2009....

OK -- I have already missed my opportunity for New Year's Resolutions -- dashed the easy entry to the year with observations and predictions. But we are in a new world, a new economy, a new mindset. Google laid off... Chrysler is partnering with Fiat... Heinz stocks are on the rise and Linens and Things collapsed.
Layoffs are rampant. Companies are hesitant to expand and are tightening the reins to prepare for a longer term recession. Canadians receive a budget today; Americans are hoping for a new president to innovate and create.
Major gift donors are will be hesitant -- they've taken a big hit to their investments. Middle and mass donors are going to be careful. The biggest change is going to be to a return of values. You already saw it during the holiday season where people were looking for gift ideas that were filled with meaning rather than cost.
The return to meaning is critical for non-profits. People will be looking for inspiration to do something beyond their own physical reach. Non-profits help ordinary people stretch their arms to reach beyond themselves.

Growing in a new economy

The starting point of many conversations over the past few weeks has been: how has the recession affected your revenue growth. Our clients are experiencing the tension of tightened budgets.

We're concerned. The rapid rise and then plummet of the Canadian dollar significantly impacts corporations and organizations that trade in US dollars. For some the low dollar is advantageous; for others it plays havoc with the bottom line. The overall consumer caution is causing concern. The chaos of the markets have decreased available investment funds.

A flurry of writing from fund raising professionals indicates the breadth of the impact. While some of our clients have experienced a gap between budgeted revenue and actual revenue, most of them have increased in overall revenue from year to year. Some have fell short of particularly aggressive budgets, but gained 10 - 15% over 2007.

Non-profits dependent on government and foundation donations will very likely experience declines in their annual revenue. Small non-profits that lack a diversified donor base and are dependent on a few major revenue sources will also struggle. But organizations true to their mission, with strong relationships to a diverse group of donors and supporters should experience consistent giving and may even experience some rise in their giving. Faith-based non-profits may also experience a rise in giving, especially if they emphasize their core mission.

In my research and from client experience, I have put together 7 foundational principals that will help you weather the storm:

1. Make investment oriented business decisions. I know, that sounds simplistic. But let me explain. Cut out overhead costs that do not add growth to your business. Retain budget lines to acquire new donors and serve loyal donors. Negotiate better terms and invest less for greater impact. With tightened marketing budgets, the climate is warm for negotiation.

2. Build relationships with your donors. Increase your donor engagement and service opportunities -- make it easy for your donors to choose you over other agencies. In downturns, the market is incredibly competitive -- it`s a buyer`s market and the service they receive will impact their long term purchasing and giving decisions.

3. Innovate and diversify. Organizations dependent on one form of marketing or fund raising are in a precarious situation. While integration and diversification increases costs -- it also increases revenue. Look for creative ways to tell your story. Don`t produce a newsletter because all of your competitors produce a newsletter. Listen to your agency. They see the numbers of other clients. While the numbers are proprietary -- the agency can identify trends and increase your effectiveness by applying those trends to your marketing strategies.

4. Track results. Use your data. If you are not tracking well -- put the pieces in place to track. Your data tells the truth. Phone calls from customers and donors do not -- they tell a tiny fraction of the story. Compare anecdotal comments to actual results to make decisions. When planning new campaigns and media buys, data is essential to make wise buying decisions. Use web analytics to understand how people are using your web site. It will give you a lot of insight to use for other marketing ventures.

5. Concentrate on Net Income and not ROI.
Our data intelligence allows us to segment tightly -- but be very, very careful. While higher response rates increase overall return on investment, it will also decrease overall net revenue. Focus on raising money. To help get your mind around this, consider two "a-thon" events. In 2006 an organization spent $300,000 and raised $1.2 million -- with a 4 to 1 return on investment and $900,000 towards their cause. In 2007 they spent $1,000,000 and raised $3,000,000 -- the 3 to 1 return on investment did not meet the traditional 80/20 -- but the organization contributed $2.1 million to the cause -- $1.2 more than the year before. While the return on investment was less, the monies contributed to program were far greater.


