On the Line...with Jason Fisher

The Five Statistical Factors That Make Up Total Dollars

We live in a convenient world.  When we are hungry for a cake, we may simply go down to the market and buy the cake of our choice.  We do this without thinking twice about the various ingredients that went into making that cake.  The wise baker understands that the quality of the cake you are eating has everything to do with the quality of the ingredients it’s made with.  If you want to make a better cake, get better ingredients. 

 

Phonathon is essentially no different than the cake example I just shared.  I’ve said many times that total dollars is simply the result of many statistical factors working together- that it’s not a stand-alone statistic and should not be viewed as directly controllable by management.  If phonathon managers want to affect total dollars, they must first affect the Five Statistical Factors that work together to achieve that final number.  It’s a mistake to think that you can improve total dollar results without including strategy for impacting ALL of these components.  Let’s go through the five components one by one…

The Competitive Caller Drives the Phonathon

What skills or traits do you look for in your caller interviews?  Personally, I like callers with a small chip on their shoulder; who take failure just a little bit to heart and who want to come back on their next call and get a pledge.  I want to look over at their calling station after they get a refusal and see traces of frustration- not because they believe they can never get a gift, but because they feel they could have done more on that last call to get the prospect to say yes.  These are characteristics of a competitive caller, and I like my phone room to be full of them.

 

Fundraising is an active profession, not a passive one.  It takes students who are sincere and passionate about what they do to be successful.  Callers who don’t much care whether they get the gift or not, or who are just happy to move onto the next call without thinking about what they could have done better really shouldn’t have a place in your program.  While not everyone you hire will be of a competitive nature, it is important to have a critical mass of these personalities to keep the energy of the calling floor at high levels so that nobody gets too comfortable with being told no.

 

So who makes a competitive caller and how do you find them?  Well, there is no single test you can implement to decide if this person is competitive.  But look at their application and resume for clues.  Previous sports activities may or may not show the type of competitiveness you seek.  Being involved in a ton of activities may just distract your applicant from focusing on their job and cause them to call out more often.  Leadership is important, mainly because leaders don’t want to fail in front of everyone.  Their pride and reputation is at stake, and they want to make sure they always come out on top- so certainly look for that.

Smart Rewards and Motivation Accomplish Much More than Happy Callers

As I’ve said before many times in this blog, phonathon is a business.  Good business owners and managers understand that human resources are their most valuable asset and do everything they can to hire, train, and keep good people.  The goal is to build a stable, motivated workforce that goes out each day and puts in a full effort to accomplish their goal.  And take it from somebody that has been in the business a long time- just offering candy and chips won’t cut it.  Additional money is appreciated by the callers and works as a short-term stimulus, but a true motivational reward structure is targeted and focused on several key areas in the phonathon- and in line with ethical fundraising practices.  Here are a few thoughts on how I recommend programs approach incentives and caller motivation to improve retention and maximize productivity.

Use Fiscal Year Comparisons To Make Mid-Program Adjustments

If you haven’t done so already, the end of the semester is a good time to put together comprehensive analysis of phonathon results compared to goals and expectations.  Most all programs track overall donors and dollars against previous year results, but I have found that a more complete and in-depth process is very valuable and worth the time and energy spent.  I’ll spend just a few paragraphs here talking about what I think are the most important things to remember when putting together fiscal year comparisons and why it’s a necessity to do so for any phonathon manager.

Analysis should be done at the segment level, not just overall.  The bottom line numbers are ultimately what is important, but for a manager looking to better understand the pulse of their program, what happens at the segment level is of far more consequence.  Go down to the least common denominator and make sure you are looking for the subtle differences.  Avoid only using analysis at 10,000 feet and comparing overall numbers such as donors and dollars.  The devil is in the details, and overall project summaries do not provide the kind of specifics a manager needs to make good decisions.

Compare apples to apples.  For the vast majority of programs, segmentation will not change dramatically from year to year.  But in the event that significant changes have happened, make sure you take those into account when looking at the results.  Sometimes criteria for the segments change from year to year, which means that while statistics are not rendered completely meaningless, you do have to remember that the numbers you are looking at may need to be examined in a different light.   

