On the Line...with Jason Fisher

Why Attempt Limits Only Limit the Amount of Money Phonathons Can Raise

Over the past few years I have seen many trends develop in phonathon.  Most revolve around the increasingly difficult task of actually getting the prospect on the phone.  Contact rates have continued to creep downward as programs search for answers in overcoming caller ID, cell phones, do not call lists, telemarketing regulations, and the general awareness of our telephone outreach programs.  This has cost some programs, both manual and automated, a great deal of money.

 

One of the most common mistakes I see in the industry today is the concept of attempt limits.  These artificial barriers may prevent some of the more egregious problems we face in phonathon, but they essentially tie the hands of management so tight that we miss opportunities to fully exploit the productivity potential of our databases.  During my many consultations on campuses all over the world, I’m fairly straight-forward in my advice to stop using them.  While the idea of attempt limits makes some sense on an abstract level, the reality is that they limit the amount of money a phonathon can raise.

 

As I see it, there are two common reasons why managers and directors believe attempt limits should be used.

Only the Best Callers Should Call Donors

Would the manager of a major league baseball team start their bench players in the World Series?  Would the conductor of an orchestra give a solo to the worst violin player?  Would you want a below-average teacher educating your children?  The answer, of course, is no.  I could go on with the analogies, but I’m assuming you get my point as it relates to phonathon and the title of this article.  Reaching the full productivity potential of any phonathon requires that management make the difficult decisions about which students call their best prospects.  I’m a firm believer that managers should not give the highest producing records to callers who simply aren’t ready to overcome the tough objections, personalize really well in the call, ask credit cards properly, or use their negotiation skills to the level needed to achieve top statistical performance.  Doing so is essentially akin to leaving money on the table and hurting the true value of the phone program.

 

Managers who make the decision to give donor prospects to everybody or anybody often do so out of fear- fear of their employees leaving, fear of their students not liking them, fear of being accused of favoritism.  This may sound harsh, but phonathon is about making money, not about making everyone happy.  Don’t get me wrong, I’m all about caller motivation and creating a strong, positive atmosphere.  The vast majority of students who called for me will tell you they felt respected and had a lot of fun.  I prided myself of strong employee relations and running a professional, exciting call center.  But assigning the highest value records to sub-par callers is a poor business decision.  Doing so virtually ensures that the rate of return will be lower than it could otherwise be, the prospects will not get the best experience, and the program overall will underperform.

 

Here are a few additional tips to consider on this subject when developing your nightly strategy for calling donors.

Phonathon at the Margins- Why Small Things Make Huge Differences

I've been traveling around to various campuses and conferences the past few weeks discussing phonathon and where we are at this point in its history.  As I review results from around the industry, it continues to strike me how there is very little room for error if an institution wishes to have a good year and achieve its goals.  Programs cannot just plug in computers or print cards and start the money machine.  It takes thoughtful planning and higher rates of efficiency than ever before to realize success.  Contacts and participation are down noticeably on most campuses, and in some cases significantly.  Now, more than ever before, phonathon is a game played at the margins.  The small things we might have let go many years ago that impact our results will now make or break a campaign.  And I'm not exaggerating when I say that phonathon managers must review every last detail to ensure a successful campaign.  I wrote about this in my book last year.  It's worth another look.  Here's an excerpt from The Phonathon Manager's Planning Handbook on this very subject.

Proximity Matters When it Involves Alumni Participation

I’ve had the opportunity to work on hundreds of phonathon and annual giving programs in my career.  As part of my consulting and audit responsibilities, I often take a closer look at statistical results and attempt to dig into the numbers to find trends that the phonathon and annual giving staff can exploit.  It’s amazing how consistent statistical trends are from campus to campus.  What one might consider at first to be an isolated phenomena is often found in other programs as well, leading me to the conclusion that human behavior is remarkable similar no matter what institution people attend.

 

In particular, I like to review the alumni participation rates by proximity to campus.  They tell an interesting story; one that fundraisers should not overlook.   In general, the farther one goes from campus, the higher the alumni participation rate.  I would say that the vast majority of the schools I work with follow this pattern.  In fact, I cannot remember the last time this wasn’t true.  There are a number of theories floating around out there that try to explain this, but let me give you my basic reasoning for why I believe this happens.

