Using Your Website To Effectively Promote Your Non Profit Organization

Your website is the home of your organization on the Internet and nothing is more important than making sure it attracts your followers.  More specifically, your site has to excite your target audience (not users in general, but the folks you need to engage to move your mission forward) to  facilitate the type of actions and interactions you want…  such as online giving, contacting your organization for more information, registering for a program or signing a petition.

It is harder to figure out how to donate money online than it is to spend it online.  Online giving typically takes users 7% more time than making an online purchase.  It’s even harder to volunteer time, or to give away things.

The key to motivating users to give online (or to pursue donating items or volunteering), is to make sure your content is compelling and show’s your organization’s “unique value proposition” or what their gift will be used.  One of the ways this can be accomplished is by personalizing your organizations work with photos and video showing the good work you are doing.

Once you convince your followers to support your programs it is important that you make it easy for them to immediately make the donation.  This can be accomplished by having an easy to use and secure link to your online account or pay pal connection.  If the process is not easy and quick the donor becomes frustrated and frequently gives up.

It is important to remember that your organization’s website is its home and it is important to make guests welcome in this home. 

Strategy and Decision-Making

As an experienced management consultant and Managing Director of BizBuilding, a firm that provides management advice to small and mid-size businesses, I spend a lot of time doing strategic planning and helping companies plan for the future.

With the current economic upheaval I’ve found that my concept of strategy and the way I advise my clients has changed significantly.

First, strategy now seems to be as much about good decision making as good planning. Rather than thinking of myself as the expert architect of a process that will eventually yield strategy, I now work with business leaders to make good decisions…. in real time.

In arriving at these decisions, we draw on some of the tools used in the typical strategic-planning process, but apply them to making the crucial decisions that need to be made multiple times a day by managers and other business professionals. 

Second, formulating strategy is an explicitly financial exercise. Understanding the economics of any potential decision is critical. It doesn’t make sense to develop a strategy first and then consider the financial implications, even though that is still a standard planning approach. I now view financial literacy and rigor as job requirements for both business executives and strategic consultants. 

Third,  I have come to believe that strategy must always be tied to brand. Good decisions reinforce a company’s brand, while bad decisions ultimately tarnish it.

When I start working with managers, I typically ask how they think the marketplace wants them to be NOW.  Understanding your customer and knowing their needs is crucial to having a successful outcome.  In the past many consultants worried that this question was only concerned with the end result….making a profit….and did not consider the process (or operational structure needed) to get to this end.  With the economic strain that many businesses are under now, keeping true to your customer (and financial implications) is vital.

As the recession and its aftershocks linger, the margin for error financially and strategically is extremely thin for most businesses.   Strategic consultants who emphasize helping managers make the best possible decisions on behalf of their company—as quickly as possible—provide the greatest help and return on investment.

Survival Plan For Tough Economic Times

As discouraged as you might feel, there are things businesses can do today to get by in these challenging economic times.  

Businesses can survive and position themselves to be ready as the economy improves.  The two primary strategies are to minimize cost and maximize revenue…a difficult task, but not impossible.

Survival Plan

·      Cut Waste: Use business resources only to improve customer value.

·      Stay Lean: Focus on operational efficiencies.

·      Review Resources: Regardless of the economy it is always necessary to review basic resources including human and financial assets.

·      Re-negotiate: The recession is impacting vendors and suppliers.  Make sure you are talking to those who supply resources your business needs.  Establish a payment plan that you can live with.  Most vendors would rather have something rather  than nothing.

·      What Makes You Special: Define your unique value proposition.  Why your customer should use your services rather than competitors.

·      Keep Customers: Make retaining your customers a high priority.

·      Know Who Your Best Customer’s Are: It the old 20-80 rule.  20% of your customers produce 80% of your sales.   Keep in touch with them and consider offering Rewards for your most valued clients.

·      Promote Your Business! It is more important to do this in a down economy than during normal market conditions.  Businesses should allocate at least 3-5% of Gross Revenue to marketing.  You must find low cost but effective ways of doing this.  One dollar invested in marketing should produce three dollars to your bottom line.  E-Marketing is most likely to be your best bet.  Use websites, newsletters, blogs and social networks.

·      Review Your Profit Centers: Eliminate products and or services that are not selling well and or have poor margins.   Customers are more likely to be shopping for things they need  during difficult times.

·      Innovate New Products and Services Offerings: Product development is the life blood of all businesses.  Identify what your customers need and fill those needs.

·      Think Strategic but Act Tactically: Take time to think about long term planning.  It is difficult to get to where you are headed unless you set a direction.

