Visitation to Increase if Cultural Organizations Evolve Engagement Models (DATA)

Attendance to cultural centers is on the decline, but data suggest that forward-facing organizations may see improvements by 2020. Read more

Group Tour Interest in Decline: Why Museums Should Invest Elsewhere (DATA)

Investing in attracting tour groups is an increasingly futile endeavor for museums. Here’s the data and what to do Read more

The Evolution of Nonprofit Leadership: We Need More Conductors

Nearly everything has changed in today's digital world - including the most important duties of executive leaders in successful Read more

Audience Acquisition: The Cost of Doing Business for Visitor-Serving Organizations (DATA)

Here it is: the data-informed equation for how much money organizations should be spending in order to maximize opportunities Read more

The Four 'R's of Brand Credibility for Nonprofit Organizations

When it comes to inspiring engagement, there are four criteria essential to creating and maintaining meaningful connections with potential Read more

The Game Has Changed: Nonprofits Now Compete with For-Profits (DATA)

An organization’s nonprofit status may carry neither the perceptual weight nor the relevance that many leadership teams imagine…and nonprofits Read more

Nonprofits

The Evolution of Nonprofit Leadership: We Need More Conductors

Conductor 1

Nearly everything has changed in today’s digital world – including the most important duties of executive leaders in successful organizations.

I’ve recently been involved in conversations exploring the new roles of executive leadership (the Chiefs) in today’s evolved world. Everything related to managing effective organizations seems to be changing – audiences, engagement mechanisms, desired public values, and even the roles of institutions themselves. Organizations are “flattening” hierarchical structures, opening authority, and some are even letting staff members work from home. Even the role of email and websites has changed. These are all very different and far more prevalent situations than they were even five years ago. As such, the way that executive leaders lead must evolve, too.

Today’s evolved world demands that Chiefs play the role of symphony conductor rather than first chair of an instrument within their organizations. In other words, the days of the Chief as “expert practitioner” have past. It’s more important than ever that Chiefs “conduct the symphony” rather than getting lost in the weeds (a place that – let’s be real – some Chiefs have been known to camp out)!

In this bad metaphor of Chiefs as conductors, the role of the CEO is to make sure that all of these departmental orchestras develop a cohesive symphony that is consistent with the organization’s overall values and objectives.

Today, organizations need conductors because even the most renowned first chair requires a maestro. Indeed, many of the most successful Chiefs have long been playing the role of “conductor” – and this skill has never been more valuable or in-demand. The world moves too quickly for Chiefs to be “expert” at everything in their department or organizations – and successful Chiefs benefit by orchestrating the collective talents of their entire team to achieve success.

Here are three reasons why the need for conducting skills has never been greater:

 

1) We are in the midst of revolution

The Digital Revolution (emphasis on the word “revolution”) is so named for a reason – nearly everything has changed. To ignore this unassailable fact is to actively refuse to evolve an organization to keep pace with the surrounding world. It is the equivalent of choosing irrelevance.

Further compounding the challenge of the revolution is that fact that it’s still happening. For example, Facebook algorithms change and the very tactic that works best one month can hurt your organization’s virality the next. New technologies create new advertising efficiencies – last season’s “tried and true” may be obsolete this season. It’s several full-time jobs just keeping up with the various aspects that go into a department. For instance, at IMPACTS, we are increasingly observing smart, forward-thinking organizations “outsourcing” aspects of their advertising strategy to more expert practitioners. This is not a knock on internal expertise – it is a compliment to the self-awareness of organizations that recognize the functional impossibility of maintaining expertise in an increasingly esoteric, evolving space. The advertising world is incredibly dynamic – it takes true experts who live and breathe it every day – to work with maximum efficacy. Increasingly, it’s simply too much for an individual working for one organization (without a grasp on the broader industry and without devoting significant resources to keeping up with day-to-day changes) to optimize an advertising plan.

Even a magical Chief who could stop time could not possibly hope to fully catch up on any one branch of their department – let alone all branches. Organizations increasingly need real experts. And organizations need Chiefs to hire these experts and trust them. Chiefs may benefit by realizing that – as awesome as they may be – it is unrealistic to think that they need to be more expert than the experts they’ve hired when it comes to the details.

When a leader plays the popular, “Now explain every aspect of this new thing to me while I fire back with actually-irrelevant, pre-digital revolution logic” game, the organization loses. If you’ve hired a good person, the only things a leader needs to consider are: “Will this work?” and “Does this fit with our organizational values?” and “Does this bring us closer to achieving our goals?”

 

2) Someone needs to preach to the choir

Sounds counter-productive, doesn’t it? In today’s world, though, it’s increasingly necessary. One of the most important roles of a good Chief is managing successful internal communications.

It’s difficult for conductors to successfully conduct when the sheet music hasn’t been distributed to the musicians. Worse yet, it’s even more difficult to sound like a brilliant symphony without hours of practice. Yet, in a rush to engage external audiences in our fast-paced world, organizations regularly underestimate the critical importance of taking a moment to get everyone on the same page. This is increasingly glossed over, and yet this is arguably more important than ever before given our real-time, digital world!

Reputation plays an important role in an organization’s success when it comes to garnering support – and managing reputation is a duty that every department – and the CEO and Board, of course – must work to carry out in concert. A good Chief communicates purpose and reinforces the “why” of the organization within their respective department and organization. Without this, nobody plays the same song at the same pace. Without first aligning internal messages – a function of relentless communication – it’s impossible for staff to successfully communicate externally.

 

3) You cannot rule from the mountaintop while stuck in the weeds

Organizations must be accessible 24/7 on real-time, digital platforms to answer questions and/or provide information from nearly all departments. The opinion of one, connected individual can have a real impact on an organization’s bottom lines.

If CEOs of the past needed to stand on the mountaintops to get a view of their kingdom, now they need to look out from space shuttles. Simply stated, today’s world demands that leaders develop a wider view of the institution and how it is perceived in order to develop strategy and confidently maintain an agile organization. If a leader is spending a disproportionate amount of time on one aspect of the organization (or one department), then they may miss the larger, more important, “big picture” aspects of the overall performance that they are supposed to be conducting.

More constantly-evolving areas of expertise (as we have in today’s world) mean more details with which Chiefs may unknowingly distract themselves. Real leaders don’t hide in the weeds – especially when their organizations need them most.

The opportunity here isn’t to simply encourage leaders to stop micromanaging.The opportunity is to clarify structures and roles to meet the opportunity of an evolved world. Today, successful leaders are conductors – they bring talented musicians together, communicate the song for everyone to play, and work hard to create beautiful music.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Sector Evolution, Trends Leave a comment

Audience Acquisition: The Cost of Doing Business for Visitor-Serving Organizations (DATA)

Visit us v2

Here it is: the data-informed equation for how much money organizations should be spending in order to maximize opportunities for financial success.  

Data suggest that approximately 70% of visitor-serving organizations are not investing optimal funding in acquiring audiences.