The Text Message Revolution in Annual Giving

Last month was the first month I ever “out-texted” my wife- and I have the cell phone bill to prove it!  I’m not what one calls a “hyper-texter”.  I rarely break 200 or so per month.  But I’ve been catching up in recent months and finally passed her.  My first impression was that I just happened to carry on a few conversations with friends at more length than usual.  But upon further observation I noticed a serious increase in the number of text messages I received in the last six months or so.  Looking back on it, they’re not all from friends and associates.  Many were from political campaigns, businesses, and other marketing announcements.  Which leads me to today’s question- Why aren’t we using this technology more in annual giving?  I suspect I know the answer.

 

First, there has never been a time in higher education fundraising where the methods of communication have been more diverse and different than they are today.  Younger alumni are speaking a different language and are using far different resources than the older populations.  The gap has always been wide to some degree.  I’m reminded of the episode of Saturday Night Live from a decade or so ago where Dana Carvey played “Grumpy Old Man”, with the catch phrase... “Back in my day we didn’t have…”  But in all seriousness, the rate at which technology has grown in the past decade is truly mind-boggling and unprecedented.  The contracting economy may slow things down a bit in the coming years, but it’s safe to say that the gap will not grow smaller.

Maximizing Your Phonathon Upgrade Potential in a Bad Economy

Even in difficult economic times, your phonathon callers can have success in upgrading pledges.  For most programs, the main goal of the phonathon is donor acquisition and retention.  Moving people up the giving ladder is important, but perhaps is not the primary focus of the annual giving director.  But consider this point for a minute.  If finding new donors and keeping the ones you have acquired proves more difficult than in prior years, how are you planning to make up the lost revenue from those missing donors?  One way is to greatly expand the number of records you are calling.  But if your program is already calling the maximum number of prospects, or your budget is limited in how much you can spend on caller salaries, then you’ll have to find another way to reach your goal.

 

Programs that do a nice job of upgrading pledges understand the importance of cultivation.  We’ve all heard the story about the major gift that started out as a $25 donor.  Well, it’s often true.  Most people do not give their first ever gift at $25,000.  They must first be identified, convinced, and cultivated, and phonathon plays an important role in that process.  But beyond the opportunities for major gifts, upgrading pledges is just smart fundraising.  It provides additional revenue and responsibly moves people up the giving ladder at a comfortable pace.

What Managers Should Do When They Cannot Attend 100% of All Calling Shifts

I had numerous e-mails from readers commenting on my last post regarding the recommendation that managers should be in the phonathon room 100% of the calling hours scheduled.  Most comments agreed with the opinion, but many are finding it difficult to achieve this due to an overwhelming workload or too many side responsibilities.  First, let me say to those who responded in that fashion that I completely understand where you are coming from.  I have been in your shoes and know what it’s like to carry more than one responsibility as a phonathon manager.  The point of last Thursday’s blog was to emphasize that a phonathon program needs a full-time presence to maximize productivity.  I know of no other way to ensure success. 

 

Certainly phonathons can survive and still reach their goals without following this suggestion, but the odds against that happening increase with managers who consistently miss the calling shift.  The farther away you go from attending 100% of the hours, the greater the chance that you will fail to see opportunities to truly understand what is happening with your program, effectively manage your people, develop good caller negotiation skills, and squeeze every dollar or donor out of the phonathon sponge.  My recommendation for those facing this challenge is to do whatever you can to be there as much as time allows.  I’ve outlined below a few thoughts to overcome this hurdle.

Phonathon Managers Should Attend 100% of Shift Hours

Some of the regular readers of this blog may disagree with today’s topic, and others may reluctantly agree but still not wish to heed the advice.  Of course, I would love to hear your feedback- either commenting and discussing in this blog or e-mailing me directly.  I’m always up for a good philosophical exchange.  But I feel the need to bring this up because I see so many directors going down this path lately, and I foresee the problem only getting worse as budgets get tighter and the needs get bigger.  I’m talking about having a full-time manager in the call center at all times.

