Corporate success is built on nonprofit wisdom

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How many times have you heard a blustering layperson exclaim, “We need to run this organization more like a business!” If you work or are involved in the nonprofit sector, odds are you’ve heard that more times than you’d care to remember.

The truth is that nonprofits can benefit from adopting best business practice and many progressive organizations have added to their success by doing so.

But here’s another truth. The most successful and talked-about companies today have built that success on nonprofit wisdom. Moreover, today’s leading business advice echoes principles that are pillars of the nonprofit world.

Before you write off the notion of businesses learning from nonprofits as heresy or insanity, consider these two examples.

Mission
Mission is at the core of every nonprofit. It defines them. It is why they exist. It is why people donate to them and volunteer their time for them. While, as Elaine Fogel points out, they don't always do a great job of articulating them, missions are the driving force of every nonprofit.

Many businesses talk about mission, but it is most often a poorly disguised way of saying we’re in business to make money. However, it is those businesses that have identified a more sophisticated calling that are experiencing greater success. They in fact have identified a mission – a deeper reason for their company to exist. When that mission resonates with consumers, profits soar.

Simon Sinek, author and speaker, delivered a must-see TED talk called "How great leaders inspire action.” In it he asks questions like “Why is Apple more innovative than all their competition?” His ultimate answer is that those corporations that have mastered an understanding of why they do what they do, are most successful. He is quick to point out that making a profit is not an answer to why. Rather it is an outcome. For Sinek, "why" is your “purpose, cause or belief.” And furthermore he says, “people don’t buy what you do, they buy why you do it.” If that’s not the triumph of mission, what is?

Carol Cone, a CSR and cause marketing pioneer and now vice president with pr giant Edelman has declared this the decade of Purpose. In her terms, Purpose  is “an organization's reason for being beyond just making profits. Purpose expresses their values in action through a variety of strategies and programs engaging stakeholders to create positive social change and organizational growth.” And what does that Purpose do? “It creates differentiation; fuels product innovation, growth and sales; builds trust and protects reputation and engagement; and it inspires employees, customers and consumers.” If Purpose is mission, then mission is at the core of business success.

Community
Every nonprofit – even the really small ones – has a community that is an essential component in its decision-making and its success. In fact, the relationship between nonprofits and community is axiomatic.

Successful businesses have discovered the power of community. On the strength of the online world they are building and engaging communities that become powerful ambassadors for their products and services. Examples abound in the world of consumer products (think Dove, Nike, and 1000’s of others). Even in the B2B world, success is being built on community as is attested to by this list of the 71 best B2B online communities.

In a monumental piece for HBR, Henry Mintzberg, posits that an important way of rebuilding companies in the wake of the recent financial crisis is creating community. In this sense, he is referring to creating internal communities, where decision-making is decentralized and employees sees themselves as citizens or members of a collective. The key is the organic nature of community – the sense of belonging, caring and ownership. This aspect of community is clearly borrowed from the committee structure that is a plank in the nonprofit platform.

Some would say that community is not only essential to the success of the product; it is a feature of the product itself. This piece from Social Fresh astutely declares that “When you have a community, you get something more.  Now, by being a customer, you’re not just getting the features of that product, but you are now a part of something.  You have a group of people where you can ask questions, get help, give help and build real relationships.” Community is a reason to buy, to commit. This may be news to progressive companies but nonprofits have always understood that community is a criterion for involvement.

There are tons of other examples of how nonprofits have demonstrated organizational superiority over businesses. Perhaps one day, we’ll hear the story of the corporate director who said, it’s time we start running this company like a nonprofit.”

What do you think?

Forget about Viral. Think Strategic.

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If you want to create online content that will propel your business or organization, stop thinking viral and start thinking strategic.

First, let's be clear about something. Online content refers to videos, case studies, white papers, photos, blog posts, tweets, and anything else you post online (on your website or elsewhere) to market your business, school or organization.

Part of the inspiration for this post has been John Moore’s Talkable Brand video series. It’s really well done - informative, entertaining and inspiring. If you have any responsibility for marketing in your organization, you should watch it.

The third video in the series makes the case that Talkable is Bankable - if people are talking about your brand, they will consider buying your product. That’s pretty hard to disagree with.

But in the process of proving the effectiveness of word of mouth, I believe he has dispelled any promise that marketers may hold out for their content going viral. Citing a variety of sources, John presents the following data:

• The maximum number of people with whom we can have stable relationships with is 150

• 80% of our conversations are with the same 5 to 10 people.

• 62% of our conversations are with our strongest ties – spouses, family and close friends

• 80% of cell phone calls are with the same 4 people

• The average Facebook user has 130 friends and the typical Facebook user directly communicates with just 4 friends each week

What I see in those statistics is that people communicate in small circles. While this deals primarily with personal communication, my sense is that business communication isn’t much different. Our network of trusted sources is fairly small. The only hope then for any online content going viral is in the overlap between these circles of influence and I wouldn’t bet on that happening very often.

It also tells me that I may have 500+ Linked In contacts and over 1000 Facebook friends but the number of people who are going to really take action based on what I say or post is relatively small.

