7 Lessons Learned From Working In Retail

I applied for the position on a whim. A few years ago, I was between jobs while purchasing a bridal gift at a home goods store. Holiday season was approaching, so I applied for temporary work. Surprisingly, I learned some key lessons during my short tenure there which relate to many business arenas, including the nonprofit world. Read on to discover how I applied these lessons to break the all-time sales record for an ordinary household product.

That home goods store requires that their cashiers do suggestive selling at the registers. The first item to sell was a set of nonstick skillets for $50. I was nervous about asking customers who had already made their purchases to add another $50 to their ticket. No one will buy these was my first thought.

Lesson 1: If you don’t ask, there is no opportunity for success. Each customer not asked to buy the skillets was an opportunity missed. And surprisingly to me, many said yes to adding another $50 to their ticket. Several even added more than one set of skillets to their ticket. So ask for what you need!

Once I made the first sale, I learned the next lesson.

Lesson 2: Success breeds success. The confidence gained from one “yes” fueled the next sale. My confidence grew. My fear diminished. I was encouraged to keep asking customers to purchase the skillets. So remember that success in asking for what you need will lead to more success in getting what you need.

However, not everyone said yes. Sometimes they said no.

Lesson 3: No once doesn’t mean no the next time. Even no for the fourth time in a row doesn’t mean no the next time. Not everyone will say yes to your request. But no once doesn’t mean the next answer will be no.

Lesson 4: Not every day is a yes day. Some days, the answer is no all day long. But on no days, hang on to lessons 1 and 4. Tomorrow will be a new (and different) day! When the answer is no, regroup and re-evaluate the request. And return to lessons 1 and 4 for encouragement.

Learning to handle the no responses and remembering lessons 1 and 4 taught me lesson number 5.

Lesson 5: Success is contagious. The excitement generated from one sale often produced the next sale. The next person in line did not want to be left out. Be excited when you receive a yes answer. Publicize it! Let others know. Create an atmosphere such that others want to share in the success.

Lesson 6: Project confidence. Believe in what you are asking. I bought a set of the skillets so I could say I own the skillets and offer my own testimony about their value. With my level of confidence, the only item I could not sell was the Topsy Turvey tomato grower. (The product lacked greatness, and I could not manufacture any greatness.) Be genuine. Believe in what you are asking. Be a part of your mission.

Lesson 7. Smile. Build a relationship. Be likeable. People like doing business with others they like and with whom they have a relationship. If my friend posts a request to support her half marathon for her ill friend, I will support the cause, not necessarily for the ill friend but because I want to support my friend.

The final product I was asked to sell was the unglamorous room deodorizer for $6.99. Even though the product was packaged as two for $9.99, we were asked to sell the singles for $6.99. Using all the principles above, I sold 32 room deodorizers on one Saturday afternoon, breaking the record and amazing a visiting manager. And that brings me to the final lesson:

Hang on to those yes days. The memory of success will serve as encouragement for those no days and remind you that the next day just might be a yes day.

 

Laura Reifschlager

Trainer

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Fundraising For Fireworks

When many Americans think about the Fourth of July, we tend to envision hot dogs, beaches, sparklers and fireworks. Even though many communities have banned citizens from setting off their own light displays, numerous local governments sponsor their own fireworks show.

However, in some regions, this might not be possible without sizable donations due to the state of the economy and local budgetary concerns. For instance, the people of Rochester, Minn., are hoping that funding picks up soon, or it doesn’t look like such a display is in the cards for this upcoming Independence Day, the Post Bulletin reported.

Mayor Ardell Brede told the news source that he needs to raise $35,000, but with less than a month away from the big night, the town only has $9,000 to use toward fireworks.

The people of Bainbridge Island, Wash., are faring a little better. The Bainbridge Island Review detailed that a fundraising campaign driven by nonprofit Bainbridge Fireworks has fulfilled $15,000 of the area’s $25,000 goal. Residents have been depositing money in collection jars which numerous individuals have posted in local cafes, shops and other venues to promote the celebration. There have also been donations at area banks and online.

Foundations and organizations that provide annual funding might benefit from nonprofit accounting software, which can help board members audit funds and make sure the correct amounts are being distributed to various programs each year.

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Lapsed Donors: How To Get Them Back

Last week, we released our first donor loyalty study.  Thank you to everyone who participated!

One of the most shocking revelations was that only 29% of nonprofits have a lapsed donor program.  That mistake presents a huge opportunity for other nonprofits.

If you do not want another organization to come in and take your lapsed donors, here are a few ideas for recapturing your donors.

It is important that the efforts expended on your lapsed donor program result in revenue.  Make sure you have a clear goal for the program and identify exactly how much is needed to create a positive ROI for the program.  If your program isn’t producing revenue then invest your time in something else.