Marketing budgets seem to be an unnecessarily emotional topic for many nonprofit organizations. Optimizing marketing investments – like admission prices – are increasingly a product of math and science (read: decidedly not “intuition” or “trial and error”). They need not be based on fuzzy-feelings and inappropriate loyalties to failing business models that ignore the realities of the outside world.

We live in a pay-to-play world where organizations have to spend money to make money. When it comes to budgeting for audience acquisition costs, many organizations seem to have fallen into that familiar trap of “last year plus 5%” that lazily assumes the continued efficacy of the same old platforms and strategies. Of course, such a strategy completely ignores shifting advertising cost factors, evolving platforms and channels, and technological innovation. Say it aloud: Nonprofits do not operate in a vacuum and cannot afford to ignore the changed economies and technologies of the world around them.

Several organizations that have made this realization have asked IMPACTS if there is an equation to inform their audience acquisition costs so as to maximize their opportunities for financial success. And, the findings of a three-year study suggest: Yes, there most certainly is!

 

The key equation for acquisition costs

Let’s first establish a few definitions and “same page” this conversation:

Audience acquisition costs are the investments that an organization makes in advertising, public relations, social media, community relations…basically, anything and everything intended to engage your audiences.

Market potential is a data-based, modeled outcome that indicates an organization’s potential engagement with its audiences. For most organizations, “market potential” primarily concerns onsite visitation. In other words, it answers the question, “If everything goes well, how many people can we reasonably expect to visit us this year? (NOTE: Market potential may not match an organization’s historic attendance – organizations “underperform” their market potential all the time…for reasons that we’ll soon explore.)

Earned revenues are the product of admissions, memberships, merchandising, food and beverage, facility rentals…basically, all revenues attendant to the onsite experience that are supported by audience acquisition investments. These revenues exclude annual fund, grants, endowment distributions and other sorts of philanthropy.

Here’s the equation to maximize your market potential (as suggested by the recently completed three-year study):

 IMPACTS audience acquisition equation

Expressed another way: Optimal Audience Acquisition Costs = 12.5% of Earned Revenues. For example, if your organization generates annual earned revenues of $20 million, then this would suggest an annual audience acquisition investment of $2.5 million.

Further, additional analysis would suggest that 75% of the audience acquisition costs should be earmarked to support paid media (i.e. advertising). So, of the $2.5 million suggested above for audience acquisition, nearly $1.9 million should support paid media.  The remaining 25% (or, in this example, approximately $600,000) would support agency fees, public relations expenses, social media, community engagement – all of the programs and initiatives that round out an integrated marketing strategy. Forget to invest that 25% at your own peril. Earned media is critical for success and many social media channels are also becoming pay-to-play.

And now the other side: Why such a large percentage allocated to paid media? Again, ours is an increasingly pay-to-play world. Rising above the noise to engage our audiences frequently means investing to identify and target audience members with the propensity to act in our interest (e.g. visit our organizations, become members, etc.). There is tremendous competition for these same audience members – from the nonprofit and for-profit communities alike.  Think of the most admired and successful campaigns in the world – do Nike and Apple rely on 3am cable TV “bonus” spots that they get for a reduced rate and that don’t hit target audiences? Nope. While earned media plays a major role in driving reputation, paid media plays an important role in a cohesive strategy – and doing it right costs money.

 

The equation in action

How does the study suggest this equation? Check out the chart below. It indicates the relationship between performance relative to market potential (i.e. how well the organization actually performed when compared to its market potential) and the audience acquisition investments made by 42 visitor-serving organizations (including aquariums, museums, performing arts organizations, and zoos) over a three-year period:

IMPACTS - Audience Acquisition

The data strongly suggests that there is a correlation between an optimized audience acquisition investment and achieving market potential. It also indicates the perils of “underspending the opportunity” – a modest investment intended to achieve cost-savings may forfend exponential revenues. (Though the data never has – and likely never will – support it, many organizations seem to foolishly hold dear to the notion that they might somehow “save their way to prosperity.”)

Additional analysis indicates that the studied organizations invested an average of 7.9% of earned revenues toward audience acquisition…but only achieved 76.0% of their market potential. However, the organizations achieving ≥95.0% of their respective market potentials invested an average of 12.7% of their earned revenues toward audience acquisition.

In no instance did an organization investing less than 5.0% of earned revenues on audience acquisition achieve greater than 60.0% of its market potential.

Overall, the data suggests that the “sweet spot” for audience acquisition investment is in the 10.0-15.0% of earned revenue range. Splitting the difference (and further supported by the findings of organizations achieving ≥95.0% of their market potential in the study) gives us our 12.5%.

NOTE: Before we start parsing the nuances of media planning and creative approaches to advertising, let’s baseline the conversation by acknowledging that each of the studied organizations were led by competent persons operating with the best of intentions. Yes – “great creative” matters – but it doesn’t offset an inadequate marketing investment. Sure, a viral social campaign helps…but it doesn’t negate the importance of other media channels. In other words, there aren’t exemptions from the need to invest in audience acquisition for visitor-serving organizations that rely on earned revenues.

If your organization is struggling to meet its market potential, it may have less to do with all of the usual suspects such as parking, staff courtesy, special exhibits, pricing, etc. and more to do with an antiquated view of the necessity of meaningful marketing investments. Can your organization overspend? You bet. However, that doesn’t seem to be the problem confronting most visitor-serving nonprofit organizations. If your organization is struggling to meet its market potential, then it may be that in today’s pay-to-play world, you simply aren’t paying enough to play in the first place.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ). Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Digital Connectivity, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 15 Comments

Most Popular Posts of 2014 for Museums and Nonprofits

KYOB Happy 2015What a year! From the strategic evolution of nonprofit organizations to marketing channel efficacy to the need for millennial board members… These are your (a rather focused tribe of industry leaders) favorite KYOB posts of 2014.

Thank you for reading, engaging with, and passing along Know Your Own Bone among your organizations and circles of industry professionals. I continue to be blown away by your passion for elevating mission-driven organizations – and I am honored to aim to provide market insight for such a thoughtful and hard-working bunch of nonprofiteers! I’m thrilled by the prospect that these posts may be providing value for your friends, colleagues, fellow board members and executives, and even college and graduate students. You folks motivate me to keep provide nonprofits and visitor-serving organizations with intelligence regarding market behaviors and perceptions and I hope that my work being a nonprofit/for-profit double-agent has been of value!

Here are KYOB’s most viewed and passed-along posts of 2014. These are the posts that my analytics suggest you emailed around the most, shared with your friends and colleagues, and got the most attention within graduate programs and professional development curriculums:

 

1) Why Social Media Is The New Force Empowering Giving Decisions

Here are three ways that social media engagement on real-time, digital platforms is changing the nonprofit sector and empowering potential donors to make more intelligent giving decisions.

 

2) Signs of Trouble for the Museum Industry (DATA)

As the US population grows, the number of people attending visitor-serving organizations is in general decline. And this is a very big problem for sustainability without a digital-age shift in our business model. Here are three behaviors we need to adapt to reset our current condition.

 

3) Five Things I Have Learned As a Millennial Working with Baby Boomers

Here are my five most valuable lessons that I’ve learned as a millennial “change agent” at work in the land of Baby Boomers.

