Developing e-Relationships with Constituents

By Gene Austin, Chief Executive Officer, Convio, Inc.

Most development professionals understand the value of strong constituent relationships for driving donations. However, the high-touch nature of relationship building typically makes it impractical to do with every constituent. The Internet can help.

Because it's a fast, cost-effective channel for ongoing constituent communications, nonprofit organizations can build online constituent relationships quickly and easily. Sending email newsletters, notifications of upcoming events and updates on the organization's progress, as well as creating an online community, all help to keep the organization “top-of-mind” and make constituents feel more connected. This, in turn, makes them more likely to support the organization when they receive an appeal. Following are a few ways a nonprofit organization can build strong online relationships with constituents.

Offer Better Services To Drive Online and Offline Donations
The economics of direct mail fundraising, or the cost to produce and send a piece of mail, require an approach focused on solicitation. Through almost every piece of direct mail they send, nonprofits must solicit contributions to offset the cost. With this approach, however, there is little focus on treating a donor or prospect like a valued constituent.

Online fundraising turns this approach around. Through email, an organization can communicate with donors and prospects at close to zero cost, so acknowledgements and general updates no longer have to be cost-justified. In addition, online Constituent Relationship Management (eCRM) technology makes it easy to learn what is important to donors and then personalize updates and appeals according to their interests and giving history.

For example, the American Society for the Prevention of Cruelty to Animals (ASPCA), one of the nation's leading animal welfare organizations, achieves positive results by focusing on donor treatment. Donors with email addresses receive frequent email updates that explain how the ASPCA is using their dollars to fulfill its mission. These communications encourage visits to the organization's Web site (http://www.aspca.org/) to get more information, share stories about animal adoption successes and engage in advocacy.

Additionally, the ASPCA has captured constituent information on pet preferences so it can personalize constituent communications, including appeals, based on interests. These strategies are working.  In the last two years, the segment of donors receiving regular email communications has given 2.1 times as many dollars -- primarily driven by higher giving frequency -- as those who do not receive emails. While there may be natural loyalty differences for donors who volunteer their email addresses, this only explains part of the story.

Strong evidence suggests that higher levels of online donor service influence donations. For example, donors choosing online renewal have increased their average gifts by more than 40 percent. Additionally, donors receiving targeted appeals based on their pet preferences have responded at two to three times the rate of those receiving neutral -- or non-pet-specific -- messages.

The ASPCA personalizes communications, including appeals, based on constituent
interests such as preferences for cats or dogs.

Give Constituents a Voice
Constituents who feel they have a voice in the organization are more likely to contribute time and money. Create an ongoing conversation with constituents through online surveys, polls and petitions. Also, create a constant narrative by regularly updating Web site content. Supporters will stay engaged online to see how the organization is progressing.

Create a Sense of Shared Identity
In addition to giving constituents the sense that they have a voice in the organization, make them feel a part of the cause. Consider creating an online community as well as online forums (such as Web logs, also known as blogs) to allow constituents to voice their opinions, make suggestions and communicate with other supporters as well as the organization's staff. Also, take advantage of grassroots, community-based online organization forums such as Meetup.com. The access to ideas and opinions on the site gives each supporter a sense of being a part of the organization and a community.

Offer Rewards
Consider offering reward points that constituents can accrue based on various online actions such as donating or forwarding email messages to friends. Allow each registered constituent to view his reward point balance at any time on a personalized Web page and redeem rewards points online for gifts. Offer special recognition gifts for supporters with high point balances to provide incentives for constituents to increase their interaction with the organization.

Summary
These tips will aid an organization in building solid online relationships with donors, while using the Internet as a cost-effective channel to communicate, interact and operate.  Nonprofits that understand the dynamics involved in creating e-relationships with constituents will be able to successfully learn, internalize and implement these strategies and solutions. Developing and nurturing life-long relationships with constituents is a vital element in the success of any nonprofit organization, and although the importance of this idea will never change, today’s technologies -- specifically, the Internet -- provide new ways to get there.

About the author: Gene Austin is CEO of Austin-based Convio, Inc. -- the market-leading provider of software and services to help nonprofits use the Internet for developing strong constituent relationships to drive fundraising, marketing, advocacy and other forms of support. For more information, please visit www.convio.com.