The
author states that, “Unfortunately, not all benchmarking studies are created
equal. Some studies are nothing more than lazy half-assed analysis from vendors
hawking thinly veiled sales pitches”.Obviously, being the author of one of these studies I know first hand
how much work they are to complete, and therefore I respectfully disagree.
But
that’s not the point.The point is that
everyone is entitled to an opinion and we are all lucky enough to live in a
time, thanks to the internet, where we have an easy way to share that opinion
with others.
So
let’s hear from you, the Fundraising professionals tasked with understanding
the nonprofit fundraising landscape and how your results fit into it.Should organizations like Convio, and Giving
USA continue to offer these sorts of insights to the nonprofit community, or is
this simply self-serving marketing fluff?
To celebrate, ok, highlight the anniversary, I thought it was a good time to feature an article and blog post that help you make sure your email is getting through.
The first is from Convio Chief Scientist, Dr. Bill Pease. Culled from his oft-requested conference session on things that affect email delivery and the best practices required to avoid common delivery problems, the article provides insight that can help you succeed.
Gary Thurek, the father of spam says people started complaining about his email immediately. He never sent another. Now, if only the Viagra pushers and Nigerian Princes would stop… Well, we can wish. But if you want results and not wishes use the opportunity of this infamous anniversary to share these tips across your organization.
In addition, share your best tips here and we’ll compile them for a future post. Also, share some of the worst tips you've heard and we can put them on a list too. We heard some at a session in San Diego a few weeks ago that made our clients and team cringe - things that good email marketers stopped doing years ago were touted as best practices - but that is a future post. You can also visit the resource center with lessons learned from nearly a decade of research and collaboration with clients and partners on email practices.
And don't blame Gary - as he puts it, blaming him for spam is like blaming the Wright Brothers if the airline loses your luggage.
The Father of Spam, Gary Thurek - by the way Gary, Convio nor our clients love spam.
A few insightful sessions on Web traffic analytics have got me thinking about the myths we marketers, webmasters, execs, and development folks hold dear about our data. Whether it's Google Analytics, Visual Sciences, Urchin, Webtrends, Analog, Clicktracks - however you collect your data - these myths keep us from making the most of what our metrics can tell us.
Myth #1. Analytics tell us why our (inscrutable) users do what they do.
Traffic data gives us the "what" - and only part of the "what" - of how visitors use our site. It doesn't give us the "why." Yes, we can use the "what" of visitor behavior to speculate about the "why" of user motivation, but we don't know, for instance, why someone spends a particularly long time in a certain section of the site. Is she fascinated and reading every word - or so bored she walked away completely?
Myth #2. Accuracy is what we're shooting for.
If only. Analytics help us look for trends - not hard-and-fast, statistically significant numbers that can give The Irrefutable Facts. They do a great job of showing us growth or contraction over time, changing visitor behaviors, overall visitor loyalty. But the rules for how each analytics program collects data are constantly changing, which makes for good benchmarking, but, for instance, poor t-tests.
Myth #3. Traffic data is all numbers - hard quantitative stats, my friends.
Well, okay, you're right - in today's world, that's still mostly the case. When people talk about measuring and benchmarking traffic data, they're typically referring to big, impressive numbers.
But some of the most interesting developments in the analytics world are actually around qualitative user data, such as that collected through tools called Web Use Recorders. These tools record individual browsing sessions to give you a more qualitative view, from your constituents' perspectives, of your site: where their attention is drawn, what content is overlooked, how they scan your homepage.
So now what?, you ask. If our traffic data doesn't tell us "why," isn't always accurate, and isn't "just the numbers," why do I analyze this data at all.
The answer: Triangulation with other user research methods and data sources. Traffic data is a critical - but singular - pillar of user research. Without alternative techniques like user interviews or surveys, usability tests or focus groups, even the best-laid plans of metricians and analysts can only answer part of the eternal question:
Who are our constituents, what do they want, and why do they do what they do online?
To expand further on what exactly nonprofits can take away from these findings, Vinay conducted a 6 minute, follow-up interview delving into the following points:
1. Interesting surprises in the data findings 2. What the “stellar” growth of email files in the study really means for nonprofits 3. What challenges nonprofits currently face and how nonprofits can embrace online programs to help drive success.
Posted by: Tad Druart at 10:56AM EST on April 15, 2008
One of the key benefits of the Software as a Service (on-demand) model is the unique insight that the model provides from a data and analytics perspective. Because of that model we are able to obeserve aggregate data that helps nonprofit professionals answer three questions:
One of the lead researchers, Vinay Bhagat, sat down with us for a series of interviews on the study. Today, Vinay discusses the value of the research and some of the key trends.
We would be remiss if we didn't thank the study authors Quinn Donovan, Lynette Perkins and Vinay for the many hours they put into completing this project.