Identify who to target.  Past donors that are true givers (above $20 or more than one gift), strong volunteers, or well-known supporters are great targets.  Don’t leave anyone out of your email ask, but make sure you select the most likely candidates for recapture for any direct mail programs.

Communicate your message with your lapsed donors clearly and specifically.  Share with them:

• what you have been doing.
• the impact of your programs on the community.
• the results of your programs.
• what is going to happen if your organization goes away.

DON’T call lapsed donors LAPSED or ask them to come back…DO give them a reason to come back!!!

After assessing who to contact and what you will say, you need to determine how you plan to communicate with lapsed donors.   Set up a monthly program that includes email, direct mail, and phone calls.  You never know what the trigger for giving again will be or when it will come.  In the early stages of a donor recapture program, it is critical that you test.

Test which variable has the strongest response, test the message that you are sending, and test the frequency of the messages themselves.  Make adjustments often and continue to evaluate the program.

When you successfully recapture a donor, be sure to send a hand-written thank-you note.  I also recommend that following the first gift.  Also send a very short survey asking how you can improve.  It might reveal why he/she left in the first place.  It will allow you to improve for others and avoid the same mistakes of the past.

 

Take-away:  Recapturing a donor is time-consuming and difficult.  Invest in a strong program that makes your recapture program less critical, but keep in mind that saving a donor is less expensive than recruiting a new one.

Good luck with your lapsed donor program!

Bridget L. Brandt
Director of Marketing
Sage North America

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What Should Your Organization Do To Enhance Donor Loyalty?

Bridget Brandt shares her tips for developing a solid donor base in Fundraising Success magazine this month in her article “10 Things Every Organization Should Do to Enhance Donor Loyalty“  Building an effective donor loyalty program takes time and effort. Here is an abbreviated list of her tips to engage and grow your donor base.

 

1. Listen to your donors – find out why your donors give.  Ask for their advice, and put it to practice.
2. Share your good news – no news is not good news.  Communicate with your donors in a regular manner either through monthly, quarterly or whatever cadence your organization can accommodate.
3. Measure your success – share the impact in measures that map to your mission. Quantify your organization’s impact.
4. Survey your donors – know your donors, simple surveys and polls can be used to understand their preferences.
5. Leverage donor loyalty – leverage your board members.  Ask them to make calls and write thank-you notes.
6. Involve donor in the cause – invite donors into your organization to volunteer or visit.  Let them see their funds at work.
7. Get social – use social networks to connect and engage your donors.
8. Customize your approach – show you know your donors, and adjust your communications to their preferences.
9. Recognize repeat donors – notice those who give regularly.
10. Say thank you – simple enough, but this step is often overlooked.  Take time for this very important step.  The more personalized, the better.  Whether it’s a phone call or hand written note.

What are your tips for building donor loyalty?  Let us know in the comments.

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Red Or Blue, What Color Should I Use For My Website’s Donate Button?

That’s a good question and the answer is – it depends. 

It depends on your website design, color palette, content and context.   In general, a bright, higher contrast button can boost donations.   A donate button that stands out from your organization’s overall color palette is obvious and easier to notice.

There is a lot of debate around color – do red buttons perform better than green?  And, again it depends on the call to action you are trying to inspire. Want to instill a sense of urgency “red” makes the heart race faster.  While green has a calming effect more pronounced than blue.

There is loads of research on the emotional response to color, and it is a design consideration for your entire website – there is no right color for a donate button.  It depends on the context and the action you are trying to inspire.  So, you must think of color alongside text.

What should your donate button say?  Keep it short, keep it clear and make it a call to action that’s  relevant.   The call to action is your message to the visitor telling them the primary thing you want them to do and while “Donate” is short and clear “Donate Now” may be even better.

And, like many things in life size does matter.  Help your donate button get noticed by adding 20 pixels or so.  Bigger donate buttons help convert more donors.  The logic is pretty simple.  Your button needs to be noticeable and you want to make the button as easy to find as possible.   Don’t make your donors have to fumble around for it.  Which leads to my next point – placement.

People in the western world tend to read in a reverse “S” pattern or a “Z” beginning top left and quickly scanning to the right and down- it’s the Guttenberg principle. Here’s a great blog post that explains it and other design layouts.   Eye tracking studies from Yahoo confirm visitors “eyes sweep horizontally from left to right often focusing on a roughly triangular area in the upper-left corner of a webpage, or the upper-left corner of the webpage’s main block of content.”   They do note that this pattern varies based on the design, layout and context.

Ideally, place your donate button somewhere in the top navigation, so it’s visible on every page.  Here’s a wire-frame of the ideal placement for your donate button, I also show a typical pattern of eye movement in yellow.