 

 4) The New Trickle Down Effect: Why Nonprofits Are Innovators for Industry

Indeed, when it comes to innovation, some of the best R&D happening in our space is being pioneered by nonprofits. Here’s why.

 

5) Is Your Organization Living in the Past? Nine Outdated Ways of Thinking That Are Hurting Your Organization

If any of these outdated beliefs still linger within your organization, then your nonprofit may be suffering both in terms of finances and mission delivery. It’s time to retire these obsolete practices once and for all.

 

6) Six Urgent Reasons to Add Millennials to your Nonprofit Board of Directors

Don’t have at least one millennial on your Board of Directors yet? Here are six, critical reasons to call up the nominating committee and work on getting some impressive millennials aboard your nonprofit Board right now.

 

7) How to Score an Informational Interview: 7 Tips for the Information Age

“Picking someone’s brain” needs an update. Here’s how to actually get an “informational interview” in today’s world.

 

8) Data Update: Efficacy of Various Marketing Channels (Social Media Still Top Spot)

Social media is an enormously important component of your overall marketing and communication strategy. In fact, data support it as one of the most efficient and effective channels to engage your users and constituents.

 

9) Why Talking About the Future of Museums May Be Holding Museums Back

Many resources focusing on “the future” are actually communicating about emerging trends that are happening right now…and when we call them “the future” we do our organizations a grave disservice. Here’s why.

 

 10) The Relevance Test: Three Key Concepts to Future-Proof Nonprofit Organizations

While recognizing the progress that has been made, here are three conflicting perceptions that visitor-serving organizations must internally resolve in order to remain relevant in our ever-evolving era

 

Cheers to an incredible 2015 for all of your mission-driven organizations! May this next year bring you and your organizations much success.

Thanks again for following along!

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Trends Leave a comment

The New Trickle Down Effect: Why Nonprofits Are Innovators for Industry

teaching innovation

The company for which I work annually invests millions of dollars to help nonprofit organizations better understand and engage with their donors and visitors… and nonprofit leaders should know why.

It’s been a while since I wrote about myself, so I hope that you won’t mind my taking a moment to point out a trend: Inevitably, after talking shop with readers of “Know Your Own Bone” (but who may not know much about IMPACTS), there’s an awkward moment of silence before I’m asked, “So, why do you do what you do, and how does it…work?”

It sounds like a strange question, but I’ve come to understand exactly what they are asking.

Here’s a bit more about my “day job,” but, on “Know Your Own Bone,” my mission is to make accessible “big data” and data-informed analysis to nonprofit organizations for free (i.e. no advertisements, promoted opinions, sales pitches, etc.) Of course, this response often begs a few follow-up questions: How can I do this and feed myself? And how is this not detrimental to IMPACTS?

It’s no secret that there isn’t generally a massive pile of cash associated with helping nonprofits, and yet I work with a for-profit company that invests millions of dollars to help organizations better understand their market opportunities. It almost risks sounding like an example of “Do as I say, not as I do” – except, it’s decidedly not.

Nonprofit organizations are infinitely complex, and helping to understand how the market engages with that sector has proven incredibly valuable to the other sectors that IMPACTS serves. Indeed, when it comes to innovation, some of the best R&D happening in our space is being pioneered by nonprofits. For once, the “Next Practices” are trickling down from the nonprofit sector to the corporate world.

Here’s why:

1) Motivating visitation and/or giving decisions relies on understanding a series of complex behaviors

While it’s true that nonprofit organizations are not always the quickest to evolve, they rarely get the pat on the back that they deserve for working in an industry that can be exponentially more complex than that of most private enterprise.

Consider this visitor-serving organization example: Getting someone to visit a museum (or theater, symphony, science center, botanic garden, aquarium, historic site, etc.) requires an understanding of many multi-faceted, high-barrier motivations and behaviors. To get to a museum, for instance, a family would need to decide the visit would be worthy of their time, prioritize that experience over every other leisure time pursuit (including staying home and relaxing!), find an open day in everyone’s schedules, get the family dressed and into the car, drive to the museum, park, pay for that parking, play real-life Frogger hustling across a busy street, pay for admission, explore the facilities with the kids until they get tired, stop for snacks (if the kiddos get cranky), avoid (or embrace) the gift shop, then return to the car and fight traffic on the way home…

(Pant, pant…) There is a lot about consumer behavior to understand there…and we haven’t even yet begun to consider the philanthropic motivations that play an important role in helping nonprofits thrive. Perhaps now one can start to understand how – when compared to motivating engagement with nonprofit organizations – getting someone to buy a car, go to a movie, or even vote for a political candidate seems downright simple!

 

2) Understanding those behaviors and motivations informs other industries

Contrast the task of motivating the behavior of visiting an organization with the task of, say, motivating that same small family to enjoy a specific television show in pajamas in the comfort of their own home. If you are a member of the entertainment industry trying to get folks to watch a show – or even sign up for an “on demand” entertainment delivery platform, there is much less to understand and far fewer barriers to engagement.

Understanding why folks behave (or, for that matter, do not behave) in the interests of nonprofit organizations provides IMPACTS with incredible data and insight attendant to extremely complex behaviors, the transitive applications of which frequently inure to the benefit of comparatively less-complex behaviors such as, say, watching television.

Yes. What you work hard to understand and do in your day-to-day jobs at your organization actually informs how other industries do business…because the behaviors that nonprofit organizations motivate are complex and understanding them sheds light on the “hard to measure” aspects of human behavior and motivation. Unlocking the key to complex human behaviors and motivations is the secret sauce in many a corporation’s recipe for success…and the pioneers in this research are often nonprofits.

 

3) People. Planet. Profit. (You actually have THREE bottom lines)

Nonprofit, visitor-serving organizations must not only sustain themselves (some more than others), but they must also serve their communities (people) and social missions (planet). That’s a whole lot to think about compared to private entities – which, generally, are primarily obligated to the single bottom line of profit.

At the risk of some simplification, “profit” is relatively simple to figure out. People and planet – ostensibly selfless business motivations – are a little more inscrutable. And, yet, in our modern era where corporate social responsibility is increasingly good business, there is a growing need to better understand the more intricate aspects of human behaviors.

Again, this doesn’t even touch upon the topic of philanthropy – the motivations of which defy traditional utility curves.

Most simply put, nonprofit organizations are metaphorically juggling three balls at once…while many corporate entities are consumed by the one ball that they have up in the air. Add to this circus the fact that, well, two of your juggling balls are rather strangely shaped. (I love bad metaphors.) Understanding the expertise that goes into juggling three balls at once helps make the work of those with only one or two balls a whole lot easier.

 

4) Nonprofiteers are better than they think (but the imperative to evolve remains urgent)

Visitor-serving organizations, like many nonprofits, can get a bad rap. They are sometimes called slow-moving or culturally antiquated. Negative substitution of audiences is making increasing attendance difficult and long-siloed structures impede abilities to be agile and adaptive. CEOs of nonprofits are generally paid less than their for-profit peers, and retaining talent in a highly-competitive market can be a struggle.