Reinventing Your Business

Rebranding has become a strong global technique to retain consumer confidence especially when business has gone sour or competition threatens to narrow profit margins.

Some companies also rebrand when they expand their business, if the old brand does not fit well with the new model, or where modern trends demand that the company discard obsolete aspects of their brand.

Experts say branding is about perception — it defines a business or product from the competition.  The ultimate purpose of any re-brand is strengthening connections with its customers.

A good example is Chartis Insurance Company Ltd who rebranded immediately after their parent company AIG was hit hard in the financial crisis.  The regional branches of AIG in Kenya and Uganda also quickly rebranded fearing the shadow of the financial crisis would cause customers to flee to other companies. AIG maintained that its brand, associated image and public perception were important factors for its business and tried to discourage the rebranding.  Chartis survived because they managed to convince their customers that there was a distinction between it and the old company.

Another example of successful rebranding is India’s Bharti Airtel who dropped Bharti from their name retaining only “airtel” with all letters in lower caps in its India market.  This mobile telephone company later rolled out its new brand across its global footprint in Asia and Africa The new identity gave them the opportunity to present a single, powerful and unified face to customers, stakeholders and partners around the world.

Successful rebranding requires the company to inform the public why it is making the change and how the new company will look.  Keeping the public informed of their actions helped to make the change more acceptable. 

Birthday Marketing….

So today is my birthday…and I’m having  a lot fun!!

It is nice to have one day a year to feel special and do something completely out of the ordinary.  It is also a great time to review what happened during the previous year…achievements, personal growth, disappointments...  and plan for the coming year.  I always enjoy celebrating with family and friends…also hearing from people that I’ve lost touch with.  It seems birthdays are a good time to renew and strengthen relationships.   This year several major retailers tried to build their connection with me as a consumer by celebrating my birthday with me!

About three weeks ago I started receiving beautiful cards from many of the retail stores where I shop.  These are stores where I either belong to their loyalty club or signed up for email updates.  Each card included some sort of enticement to get me into their store (or to sign into their on-line store).   Anthropologie sent a card with a ‘birthday candle” necklace and 20%  off coupon. BCBG went one step further allowing 20% off each sale for the entire month of April.  Compared to these stores, Brooks Brothers gift was a bit meager offering a $20 off one item coupon.  

In the cosmetics department, Lancome was the big winner.  They gave five full-size products with any purchase in honor of my birthday.  This seemed much more generous than the small birthday sample that Sephora gave me.  The Clarins counter in Bloomingdales did not send me anything in advance, but when I mentioned to the cosmetician that was my birthday she filled a shopping bag with many full size products and samples.

So, is sending birthday presents to loyal customers a worthwhile marketing strategy.  I say resoundingly YES.  First, these retailers successfully got me into their stores, which gave them at least a chance to make a sale.   Offering a discount on everything in the store including new merchandise was an incentive to make a purchase.  Most new summer items probably will not go on sale until mid-summer so I was able to get them immediately at the sale price.  But perhaps most of all, these companies made me feel appreciated and I in turn am now a very loyal and happy consumer that will certainly return.

The companies that sent me birthday presents made me think about the companies that did not.  Nobody (not even my trainer) at the exclusive health club where I am a member said happy birthday even though the date is clearly highlighted in my profile.  Nor did the expensive hair salon I frequent made mention of my special day.   I will not give up my gym membership or change stylists, but I do feel less connected to these places than I did before.  In contrast, the retailers that did send me birthday wishes and presents in most cases got me to make a purchase I probably would not have made had I not gotten the birthday card.  They definitely strengthened my loyalty and connection to them.  

Know Your Customer

Every business knows that to survive and succeed it needs customers.  Unfortunately too many businesses treat their customers like secondhand citizens who are merely their means to an end….turning a profit.   Businesses frequently enact policies that negatively impact the consumer and cause such bad feeling that the client closes down the relationship and the business not only loses a customer, but also has its reputation tarnished.  A company’s success is contingent on providing excellent products (or services) and also making sure customer needs are satisfied in a positive and pleasant manner.

An exclusive hair salon in NYC recently found that many of its long time clients were cancelling their regularly scheduled appointments.  Each week they were serving fewer customers and most of these were first timers.  When they called the BizBuilding team to help them figure out and fix the problem business was already down by 40%.

The first question asked was did the salon recently alter its business model  or pricing?  The salon owner insisted that nothing had significantly changed.  Our  team decided to do a customer evaluation with former clients of the salon.  They all gave a similar response:  They loved the services they got at the salon and the stylists were all top quality.   Most of these consumers said when they left the salon after a haircut or color service, they felt special and looked great.