If your design doesn’t accommodate this placement, my next tip is place the donate button “above the fold” or the upper half of the home page. You don’t want your potential donors to have to scroll to find it.

Don’t be afraid of color and most definitely test different concepts.  A simple test – ask someone unfamiliar with your site to find the donate button.  If they can find it in two seconds or less – you have done well.

Want to learn more about what to do with your website?  Attend our upcoming webcast to learn the 13 things you must do (or stop doing) in 2013 to grow your online presence and effectively engage, inspire, motivate and mobilize your web audience.

The first webcast filled up fast, register for it today here.

Patricia Tynan
Sage Nonprofit

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Know Your Channel

This is a follow up to my previous post, Know Your Donors By Name.  The key takeaway from the post is get to know your donors very well and understand how they think, that way you can build campaigns and events to appeal to them on their terms.

Once you know your donor base, it’s important to keep them engaged.  We’ve all heard that you can’t “sell” every time you reach out to your donors.   Asking for a gift every time you talk to them will make your message sound redundant and people will quit listening.  I realize I have confused and probably discouraged many readers at this point.  I am in the process of telling you about yet another time that you should not ask your donor base to make a donation.  At this point, you are likely saying, “Then when am I supposed to ask for money.”  The answer is “in due time.”

In this day and age of cluttered communication channels, you have to earn the right to engage your donors in two way conversation.

As you get to know who your donors are and how they think, translate the knowledge into effective engagement by determining how to communicate with your donor base.  I would venture a guess that your donor base is going to be somewhat segregated with regard to their preferences.  Some donors prefer the formality of direct mail.  A letter housed in an embossed envelope, signed in blue ink for authenticity (of course) from the Executive Director.  Others prefer an email periodically and are more concerned with tipping their cap to the environment and not wasting paper.  But, we are an increasingly mobile society with countless ways to communicate.  Pinterest, Facebook, native apps, Flickr, blogs… all captured in this graphic.

Inforgaphic found on Visual.ly/60-seconds. Credit to go-gulf.com.

Give your donors the ability to tell you which communication channel is best for them.  Whenever you ask a donor for their contact information, ask them what contact method is preferred.  Today “primary contact” is more than the main person to talk to in a household or business, it is also the primary or preferred communication channel.  You want to know the most effective way to communicate with your donor.  Is it 140 characters that summarizes the issue and provides a link to learn more?  Is it a full page letter that outlines a new program in great detail?  Create communication campaigns and tailor the delivery method to your audience.  One channel may not be the answer, but broadcasting the same message on every channel is not the right approach either.   I don’t know what mix is best for your donor base.  And if you don’t either, read Know Your Donors by Name (or whatever it was called).

Logan Kimble
Product Manager
Sage Nonprofit Solutions

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Fiscal Cliff May Spur Charitable Giving

Many nonprofits voiced their concerns that the Fiscal Cliff deal would have negative impact on charitable deductions. They worried that capping the tax deductions for charitable contributions from the wealthiest families and individuals would hamper their fundraising efforts. However, the Fiscal Cliff deal did not limit tax breaks on charitable deductions and may in fact have a positive effect on donations this year, according to a brief on The American Taxpayer Relief Act of 2012 from the Urban-Brookings Tax Policy Center’s Urban Institute on Nonprofits and Philanthropy.

The documents answers the question that has since been abuzz in the nonprofit community, “What Does The Fiscal Cliff Deal Mean for Nonprofits?” It explains that a number of provisions in the Act could potentially have an impact on charitable organizations, such as an increase of the top tax rate from 25 to 39.6 percent on taxable income, while itemized charitable deductions can still be subtracted at their full rate. Individuals who donate appreciated property may also find there are additional tax benefits, thanks to capital gains increases for corporate stock, real estate and investments.

In all, these changes could pump approximately $3.3 billion more into nonprofits’ accounts, representing a 1.3 percent jump over giving totals in 2012.

– Sage Nonprofit

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The One New Year’s Resolution Your Nonprofit Needs To Make

Even though you’re knee-deep in the middle of year-end fundraising, don’t let your next event take you by surprise next year!

It’s never too early to start planning. I propose you make one resolution next year for your nonprofit and then stick to it.  Can you guess what it is?  Take your next fundraising event online.

I am not saying cancel the annual gala.  What I am suggesting is that you figure out a way to integrate and share your next event with supporters and donors – online.

Why am I saying this?  I recently evaluated our customers and determined they raise, on average, about 890% more through online events than their main donation page.

Let me repeat, nonprofits are raising 890% more through online events than their main donation page.  Not only can you make more money online, but you can reach new donors and demographics.   And, yes, we can help you take your events online with Sage Fundraising Online.