However, consider again that visitor-serving organizations work every day to motivate a series of complex behaviors intended to inspire folks to act in the best interest of not only themselves, but of their larger communities. While some organizations have become accustomed to patting themselves on the back for achieving mediocracy, it’s important to keep in mind that, in many ways, the continued relevance of nonprofits and visitor-serving entities in the face of many challenges is quite a remarkable feat!

I think people who work in nonprofits are the best kinds of fighters. That’s why I’m lucky to get to work with them and that’s why I feel passionate about hounding my company to continue to help them.

 

5) Much of the data conceptually belongs to you

Providing data and insight in a transparent, open-fashion feels like a good practice. Doing the right thing is a reward unto itself. And, in terms of the means of effectuating knowledge transfer, “giving away” information for free is the very nature of blogging.

I don’t think it’s fair to gather information about human behavior regarding visitor-serving organizations and simply sit on it for monetary purposes. Luckily, the company for which I work doesn’t think that either. So I get to share some of it here. I am grateful for that.

The more information I share, the more I hope that I can garner your trust and provide aid as a valuable resource. If I can do that, the data will be more helpful…and the changes we are seeking will have greater impacts in our communities.

Leaders of nonprofit organizations: pat yourselves on the back. What you’re doing is hard, important, and paving the way. 

Data proves it.

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Financial Solvency, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 3 Comments

The New Realities of Advertising Costs (Hint: You Are Getting Less Than You Think)

Budget expenses

Many nonprofit organizations misunderstand the increasing costs of advertising – and it’s costing them dearly.

It’s that season when organizations are preparing their budgets for the upcoming year. For many of us in the communications space, tis the season of spreading tough-love  in the hope that nonprofit organizations don’t hamstring themselves with a flawed “save one’s way to prosperity” approach to budgeting for marketing expenses – especially social media and advertising. Increasingly, advertising is not an optional expenditure – it is a basic cost of doing business for any organization that relies on the time, engagement, or concern of audiences (…which happens to be most organizations).

When it comes to budgeting for a necessary advertising investment, a tremendous challenge confronting many nonprofit organizations is a reliance on precedent behaviors to inform our future planning efforts. The advent of digital technologies amplified by an increasingly platform agnosticism market have rendered many of the traditional “rules” of advertising obsolete. The communications world – and, in turn, the advertising world – is in a period of significant revolution and reinvention. A dogmatic beholdenness to the past is likely to leave an organization forever behind.

Here are two important points that your organization should keep in mind when it comes to the basic cost of advertising:

 

1) The cost of advertising has increased dramatically in recent years and many organizations are not keeping pace with inflation

Though you may be spending more, you are probably getting less return on your advertising investment than you were a few short years ago. The few percentage points that organizations add to their advertising budgets each year is simply insufficient when contemplated in the context of the escalating costs of advertising.

For instance, in my experience, even forward-thinking organizations keep their annual ad budgets relatively stable (“Hey, this is how we’ve always done it!”) and will sometimes add 5-10% if there’s a special program or campaign taking place that they’re trying to promote. The thing is, while organizations think that they are spending more (because they are actually spending more), they are increasingly getting less.

Take a look at the chart below. The chart indicates examples of observed advertising costs during the last five years.  For relativity purposes, the escalating cost factors have been standardized and charted as index values.

 IMPACTS cost of advertising

“Blended CPM” indicates the growth in costs “blended” across all media types (i.e. broadcast, radio, print, digital, outdoor, etc.) as observed by the actual media plans of twelve IMPACTS clients.  CPM is an acronym representing the Cost per One Thousand impressions.  Thus, the average observed costs to advertise have increased by 41% in the five-year duration ranging from years 2010-2014.

As additional examples of advertising costs, within the same five-year duration, the chart indicates that the costs of a 0:30 second advertisement during the Super Bowl and Grammy Awards broadcasts have respectively increased by 60% and 105%.

We are living in an increasingly personalized world that emphasizes speed and convenience. We can simply TiVo, Apple TV or On-Demand our way out of most ads on our favorite television shows because we watch these shows at our convenience. Because of this, programs that folks watch live (e.g. sports, news, award shows, etc.) command premiums when compared to the costs of similar programming a relatively few short years ago.

In the simplest terms: Yes, on average, your organization will need to have increased its advertising budget by at least 40% in order to match your advertising efforts of five years ago. If you’ve added less than 40% to your budget, then your organization may actually be achieving less advertising impact than you were in 2010.

In the end, it’s a lesson in business and economics: You cannot just throw a bit more money at something year over year and get mad when you don’t get correspondingly “more” in return. If you’re not increasing the budget at the rate of what things cost, then you’re actually getting less. This lesson seems particularly challenging for nonprofit boards to understand when they are confronted with a proposed increase in the advertising budget. “So, if we spend more money on advertising, how much more support will we get?” is a perfectly reasonable question posed by many a board member. However, the question from board members probably ought to be, “If we don’t sustain significant investments in our audience acquisition strategies, how many visitors will we lose…and what will be the costs of trying to re-acquire them in the future?”

 

2) The first thing that organizations often cut is marketing (despite the increasing importance of funding in this area)

Compounding matters is the fact that – despite an abundance of the well-publicized reasons why it is a terrible idea – many organizations trying to balance budgets still seem to cut the marketing budget first.

This may be particularly relevant for visitor-serving organizations (museums, theaters, symphonies, gardens, aquariums, zoos, etc.) as these types of organizations are having a rough time meeting attendance goals. The anxiety associated with this causes organizations to deny data and do a lot of dumb things (and maybe some more dumb things) that will hurt them even more in the long run, and cutting marketing budgets in the Information Age is another one of them.

It’s a tough pill to swallow for traditionalists and specialists within organizations, but marketing is increasingly important for the survival of your organization. For many of the most successful organizations, marketing is at the center of strategic conversations. It’s a big change for many entities! And, organizations aren’t solely deciding that this should be the case…the market is deciding for them. As I say in nearly every post: Organizations can sometimes determine importance, but the market determines relevance.

Mix one part “not keeping up with the cost of advertising” with one part “cutting your marketing budget” and watch your audience awareness dwindle to record lows. For those persons in the nonprofit sector who may continue to balk at the idea that they need to spend more to acquire, engage, and communicate with their audience than they did five years ago, I ask you: What makes advertising exempt from the most basic laws of inflation? Again, these cost increases are the most basic costs of doing business.

 

For marketers, it is a tough road ahead: The “This is how we’ve always done things” and “Last year plus five percent” approach to budgeting and media planning that permeates many organizations is an increasingly doomed strategy. In a way, this post isn’t exclusively about marketing or advertising. It’s about a new way to think about the constantly evolving world that we live in. The world waits for no one. We need to keep pace or risk being left behind.

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Digital Connectivity, Financial Solvency, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Leave a comment

Facebook is Firing Nonprofits (And Why We Are Dumb to Let it Happen)

Facebook Firing

If your organization refuses to spend money on Facebook, then you aren’t firing Facebook. Facebook is firing you. And that’s way worse for you than it is for Facebook.

