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Fundraising Well

Editor's Note

Email has been the go-to medium for marketers for years now. Strategies for testing emails have been well documented, but what about testing where people navigate after reading an email? In this month's issue of Fundraising Well, we discuss a number of methods for testing landing pages. From design and location to required fields, all of these factors have an impact on the effectiveness of your landing pages. With the right testing, you can significantly increase your conversion rates.

On a different note, our second article discusses some tips on saving money on unemployment insurance costs. Enjoy!


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  » Save Money on Your Unemployment Insurance Costs
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Save the date for Blackbaud's conferences. This year, we're offering two great conference opportunities in both Charleston and Vancouver. Choose your destination today and mark your calendar to attend. For more information, call our events hotline at 1.866.292.4006 or email conference@blackbaud.com.

Blackbaud's Canadian Conference for Nonprofits
When: May 30 – June 1, 2007
Where: Vancouver, British Columbia
Registration opens Feb 27th.
Blackbaud's Conference for Nonprofits
When: November 11 – 14, 2007
Where: Charleston, South Carolina
Registration opens in May.

Online Giving: Testing to Unleash Your Landing Pages
by Jake Berry

Testing email and landing pagesBecause of its response time, ease of measurability, and cost effectiveness, email is rapidly becoming an effective and preferred way to raise money. By now, most marketers are familiar with the concept of testing email in the same fashion they test traditional direct mail. In fact, strategies for testing email pictures, text, and offers are becoming more mainstream. But testing where people go after clicking on an email is less popular.

Landing Pages:
What is a landing page? A landing page is a Web page that receives traffic from a specific email. By testing a landing page — the way it is displayed and the number of steps required to complete the marketing process — you can intelligently measure and increase the number of responses your organization receives from a specific campaign.

Conversion:
Unlike traditional direct mail, emails and landing pages allow marketers to track actual conversion. The term “conversion” refers to how many people actually complete and submit the requested information on the landing page. One of the best ways to track conversion is to link a landing page to a specific email. This page can look just like your Web site. Or it can be completely unique and designed to look like your email. The advantage of the latter version is that you can choose to remove all other distractions and links to force readers to complete the form before they move to anywhere else on the Web site. Tracking landing page conversion can easily be done with your current Web analytics tools or with free tools Google® provides to nonprofits.

Testing
Once you have the ability to set up unique landing pages and track conversion, you’re ready to start testing. Try testing a version of your regular landing page as a control and a modified one as the test. Send half your targets the control and the other half the test.

Required Information Fields:
You can test any number of things, but a good place to start is the fields required to complete the process. A common mistake with landing pages is trying to capture too much information when someone gives a gift, especially when it’s from an acquisition list. Try to limit the fields to only those absolutely needed to complete the transaction. Since this is a constituent that you want to grow and nurture over time, you'll begin to collect more information over time. As direct marketers, we are always tempted to get as much data as possible, but we must be mindful of the constituent experience.

Design:
Once you have tested the required fields and discovered the perfect balance that increases your conversion rate, you might want to think about testing the design or layout of your landing page. I recently came across a large nonprofit with a four-page process after I clicked the “give” button. As I clicked through the many pages, all I could imagine was how many people abandoned the process on each page. Not only should the process be kept to one page, but it should also limit scrolling on the page as much as possible. Rather than having one long form that requires you to scroll down, try having two columns side-by-side on the form, effectively cutting the page length in half.

Location:
If your organization is ready to go the extra mile, you might also want to test the physical location on the landing page where the gift amount is entered. I’ve seen several different variations beyond the traditional space at the bottom of the form next to the credit card information. One variation is to ensure that the gift amount is the first thing someone sees on the landing page. By doing so, you separate the gift amount from the credit card info and start to mentally distance the gift from the cost. Another site I saw had a visual reference to what the gift would go towards right next to where the amount was entered. But in the end, the only way to find out what works best for your organization is to test, test, and re-test.

I’ve seen organizations double and triple conversion rates by tweaking and testing landing pages. You can do the math for your own organization, but generally speaking, that kind of effort can pay off much bigger then buying another list or hitting your constituents with another email.

Save Money on Your Unemployment Insurance Costs
by Woody Clark

Save on insurance costs Nonprofits have two options for unemployment insurance while a for-profit corporation only has one. Typically, a nonprofit and for-profit pay for unemployment claims through State Unemployment Insurance tax (SUI). But unlike their counterparts, nonprofits have an alternative choice: becoming a "reimbursing employer." This means that it can pay the state only for claims paid out to former employees.

Because the SUI tax rate method varies, a nonprofit could end up paying more than if it had used the reimbursement method. Many nonprofits however don’t realize they are eligible for this method and continue to pay into the state’s unemployment tax system.

For example: A nonprofit that had $20,000 in claims for a given year but was paying the state $40,000 in SUI, would find itself overpaying by $20,000 a year! By becoming a reimbursing employer, the money that was being wasted in taxes could be used for other expenses such as fundraising, office supplies, or even hiring more employees. Imagine what your nonprofit could do with that extra money.

Under the reimbursement method, a nonprofit reimburses the state unemployment compensation fund for the amount of unemployment compensation benefits actually paid to former employees.

This method works best for agencies that have stable employment and low unemployment claims. A Nonprofit with an annual gross payroll of $500,000 or more, however, likely can realize substantial savings.

In the end, the goal of reimbursing is to save money. And isn’t that what we all want?

If you need additional information or just want to find out if your nonprofit is overpaying into the state’s unemployment tax system, contact Woody Clark with the 501(c) Agencies Trust at 1.800.442.4867.

Latest and Greatest

Web Seminars

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Join us to learn why The Raiser's Edge® is the only fundraising solution you'll ever need.

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Learn how Blackbaud
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In the news

20% Acknowlogement Rate on $25 Gifts
Read the complete story of a blogger who gave a $25 gift to 10 different organizations to see how many responded with an acknowlegement. One response he received: “It’s our policy to not acknowledge gifts under $250."
Read the entire story here.


Windows Vista®: An FAQ for Nonprofits
Microsoft® released its new operating system Windows
Vista® on January 30th. Read these FAQs from Techsoup.org to learn if it's wise to upgrade now or wait it out.
Read the entire article here.
Resources

Bring Out the Best in Your Board
Too many trustees can get bogged own in trivial pursuits. Here's how to cure micromanagement and encourage strategic thinking.

Download the white paper here. (PDF61K)


Does Email Silence Matter?
Read the results of this study that show how failing to consistently communicate with your email list members may result in lower open and clickthrough rates when you finally get in touch with them again.

Read the entire article here.
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