Test the Ideas No One Else Will
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Show Notes
Today on 7-Figure Fundraising, host Trevor Bragdon, is joined by marketing experts Rory Sutherland and Maddie Croucher. Rory and Maddie both work for the global advertising and marketing agency, Ogilvy. Rory is the Vice Chairman of Ogilvy UK, the co-founder of their behavioral science practice and author of the book, Alchemy: The Surprising Power of Ideas That Don’t Make Sense. Maddie is a senior behavioral scientist, specializing in non-profit organizations.
Counter-Intuitive Ideas in Fundraising
Rory began the behavioral science practice at Ogilvy because he wanted to test counter-intuitive things. Years ago, he believed was it would be more effective to ask for small donations on a recurrent basis and later ask donors to increase the amount than to start by asking for large amounts. Later, this intuition would be backed by a concept known as the “foot in the door technique.” Maddie then explains that appealing to rational reasons for donating doesn’t work as effectively as appealing to emotion. Donors want to feel like they’re having a tangible impact with their money. This means that, in some cases, people are more likely to donate if they’re told 100% of their donations go to the people in need versus being told their money will have double or triple the impact on the organization. Trevor, Maddie and Rory theorize that is because it’s easier to understand 100% of your donation goes to the need.
Building Trust
Being a donor requires a lot of trust in the organization. Maddie shares the importance of transparency in building this trust. Showing donors where their money has gone and providing them a narrative to follow it’s impact is incredibly beneficial. Rory stresses that making things tangible to your donors is vital, saying we are physical creatures in a digital world. He adds that anything distinctive that customers aren’t expecting you to do can help to build trust. Costly signals can also help charities to prove the seriousness of your commitment to the donor and their investment. Maddie explains that this is a balance because you don’t want to spend too much and signal to donors you’re not spending in the correct ways. She and Rory cite an example of increasing the quality of the paper or envelope quality of a donor ask letter showing a direct increase in donations.
Finding Innovation in Change
During the pandemic, our global technological abilities have gone up. Rory sees this as an opportunity to change the way fundraisers are held. Rory explains that typically donations go up in group fundraising settings, and if you add a digital setting with little overhead, there is a great chance to set up lucrative events. People are more willing to give their time over Zoom, when place is less of a factor. Charity fundraising now has the opportunity to combine digital fundraising and old school methods like mailers to create a unique experience.
Always be Testing Ideas
Beginning to create counterintuitive tests can be difficult for organizations. Maddie suggests starting slow with small tests and small subject pools may lead to big results. Rory adds that you should have two budgets in market research, one for exploration and one for exploitation. You should use some money to exploit the knowledge you’ve learned by testing your market and another you use to continue creatively testing. Exploration he says costs money, and you may fail, but it’s worth investing in even if it’s costly in the short term. Maddie agrees and points out that often in the exploration stage you can find out just as much by failing as succeeding.
As the episode ends, Trevor asks Maddie and Rory what their challenge to listeners would be. Maddie encourages listeners to conduct counterintuitive tests and continue exploration. Rory suggests seeking out behavioral scientists to help you think instinctively.
Key Takeaways:
2:24 - Trevor asks Rory why it’s essential to test counterintuitive things.
10:54 - Maddie explains what she’s learned from testing counterintuitive things.
19:38 - Rory and Maddie cover the ways nonprofits can build trust with their donors
33:43 - Rory discusses the possibilities of Zoom Fundraising
50:23 - Trevor asks Maddie how you create counterintuitive tests
57:11 - Maddie and Rory share their challenges to listeners