It’s not news anymore: Facebook has changed its algorithm to make its platform increasingly “pay to play” for organizations. A lot of organizations are upset about this change – after all, nonprofits tend to be cash-strapped entities and paying to boost posts on Facebook represents an unplanned expense into uncharted territory. (How much should we be spending? How do we develop an annual budget for something that keeps changing?! Where will this money come from?)

The result seems to be that many organizations are simply accepting their new lack of organic reach and not boosting posts or otherwise exploring paid ways to get on the “winning” side of Facebook’s algorithm. In a nutshell, many folks (unfortunately) seem to be saying, “We just can’t afford it, so Facebook is less important to us.”

Wait – Hold up! Is social media any less important to your potential constituents and donors? Nope. In fact, data suggest that social media is the strongest and most valuable communication channel in existence today.

What’s interesting about the reaction that some organizations are having is the astounding lack of business savvy or even baseline market awareness associated with the perspective. It is truly shocking to watch. If you’re not experimenting with boosting posts than you’re not firing Facebook, Facebook is firing you…and that hurts you way more than it hurts Facebook. In fact, if your organic reach is still decreasing, then Facebook wants you gone because it thinks you are noise cluttering up newsfeeds with stories that simply aren’t engaging.

I have no affiliation with Facebook. I specialize in overall engagement strategy (that specifically results in increased likelihood of long-term solvency) and do not receive any of my salary for knowing Facebook “tips and tricks” (which become outdated very quickly anyway). I have absolutely no reason for arguing that nonprofits should be experimenting with Facebook boosting aside from my experiences with my clients these last several months – both those that are boosting and those that are not.

Here is some perspective:

 

1) Organizations became acclimated to an economic inefficiency (which is dangerous because such inefficiencies do not last long).

The hardest part about the increasing “pay to play” concept on Facebook seems to be the idea that Facebook was “free” and now it isn’t. First of all, social media is not and never was “cheap” or free – but the issue here is that organizations didn’t need to pay the platforms directly.

Facebook plays an important role in shaping organizations’ reputations, allowing for personal interactions and “touch-points” with constituents, giving organizations a real-time voice, and aiding in perceived levels of transparency and mission impact. Facebook has played a starring role in changing not only the way that businesses and nonprofits work, but it has shaped market expectations about our brands. Facebook has, in many ways, changed the world.

Think about it: In order for the market to have changed so deeply, social media platforms needed to be “free” to enlist and engage the participation of massive numbers of organizations and consumers alike.  (Otherwise, the initial cost to participate may have been an insurmountable barrier to trial.) Because we could all “play,” we all had a role in making the market what it is today – an audience more interested in trust, transparency, and personalization than ever before. But now we live in that changed world and businesses are getting a LOT of free communication and top-of-mind opportunities from Facebook.

Organizations are no longer all that important to Facebook for its solvency. Now Facebook is more important for the solvency of our organizations. Of course, market inefficiencies eventually come correct. We don’t expect to engage with traditional one-way communication platforms for free (TV ads, radio spots) – so it was only a matter of time before two-way communication channels (which are proven to be more effective in driving desired actions on behalf of organizations) demanded payment as well.

In short, organizations got used to an unsustainable market inefficiency. And the rules of economics underscore that those inefficiencies don’t last long.

 

2) Organizations increasingly understand the need to move from quantity of fans to quality of fans on Facebook. So does Facebook.

By now you’ve probably heard a lot about vanity metrics and why your number of fans is less important than having fans that care about your organization and are willing to act in its interest. This type of thinking is especially important for development and membership departments within nonprofit organizations. (Oh, and here are eleven ways you can start focusing on quality over quantity right now).  We are getting it. We are increasingly paying as much attention to “going deep” with our messaging as we are to “going broad” because we know it’s better for the actual, long-term health of our organizations.

Facebook gets that, too. It’s less about having tons of organizations on Facebook making noise (quantity) and more about the right organizations on Facebook that help achieve Facebook’s long-term strategic plans. 

Simply, there are two kinds of “quality” organizations for Facebook: organizations that provide consistently compelling content (because it keeps people logging onto Facebook and checking their newsfeeds), and organizations that pay them. An organization that pays them and provides compelling content is a double win because they pay Facebook to show stories in people’s newsfeeds that people actually want to see. Those seem to be the organizations and businesses increasing in reach right now. Also, it seems that when you boost a post, Facebook sees the increased engagement and gives you a bit of a bump in organic reach when you next post. These are smart business moves for Facebook – they are rewarding their best customers. This strategy makes perfect sense for any enterprise. We want quality over quantity now, too – even within our own Facebook fans!

But let’s look at this in a less-rosy way: If you’re not boosting, you are generally less likely to secure higher levels of engagement (thanks to Facebook’s algorithm), and then you will slowly slip from the newsfeeds of even your quality fans over time. Of course, you can alternatively only post the most engaging of content and go viral with your messaging all the time and you’ll have no problem (which is far easier said than done). Harsh truth: You’re being fired from your most effective communication channel for being bad at it. And you’re letting it happen.

If you have the money to send endless amounts of direct mail which data suggest are increasingly less effective, then perhaps you can spare some of the budget to talk with your audiences instead of talking at them.

 

3) There may not be a business incentive for Facebook to make exceptions for nonprofits

Consider: Audiences are increasingly sector agnostic and your voice is being drowned out by for-profit companies that, in some cases, have incentive to do what you do better than you do it because – thanks in part to the culture of transparency and customer empowerment we’ve created with social media – corporate social responsibility pays off.

Perhaps Facebook will come up with a program for nonprofits that aids in increasing reach for cash-strapped organizations that promote social good. But even then, it is in Facebook’s best interest to make sure that stories that folks don’t care about don’t end up in users’ newsfeeds. If your organization has “dropped out” or stepped back from creating compelling content, you may not be able to gain the traction back to demonstrate that your content is indeed compelling.

 

4) There remains a market inefficiency and this may be the best time to experiment with boosting posts

There is still an economic inefficiency and it’s in our best interest to keep capitalizing on it. Specifically, the buy-in to boost and keep organic reach a bit higher is in flux. Right now may be the best time to play with boosting posts because now is a period of experimentation in terms of quantifying the costs of accessing audiences on Facebook. Until Facebook gets a firm handle on what is the sustainable and appropriate cost of reach, then there is an opportunity for organizations to also engage in relatively low-cost experiments to help inform their future engagement strategies.

So, experiment! See what happens when you boost to your geographic area, or boost to your current fans, or boost based upon interest. Experiment and take note. Arguably, the cost to reach audiences may be lower than it will be in time.  More to the point, the cost to reach audiences may amount to less using Facebook than it is on other communication channels. The point is: You won’t know the opportunity and the outcome until you complete the experiment.  And, it is better to start experimenting now – when the cost of the experiment remains relatively modest – then at a later date when the costs may inflate.