Use Credit Cards in Phonathon to Build Caller Confidence and Establish Creditbility

Success or failure with credit card percentage is often a good indicator of how the program operates overall, especially in terms of negotiation.  Most of the time, the main reason for low performance has more to do with callers being afraid to ask or just not wanting to ask than it does with the ability of the phonathon to acquire pledges on credit card.  If the requirement for asking is fairly loose and not enforced, chances are the callers will take the easy way out and just send pledge cards.  Industry average for credit card percentage is 20-25%.  If your program is performing at less than 20%, then you most likely have improvements you can make with a number of your callers.  If you're program is under 10%, then it's almost certain that most callers are not following a set structure.  And that responsibility falls squarely on management's shoulders.

When I take over a phonathon or make recommendations for significant changes, especially those that are seriously under-performing, I first need to win over the confidence of the calling staff and establish credibility.  Sometimes that is easy, and other times it seems like an impossible challenge.  One of the first things I do to turn around results is to work on credit cards.  If I can show callers how to substantially improve their results in this area, they are much more likely to listen to me when I give advice in other areas of negotiation.  Callers that miss out on opportunities to get credit cards will often miss out on pledges as well.  That's because it's the same skill set they use- the art of persuasion.  Since full blown negotiation takes time and is difficult to teach in just a few days, I start with something simple and easy that can have immediate results- credit cards.  Here are a few strategies I use to make an immediate impact.

Ensure that the exact wording you want them to use is scripted and given to the caller.  Don't leave it up to the caller to decide what to say.  Give them the exact verbiage you want them to use and enforce it practically verbatim.  That way everyone is using the same language and changes that you make can be universally applied more easily.

Enforce a credit card ask on 100% of all pledges.  The biggest reason why callers fail to get credit cards is because they don't ask for them.  Don't be fooled...callers are tricky.  I can't tell you how many times managers tell me their callers always ask for credit cards.  Then I listen to calls and find out that is far from the truth.  Callers will take the path of least resistance on most occasions.  If they feel any push back from the prospect, many will give in immediately and just send a pledge card.  Listen, monitor, and reinforce 100% usage of the credit card ask on all pledges...no exceptions.

Overcome at least one objection to giving on credit card.  Just like in the body of the script, callers should overcome at least one objection to giving on credit card.  Use needs and reasons inside the ask demonstrating that credit cards are important, such as saving money on postage, saving paper, time and energy, etc.  Persuasion is a significant part of getting a credit card, and it certainly comes in handy after they have been told no.

Be assumptive.  Avoid asking if they want to put their gift on credit card...assume they do and it's just a matter of which credit card they want to put it on.  Would that be your Mastercard or Visa?

Set nightly credit card goals.  Be sure to give the callers something to shoot for.  And reward them for good performance.  Make credit cards a standard focus and include them in all motivational contests.

Most importantly, after you begin to experience success be sure to keep the callers aware of the increasing results.  Keep raising the bar and let them know that prior performance is no longer applicable or acceptable.  Post their nightly or cumulative results in a visible location in the call center.  Now that there is a new minimum expectation, each caller has a role to play in team achievement.  Substantial increases in phonathon results are usually the product of starting with something simple and structured.  Not only will high rates of credit card acquisition secure better pledge fulfillment, it will also increase caller confidence, persuasion, and overall negotiation ability.  And those are the first steps toward complete program improvement.

Should You Call During Finals?

The end of November inevitably brings a crossroads for phonathon scheduling and an important decision for management to make.  Ideally speaking, finals week would end up just being a time buffer for the year.  In other words, you wouldn’t need those five days at the end of each semester to complete your program and hit your goal.  It’s essentially just icing on the cake.  Yet, unforeseen challenges with caller attendance, cancelled calling shifts, and low rates of contacts and productivity may render it necessary to include at least some calling in the calendar for this time period.  So what are the pros and cons to doing this and how should the manager go about making this decision?  Here’s a few observations to keep in mind as you formulate your plan.

