BLACKBAUD : New Research Finds that Integrated Direct Marketing is Essential for Maximizing the Long-term Value of Online-Acquired Donors
05/31/2011| 08:40am US/Eastern
Blackbaud (Nasdaq: BLKB) today announced the publication of the 2011
donorCentrics Internet and Multichannel Giving Benchmarking Report,
which features research on nonprofit online giving in the context of an
integrated direct marketing program. The Report also includes an
extended analysis on the value of multichannel giving.
> View the full Report at www.blackbaud.com/multichannel
Developed by Blackbaud's Target Analytics company, the Report finds that
although multichannel giving has become a popular objective of
nonprofits as a way to build constituent support, it is not widely
practiced. The large majority of donors give through only one channel
and use only direct mail as their vehicle for donations. According to
the Report, the only donors who do significant multichannel giving are
new donors acquired online. Large numbers of these donors switch to
direct mail giving in subsequent years. This is the group of donors for
which multichannel giving is crucial for garnering repeat gifts and
realizing true long-term giving potential.
"The Internet is becoming an increasingly important acquisition channel
but has not proven to be as effective for retention," said Rob Harris,
Target Analytics' director of analytic products and a co-author of the
study. "It is the ability of online-acquired donors to use another
channel - that is, to start giving through direct mail - that
significantly boosts the long-term value of this group of donors. The
most successful organizations have integrated online and offline
marketing teams and CRM systems to develop effective multichannel
communication strategies that can maximize donor value."
The research also finds that for donors already on file, evidence of
past multichannel giving is not a predictive factor for future retention
or long-term value. Traditional direct marketing segmentation variables
such as recency, frequency, and gift amount are far more predictive.
Other key findings about online donors include:
The majority of gifts are still received through direct mail,
although it has become increasingly common for new donors to give
their first gift online.
Online-acquired donors are significantly younger and tend to have
higher household incomes than mail-acquired donors.
Online-acquired donors tend to give much larger gifts but have
slightly lower retention rates than mail-acquired donors.
In aggregate, online-acquired donors have much higher cumulative
value over the long term than traditional mail-acquired donors.
However, long-term value varies depending on the donor's origin gift
level, and the substantially higher gift amounts given by
online-acquired donors can mask issues with retention.
The data presented in the Report comes from the most recent
transactional data available for the 28 organizations participating in
Target Analytics' donorCentrics online benchmarking service in 2010. The
organizations that participate in these online benchmarking groups are
prominent national nonprofits covering a range of sectors, including
animal welfare, the environment, health, human services, international
relief, and societal benefit.
The complete analysis, including a list of participants in the 2010
online benchmarking groups, can be found at www.blackbaud.com/multichannel.
Blackbaud is the leading global provider of software and services
designed specifically for nonprofit organizations, enabling them to
improve operational efficiency, build strong relationships, and raise
more money to support their missions. Approximately 24,000 organizations
-- including The American Red Cross, Cancer Research UK, Earthjustice,
International Fund for Animal Welfare, Lincoln Center, The Salvation
Army, The Taft School, Tulsa Community Foundation, Ursinus College, the
WGBH Educational Foundation, and Yale University -- use one or more
Blackbaud products and services for fundraising, constituent
relationship management, financial management, website management,
direct marketing, education administration, ticketing, business
intelligence, prospect research, consulting, and analytics. Since 1981,
Blackbaud's sole focus and expertise has been partnering with nonprofits
and providing them the solutions they need to make a difference in their
local communities and worldwide. Headquartered in the United States,
Blackbaud also has operations in Australia, Canada, Hong Kong, the
Netherlands, and the United Kingdom. For more information, visit www.blackbaud.com.
Except for historical information, all of the statements, expectations,
and assumptions contained in this news release are forward-looking
statements that involve a number of risks and uncertainties. Although
Blackbaud attempts to be accurate in making these forward-looking
statements, it is possible that future circumstances might differ from
the assumptions on which such statements are based. In addition, other
important factors that could cause results to differ materially include
the following: general economic risks; uncertainty regarding increased
business and renewals from existing customers; continued success in
sales growth; management of integration of acquired companies and other
risks associated with acquisitions; risks associated with successful
implementation of multiple integrated software products; the ability to
attract and retain key personnel; risks related to our dividend policy
and share repurchase program, including potential limitations on our
ability to grow and the possibility that we might discontinue payment of
dividends; risks relating to restrictions imposed by the credit
facility; risks associated with management of growth; lengthy sales and
implementation cycles, particularly in larger organization;
technological changes that make our products and services less
competitive; and the other risk factors set forth from time to time in
the SEC filings for Blackbaud, copies of which are available free of
charge at the SEC's website at www.sec.gov
or upon request from Blackbaud's investor relations department. All
Blackbaud product names appearing herein are trademarks or registered
trademarks of Blackbaud, Inc.
Melanie Mathos, 843-216-6200 x3307
© Business Wire 2011