 

We are in a time of change, and it is in the best interest of nonprofit organizations to begin to cultivate an internal structure that is agile and allows for opportunities to quickly capitalize on economic inefficiencies. But it is also critical that we think through our actions – especially the most important ones that affect our relationships with our constituents (and, thus, our bottom lines).  Instead of retreating or focusing on their own, independent next moves, organizations may benefit from considering WHY platforms are making changes. What they uncover may be equally critical for their own survival. 

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Digital Connectivity, Financial Solvency, Nonprofit Marketing, Trends 4 Comments

Why Talking About The Future of Museums May Be Holding Museums Back

Marketoonist- Risks

What if we took some of the time that we spend patting ourselves on the back for thinking about “the future” and use it to better adapt to the world we are living in right now?

Before I jump in, I need to come clean and admit that I’m not innocent here. I’ve been (proudly) called a futurist for visitor-serving organizations and I even say that, for a living, I help “future-proof” nonprofit organizations. Some of my favorite resources and those that I believe to be the most thoughtful focus on “the future” (like the Center for The Future of Museum’s blog – which is worth checking out for its valuable thought-fuel). But here’s the thing:

While those ideas shared by our industry’s most engaging thought leaders and go-to resources may be “future-facing” (as in, they are sure to increase in relevance in the future) they are not actually about the future. Yes, it is a matter of language that is confusing things. Using the word “future” when we are talking about the “present” may be harmful to organizations because of what the word “future” means. Many resources focusing on “the future” are actually communicating about emerging trends that are happening right now…and when we call them “the future” we do our organizations a grave disservice.

Here’s why:

1) Things that get characterized as “the future” within the museum industry generally are not about the future at all

Check this out: Embracing millennials, mastering community management on social media, opening authority, heightening engagement with onsite technologies, breaking down ivory towers with shifts from prescription to participation, engaging more diverse audiences, utilizing mobile platforms, understanding the role of “digital,” breaking down organizational silos…These are things that we frequently discuss as if they are part of the future. But they aren’t. In fact, if your organization hasn’t already had deep discussions about these issues and begun evolving and deploying new strategies at this point, then you may arguably be too late in responding to forces challenging our sector today.

 

2) Calling it “the future” excuses putting off issues which are actually immediate needs for organizational survival

What if we called these things “The Right Now?” Would it be easier to get leadership to allocate resources to social media endeavors or deploy creative ways to grow stakeholder affinity by highlighting participation and personalization?  Are we excusing the poor transition from planning to action by deferring most investments to “The Future?”

Basically, we’ve created a beat-around-the-bush way of talking about hard things that separates successful and unsuccessful organizations. For many less successful organizations struggling to find their footing in our rapidly evolving times, their go-to euphemistic solution for “immediate and difficult” seems to be “worth thinking about in the future.” When we call it “the future,” we excuse ourselves from thinking about these issues right now (which is exactly when we should be considering if not fully deploying them).

Contrast this deferment strategy with those of more successful organizations who invariably and reliably “beat the market to the spot.”  It isn’t pure chance and serendipity that underpins successful engagement strategies – these are the product of ample foresight, planning, investment and action…all of it done many yesterdays ago!

 

3) The future implies uncertainty but trend data is not uncertain

Moreover, common wisdom supports that “the future” is uncertain.  “We cannot tell the future.” Admittedly, some sources that aim to talk about the future truly attempt to open folks’ brains to a distant time period. However, much of what is shared by those we call “futurists” is not necessarily uncertain. In fact (and especially when it comes to trends in data), we’re not guessing.  I’ve sat in on a few meetings within organizations in which trends and actual data are taken and then presented as “the future” or within the conversation of “things to discuss in the future.” Wait. What?

Certainly, new opportunities evolve and trends may ebb with shifting market sentiments…but why would an organization choose uncertainty over something that is known right now?

 

4) We may not be paying enough time and attention to right now

I don’t think that referring to “right now trends” as “the future” would be as potentially damaging to organizations if we spent enough time being more strategic and thoughtful about “right now trends” in general.  Many organizations seem to be always playing catch-up with the present.  If organizations are struggling to keep up with the present, how will they ever be adequately prepared for the future?

 

5) Talking about “the future” sometimes provides a false sense of innovation that may simply be vanity

To be certain, we all need “wins” – especially in nonprofit organizations where burnout is frequent and market perceptions are quickly changing. The need for evolution is constant and the want for a moment’s rest may be justified. That said, it seems as though talking about “the future” (which, as we’ve covered, is actually upon us) is often simply providing the opportunity for organizations to pat themselves on the back for “considering” movement instead of actually moving. To have the perceived luxury of being able to think about the future may give some leaders a false sense of security that they aren’t, in fact, constantly trying to keep up with the present.

 

Talking about “the future” seems to mean that you are talking about something that is – yes – perhaps cutting edge, but also uncertain, not urgent, not immediate, and somehow a type of creative brainstorming endeavor. While certainly brainstorming about the actual future may be beneficial (there are some great minds in the museum industry that do this!), it may be wise for organizations to realize that most of what we call “the future” is a too-nice way of reminding organizations that the world is turning as we speak and you may already be a laggard organization.

Think about your favorite museum or nonprofit thinker. My guess is that you consider that person to be a kind of futurist, but really, you may find that they are interesting to you because they are actually a “right-now-ist.” They provide ideas, thoughts, and innovative solutions about challenges that are currently facing your organization.

This is all a long way of saying something incredibly simple, but astoundingly true: The future is now.  Let’s start treating it that way.

 

A quick aside: Speaking of “the future is now,” I’ll be conducting a free webinar with Blackbaud tomorrow (August 14) at 1pm Eastern entitled “Get Strategic: How to Connect With Members in a Digital Age.” You can sign up here!

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter  

Posted on by colleendilen in Myth Busting, Sector Evolution, Trends 5 Comments

Personalizing the Onsite Experience Increases Satisfaction in Visitor-Serving Organizations (DATA)

volunteer harvard museums Data suggest that personal interactions between staff and visitors significantly increase overall satisfaction, improve value perceptions, and contribute to a more meaningful overall experience. Here’s how.  As many of my regular readers already know, I’m captivated by the relationship between “physical touch” (old fashion, face-to-face communication) and “digital touch” (digital communication) in visitor-serving organizations – and how these forces work together to make these organizations more relevant and financially stable.  The data regarding how these forces work together is rather compelling…and I’ve even spoken about it before. Digital touch increases reputation and aids in driving attendance – but physical touch provides the “there-there” in a way that technology has yet to supplant. We monitor both reputation and visitor satisfaction for numerous visitor-serving enterprise at IMPACTS, and we’ve found one type of “physical touch” to be extremely potent in increasing visitor satisfaction: When attendees have a personal facilitated experience (or, as we affectionately call them, a PFE) remarkable things reliably occur.

What is a personal facilitated experience?