6. Do not stop acquisition efforts.
Acquisition is costly. Not investing into acquisition is much more costly. The effect of the lack of acquiring new donors will continue for many years, multiplying the effect of the loss of income.

7. Streamline messaging, emphasizing your core mission. Now is the time to get back to basics. Make sure your donors and supporters fully understand your core mission and inspire them to join you in fulfilling it. Focus on high profile projects and goals, giving donors a clear understanding of your work.

I wish you a very Merry Christmas... rest well so that you will be ready to prepare strategies and tactics that will help grow your organization in the New Year.

Integration... an art?

We hear a lot about integrated tactics -- which simply means that when we are presenting our company or organization to our audience we all are singing from the same song book.

We call that song book a Brand Document.

Let's start with fundamentals. Whether you are a non-profit with the goal of raising awareness and funds or a for-profit selling a product or service -- the offer and the ultimate sale are #1. Revenue and profit margins (Return on Investment) is our growth goal. We all understand that.

The question bandied about is the importance of brand integration in overall revenue growth. We've all witnessed the poo-pooing of brand, especially in today's economic climate. It's only a recent move for agencies to even associate brand and direct response (however baffling that may seem to me).

At Barefoot Creative we constantly see results affirming that brand and fundraising or sales strategies work in synergy to increase revenue.

Especially in times of economic depression.

The growth of Kellogg's is an important case study on the potential when we invest wisely. Even in the early 1900's, W.K. Kellogg believed in brand advertising and invested heavily. During the depression, as consumer spending plummeted, Kellogg's directors voted to cut all advertising dollars. A seemingly sound judgement considering the sales environment.

Catching wind of the decision, Kellogg rushed back to head office. New meeting, new insight. The company invested $1 million in advertising. The growth curve increased sharply over the depression years, increasing company sales by more than 27% during the 20th century's lowest economic period.

But more importantly. As consumer dollars were freed up, Kellogg's was there, a well-known, appreciated consumer choice.

Back to integration....

When your foundational brand message does not echo through every piece of marketing, communication, fundraising and sales collateral you lose momentum.

W.K. Kellogg, more than 100 years ago, recognized that advertising and promotion set you apart in a world of many like products. Let's be honest. While each of us has a unique contribution to make in our world, we are not alone in that uniqueness (an irony which I appreciate. After all, mass marketing is an intriguing study on the similitude of the unique). BRAND sets us apart because it is the unique edge we have. Whether we protect children from abuse, sell homes, provide educational services, distribute software -- there are companies that do very similar work or provide similar services. Critical to your success is the development of a unique personality that captures the attention of your audience.

Once the brand personality is established, the hard work begins.

Every campaign, every marketing piece, every communication needs to echo that personality -- everything. While packages and templates designed for someone else will work in the short term, they will not build long term organizational growth.

Today's marketing challenge is complex. With each new communication innovation: print, radio, TV, outdoor, guerrilla, web-based (quick sweep -- you get the picture) we are required to integrate more. Radio did not do away with print, nor did TV high jack radio... Internet marketing has not reduced the need for print, radio or tv. But each innovation in communication has increased message clutter, increasing the importance of brand.

The foundation of integration is brand. The foundation of increased revenue over the long haul is integrating a strong brand message with tested direct response activities that lead your customers or donors to complete the transaction.

Is integration an art?

I think so. True growth oriented marketing, communication, sales and fundraising activities are based on foundations applied by talented creators.

Permeate...

Who has the responsibility to promote your brand?

The answer is easy.....

Brand must permeate all aspects of the organization, re-affirming the core personality.

The implementation is much more difficult.

Let`s take the classic conflicts. Sales and marketing (not-for-profits call it fundraising and communications). Sales has one goal... to sell the product or service. The sales team doesn`t really care if the brand presence is there, they just want to have a quick and easy entry point to sell. Marketing builds a case for support, brand messages and images that define the personality of the company, product or organizations.