Look at all the numbers, not just donors and dollars.  Percentages matter more than raw numbers when in comes to finding ways to improve phonathon results.  Participation, average pledge, upgrade percentages, credit card percentages, completes per hour, etc. are the factors that will ultimately decide whether you have a successful year.  Progress can be measured much more accurately by management if they use the above-mentioned percentages and averages instead of just determining that you are behind in donors and dollars.

Develop charts to compare results.  By segment and by statistical category, put down on paper those areas that are most important areas to contrast.  Look at the last two fiscal years in succession and compare those results to the current fiscal year.  Sometimes just looking at two years in a row is not enough to see trends.  Whether you had a great year or a poor year the previous year, having the perspective of seeing how the program moves over a longer period of time (including month-by-month results) is extremely important and helpful.  And don’t be afraid to benchmark your results against peer institutions.  While there will obviously be differences to consider when looking at results across other colleges and universities, it’s important to understand how much or how little success other phonathons are having.

The bottom line is this.  Study the details of your program and not just the overall net result at the end of the year.  There is still plenty of time for management to make mid-program adjustments.  There are undoubtedly areas of your program that can be improved, but without comprehensive fiscal year comparisons and analysis it may be difficult to identify exactly where to put your efforts.

Creativity and Motivation Counter a Negative Economy

Phonathons are a unique animal in the world of higher education fundraising.  Along with being the dominant donor retention and donor acquisition tool, they are also the most suitable medium with which colleges and universities can contact a mass number of alumni, parents, and friends.  As a bonus, most phonathons use students to call at least a portion of their alumni database, meaning that constituents get the opportunity to hear from the students who benefit the most from their support.

Callers have the most difficult job in annual giving right now.  They call upwards of 20-30 people each night to ask for money, giving the same presentation to similar groups of prospects and doing their best to persuade potential donors to give.  And the vast majority of them do it with a smile on their face.  But what happens when the valuable student caller loses their motivation to reach out to alumni and positively state the case for support?  Unfortunately, that may be happening more often as the economy becomes a bigger problem for annual giving programs.  During these past few months I have worked with numerous schools that are hearing a barrage of financial-related objections that have lowered results and brought down the mood in the phonathon room.  And I predict that the spring calling semester will be even more difficult than the fall, mainly because the economy will get worse before it gets better and nondonors are likely to be the bulk of calling assignments after the first of the year.

The big question ultimately becomes “How do we effectively motivate the student callers when they are subject to so much negativity each night?”  Keep in mind that in addition to lower productivity, callers who do not enjoy their jobs on a nightly basis are more likely to resign their position.  Higher turnover means less experience on the calling floor and a longer learning curve for new employees, which on average ends up leading to lower productivity as well.  See the vicious cycle here?  That is why I believe that properly motivating your student callers will one of the top three 3 things managers need to focus on during this crisis.  Here are a few tips to keep the students in the right frame of mind and having fun at their job.

Goal setting should be realistic and precise.  Goals that are set by approximation and prove to be unrealistic are counter-productive and de-motivating for the calling staff.  Worse yet is the scenario where no goals are set at all.  Avoid going just off the previous night’s results to determine objectives for the next night of calling.  Much can change in that short period of time, including the students that are calling and the proportion of the records available in each segment.  Instead, focus on using actual results and trends from several shifts in a row to determine the precise number of gifts, dollars, credit cards, and upgraded pledges expected for each caller.  And don’t just set an overall team goal.  Callers are individuals, and while they work as a team, they need to be held individually accountable for their results.  Team results are just the sum of individual results.  Be sure to drill down to the least common denominator.  Student callers tell me time and again that they get their greatest satisfaction when they feel they have made a difference.  Believe it or not, callers who achieve difficult goals are happier than if relatively easy goals were set and reached.  Challenge your staff. 

Manage by wandering around.  It’s a proven fact that people quit managers far more than they quit jobs.  If you don’t have meaningful interaction with every caller on your staff, then you run the risk of creating a lack of communication and making the students feel as if they don’t make a difference.  I always had my best success when I had a staff that was pulling in the same direction.  By having me and my supervisors walk the calling floor and get out from behind the desk, callers could visibly see that management was enthusiastic and that we cared about their performance.  Announce big pledges that the students receive and give them high-fives for a job well done.  Never let them rest and feel that you’re not on their side.  Listen to their questions, give advice and feedback, and let them see how interested you are in their success.  I have yet to have a calling staff that does not respond positively with this method.

