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How Social Media Drives Visitation to Cultural Organizations (FAST FACT VIDEO)

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Why Millennials May Be The Most Valuable Generation for Cultural Nonprofits (DATA)

Data Show That Millennial Visitors May be Most Valuable Visitors for Cultural Organizations (DATA) {Know Your Own Bone}

The sheer size of the millennial generation makes them a critical target audience, but data suggest that millennial visitors may actually be the best visitors. Here’s why.

Millennials are the largest generation in human history. We know that they are a critical audience to engage now in order for cultural organizations to exist later. And, quite frankly, you’re probably tired of hearing about this public-service motivated, connected, social, educated, super-duper-special, hierarchy-hating, everyone-is-an-MVP bunch. (Heck, I’m a true-blue millennial and I’m right there with you!) However, all this talk about the need to engage millennials seems to still be met with an eye-roll and a “Here are even more things that we need to do for them” attitude from too many executive leaders. It seems that the size of this generation is the primary reason driving the need to engage millennials for many…and that’s an important reason. But it’s even close to the whole story.

Let’s change this attitude. Let’s do it with data.

Data suggest that millennial visitors are an organization’s most loyal – and they do much more loyalty-driving work for organizations than older audiences. When it comes to engaging millennials, a little is a lot more likely to go a long way. (But…that doesn’t justify organizations doing a little.) This generation is most likely to work for you. Overall, millennials are arguably a cultural organization’s most valuable visitors.

High-propensity visitors (HPVs, in my world (hold judgement on the acronym)) are people who possess the demographic, psychographic, and behavioral attributes that indicate an increased likelihood to visit cultural organizations such as museums, aquariums, gardens, performing arts organizations, historic sites, science centers, zoos, etc. These are the people who actually go to cultural organizations and data can bring to light what these folks have in common. Interesting findings arise when we take a look at millennial high-propensity visitors compared to non-millennial high-propensity visitors. Here are three, data-informed millennial visitor qualities that work to an organization’s terrific advantage compared to more traditional audiences:

High-propensity visitor indicators by age

(A quick note on the data: It comes from IMPACTS and the National Awareness, Attitudes and Usage Study of Visitor-Serving Organizations, first published in 2011 and updated annually thereafter. Since its initial publication, the study has tracked the opinions, perceptions, and behaviors of a sample population totaling 98,000 US adults, and is believed to be the largest and most comprehensive study of its kind.)

1) Millennial visitors are most likely to come back sooner.

Millennial high-propensity visitors have a shorter re-visitation cycle than even other generations of high-propensity visitors. In fact, millennial high-propensity visitors are 30.9% more likely to revisit an organization within one year than high-propensity visitors aged 55 or older. That’s a big difference. Moreover – and to the possible surprise of many – millennial HPVs are 20.5% more likely to join as a member than HPVs aged 55 and older. (Though those age 35-54 still take the cake when it comes to likelihood to become a members.) Millennials are an organization’s most loyal high-propensity visitors when it comes to driving repeat visitation. Capture us, and the data suggest we are most likely to come back – and relatively quickly!


2) Millennial visitors are more likely to spread positive word of mouth about cultural organizations to drive visitation.

As a reminder (that I provide on KYOB constantly): Data suggest that reputation is a key driver of visitation, and what other people say about your organization is 12.85x more important in driving your reputation than advertising. So what people say about your organization to one another is really important in getting people in the door. We millennial HPVs shine here compared to other HPV generations, and are 18.1% more likely to recommend experiences to a friend than those aged 35-54 and 20.5% more likely than HPVs aged 55 and older. Show us an organization that we like, and we are significantly more likely than older generations to endorse that organization to other people. Millennial high-propensity visitors are more likely than any other generational cohort to provide your organization with what data indicate is the single most valuable form of marketing.


3) Millennial visitors reach more people.

Why does being most likely to recommend a cultural experience to a friend particularly matter? Because millennial high-propensity visitors are crazy “super-connected.” This means that we are empowered to recommend experiences with a collective reach that’s like “traditional media” on steroids. “Super-connected” means that these folks are most likely to have access to – and be engaged with – the web at home, at work, and/or on mobiles devices. Admittedly, this can be an incredible asset or detriment to organizations based upon whether or not an individual had a positive or negative experience, but, provided that your organization is doing it’s best on the “satisfying experience” front, positive experiences can go a very long way.