Posted by: Quinn Donovan at 10:23AM EST on April 14, 2008
The catchphrase “Keeping up with the Joneses” is a familiar concept for most Americans. It refers to measuring yourself against someone, usually a neighbor, using some sort of comparative measurement such as the car they drive or the brand of clothes they wear.
Invariably, as anyone who has gotten caught up in this trap can attest, trouble eventually arises because of asymmetric information, or the idea that one party has more complete information than the other. For instance, after trying unsuccessfully to match the Joneses lifestyle, we find out that the Joneses are not like us at all. Turns out that the reason they could afford that new car and fancy vacation was a recent inheritance they didn’t tell anyone about. Or maybe they simply project the perception of success while secretly drowning in a sea of debt. In other words, the Joneses are not a good comparable if you have any hopes of not ending up in the poor house.
Nonprofits struggle with this same concept of information asymmetry. We know exactly how our organization is performing across key metrics such as fundraising, email file health, and mobilizing advocates, but have little or no empirical data outside our organization to compare ourselves against. “We’re doing better than last year, but are we leading or falling behind our peers?” is a common question for many nonprofit leaders. And who are my peers anyways? Even on the rare occasion that we get a glimpse into how another nonprofit is performing, we are still left to wonder if they are really a good comparable or not for our organization?
Because a Public Broadcasting Station’s mission and how they operate is very different than a University or Disaster Relief Organization, it is important for nonprofits to compare their individual results against a group of peers that is most like their own; ideally based on multiple dimensions. For example, organizations with a common mission, email sophistication (use a proxy like the size of their email file), and their organizational budget, would be a good place to start.
Undoubtedly, relevant benchmarks are important for nonprofits to measure themselves against. But this list of dimensions is by no means exhaustive. So before we all run out comparing ourselves to everyone on the block, don't forget our friends our friends the Joneses. Your online results are just part of the picture. What an organization is doing offline via their direct mail programs, events, telemarketing, and how well these programs are integrated will have an impact on online results. And at the end of the day, remember every organization is different -- each with its own strengths, organizational challenges and goals.
Posted by: Molly Brooksbank at 10:35AM EST on April 10, 2008
Some people like tuna from a can. Me, I like sushi. Like your email housefile, it’s all about how fresh it is and how you slice it. And fish that are carefully chosen and sliced with skill are more valuable than the stuff in a can for a reason.
Eric Rardin at the Care2 frogloop blog has posted an excellent calculator to help nonprofits answer a key question: What’s the value of an email? It’s a question Care2 has been taking head on since it’s important to how they connect activists and donors to causes.
As he mentions, Care2 gets this question a lot. As a consultant working with nonprofits, I ask it a lot. How should organizations be building a housefile? How do you prioritize? What tangible and intangible benefits can an organization offer to build a list directly? Are appends worth it? Should you advertise online? And for all of these questions – at what cost? If you’re trying to build your file, you need to be able to assess expenditures for acquisition and you need to be able to determine which source is most valuable.
In other words, you have to know where to get the best fish.
Tom Belford at the Agitator observed that if you’ve been running online campaigns for a while, you should already have your own way of measuring the value of email addresses and should be taking into account the cost of acquiring those addresses, but nonprofits are definitely all over the map on this one. Depending on where you are, this calculator may be a very good starting point for you.
The calculator gives results based on a number of campaigns per year. Seems simple, but you have to know what you mean by a campaign—it’s usually not just email responses. Email alone typically drives about 15% of donations and the rest comes from a variety of other sources. A single campaign could include donations driven from direct mail, search, viral referrals, or from activists, volunteers and information seekers who just happen to respond to an appeal while visiting your site.
Since the calculator uses a number of responses rather than a response rate, you can pretty much define your own terms, but if you want to compare your results against the benchmarks provided from our 2008 Nonprofit Benchmark Index Study, you’ll want to consider all online gifts in a one-year period, divided by the number of individual emails. In other words, the easiest thing to do is use your aggregate numbers as a single campaign.
If you’re already calculating the value of email, but you’re not looking at the multi-year implications, this is a great reminder to add it in. How fresh are your addresses? You can keep email addresses fresher through good communications, but there will always be some that become unusable.
If you’ve done that, try taking some different kinds of slices. Can you find the value of various relationships online (e.g. advocates or volunteers)? Are there constituents who are more valuable because of higher engagement (the people who open your email and read it)? Segmenting your file to speak to constituents in context can improve response rates, but you have to know your baseline, and if you want to learn to make beautiful sushi, you’re going to have to spend a lot of time studying fish.
P.S. I’m using tuna as a metaphor so I have to mention this tuna-related game developed by Conserve Our Ocean Legacy. It also conveniently happens to demonstrate an innovative way to educate, engage and list build at the same time. (You won’t see my name in the high scorers list. I got netted at 70,193).