Add customer/donor service and your brand message may be squashed in a phone call.

A couple of years ago I responded to a post card from a local credit union. It was just starting up and the brand message was clear: "We're here for the little guy." On a lark, I gathered my most recent financials and popped around to visit the manager of the branch located just around the corner.

He smiled nicely at me and looked at my financials --which were decent, but small -- and said: "Our marketing company came up with the slogan. We really aren't interested in companies as small as you."

HELLO!

Truly, he actually said that.

The trust factor scurried down to nothing. I have little doubt that the "brand" message drew blood, sweat and tears from the marketing team. But they really should have got their sales team and customer service guys in on it. At the very least, given them some key messages to shuffle away unworthy customers like us and our couple of million dollar business.

Building a brand promise on a hope and dream is not a good idea. Your product must live up to the brand promise.

In non-profit organizations there is a tug-a-war between brand and fundraising. That's why I still see a label package that looks like the other organization's label package. You see -- the label package like the other organization does works. Interestingly, it works when I put my logo on as well. That is called Direct Response theory.

BUT if I am going to grow my organization I need to grow beyond simple DR tactics and take it into brand direct -- that means I integrate the foundation of my brand promise right into my direct response mail.

We work with a TV personality that has a significant draw. We work hard at building the Direct Mail we produce for them. Each piece is integrated with this person's innate brand -- his personality. We don't offer a package that we tweak -- we offer a long term strategy for increased overall growth.

The impact?

They have grown over 30% in 12 months. The change in focus from "proven" direct response to strategic brand-direct has increased their overall income tremendously. PLUS it has converted many of the one-time supporters to monthly. A huge income boost.

Your sales or fundraising tactics must fit into an overall strategic plan.

Do one-offs work?

No question. One of my clients purchased a proven package guaranteeing them 3% response in acquisition. The story was not theirs, the offer was really not one they made and the brand was no where near their actual brand. But they did recieve 3% response from the Direct Mail package. However, the retention rate was almost 0. Did it work?

You tell me.

What colour are you?

Personality tests amuse me. Just for fun, go to http://www.cs.ucr.edu/~chua/test/test.html. Discover the real you!

It's amazing, eh? Just from one click I can be totally analyzed! Imagine that.

Just like your uniqueness is based on your personality, brand is the essence of your corporate or organizational personality.

When we were outfitting our office, the office design consultant suggested a sleek, steel look. We were confused.

Barefoot -- on steel?

Not really reflective of our overall brand identity. (I'm trying to convince Larry we should install a sandbox in the reception area...)

Brand is the overarching personality of the company. When you are building brand, remember:

Brand is not an icon, a colour, a font type or a product. It is the underlying personality expressed by various communication components.

Start with the overarching brand statement. Who are you? What do you look like? What colours represent your brand the best? If you are using images or photos in communication and marketing pieces, what kind of photos are you using? What is the mood of the photo?

UNICEF has a great brand. The brand colours are primary - reflective of their overall mission: unite for children. Their photos focus on children with dignity, opportunity and honesty. Perfect to capture the overall brand of an organization. They have a unique UNICEF lexicon that defines their communication materials.

Think about the difference between Please Mum and Baby Gap. Both retail outlets show their personality in the complete communication package: name, logo, store front, products, advertising and communication pieces. Please Mum is about active, growing babies in jeans, t-shirts and running shoes. It's about the basic functionality of the clothing. Baby Gap, on the other hand, is about babies made for the designer world -- a cut above perhaps. Moms at Please Mum wear running shoes and t-shirts, their babies are dressed similarly. Moms at Baby Gap wear designer shoes and labels; their babies wear designer shoes and labels.

Both retailers sell baby clothes -- but they have built their brand personality around their unique selling points.

As you are going through the process of brand, consider outsourcing the discovery process. A consultant or agency specializing in brand can often articulate your core brand personality more effectively than the internal team. They are not as embedded into the business model or organizational/corporate services.