Add to the mix some research that was posted last month by Emarketer that showed most most consumers don’t mention brands on Facebook or Twitter. Perhaps even more surprising is that most internet users say they first learn about new brands, products and services from offline print media or word of mouth. Only 24% said they most frequently or often hear about them on Facebook or Twitter.

All of these stats say the same thing to me – don’t even think about content going viral. It’s not going to happen.

Instead concentrate on creating content that is strategic. Your content should be:

• Targeted – speak to the needs and interests of the segments most likely to buy your product

• Valuable – give users something (perspectives, information, creativity) that they can’t get anywhere else

• Original – your content should distinguish you from your competitors

• Believable – it’s got to be a genuine reflection of your organization and make promises that are deliverable 

• Brand aligned – content must enhance the experience you want users/customers to have when they interact with your company

• On message – make sure the language and positioning inherent in your online content is consistent with what’s on your website and in offline material.

If that’s not enough, my colleague Ruth Zive has 67 Content Strategies for you to consider in her new e-book. It's a great resource.

In the end, the promise of a million hits may be sensational, but the results driven by strategic content are far more attainable and ultimately more valuable.

Four essential marketing goals for 2012 – inspired by Cirque du Soleil

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I saw Quidam, my first-ever Cirque du Soleil production last night (I don’t get out much) and I was mesmerized, thoroughly entertained and very much inspired. It was clearly one of the most creative spectacles I’ve witnessed. Even though being there had nothing to do with business (it was my wife’s birthday present), my mind was flooded with the ways in which Quidam offers advice to all of us involved in marketing. So here’s my Cirque du Soleil prescription for 2012.

Be totally, completely, unquestionably unique
Cirque du Soleil is not only different than any other circus. Its different than any other live entertainment – with its own  character and ambience. And it was memorable. If I heard a snippet of the music or saw the flash of an image from the show, I’d recognize it in a heartbeat.

To survive and thrive, the brands we market, create or develop are going to have to be unique. OK, so you’ve heard that so many times that you’re about to close this tab, but think about it – and be honest. Odds are we’re not really distinguishing ourselves from the competition. We’re just part of the pack taking our fair share. To truly stand out, you’re going to have to dig deep – do some research (customers, supporters, employees, the public), soul searching, innovating and come up with a premise and a persona for your brand that is like no other.

Take chances but be prepared for uncertainty
The clowns in Cirque use people from the audience as an integral part of their performance. It’s an incredible risk. What if the chosen people do something totally unpredictable? It’s clear that the clowns are prepared for just about anything and are skilled at manipulating the “performers” while playing the audience.

In the coming year, charge into uncharted territory. Do something you’ve never done before or better yet, something your competitors have never done before. Create that campaign that will have people saying, “I can’t believe they did that – and I love it.” But, be sure you know the risks involved and have a plan (communications, crisis management, back-up campaign) in place in case it doesn’t work.

Sweat the small stuff – it makes a huge difference
While the acrobats and jugglers in Quidam deliver their performance there are all kinds of other things going on - dancers twirling, men in white spinning. people on stage having conversations. You might think these things would be distracting but they’re not. The balancing acts would be no less breathtaking without them but they are little flourishes that just add to the overall ambience – and make it unique.

It’s the small stuff – the attention to design detail, the unexpected thank you, the token of appreciation, the personalized letter – all the things you didn’t have to do but chose to do  - that will get and keep the attention of your customers and supporters.

Create ooohs and aaahs - don’t settle for second best
The unbelievable skill of Cirque’s performers and the perfection in all aspects of the production were key to the quality of the presentation. And yes, there were lost of oohs, aaahs and wows.

There is no substitute for excellence. We have to set our standards high – higher than they ever have been. The people we are marketing to are increasingly sophisticated and discerning. Whether on a conscious or innate level, audiences know the difference between good enough and outstanding. More importantly, they will demonstrate that knowledge in their purchasing or giving decisions. To achieve results  - which is the goal of all marketing - it’s going to take copy, campaigns, initiatives and tactics that create oohs and aaahs.

That’s my take on Cirque du Soleil and marketing in 2012. What’s yours?

Reality trumps advice

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If you ever wonder whether fundraising theory and advice really work in practice, you’ll want to read this.

This is a story about my friend Ephraim who is a fundraiser on behalf of an educational institution overseas. He has been coming here twice a year for the past six years to raise money for the organization. His appeal has always been for the unrestricted funds that will allow the institution to continue to operate. Over the years he has enjoyed moderate success.

On his latest trip however Ephraim’s case for giving changed. A project had emerged. The organization needs $2 million over the next three months to take advantage of an opportunity that has arisen. With the money, they will be able to secure permanent housing for many of their students.

They began their fundraising efforts in their local community, aggressively reaching out to previous supporters, families of current students and alumni. They met with success. They also secured financing from local banks. By the time Ephraim came to Canada, 75% of the needed funds were in place.

At each appointment he described the project, its benefit to the organization and the time constraints. Then he talked about what they had already done to raise money and detailed the success they were having.