Then a few months ago the salon instituted a new policy:   there would be an extra surcharge of $60 ($75 for long hair) to get a blow dry after a service.  The customers were outraged.  They did not want to spend the extra money for a process they thought should have been part of the already expensive service.  When the salon owner finally acknowledged this change in policy, he explained that the blow dry process took too long and a stylist could see three more customers per day without having to do it.  The surcharge made up the margin.  He had not considered that his customers would have such strong feelings about this change in service practice and pricing.

The BizBuilding team came up with a solution that increased the profitability of the salon while satisfying the needs of the customers.  The salon hired two style assistants who were solely responsible for complementary blow-drying.   This freed up the  senior stylists to see more clients.  The increase in customers paid for the new hires and increased revenue.  All clients in the salon database were sent a letter explaining the new procedure and offered a 20% off discount.  They returned and business at the salon is better than ever.

Customer surveys and evaluations should be a standard part of business practice.  Understanding customers changing needs and if they are happy with the way you do business is vital to keeping a business lucrative.  Decisions to make strategic changes in the business practice must be reviewed with respect to consumer tolerance of these changes.  Ultimately having satisfied and happy customers is the best way to achieve profitability.

Micro-Loans 101: A Credit Solution For Small Businesses

When people hear about micro-loans they automatically assume it is an advantage for small businesses  in developing countries.  But the reality is that these small short-term loans are available in the United States.  These loans are especially helpful during times of economic stress and often carry a business thru a few months of difficulty allowing it recover and even come back stronger.

The information below contains all the facts you need to know about micro-loans and hopefully will be a starting point to helping some entrepreneurs get through the current credit crunch.

What are micro-loans?

Micro-loans are small, short-term loans made to people who do not have access to more mainstream lenders such as banks.   Making and servicing a loan involves administrative costs for lenders, therefore they will often refuse to make loans that are too small, to people that lack collateral, or to people that do meet their risk standards. 


Micro-loans were originally designed to help the very poor in developing countries get access to enough funds to build a business, but the concept also filled a lending gap in the developed world and today most countries have one or more micro-lending institutions. Although there are many different types of micro-loans, most micro-lenders are non-profit organizations that emphasize helping the poor.

Micro-loans in the United States

Although the concept first gained traction in the developing the world, it was soon realized that micro-loans could also help small businesses without access to bank loans in the United States. The first major micro-lender in the United States was ACCION USA, http://www.accion.org which is still the country’s largest micro-lender and has loaned about $210 million to more than 20,000 small entrepreneurs.
ACCION USA is a non-profit organization that offers very small loans to small American businesses that do not qualify for traditional loans. The average ACCION USA loan amount is $5,300 and the loss rate is very low compared to traditional loans. Because micro-lenders are typically non-profit organizations, most micro-loans have very reasonable interest rates, as well.

Micro-loan borrowers

Mico-loans are generally targeted to very small businesses run by one or two people, such as independent child-care workers, caterers, small restaurants and food businesses, and small specialty shops. Independent contractors – like construction workers or craftsmen – are also frequent recipients of micro-loans. Micro-loans are also popular short-term bridge loans for slightly larger businesses, to help with immediate cash flow issues.
  Many micro-lenders focus on lending to entrepreneurs in immigrant communities who cannot qualify for mainstream loans.  Small businesses in poor or depressed areas also tend to receive more micro-loan attention than those coming from affluent areas.

How can you qualify for a micro-loan?

There are currently more than 250 micro-lenders operating in the United States, each with its own focus and minimum loan-qualification requirements. Small business loans from ACCION USA require the applicant to have a credit score of at least 575, not to have filed for bankruptcy in the previous twelve months, to be current on all bills and expenses (especially rent or mortgage payments), and to have less than $3,000 in outstanding debt. Small businesses must also be operational, have all licenses and permits necessary to conduct business, and have a regular cash flow sufficient to make monthly loan payments. Other micro-lenders have other standards, some of which are considerably less stringent than those of ACCION USA.

Micro-loans and the current economy

Not surprisingly, the recession and credit crunch have seen a large increase in applications for micro-loans. Although the default rate on micro-loans has increased some, it has not come near the levels seen in most other lending sectors. Most non-profit micro-lenders receive a significant portion of their operating capital from the government (via the Small Business Administration and a separate fund administered by the Treasury Department), so they have remained active lenders throughout the crisis. While larger loans – those of $10,000 or more – have become less common, small loans of between $3,000 and $8,000 have become easier to obtain. The loans are small, but they are often more than enough to solve temporary cash flow problems or to launch small business start-ups.