, he had gone six for six and drove home seven runs that led the crowd of 26,728 Brewers fans to give him a standing ovation.?

There is a balance between the need for more and the knowledge that more only sometimes leads to success. While I don’t believe that mindset alone will address the very real resource allocation issues in our sector, something is soothing about the idea of just doing the work.?

Our technology and the dizzying amount of marketing and revenue channels at our fingertips can lead to a cluttered mind (and disorganized database), so some days, it just helps to “chop wood, carry water” and get to work without distraction.?

Would you be interested in the book itself? Join my livestream tomorrow, and I’ll be raffling off a special Stillness Package that includes a copy of Stillness Is The Key and a unique tea set.

Puzzle of the Week