What Works? Results from Over 600 Digital Fundraising Experiments

What Works in Online
Fundraising
What We Learned From Over 600 Online Fundraising Experiments
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Virtuous is the nonprofit CRM helping charities create
personal relationships, reduce costs and maximize
impact.
www.VirtuousCRM.com | www.NextAfter.com
Scott Richards
Director of Training & Customer Success
Virtuous Software

NextAfter is a fundraising research lab and consultancy that
works with nonprofit organizations to help them better
understand their donors and inspire them to give generously.
Tim Kachuriak
Chief Innovation and Optimization Officer
NextAfter

NextAfter is obsessed with answering one question:
What makes donors give?

To answer this
question, NextAfter
has conducted over
600 online fundraising
experiments with a
cumulative lift of
25,677%

onlineforlife.org
What Works in Online
Fundraising
What We Learned From Over 600
Online Fundraising Experiments

First, an Experiment
(b) (c)(a)
Which Landing Page is Optimized?

121% increase
in Donations

74% increase
in Donations

Testing trumps marketing intuition.
Key I SIGHT #1:

Best practices are not enough– you need a
rigorous, scientific methodology.

onlineforlife.org
And So Began My Quest…

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Online Donor Funnel
Convert Site Visitors to
Registered Users
Convert Site Visitors and
Registered Users to Donors
Convert Donors to
Advocates

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Nonprofit Industry Benchmarks
1% - 4%
Donation Conversion Rate
0.15%
Email Response Rate

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Is the Funnel Leaking?
96% - 99.85%
Failure Rate

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MECLABS is the largest optimization institution in the world.

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1,500+ major experiments
Over 1 billion emails tested
10,000 sales-paths tested
500,000 “decision-maker”
interviews
5 million phone calls
100+ conferences/clinics

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Over 10,000+ Paths Tested
Copyright © MECLABS

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g=9.81m/s2
1. The funnel is often presented as one
potentially useful analogy for marketing. It
is in fact, the primary analogy. All
marketing should influence a decision.
2. The funnel analogy distorts reality. People
are not falling into your funnel, they are
falling out. The funnel must be inverted.
3. People don’t travel down the center of the
funnel. People are climbing up the sides.
A New Perspective of the Funnel

It’s not a donor funnel,
it’s a donor mountain.
Key I SIGHT #2:

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The Donor Mountain

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Email
Landing Page
Donation Process
Optimizing Each Micro-Yes

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Value
Force
Cost
Force
The Value Proposition

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Email
Landing Page
Donation Process
Cost
Force
Value
Force
(Mi) NO

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Email
Landing Page
Donation Process
Value
Force
Cost
Force
(Mi) YES

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My First Experiment

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My First Experiment
Version A - Control
139% Increase in Clickthrough Rate
42% Increase in Revenue
Version B - Test

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Small Changes >> Big Impact
Optimized
Original
139% Increase in Clickthrough
42% Increase in Revenue

Small changes, to the right elements,
can produce BIG IMPACT.
Key I SIGHT #3:

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Optimizing Email Capture
BUT ThisNOT This
42% increase
in Email Signups

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Optimizing Email Appeals
BUT ThisNOT This
118% increase
in donations

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Optimizing the Process-Level Value Proposition
NOT This BUT This
133.7% increase in
Email Signups

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Optimizing Donation Pages
NOT This BUT This
258.1% increase
in Donations

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“How do we provoke a
conversation about optimization
in the nonprofit space?”

Online Fundraising Scorecard
• Study of 151 Nonprofit Organizations
• Analysis of Four Key Functions
– Email Capture
– Email Communication
– Donation Pages
– Gift Acknowledgement
• 46-Point Assessment
• Based on MECLABS Optimization
HeuristicsDownload Full Study:
nextafter.com/scorecard

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Not All Verticals Perform the Same
Download Full Study: nextafter.com/scorecard

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Most Organizations Prioritize Email Acquisition

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“Why would I want to give you my email?”

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“I can get a crappy newsletter anywhere!”

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Aggregate Donor Inbox: 51,364 Nonprofit Emails…and counting!

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Question 1:
If I signed up to receive emails from an organization, what
might I expect to receive in the first 30 days?

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Question 2:
We’ve been talking about the importance of doing a Welcome
Series for new email subscribers for almost a decade now.
How many organizations are actually doing it?