Remember, brand is not your business plan -- it's your core personality. It's who you are: the make-up, the clothes, the language, the friends, the photos. When you're working on brand, play a little. Imagine creating your face book -- what would you post? Who would you invite? What would you write?

Great personalities attract others -- it applies to the business world as well.

I'm Special

Grade 1 teachers are already preparing our kids for understanding brand. They call it "Special Me."

Eric, a little friend of mine who is in grade 1, is "Special Me" on September 29th. He's already collecting stuff. He's trying to figure out the special part because there's lots of stuff that he has that other kids have already show cased: a little brother, a mom, a dad, a Toronto Maple Leafs jersey, lego, a signed picture of Rob Ducey and a snail he found on the side walk after the big rain.

Matt brought his baby brother -- he was squirmy and cried a lot. Eric's brother can walk AND talk, so he's a little cooler. Eric's mom and dad are pretty different than Josh's, at least Eric thinks his dad is pretty cool in his baseball uniform. He's not sure about the Jersey. The Leafs haven't negogiated the Stanley cup for a long time -- at least, that's what his dad says. Natalie brought lego -- but it girl's lego and Eric figures the alien force captivator he constructed last week is way cooler. He's not sure who Rob Ducey is. He's old now, but his grandpa told him he was pretty good. Jesse brought a snail, but accidently stepped on it so the shell was broken. Ethan brought his Fischer Price smart cycle -- Eric just has the Wii.

I'm not sure what Eric will bring when the fateful day arrives -- but he's already figured part of it out. Even though he has some things that are the same as other kids, each part of his collection is unique because it reflects the core of who he is.

Brand is built on the uniqueness of the organization and works to differentiate organizations in a crowded marketplace.

Many organizations look similar from the outside. Coke and Pepsi are a brown, carbonated sugared (or non-sugared) liquid. Not at all sexy. In 1906 Pepsi used Original Pure Food Drink against Coke's The great national temperance beverage. In 1928 Pepsi pushed the competition with Peps You Up! against Coke's Coca-Cola ... pure drink of natural flavors.In 1939, fighting for the tight depression dollar, Pepsi claimed Twice as Much for a Nickel while Coke emphasized its friendship with the consumer with Coca-Cola goes along.

The battle continues with Pepsi insisting on being the "cola" of choice luring pepsi fans with "stuff" and Coke unifying Coke drinkers with iCoke reward points.

Same product (forgive me Pepsi and Coke drinkers -- I truly understand the discerning taste buds). Same target audience. Same brand?

Not in the least.

Eric is 6 years old. He has a little brother, a mom and dad, a house and a wii. Pretty ordinary little guy. But his brother's name is Colin and his mom works in an advertising agency and his dad plays second base and sells houses. His house is on the corner and he has the high score Super Mario Galaxy.

There are 16 little boys in Eric's class -- and none of them are just like him.

Oh yeah -- he didn't step on the snail, so the shell's intact.

Where does Brand fit?

Hard to believe that we are treading on the last days of August... campfires burning low and the echo of blackberry email notifications swirling us between vacation and reality.
Time to focus on our strategy, executing well in the September to December period is often the strength of revenue growth.
So let's talk a bit about brand.
We all know the strength of a brand -- Coke, Mazda,Wallmart... and the list goes on... Brand engages customers.
But where does brand fit in the non-profit world?
Without a question, brand differentiates non-profits.
But how does it work?
Here are 4 foundational insights:
1.Brand is built on the uniqueness of the organization and works to differentiate organizations in a crowded marketplace.
2. Brand is not an icon, a colour, a font type or a product. It is the underlying personality expressed by various communication components.
3. Brand must permeate all aspects of the organization, re-affirming the core personality.
4. Brand and fundraising strategies work in synergy to increase revenue.
Stay tuned.... I'm going to engage with each of these four points over the next couple of weeks... if you have some insights -- don't be shy. There is a lot of chatter about brand, effectiveness and fundraising.