 

First, don’t fall into the trap that students cannot possibly work at the same time as take tests and that calling during finals is both unrealistic and counterproductive.  While there are likely some procrastinators on your staff, many will have already thought ahead and divided their time appropriately to allow them to work at least a partial schedule.  And remember that not all students have final exams.  Some have term papers that are due instead which have been worked on for many weeks, and others students may not be carrying a full class load.  I’ve found in my own experience not to prematurely judge whether or not a caller can work and take finals at the same time.  Each situation is different, so if you need the hours, don’t be afraid to ask.

 

Second, you need to make the decision whether to call pragmatically.  Phonathon is a business, and sometimes business requires us to change course in order to attain our goals.  If you are behind in productivity, have the records to call, and did not originally schedule calling during finals, it may be smart to use this time while you have it instead of scratching and clawing for every completed call or hour at the end of the program when the days are short and the goal is long.  Time has a way of really working against a phonathon in March and April when you need it the most.  Better to think of this in December while you have the chance to do something about it instead of convincing callers to come in during spring break or Friday nights when the weather gets warm in April and May.  In reality, there are times when the call center is behind in hours and finals become a necessary part of the schedule.  Of course, we as managers need to be sensitive to the academic accomplishments of our student callers.  After all, that is why they are on campus in the first place.  But as I mentioned earlier, don’t assume that they cannot do both.  Some can and some will want to work.

 

In the event that you need to change course and get at least some calling in during finals week, consider offering additional incentives such as ordering pizza or placing the names of those callers who showed up in a hat for a nice door prize at the end of each shift to encourage attendance.  Most importantly, don’t rely on making a blanket announcement to the entire team in the weeks prior to encourage them to work.  Rather, work the room on an individual basis, sitting down to talk to each caller about their schedule and ask them to commit to working at least part of the week.  I have found over the years that strength comes in numbers, and if you want to talk student callers into something that it’s best to do that one-on-one.  They have a much more difficult time saying no in this format.

 

Depending on the academic challenges and the rigors of study at your institution, you may have more or less flexibility with scheduling students during this time.  However, phonathon remains a business and a game played at the margins.  If even 25% or 50% of the room was full, holding a calling shift would positively advance the numbers and help the program get back on track.  Every little bit counts toward the final goal, and in the year of severe economic challenges that progress takes on additional significance.

Why I Never Allow Homework On My Calling Floor

When I have the opportunity to speak at various conferences around the country, I often ask the phonathon managers or directors gathered in the room if they allow callers to do homework when they are on the phones.  The response is normally around half and half- 50% allow homework and 50% do not.  Even though I know about how many people will raise their hands, I still ask that question anyway because it almost always leads to lively discussion.  There are strong opinions out there as to why it’s ok and why it should be banned.  But in almost all cases, the people who said yes are left to justify why they give callers the privilege to do their homework on calling time.

 

I’ve been managing calling programs or consulting with phonathon managers for about 18 years, and during that time my policy has been consistent - no homework or other time-consuming distractions.  I admit- I’ve made fewer friends and more enemies with that policy.  But as a wise friend once told me, “it’s not show friends, it’s show business”.  Whether it was a veteran caller that was used to getting their way, or a manager who suddenly had to explain to their students that the rule had changed, the homework policy almost always ruffles somebody’s feathers.  Despite being the bad guy, I stick to my principles on this one because the alternative means less productivity.  Here are the two central reasons why:

 

Allowing callers to do homework takes away from their ability to properly prepare for the phone call.  Don’t let callers fool you; they cannot effectively do two things at once.  Being ready to make a quality phone call cannot be done in the time between when the prospect answers the call and the call ends.  Quality starts in the seconds before the prospect answers the phone, beginning with the student reviewing name pronunciation and continuing with understanding the location of the prospect, degree information, past gift history, potential matching gift companies, and any other vital demographic details that give the caller insight as to what to expect from that prospect.  Ask yourself this- how many times have you heard a caller not ready when the prospect answers the phone?  Having their head down buried in a book is basically the same as turning around talking to their friend.  When the prospect answers the phone, the caller should be ready.  But instead they stumble, stammer and goof up the last name of the alum- killing any opportunity for a great first impression.  We’ve all heard this happen multiple times.  Enough said on this one- poor preparation hurts productivity.

