Managing A Sales Force: Lessons for Managing a Major Giving Program
Gregg Carlson, Chairman & CEO, IDC Colin Ware, CFRE, Vice President of Client Services, IDC
Who We Are
• Gregg Carlson, Chairman & CEO, IDC • Colin Ware, CFRE, Vice President of Client Services, IDC
About IDC
• National fundraising consulting firm • High-touch programs that bridge low-level annual giving and major gifts • Created PHONE/MAIL® 35 years ago at Yale • Raised over $40 million for our clients last year
Managing Sales/Major Gift Staff
• You have two choices – Support them and get out of the way – Manage activity • First only works with very experienced staff (think Bill Sturtevant!) • We will be focusing on the second…
Our Focus Today will be…
• Sales & Marketing and fundraising are more similar than you might think • Creating an effective annual sales/major gift plan • Managing to that plan
Building the Plane in Mid-Air
Classic Sales & Marketing Strategies Equal Fundraising Success!
•Fundraising will always balance “art” and “science.” •One lens through which to view this balancing act is Sales & Marketing – also art and science.
Begin by Defining Audience – Who is the “Customer”?
• Determine a “donor profile” Analyze donors or current customers Who are they? What are they giving to? Why are they giving? • Current donors are your best prospects to be future “customers” • Current donors are best indicators as to which non-donor constituencies are your best prospective customers • What are some possible constituencies or segments?
What Are You Trying to Sell Them?
• Why do people give? Donors image of themselves
• What do people give to? The case for support • How do you present the case for support? Tell a story • How do you uncover case stories? Ask, discuss, interview
Presenting the Case for Support
• Who should tell the story? • How do you communicate the story? • 3 ways of learning or processing information:
– Written – Visual (Brochure/Video/Video Streaming) – Verbal
• The PHONE/MAIL® Telecommunications Program
Case – Sales & Marketing Context
• • • • What problems do our products address What are the outcomes we deliver In what situations are we most effective What are our particular skills that separate us from our competitors • Who has used us successfully
Case - Fundraising Context
• • • • • What needs does your organization meet What is the ROI on giving Why is your organization best suited to meet this need How will you know when you are successful Who has given you money in the past
Plan to Succeed
Or plan to fail….
Components of an Annual Plan
• • • • • Qualified prospect list Prospecting plan Goal Activity plan/calendar Budget
Qualified Prospect List
Highest Rated
Sales
Renewing customers New prospects in cultivation Repeat lapsed customers Previous customers at new organizations
Major Gifts
Renewing donors New prospects in cultivation Lapsed major donors Referrals from major donors
Qualified Prospect List
Lower Rated
Sales Major Gifts
Long-term identified Loyal annual fund donors prospects Have indicated interest – no Highly rated movement towards proposal Lapsed customers Board members – small gifts
Prospecting Plan
Where Will My New Prospects Come From?
Sales
Referrals Conferences
Advertising Lead generation Audio conferences
Major Gifts
Referrals Matriculation from AF
Events Internet inquiry Programs
Source-Based Goal Setting
• Set after review of prospect list • Base on past activity
– How many proposals will we get – How many will say yes and for how much
• Factor in prospecting • Then factor improvement • Base on what is possible!
Key Statistics
• • • • • Average major gift/sale Closing rate Rate that prospects accept a proposal Number of meetings to get to a proposal Percentage of prospects accepting invitation to meet If possible, variation between new prospects/business and renewals?
•
Activity Plan
• • Based on goal calculation Calculate (using key statistics): – How many proposals? – How many meetings? – How many cold calls? – How many prospects do I need to identify to add to the ones I already have? – Prospecting activity – what and when
Simple Example
• Need 20 gifts/sales • If the closing rate is 50%, we need 40 proposals • If 50% of prospects take a proposal, we need 80 prospects • If it takes 3 meetings to present a proposal, we need 240 meetings
Activity Calendar
• • • When will I conduct this activity Factor in vacations, slow periods etc Then break down by month as your basic unit of time
Budget
What do we have to spend to meet our goals?
Sales:
Travel/Meals Advertising Lead Generation Clipping Service/Directories
Major Gifts:
Travel/Meals Wealth Ratings Service Lead generation
Managing Activity Premise
If our stats are good, then doing the activity should, in most cases get us to our goal
Reporting
• Will need simple, comprehensive reports – Activity by week – Prospects moved closer to decision – Proposals – Prospects added to funnel – Money raised
CRM (Customer Relationship Management)
• Keeping contact info • Tracking meetings, phone calls and other contacts • Tracking progress towards sales/giving goal • Documenting interconnections and relationships • Tracking giving/sales • Generating reports
Tools Available
• Raisers Edge is a CRM program • Excel or Access can be a CRM program for small shops • IDC uses Upshot, a Siebel product
Not meeting activity goals
• Do we have the right tools • Do major gifts/sales people need additional training on cold calling/appointment setting • Is there something we have not factored in • Are staff doing the work? • Do staff have the support they need • Are the goals realistic? • Do staff have the budget/resources they need?
Activity is Good – Not Closing
• • • • • • Do staff need training on closing Are we asking/closing prematurely Are our materials appropriate Are staff using best practices Are the proposals effective/relevant Is there something we have not considered
• Are we competitive?
Summary
• Make an annual plan that includes prospect lists, prospecting plans, activity plans and budgets • Provide the necessary tools • Set realistic goals • Manage activity first – then closing