I wrote about “Online Event Fundraising 101” for Canadian Fundraising & Philanthropy this month. In the article, I explain why it’s critical to take your events online.  Hint – there are 300 million smartphone users in the world, and they keep their mobile device within arm’s reach 24 hours a day.  This smart phone, tablet carrying, mobile and online participants give more, raise more and do more often using their networks to  bring awareness to your cause and new donors to your organization.

So, what’s your New Year’s resolution going to be?

Jamy Squillace
Product Manager
Sage Nonprofit

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Making The Rule Of Reciprocity Work For Your Nonprofit

You’ve probably heard of the Ten Commandments, but does this one ring a bell?

“Thou shalt not take without giving in return.”

As psychologist Dr. Robert Cialdini points out, “there’s not a single human culture that fails to train its members in this rule.” It’s what makes us scramble in the back of the closet for a scented candle and a ribbon when a neighbor unexpectedly shows up with a holiday gift. It’s why 200 families sent holiday cards back to a complete stranger simply because he had sent them one. A story told in this recent National Public Radio broadcast.

What does this mean for your Nonprofit? Inexpensive gifts for potential donors dramatically increase contribution rates. For example, a custom address label only costs about 9 cents, but it almost doubles donor response when compared to a gift-less direct mail piece. Take a page from the Hare Krishnas’ book and hand out flowers or other inexpensive trinkets. Ask for a donation after a passerby has accepted your gift and you might just raise millions like the Krishnas.

Tips to make the rule work for you:

1. Make it Personal– Custom gifts make the recipient feel valued and make your gift less likely to end up in the trash. Something as simple as personalizing sticky notes for your targeted potential donors could make the difference between a daily reminder of your mission and an addition to the local landfill.
2. Make it Useful– Give them something they’ll actually use like office supplies, magnets, note cards, or a free song or ring tone from iTunes. Your gift doesn’t have to be an object. Why not provide valuable insights like how your logic models have proven successful or the lessons you’ve learned about turning your activities into desired outcomes?
3. Don’t Stop Believing– Continue to send gifts to major donors even when they haven’t contributed in a while. Your gift will serve not only as a reminder to donate, but will also create a sense of indebtedness to your organization.

Get in the holiday spirit and give your targeted donors a gift. You may receive more than you expect.

What are some gifts that have helped your organization increase donations? Please share in the Comments section below.

Kathleen Denyer Hall
Associate Product Manager
Sage Nonprofit Solutions

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The Solution For Flat Footed Fundraising

Does it feel as if you are running furiously to stay in place with your fundraising results? Turns out this may be precisely what is happening to your nonprofit – and you are not alone. The Fundraising Effectiveness Project survey results for 2012 confirm recent years have been tough on fundraising growth. Smaller nonprofit sprinters may even be running backwards.

Photo Credit: iNnOsEncE via http://www.sxc.hu

According to a recent report by the Association of Fundraising Professionals and the Urban Institute, nonprofits lost $100 in donations for every $100 they raised in 2011 as donors gave less or dropped giving altogether.  The survey outlines for every 100 individual donors nonprofits recruited in 2011; they lost 107 donors.

According to the survey analysis, larger nonprofits that raise more than $500,000 a year lost only $90 per $100 new donations gained while organizations that raise less than $100,000 lost about $110 for every $100 raised. Organizations that raise $100,000 to $500,000 annually essentially broke even, losing around $100 for every $100 they raised. That is a lot of running in place.

Smaller nonprofits are likely to lose ground for a variety of reasons. Smaller nonprofits are less likely to have a well-known brand, and are more likely to have staff who wear many hats, and may not have a full time professional fundraising staff or sophisticated fundraising systems.

Obviously, it’s easier (and cheaper!) to retain a current donor than win a new one, so current donor engagement and communication has never been more important.  Just maintaining your current donors takes focused effort and plans, and smaller nonprofits who can find ways to affordably maximize their precious staff hours and resources to engage will likely be better off. The survey suggests that it’s a great time for nonprofits of all sizes to examine their “bang for the buck” from their online fundraising systems. Even as some system choices are being retired, to the frustration of the their users.

Sage’s Online Fundraising system is producing fantastic results for smaller nonprofits. I recently learned that our customers who receive training to integrate Sage Fundraising Online into their website, and not limit online giving to a mere  “donate here” button, grew their online revenues nearly 900%. (Yeah, 900%.  As a longtime marketing consultant, I was skeptical of this number until I confirmed the results with Sage Fundraising Online’s Product Manager. )

Recent headlines suggest that the economy is slowly turning around.  In the meantime, nonprofits who hope to gain more ground, should carefully portion their human and marketing resources to engage current donors, streamline pathways to new prospects, and adopt affordable and effective technology.

I think we are ready to see all that running move nonprofits forward in 2013.

Christina Cockerham
Strategic Growth Account Manager
Sage Nonprofit

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