We’re also much more likely than other HPV generations to make purchases online, further underscoring that if your audiences aren’t buying tickets online, it may have to do with your own organization’s online ticket buying strategy. As the world becomes more digital, more folks are making purchases online. Millennials are more than twice as likely to have made a large purchase online within the last year than folks aged 55 or older.


4) Millennials likely have the highest lifetime value.

This generation’s size and lifetime customer value suggest that organizations that successfully engage millennials stand to reap a big reward. Millennials are the youngest of the three generations (i.e. Millennials, Generation X, and Baby Boomers) currently visiting cultural organizations – meaning that millennials have the longest expected lifetimes to contribute value as customers. In addition, the large size of this demographic (nearly twice that of Generation X) compounds the composite lifetime value of engaging this audience.

Note that high-propensity millennial visitors are more educated than their generational predecessors. This is important to understand, because often when organizations say, “Let’s target millennials!” they mean ALL millennials. That’s not always a bad move. But, the reality is that millennials who currently profile as being likely to visit cultural organizations are a subset of the population just as high-propensity visitors from other generations are a subset of the population. Not everyone on the planet thinks, “Hey, I’ll do that!” when someone suggests visiting a cultural organization. For various reasons (e.g. free time, access to transportation, cultural background, income, etc.), that’s just not the case with some people. A goal of efficiently engaging millennial audiences is to tap into high-propensity visitors – those persons most inclined to visit in the first place (i.e. “the path of least resistance”).

Heads-up: We also aren’t watching a lot of live TV. Those aged 55 and older are nearly 60% more likely to be watching more than 10 hours of weekly live TV than we millennials. So if you’re appearing on a morning news show, we’re less likely to be tuning in. It may be beneficial to record that segment and put it somewhere where we can see it later if millennial viewership is a particular goal


Compared to other generations, millennial high-propensity visitors are more likely to visit more often. They are also super-connected and more likely to spread an organization’s message, providing incredibly valuable word of mouth endorsement. All things being equal, millennial audiences may well be a cultural organization’s most valuable visitors.

Let’s stop rolling our eyes and get psyched about engaging these cheerleaders! (Too much enthusiasm? I’ll it step back.) Here: Let’s change how we frame the conversation. Instead of groaning about the “otherness” of millennials, let’s embrace this opportunity to engage a new cohort of folks who will visit us again and again, tell their friends, and – if we do our jobs right – will be around loving us for a long time.


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


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Posted on by Colleen Dilenschneider in Community Engagement, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 1 Comment

The Myth of Saving Your Way to Prosperity: Three Financial Realities for Nonprofit Executives

The Myth of Saving Your Way to Prosperity: Four Financial Realities for Nonprofit Executives

An organization attempting to “save its way to prosperity” actually paves its way to financial demise. Here’s why.

It seems that many nonprofit marketing and communication departments are constantly being tasked by their executive leadership to “do more with less.” While cost-efficiencies are desirable in all types of businesses, nonprofit organizations seem to be especially prone to overlooking the cost of doing business.

My work with nonprofit clients at IMPACTS reveals that, more often than not, marketing leaders react to the “do more with less” mandate by desperately trying to “save their way to prosperity.” That is, they attempt to achieve goals not by optimizing spending to maximize the ROI (i.e. increasing their investments if the ROI warrants additional investment), but by saving as much as possible within their already woefully underfunded marketing and communication budgets.

Attempting to save your way to prosperity comes with a hefty price tag for organizations. Let’s hit this difficult topic head-on. It’s time to uncross our fingers and quit pretending that the prevailing forces of the economy don’t apply to nonprofit organizations. Here are three financial realities for executive leaders to consider:


1) Marketing is an investment, not a cost

Okay. It’s technically a cost – but when organizations think about it primarily as a cost rather than an investment, they do their organizations’ internal culture a grave disservice. Indeed, it costs money to “market” and communicate…but such is the basic cost of doing business. You need to spend money in order to get people in the door. There is a data-driven optimal investment of revenues required to optimize audience acquisition. If you don’t invest to connect with your audiences, then don’t be surprised when very few audience members choose to invest in your organization and programming. Sure, you’ll save money by not telling folks to come, but you also… won’t have anyone coming.

Compounding matters is the fact that some organizations still think social is “free” or low-cost, but social media networks are increasingly pay-to-play. Moreover, data suggest that things people say about your organization are 12.85 times more important in driving your organization’s reputation than your advertising. That fact may ostensibly sound like a great resource-hoarding angle to a CMO with a “save your way to prosperity” mindset but, instead, it should be acknowledged as a terrific investment priority to maximize support and achieve long-term financial solvency. In other words, social investment isn’t necessarily a replacement for traditional paid media – it is a cost-efficient opportunity for additional investment with additional benefits. If you don’t make the investment, then you cannot realize the return.