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Question 3:
How long after subscribing do organizations start asking
for money?

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“Mr. Owl, how
many clicks does it
take to get to the
end of a donation
form?”

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65% require 3 or more clicks.

Friction kills online donations.
Key I SIGHT #4:

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Friction in the Online Giving Process: Defined
/ˈfrikSHən/ Noun.
Anything that causes
psychological resistance to a
given element in the online
donation process.

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Identifying types of friction
in the online giving process.

Types of Friction
Fsc = lT + dT
©
Examples of Length
(lT)
• Page-Length Friction
• Steps Friction
• Field Number Friction
• Field Layout Friction
Examples of Difficulty
(dT)
• Decision Friction
• Confusion Friction
• Error Friction
• Waiting Friction

Field Number Friction
A donation form with an exorbitant
number of fields adds unwanted
friction to the giving process.

Field Layout Friction
A donation form that has vertically
aligned fields may be introducing
additional mental cost or friction into
the process.

Decision Friction
Unnecessary friction in the giving
process is introduced when donors
are forced to make unanticipated
decisions about their donation.

Confusion Friction
Using organization-centric language
or “inside baseball,” or multiple
conflicting calls to action elicits
confusion that creates friction in
the online giving process.

Error Friction
Using cryptic error messages or
requiring users to re-enter
information adds significant friction
to the online giving process.

Registration Friction
Requiring account registration
slows down the donation process
by adding unnecessary friction to
the online donation process.

Waiting Friction
When a page takes too long to load or
makes the user have to wait to access
the page, this adds unnecessary
friction to the process.

Device Friction
Having to “pinch and zoom” in order
to make a donation on a mobile
device adds friction to the mobile
donation process.

Not Suitable for Smartphones

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How does form layout
affect friction on a
donation form?
Experiment #1007

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Overview: CaringBridge.org
CaringBridge is a website where
people in a time of need can
securely share updates, photos
and videos, connecting with
friends and family who care
and want to help.
Over 500,000 people per day
access this web site.

Donation Form Friction
Background:
• Client: Caringbridge
• Primary donation form on
the website
• Default settings of the
payment form had vertically
aligned fields
Control

Treatment
Treatment Changes:
• Grouped similar fields
together to shorten donation
form
• As a result of the grouping,
reduced the width of several
fields

Control Treatment
39.4% increase
in conversion rate

Key Learning:
Even though the horizontal field layout required the same amount of
data, it created the perception that less was required, thereby
reducing friction and creating an increase of 39%. This is a great
reminder that friction doesn’t exist on the page, it lives in the mind.
✓
39.4% increase in conversion rate
Version Conv. Rate Relative Diff Stat Confidence
C: Vertically Aligned 5.2%
T1: Grouped Fields 7.2% 39.4% 100.0%

Your potential donor
doesn’t fully understand
why they should give to you.
Key I SIGHT #5:

Only Half Communicate a Value Proposition

Why Did the Treatment Win?
Control Treatment
74% increase
in conversion rate

(Mi)YES
Y
Headline
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
(Mi)YES
Communicating Value at Each Step
First
Paragraph
Body Copy
Call-to-
Action
Donation
Form
ValueProposition
ValueProposition
TheMessage

• Headline: Arrests attention
and introduces value proposition
• Bulleted Copy: Provides reasons
why you should give
• Embedded Quotes: Bolsters
credibility
• Call-to-Action: Restates the value
proposition and clarifies exactly
what the donor should do

The Value Proposition Question
If I am your ideal donor, why should I give to
you, rather than some other organization, or
not at all?

The Value Proposition Index Study
• Study of 127 nonprofit organizations across 8 different verticals
• Assessed the value proposition as communicated via four
channels:
– Telephone
– Email
– Web site
– Social Media
• Value propositions scored in four areas based on research and
methodology developed by MECLABS:
– Appeal
– Exclusivity
– Credibility
– Clarity
• Data collected from 11/4/15 through 2/6/16
Download Full Study:
nextafter.com/vp

Email Response Time is an Issue
Of the organizations that had a “Contact Us” form, more
than one third did NOT respond to our submission…ever!
35%
65%
No Response Responded

Email: How Long Does it Take to Respond?
3% of Orgs did NOT
have a “Contact Us”
Form
nextafter.com/vp