This has been his most successful fundraising trip ever. The response has been overwhelming with donors adding significantly to what they have given in the past and a number of new donors coming on board.

While there are many reasons for Ephraim’s success, I would point to three in particular. Not only do they account for the success of this appeal, they provide an action plan for the messaging in any campaign.

Purpose – donors knew exactly what the money was going to be used for. More importantly they understood the benefit to the organization. In turn, that meant there was a clear value proposition for donors. They knew exactly how they could make a difference.

Urgency – there was a definite time frame in which the money was needed and a reason for that window of opportunity. Donors understood that these were extraordinary circumstances and that the organization needed the money now.

Momentum – donors wanted to jump on the bandwagon. The efforts that had been taken locally built confidence and were inspiring. There’s something counter-intuitive at play here. You might think that the organization’s local success would lead donors to believe that they didn’t have to give. But the truth is that everyone loves a winner and demonstrating success is in fact motivational to donors.

It seems to me that any time you can authentically represent these three factors – purpose, urgency and momentum – in an appeal or a campaign, you will improve results.

But don’t take my word for it. Take Ephraim’s.

Is storytelling the whole story?

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Every “top ten” list in the fundraising arena talks about the importance of using storytelling but it would appear that using it well is another story. I recently read two online posts that demonstrate there’s a difference between good ideas and good execution.

In a recent post, M+R Strategic describes an amazing test they conducted to determine the effectiveness of storytelling in a direct mail ask. They created two random lists – each of 300,000 recipients – and mailed each list one of two versions of a direct mail letter. Version 1 was “written using a more general, institutional approach that outlined the organization's accomplishments and need.” And the second version was “written using a more personal theme based around the story of one young person diagnosed with the debilitating disease the organization is working to cure.”

Which one performed better? According to the experts, there would be no question. Version 2 with its storytelling approach should win hands-down. The reality? Version 1 – the boring organizational approach not only fared better; it raised four times the money of the storytelling letter.

In a similar test, Which Test Won (a great site to test your marketing intuition) reports on a split direct mail ask that was done for a hospital in Florida. One version of the letter briefly told the story of a patient that was successfully treated and included testimonial quotes from the patient. The second version talked about the advanced technology being used at the hospital, describing it in technical terms and advising the reader of the costs associated with acquiring equipment. To make it more interesting, both versions suggested specific donation amounts but the amounts in Version 1 (the storytelling one) were higher.

What would the experts say? No question – version 1 with its storytelling and higher suggested gifts. What really happened? Version 2 attracted a response rate that was over 40% higher and an average donation that was almost $60 higher.

So, what’s going on here?

It seems clear that just telling a story isn’t enough. Other factors must be considered. In fact the story in the Which Test Won storytelling letter isn’t particularly compelling. I actually found it a little confusing and the letter never really tells us what the money is needed for. In the end the suggested donation amounts seem unconnected to the rest of the letter. On top of that the non-story letter is easier to read and its layout is much better. Somehow there is a sense that my (smaller) suggested donation will make a difference. The M+R post doesn’t allow us to read or see the letters in question. So we don’t know if the story was well told or if the ask was compelling or the letter was laid out well.

Ultimately storytelling is a means to presenting a case for giving. It cannot be divorced from the strategy behind the campaign or the brand of the organization. The finesse of storytelling is to be moving and authentic while at the same time meeting marketing and messaging objectives. In addition, it must be incorporated into a letter that is well crafted and written with a target audience in mind. In the end, storytelling may be effective but doing it well is clearly not easy. And worse, if done poorly, it can have detrimental results.

End of story.

Obama & The Big Idea

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Many of the hundreds of articles that have been written about the Obama marketing campaign and in particular the digital campaign make it seem that the techniques that were successfully used by Obama can be easily integrated into your organization’s marketing efforts. I’m not so sure.

You might think it’s a matter of budgets. Yes, the Obama campaign had resources that most organizations can only dream of. Imagine having individual directors for each of online advertising, email marketing, social media marketing and mobile marketing - and each of them with a large dedicated staff. And that’s in addition to similar leadership and resources in traditional marketing channels.

But its not money that stands in the way of most organizations being able to capitalize on the Obama experience. It’s the lack of a big idea. You see, what really drove the Obama campaign was the powerful concept that captured the hearts of Americans. The “Yes We Can” message of hope, optimism and individual empowerment was irresistible. The entire campaign was built on the strength of that message and its ability to connect with and engage Americans.

With a big idea, even organizations with limited budgets can use the Obama marketing principles of empower, engage and evaluate to achieve some success. Finding that powerful emotional driver isn’t simple but here are some places to start:

• Talk to donors, board members and volunteers about why they support your organization. Look for the visceral, not the intellectual. The likelihood is that it’s a personal (not organizational) motive and has something to do with an individual circumstance - either theirs or that of a family member.

• Review or solicit or testimonials from constituents or clients.

• Find out what other people are thinking and feeling. Go to the websites of polling companies. They frequently release studies on a variety of issues. Listen to radio call in shows. Watch Oprah. Read the letters to the editor.

You’re looking for the emotional common denominator that can drive your campaign and once you find that big idea, you have the potential for big results