2. Costs to reacquire audiences are MUCH higher than costs to maintain and retain them.

Let’s say the “save your way to prosperity” angle is your thing, and you choose to save some resources from your already cash-strapped marketing department. You’re probably quite proud of yourself. And the CEO might be as well. At this time, you haven’t completed the engagement cycle (or, if you’re a cultural center, the visitation cycle) to see the impacts of your lack of investment yet. You’re looking and feeling like a penny-pinching rockstar.

Unfortunately for penny-pinching CMOs, it costs significantly more to re-acquire audience members than it does to maintain and retain them – as much as 7x more! Take a look at this often referenced analysis from Bain & Company that quantifies the value of investing in your current audiences:

Bain Retention Analysis

Also consider that the price of advertising is increasing. The “last year +5%” budgeting rule is out of play, making it more important than ever for nonprofit executives (CMOs and CEOs alike) to make wise investments. If you make a bad investment – or no investment at all – the bill will come due. You’ll lose your hard-earned audiences and need to spend more to get them back.


3) Deferred bills always come due.

Speaking of bills coming due, “deferred” doesn’t mean “dismissed” – and it especially doesn’t mean “resolved.” Inaction can be extremely expensive. Tiny deferred cost savings add up to very large bills.

While it can be tempting to put off inevitable expenses – particularly during times of financial stress – ultimately, this proves to be a shortsighted approach for an organization. Juggling expenses between operating quarters doesn’t actually change your organization’s performance during that same duration. Saving money by not fixing the roof doesn’t mean that you don’t need a new roof. Again, deferred bills always come due. These budget shell games are often designed to forfend scrutiny – but this is a short-term magical accounting game. We live in a spend a little now or a lot later world. And, failing to spend appropriately risks greater peril than merely mounting deferred expenses – your organization may be perceived as irrelevant.

You can’t save your way to prosperity. The best you can do with this mindset is spend less, lose loyal attendees and not acquire new ones, and “defer” costs that may risk lowering your organization’s reputation. That’s not “savings” and that’s certainly not “prosperity.” That’s actually spending your way to demise, or, the very thing your CEO is trying to avoid in the first place.

Don’t save your way to prosperity. Instead have a deep understanding of how your industry works and maximize your investments. If you’re a visitor-serving organization, here’s some help: 1) Understand the cost of advertising, 2) Know how to budget to maximize audience acquisition, and 3) Understand the need to invest and strategize to adapt to reach emerging audiences. Saving your way to prosperity is, at best, a short-term faux-solution. At worst, it’s a long-term recipe for disaster.

Know the cost of doing business. Learn what things actually cost. Get smart about your investments because to remain relevant, you’ll have to make them. Make sure you make the best ones possible.


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


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Posted on by Colleen Dilenschneider in Financial Solvency, Myth Busting, Nonprofit Marketing, Sector Evolution Leave a comment

Influencing Leadership: Three Findings to Effectively Communicate with Cultural Executives (DATA)

Influencing Leadership at Cultural Institutions

Here’s a data-informed peek at what influences leaders in cultural institutions.

I’m in the business of cultural sector evolution and – given that the cultural business model is in need of an update – we at IMPACTS have been looking at how the opportunity for evolution may be best understood. We work directly with many industry leaders (the Chiefs, or the “Cs”), and recently had occasion to scour the minds of these executives in order to better understand how they obtain information, and the roles that various information channels play in influencing their executive decisions. Potentially innovative, groundbreaking ideas risk dying on the vine if they aren’t understood and supported by an organization’s leadership. We wanted to find out more about how to keep that from happening.

The data below is from a survey of 306 executive leaders working at nonprofit visitor-serving organizations (e.g. museums, aquariums, cultural centers, theaters, orchestras, zoos, historic sites, etc.). The study identified the primary information channels that executives use to inform their decision-making processes, and further measured the relative trust and influence that these same leaders ascribe to the various information channels. These values are quantified on an index value basis – a way of assessing and comparing these measurements in relative terms (i.e. an information channel with an influence value of 200.0 is 2x as influential in the surveyed leaders’ decision-making processes than is an information channel with an influence index value of 100.0).