 

Second, and perhaps most importantly, homework and other personal distractions take away from teamwork and other team-oriented motivational pieces.  To accomplish the lofty goals and expectations, callers must work together and be a team- not just a team of individuals.  If all the callers are doing their own thing, how can management effectively create an atmosphere of excitement and interest toward reaching the goals?  When homework is allowed, the caller becomes disinterested in the motivational contests that have been thought up and pushed by the supervisors or manager and effectively disengages from the calling room.  They would much prefer it if the prospect wouldn’t answer the phone- that way they wouldn’t have the inconvenience of having to do their job while they were studying!  If the supervisors and management are doing their jobs to properly motivate the callers, there is no need for the callers to entertain themselves.  To achieve the lofty expectations set forth at the beginning of the year, the entire staff needs to pull in the same direction and help each other during difficult circumstances.    If everyone is looking out for themselves, the team element is essentially lost.

 

Some managers challenge the assertion that homework takes away from productivity.  They believe it should be allowed in certain circumstances, such as near the end of the program or other points when contacts are very low.  I understand their point, but just disagree with it.  To me, this approach is lazy management.  Instead of giving your callers free reign, I recommend using the slow time to review key objection techniques or run contests designed to improve time management.  I'm pretty sure this is a topic I could write a 10 page paper on, but after adding up all the pros and cons I would still come to the same conclusion- allowing homework hurts productivity.  I would love to be the manager that could still hit goals and let the callers do whatever they wish, but I know from firsthand experience that this approach doesn’t consistently deliver the results.  

Making Mid-Program Adjustments

Yesterday’s elections marked more than just a turn of the political page, it also signified that we are about 25-35% of the way through the calling calendar for most phonathon programs.  September start dates and October donor calls are giving way to the great November push on many campuses.  There are literally only a few weeks left before the end of the fall semester and the beginning of the holiday break.  And I believe it’s a perfect time to reevaluate your calling program.

 

The first thing I recommend doing is to create a simple spreadsheet that compares fiscal year results, specifically at the segment level.  For example, look at Business Lybunts this year and compare it to Business Lybunts last year.  Account for any changes in segmentation criteria when judging the results, but review all relevant statistical feedback and decide whether you are doing better or worse than last year.  Prospect counts, completion percentage, participation, average pledge, number of donors, number of dollars, credit cards, upgrades, matching gifts…compare just about everything you can think of.  Even if it’s not a perfect apples-to-apples comparison, there is value in looking this deeply into the results.  The wrong approach is just to look strictly at overall donors or dollars.  They only tell part of the story.  You really need to look at the input factors inside your program before deciding how well you are truly doing.

 

Once that statistical review happens for all calling segments, identify which groups you are having the most difficult time with and look deeper at the components that created the results.  Do the scripts need to be adjusted?  Are the ask amounts set at the proper levels?  Did I have the right students calling this segment?  Do I need to revise my caller training program to improve negotiation skills?  Were my motivational strategies built to emphasize those areas most important to performing well overall?  All of these questions are relevant to improving the results and the manager should constantly be focused on reviewing these critical areas.

 

It’s also helpful that management see the forest through the trees.  It’s easy to be a micro-manager, but sometimes hard to make sure the big picture remains in focus.  I always make it a point to be certain my program is on track to finish on time.  Lack of database completion is the number one reason programs miss their goal.  The order of calling is an area I would also focus on for program improvement.  What calling segments have been exhausted and which segments should we emphasize going forward to maximize the results and keep pace with expectations?

 

Six or seven weeks into calling is a great opportunity to take the pulse of your program and determine if things are looking good or if adjustments need to be made.  Avoid the temptation to put your program on auto-pilot and review in April or May after calling is over.  By the time you identify areas to improve, it will be too late.  Contrary to the belief of some, managers have an incredible amount of control over the final results.  There are many, many ingredients that go into the perfect phonathon recipe.  Yes, the economy will definitely impact our productivity, but the decisions we make today can greatly increase the chances of a successful tomorrow.  The worst question of all is to look back and say, “What if”?