A PFE is a one-to-one or one-to few interaction that occurs between an onsite representative of the organization and a visitor. This representative could be a docent, volunteer, or any other organization-associated individual who has a direct interaction with an individual visitor, family or couple. A traditional museum cart experience provides a PFE. A volunteer showing you your seat at the theater provides a PFE. An entryway greeter provides a PFE. So does a stationed volunteer, a wayfinder, or even a particularly attentive clerk at a museum store. Shows, talks, or tours – while certainly providing value to one’s overall experience – do not constitute a PFE, as the market considers PFEs powerful due to the personalized attention and one-on-one nature of the interaction. While we’ve found that these other types of encounters provide an efficient density of interaction, they do not always provide the kind of personalized experience often prerequisite for a steep increase in overall satisfaction.

PFEs increase metrics that are critical to overall experience

Take a look at the data below from a representative organization with which we partner at IMPACTS. The column on the left quantifies visitor perceptions of an organization based on specific evaluation metrics (e.g. admission value, education experience, entertainment experience, and employee courtesy), while the right side indicates the same values for visitors reporting at least one personal touch-point. Visitors who had similar experiences onsite – with the exception of a PFE – report very different perceptual outcomes. 

PFEs generally increase the perceived value of admission.

In other words, those who have a PFE believe that they got a better bang for their buck after paying admission to visit an organization.

 IMPACTS Admission PFE

PFEs also increase perceptions of entertainment experience, educational experience, and employee courtesy.

However, these metrics don’t all contribute to overall satisfaction equally. Here’s  the data on the breakdown.

 IMPACTS Entertainment PFE

Educational

IMAPCTS employee courtesy PFE

 

PFEs can be utilized to increase visitor satisfaction by daypart

If your organization is in the midst of a construction project or simply gets crowded during certain peak times of day, an organization may deploy PFEs as a mitigation strategy to minimize the impact of crowding perceptions on overall satisfaction.

 IMPACTS satisfaction by daypart PFE

Digital and “physical” touch work together to secure the financial futures of visitor serving organizations and keep folks coming in the door so that organizations may march steadily toward accomplishing their missions. I write about the increasingly critical importance of personalization on digital media for visitor-serving organizations, but we must remember that people online and people offline are still people – in fact, we want them to be the same person! Personalization – a trend that is getting a lot of buzz in the online space – is just as important onsite. Facebook and other social media sites are getting smarter about personalization –  ads are more intelligent, and millennials expect personalized experiences. Gone are the days of one-size-fits-all communications and “touch” points… online and offline.   Want to hear more about the data-supported relationship between digital and physical touch as they relate to satisfaction in visitor-serving organizations? Check out my WestMusings: Ten Minute Museum Talk or join me at MuseumNext in the UK where I’m thrilled to dive deeper in a keynote in June.  Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter *Photo credit: Harvard Museums of Science and Culture

Posted on by colleendilen in Community Engagement, IMPACTS Data, Nonprofit Marketing, Sector Evolution, Trends 5 Comments

The Relevance Test: Three Key Concepts to Future-Proof Nonprofit Organizations

Ivory tower

Ivory towers are proving fragile.

Many visitor-serving organizations benefit from “outside-in” thinking and have ceased depending solely on experiential intuition and other “inside-out” ways of thinking that have previously – and perhaps alarmingly – allowed a kind of Ivory Tower mentality to infiltrate many museums.

The dawning of the Age of the Internet has brought about many necessary changes in the way that people think and behave, and, thus, what people have come to expect from the organizations that they support. Digital, real-time tools now allow for transparency, the ability to communicate ongoing impact, and the ability to personally connect with organizations 24/7. Indeed, the market now expects – demands, really – transparent insights from organizations.

These changes shape the way that we interact and connect within our communities, create meaningful experiences, manage new demands for open authority, and inform our overall expectations of visitor-serving organizations.

While recognizing the progress that has been made, here are three new conflicting perceptions that visitor-serving organizations must internally resolve in order to remain relevant in our ever-evolving era:

 

 1. Prescription vs. Participation

What does your organization offer? Stale, outdated organizations offer a form of prescription. Today, however, if your organization believes that it is offering a form of treatment (i.e. to “teach” something, or to get people to believe something), then your organization is prescribing its experiences to folks who haven’t asked for a diagnosis. In short, if you haven’t first proven your relevance to people (let alone your unique relevance) then it’s hard to be relevant.

Offering participation and exploration encourages visitors to be active and uncover their own “truths”…for themselves. Thanks in large part to the amount of information available on the web, people expect to explore and make decisions for themselves. This is a big reason why open authority (basically, organizations finding ways to “open” their authority to the public) is increasingly important for visitor-serving organizations – and all other organizations for that matter.

This may trace back to the mission statements of visitor-serving organizations. Organizations aiming to “inspire” or “cultivate” may manifest themselves more dynamically than organizations aiming to “educate,” “demonstrate,” or “present” (exhibits, for instance). The former examples empower visitors; the latter examples remove this power. Many of our nation’s most prominent visitor-serving organizations’ mission statements are still self-oriented (and innately less relevant and impactful) rather than people or community-oriented. This may deeply affect how your organization functions…and, more critically, how your constituencies relate to your organization.

 

2. Tuition vs. Admission

Why are visitors paying to visit you? Most organizations call it “admission” – but is that how your organization internally considers the transaction?

When it comes to the overall satisfaction of a visitor’s experience, entertainment plays a leading role, and education is often used as a secondary or post-visit justification for visitation. Organizations that prioritize providing an educational experience may benefit by ensuring that it does not come at the cost of an entertaining experience.

Believing conceptually that your organization offers a form of “two-hour tuition” also demonstrates a misinformed viewpoint as to what makes a visit meaningful to your audiences. Namely, data demonstrate that who you are with and the memories folks make are more important that what they see at a visitor-serving organization. If you think that the thing that truly matters is the nuance of your unique collection of Monets, then you’re missing a bigger, data-supported benefit of what you offer your visitors: memories, experiences and opportunities for personal interaction.

 

 3. Institution vs. Community

What do you work to strengthen? Imagine how it would affect internal perceptions of your organization if you replaced every mention of the “institution” with the word “community.” Board members would sit at meetings and question, “How does this support our community?” and “What do we need to do to help our community prosper and grow?”

Because the market is the actual arbiter of your organization’s success (And, yes, I have been reminding you of that in nearly every single post), you need your followers infinitely more than they need you. Though it’s difficult to remember at times, your visitors could survive without your organization (though, yes, the world would be a little more drab and your mission more underserved)…but you cannot survive without your stakeholders. You need donors, visitors, supporters, evangelists…if you’re not cultivating them, then you aren’t serving your institution at all.

Ignore your community (both onsite locally and the potential national communities that you may serve digitally), and you risk ignoring the lifeblood of your institution. In other words: If you misunderstand or underestimate the deep connection between your institution and the socially-motivated community that you’re cultivating, then you risk rapid irrelevance.

 

Visitor-serving and other types of organizations must evolve – but this need for change extends beyond the obvious technology-enabled issues related to digital engagement. Perhaps the most important ways that organizations are evolving are more fundamental, more systemically pervasive than tactical: Ivory towers are proving fragile.  Instead of protecting and insulating an organization, they imperil and isolate its advancement.  Our opportunity comes not from on high (read: “in the tower”). It is born on the frontlines and lives at eye-level.  The organizations that thrive will connect and merge with the outside world.  “Inside-out” is yesterday.  “Outside-in” is tomorrow.  You choose where you want to be.