3% of Orgs did NOT
Form
26% of Orgs responded within 48 hours of our request
nextafter.com/vp

3% of Orgs did NOT
Form
After 1 Week,
43% of Orgs
still had NOT
responded to
our inquiry
nextafter.com/vp

3% of Orgs did NOT
Form
After 1 Week,
43% of Orgs
still had NOT
responded to
our inquiry
After 1-month,
35% of Orgs
Completely ignored
our request.
nextafter.com/vp

Social Media is not much better….
When we contacted organizations through direct
message on Facebook, 33% never got back to us.
33%
67%
No Response Responded

Social Media: How Long Does it Take to Respond?
27% of Orgs had disabled direct messaging
in Facebook and were uncontactable
nextafter.com/vp

nextafter.com/vp

After 1 Week,
36% of Orgs
still had NOT
responded to
our inquiry
nextafter.com/vp

After 1 Week,
36% of Orgs
still had NOT
responded to
our inquiry
After 1-month,
33% of Orgs
Completely ignored
our request.
nextafter.com/vp

Scoring Matrix
Website Email Phone Social Media
Appeal Appeal Appeal Appeal
Exclusivity Exclusivity Exclusivity Exclusivity
Credibility Credibility Credibility Credibility
Clarity Clarity Clarity Clarity
Graded on a Scale of 1 to 5
< 1 - - - 5 > < 1 - - - 5 > < 1 - - - 5 > < 1 - - - 5 >
nextafter.com/vp

Regardless of Vertical, Value Proposition Seems to be a Challenge
1.89
0.98
2.11 2.08
2.34 2.26
1.89
2.18
-
1.00
2.00
3.00
4.00
5.00
Christian Ministries Colleges &
Universities
Disaster &
International Relief
Disease & Health
Services
Environment&Wildlife Food Bank Human & Social
Services
Other
VALUE PROPOSITION INDEX
B
D
A
C
F
C
F+
Download Full Study: nextafter.com/vp

Aggregate Scores by Channel
After filtering out nonresponders, Social Media was the highest
scoring channel followed by Email.
2.8
3.2 3.0
3.4
2.3
2.9 2.8 3.0
2.7
3.1
2.8
3.0
2.3
3.0 2.9
3.2
WEBSITE EMAIL PHONE SOCIALMEDIA
AGGREGATE VALUE PROPOSITION SCORING
Appeal Exclusivity Credibility Clarity

Aggregate Scores by Channel
Somewhat surprising, was discovering that website was the
poorest performing channel.
2.8
3.2 3.0
3.4
2.3
2.9 2.8 3.0
2.7
3.1
2.8
3.0
2.3
3.0 2.9
3.2
WEBSITE EMAIL PHONE SOCIALMEDIA
AGGREGATE VALUE PROPOSITION SCORING
Appeal Exclusivity Credibility Clarity

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Optimizing Your Value
Proposition

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How copy on a donation
page affects the force of
the value proposition.
Experiment ID: #111

Power of the Value Proposition
Background:
• Client: Senator John Cornyn
• Primary donation page for
JohnCornyn.com
• Minimal copy on the page
Control

Value Proposition Question
“If I am your ideal donor, why should I give to
you rather than some other organization, or
no one at all?”

Treatment
Treatment Changes:
• Changed headline to convey
value
• Added copy outlining reasons
why donors support the
Senator.
• Included evidentials to back
up each claim

Control Treatment
258.1% increase
in conversion rate

C: No Value Prop 0.11%
T1: Value Prop on Page 0.38% 258.1% 96.3%
Key Learning:
There is a danger in assuming that your potential donor firmly grasps
your organization’s unique value proposition. By simply adding copy
to the donation page to communicate value, we altered the force of
the value proposition and conversion increased by 258%.
✓

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How increasing clarity
affects the force of the
value proposition.
Experiment ID: #900

Personalized Value Proposition Test
• Lack of copy
assumes that the
visitor is already
motivated
• Lack of clarity
assumes donor
knows where the gift
is going
Control

• Copy is personalized
to tribute page
• Copy also adds clarity
around the
relationship between
the tribute,
organization, and
donor
Treatment

Control Treatment
28.0% increase in
conversion rate.