The findings of this study are relevant to anyone whose profession requires influence, motivation, and collaboration with or among leaders.  If we know what informs and influences leaders, then we can more effectively communicate with, and, in turn, influence leadership. Before you can change the world, you likely need to change some minds. Here’s data that will help:


1) Timeliness matters

KYOB IMPACTS - Sources of information  for cultural leaders

Let’s start with the obvious: It’s easiest to reach fellow leaders via the information sources that they are actually using.

Books and manuals generally have some influence power and are perceived as trustworthy and relatively influential sources (more on that in the charts that follow). This is frequently because book publishers employ credibility protectors such as fact-checkers, researchers, and editors, so leaders often regard this information channel as an expertly vetted, reliable source of information. But, it also takes time to write, edit, publish, and distribute (not to mention read) a book. That may be why the data suggest that leaders aren’t primarily relying on books and manuals for information (which they reference for information approximately 3.5x less often than they do online daily news sources). So, yes, books are potentially influential – if you can get the leader to read the book!

Data suggest that more timely information channels win the day when it comes to providing value as an information resource for leaders. Consultants/industry experts, peer-to-peer communications, and especially daily newspapers and blogs are timely by nature. Timely information sources are likely to be more right-now relevant than sources with more labored publication processes.

In addition to books, industry publications (often published periodically) and conferences (typically occurring annually) struggle to meet the timeliness requirement that agile leaders demand of their most important information sources.


2) Experts are far more valuable than participants

KYOB IMPACTS - influence of sources for cultural leaders

Perceived expertise is a significant driver of influence. Daily newspapers are definitionally timely – and the perceived prestige, credibility, and expertise of publications (think The New York Times, The Washington Post, The Wall Street Journal, The Boston Globe, etc.) inure to the benefit of their journalistic staff. There’s a high level of trust and influence embedded in these brands despite the fact that the web allows nearly anyone to be a “reporter” these days. Sources perceived as expert – such as industry experts, consultants and industry executives – dominate influence on leaders.

KYOB IMPACTS - Trust of sources for cultural leaders

Conversely, sources based heavily in participation don’t perform nearly so well. Not everyone who participates in something is an expert. This may be a challenge for industry publications and conferences – they often feature far more participants than experts. More heavily participation-based (versus expert-based) sources often supply unfiltered noise in the already-noisy world of an executive leader…a circumstance that may be the opposite of helpful in the eyes of the “Cs.”

I wonder if – as the most effective leaders increasingly play the symbolic role of a conductor within organizations – the influence, trustworthiness, and go-to value of professional staff will increase. That’s a tide that may necessarily turn as cultural organizations evolve: Leaders may need to trust the (increasingly nuanced and specialized) experts that they hire in order to simply run their organizations.

Fun fact: Leaders right now utilize printed newspapers far, far more frequently than the general population. Nope, it’s not because printed newspapers are different than online newspapers in terms of content – it’s because today’s head-honchos are generally educated Baby Boomers who simply still prefer getting their news in print.


3) It’s a small world after all

What leaders say to one another is far more influential than what non-peers say to leaders. This is evident when observing the high impact of peer-to-peer communications and industry experts. Leaders seek out and listen to other leaders.

While this may be slightly disappointing for non-Chiefs, I urge these future leaders to look at the very bright side of this finding: If you can influence a small group of leaders, then you may be able to influence the entire sector. Hopeful? Perhaps. But identifying this narrow band of very specific influencers could prove enlightening for both current and future leaders alike – especially considering the imperative to evolve the way that many nonprofits do business. Think of other relatively small groups of folks who knew one another and changed the course of history. The Beat Generation. The Lost Generation. The Cultural Institution Reinvention Generation? Perhaps change in this sector is not so different. Or, perhaps I just want an excuse to include references to both Jack Kerouac and F. Scott Fitzgerald in a post.

Ours is not a kingdom, it is a collaboration. To influence leaders, we must compellingly communicate a point of view…and it’s easiest to do this when we communicate in consideration of leadership’s most preferred, trusted, and influential information sources.


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


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Image credit: Scientific American

Posted on by Colleen Dilenschneider in IMPACTS Data, Sector Evolution, Trends 2 Comments

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:


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Posted on by Colleen Dilenschneider 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 Colleen Dilenschneider 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:


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.


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.


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.


 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.


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.


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.


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.


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.


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.


 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 Colleen Dilenschneider 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 Colleen Dilenschneider 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 Colleen Dilenschneider 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 Colleen Dilenschneider in Community Engagement, Digital Connectivity, Financial Solvency, Nonprofit Marketing, Trends 4 Comments
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