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Myth Busting, Sector Evolution, Trends 2 Comments

Audiences Are Changing on Social Networks. Is Your Nonprofit Ready?

social media party

Here’s help to make sure that your social strategy can hold up to inevitable change.

This article is part of a four-part series intended to help visitor-serving organizations understand and respond to emerging trends that will impact their financial and mission-related goals. Learn more about the series here. 

While many professionals conceptually understand that audiences and behaviors on specific social media platforms shift over time, there seems to be a disproportionate concern among organizations about how to react to these types of changes. This concern may indicate a need for a broader, more integrated online strategy to best communicate your unique brand attributes to your audiences.

There seems to be a general sense of worry among organizations about Facebook’s evolving demographics in particular (younger audiences may be spending less time on Facebook in favor of other networks) and what this means for an organization’s engagement strategy. Facebook, with over 1.23 billion active monthly users as of January 2014, remains the most utilized social media platform – and, yet, somewhat shockingly, I’ve overheard leaders at multiple organizations frustratingly say things along the lines of, “This whole shift means we need to really reassess our strategy and reconsider if we should be on Facebook.”

Really?!  Did organizations think that all audience segments were only on one platform and would forever only be on one platform? Organizations should be prepared for both changes in the number of platforms that audiences use, and shifts in the ways that audiences actually use them.

Here’s how smart organizations approach these (and other inevitable) demographic shifts and social media evolution that we are sure to see in the very near future:

 

1) Make change a constant in your digital communications strategy and adjust accordingly (and accept that this approach may contrast a more traditional, slow-moving nonprofit mentality)

 

Shifts in platform usage are entirely expected, and if your organization finds itself surprised by evolving usage patterns, then that surprise – in and of itself – is cause for concern. Organizations should anticipate changes in who is using specific social media sites and how they are using them.

Social media platforms are constantly changing (which are utilized and how). This understanding is a cornerstone of an effective social strategy. The rapidity of social media evolution is the genesis of many organizational tensions, including: difficulties in measuring true key performance indicators related to social media; ever-increasing staff needs related to digital engagement; and the perils of “writing in stone” an engagement plan that becomes functionally irrelevant weeks after its publication. Digital engagement simply doesn’t work this way. To be effective, tactics must evolve to best meet audience needs while serving your organization’s broader strategies.

If your organization is paralyzed by the concept of shifting demographics and the evolving uses of specific social media networks, then it may indicate that your organization’s social media strategy is too focused on tactics and not sufficiently thoughtful of overarching marketing goals and strategies. For instance, a strategy may be to utilize content to improve your reputational equities as an expert on mission-related topics with a goal of increasing financial support. Posting a specific status on Facebook that is related to your mission (but also relevant to your audience on that platform) is a tactic. If you need to change that specific status to best serve a different audience than that which may have been on Facebook a year ago, then that specific tactic has evolved. When considered this way, can you see how extreme preoccupation (rather than acceptance) of the need to evolve tactics may be indicative of a lacking or unclear overarching strategy?

In short, updating your strategy may be difficult but updating your tactics should be expected. If it’s too hard to update your tactics, then you may have tactics standing in for your strategy…and that’s no strategy at all.

 

2) Keep tabs on where your market and supporters are/are going as social media networks evolve (and they will). Be present at those parties.


Remember: you need your community of supporters more than they need you. Act accordingly by making it easy and by providing compelling reasons for your audiences to connect and engage with you…or they won’t.

Stick with me here (because I love bad metaphors): Let’s say that your potential supporters hang out at a reoccurring, weekly party. Things are going great! You totally hit it off with the early adopters drinking a microbrew on the lawn, you spend time talking long-term goals with the preppy, high-achievers on the porch, and you also make time to bond with folks who are already your good friends in the kitchen. You’re building and maintaining relationships. This party seriously rocks!

…Until the early adopters decide to start spending time at another party…and the preppy folks from the porch attend a different party yet. You’re torn (and, because you’re a nonprofit, your resources are limited, which makes this even more frustrating).  Suddenly, your potential reach has lessend because you are no longer building relationships with key market segments who may profile as important influencers and supporters.

Because the market is the arbiter of your organization’s success, it’s generally best for you to keep on top of where your audience is and what they are doing and go to them.  As we head into the madness of March, at IMPACTS we offer a quick tip familiar to any basketball junkie: “Beat the market to the spot.”  In basketball and business alike, it’s the difference between shooting free throws and fouling out of the game.

Go with your key stakeholder or target audiences to the new parties and, once you’ve determined which parties are worth your energy (more on this to follow), then be ready to greet “old friends” as they arrive.

 

3) Understand that digital platforms are not mutually exclusive and multiple (thoughtful) presences often allow for more effective influence as platforms evolve


If your organization can only be in one place at one time, then consider expanding your resources because you may be missing or mishandling too many “touch points” to be effective. There may not be a single “magic pill” social media site that allows for the most efficient or effective influence on all of your audiences.

Let’s go back to my earlier party metaphor: Thanks to the web, it’s possible for an organization to have a presence at more than one party (or, on more than one platform). That said, we still need to make a decision: Knowing that having a presence on additional platforms takes resources, being on which platforms will be the most efficient use of our resources?  Nonprofits don’t need to be on every social media platform – especially if they cannot put proper energy into that platform. (If you go talk to those hip folks on the lawn, but you come off as a true outsider or barely make an effort to communicate, then you’ve done yourself more of a reputational disservice in being there then you would have been simply staying away.)

Decide which platforms are worth your time and energy based on where your market is most heavily influenced and you will have the most effective “touch-points.” But know that – increasingly – this is likely more than one platform (though 73% of adults focus on five social networks, sometimes certain platforms may be ripe for more targeted audiences). When demographics and uses change, respect the communities that you’ve already formed online. The quality of your fans is more important than simply pursuing reach, and be very cautious about abandoning one platform for another without careful consideration of how this will affect your current community. (Preempting the assumption: No! Many current users will not immediately follow you to another platform.)

The increasing fragmentation and micro-segmentation of audiences – such as young users spending less time on Facebook and more time on other platforms – may indicate that your organization should be prepared to be in more than one place at one time.  In turn, this may necessitate re-allocating resources to maintain connections and foster engagement with your online audiences.

In sum: Yes – millennials (or others market segments) may leave Facebook or other platforms, but, NO – it shouldn’t be something that strategic marketers necessarily need to worry about. Right now, Facebook remains a primary engagement tool for a majority of the market that is active on social media. That could (and likely at some point will) change. If your organization 1) has a solid strategy and identified goals, 2) thoughtfully continues to consider the value of each platform while making execution decisions, and 3) understands the possible need to cultivate extra resources to engage audiences on multiple platforms, and then your organization will not only easily adapt to changes without a hitch, but it will thrive.

 

*Photo credit: ed Social Media

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Digital Connectivity, Millennials, Nonprofit Marketing, Trends 2 Comments