28.0% increase in donor conversion
Control 3.6%
Treatment 4.6% 28.0% 99.6%
Key Learning:
By adding simple, personalized copy to the donation page, we improved
clarity which increased the force of the value proposition. As a result, donor
conversion increased by 28%.
✓

Increasing the force of the value proposition
Control Treatment
127.6% increase in
conversion rate.
Experiment ID: #294

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How the force of the
value proposition can be
altered with a radical
redesign.
Experiment ID: #3793

Impact of Radical Redesign
Background:
• Client: Texas State Historical
Association
• Primary donation page for
TSHAOnline.org
• Four different membership
options presented
• Copy is not specific and
makes unclear and
unsubstantiated claims
Control

Treatment
Treatment Changes:
• Radical redesign with long
form copy to appropriately
convey the value proposition
• Added copy outlining reasons
why visitor should join the
TSHA as a member
• Included evidentials to back
up each claim

• Headline arrests
attention by
conveying an
exclusive offer
• First paragraph
focuses on primary
value proposition

The value proposition is reinforced throughout the copy

Control Treatment
146.5% increase
in conversion rate

C: Short Form 1.1%
T1: Radical Redesign LF 2.6% 146.5% 100%
Key Learning:
A radically different treatment is sometimes needed to get big increases
in conversion. By altering the page to more forcefully communicate a
compelling argument that highlighted the exclusivity of membership, we
were able to increase donations by 146.5%.
✓

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How do I grow my
online revenue?

There are three key metrics that effect online
revenue– and all of them can be
optimized!
Key I SIGHT #6:

The Flux Capacitor of Revenue MaximizationTM

Exponential Impact of Optimization
Baseline 26.2% in one
Area
26.2% in two
areas
26.2% in three
areas
Web Traffic 100,000 100,000 126,200 126,200
Conversion Rate 2.00% 2.52% 2.52% 2.52%
Avg. Gift Value $70.00 $70.00 $70.00 $88.34
Revenue $140,000.00 $176,400.00 $222,617.00 $280,942.00
Change in Revenue 0% 26.2% 59.0% 100%
Revenue = Traffic X Conversion Rate X Avg. Gift

Exponential Impact of Optimization
Baseline 26.2% in one
Area
26.2% in two
areas
26.2% in three
areas
Web Traffic 100,000 100,000 126,200 126,200
Conversion Rate 2.00% 2.52% 2.52% 2.52%
Avg. Gift Value $70.00 $70.00 $70.00 $88.34
Revenue $140,000.00 $176,400.00 $222,617.00 $280,942.00
Change in Revenue 0% 26.2% 59.0% 100%

Strategic Framework
When it comes to increasing online
revenue, there are three primary strategies:
 Increase Traffic
 Get more of the (right) people to show up
 Increase Conversion Rate
 Get more people to say, “Yes!”
 Increase Average Gift
 Get more people to say “Heck yes!”

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3 Challenges

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Challenge #1: Know Where You Stand
FCORM Report
• Compare your
organization to industry
benchmarks
• Identify your strengths
• Identify your
weaknesses
Where are you leaking
revenue?

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Request a Free FCORM Report
1. Go to: NextAfter.com/FCORM
2. Answer the following three
questions:
A. Average number of unique
website visitors per month?
B. Average number of online
donations per month?
C. Average online gift amount?
3. I will email you a FREE FCORM Repo

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Challenge # 2: Give a Gift to Yourself
1. Go to: NextAfter.com/Friction
2. Download the Online Donation
Friction Self Assessment.
3. Go to your web site and give
your organization a donation of
any amount.
4. Complete the Friction Self
Assessment as you go through
the donation process.

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Challenge # 3: Launch an Experiment
1. Create a hypothesis and design your
new treatment. Suggested areas to
test:
a) Donation form/system
b) Headline
c) Body Copy
d) Third Party Credibility Indicators
2. Go to the NextAfter Research Library
(nextafter.com/research) for
inspiration and to validate and share
your results.
3. Send me an email with your test idea
(timk@nextafter.com), and I’ll help you
set up your experiment.
Vs.

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“Toothpaste is peddled with far
more sophistication than all of
the world’s life-saving causes.”
- Nick Kristof

If you’d like to learn more about how Virtuous can help create personal
relationships, reduce costs and maximize impact visit:
http://www.virtuouscrm.com/video-demo
where you can view a free 4-minute demo

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What Works? Results from Over 600 Digital Fundraising Experiments

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What Works? Results from Over 600 Digital Fundraising Experiments

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