Visually challenge your callers and audibly reward them for a job well done.  Visual motivation is more than just playing a board game or hangman.  It’s about being creative and showing the callers the results of past performance and future objectives.  I always recommend listing every caller’s name regardless of performance somewhere in the room, usually on a running total of credit card percentages, nondonor participation rates, total dollars raised, and other important statistics.  The games that are played on a nightly basis should be creative and fun.  Try not to repeatedly play the same game, and make sure that all contests are given the proper attention by supervisors and management.  Remember that their job is incredibly difficult and monotonous.  If you relax and slack off on your job, they’re likely to do the same.  Make sure that you use announcements and team meetings as an opportunity to talk about positive individual results, especially asking callers to share with others techniques that are working or examples of success they have had.

Enthusiasm is contagious.  The last thing callers want when they are hearing negative reactions from the prospects every night is to come to a phonathon room that is not enjoyable to work in.  That is a recipe for disaster.  Without going to the extremes or creating an immature or unprofessional environment, the supervisors and managers should have fun and let the callers see them working together towards a common purpose.  Simply showing up, announcing the game and starting the shift isn’t good enough under normal circumstances, let alone these difficult times.  Remember that management sets the tone for the kind of atmosphere that exists.  When the leader is absent or does not take charge, there is an enthusiasm void in the calling room that affects performance.

 

Why I'm a Dry Erase Board Junkie...And Why You Should Be Too

I’m certainly no Picasso.  In fact, I would say Art was my worst class in school.  I don’t see pictures or drawings the same way as some of my creative friends.  But there is something I’ve learned to be good at- using the dry erase board in the call center.  It’s a running joke with my current and former associates that I can’t do without my white board fix.

 

But aside from the kidding around, there’s an important reason why I always make the dry erase board (or chalkboard) part of my phonathon day.  Callers need visual motivation, and if there is one thing I’ve learned over the years from my days in phonathon management, it’s that finding ways to be creative using this tool is essential to hitting my goals.   I believe very strongly that it’s my responsibility as their leader to help make their job fun for them, while at the same time challenging them and holding their performance to expectations. 

 

Verbal reinforcement is necessary and important- but so is visual feedback.  Around my call center you will find a half-dozen or so places where callers can find their names and how they compare to the rest of the staff.  They know when they are hired they will be held accountable for their performance and seeing their name up with statistical results beside it helps to creative that environment without me constantly harping on them to do better.  They can see for themselves how they measure up to their peers.

 

But the dry erase board is different than semi-permanent updates on the wall.  The dry erase board is wiped clean the next day, meaning that those who performed well yesterday cannot rest on their laurels and those who didn’t achieve their targets have another chance to hit their goals.  It also refreshes the creativity element.  I’m constantly fiddling with new ways to motivate the callers, using real statistics to set proper goals and then building a fun, targeted nightly motivational contest each night around those objectives.  It forces me to critically think about the best way to get them engaged each night, knowing that callers who are not involved in the competition often perform worse than those who take it seriously. 

 

Since the game is constantly changing from night to night, the callers rarely get bored.  I try not to play the same game two times in a week unless I have a completely new set of callers.  One of the first things the students do when they come in the door is check the white board to see what the goals are and what the fun game will be for that shift.  All my games are goal-oriented, meaning that the chance of winning the game is greatly increased with good performance on the phones.  Challenging yourself to come up with new ways to motivate the callers is essential in good phonathon management.  If I fail in my job to be a good leader and help make their job enjoyable and rewarding, then I do a disservice to the program and to my callers.  I’m always communicating with and encouraging the students in one way or another.  The dry erase board becomes my conduit for setting expectations in a creative and enjoyable way.

The Power Hour

Good phonathon management is all about maximizing the opportunities you have.  In the current environment of technology working against us, such as cell phones and caller ID, we need to take advantage of those periods of time during the evening when productivity is highest.  Calling through records without a plan is simply not good enough anymore.

 

The period of time between 8:00 and 9:00 pm for the time zone you are calling is most often the best contact time for any phonathon program.  I call it the Power Hour.  I have studied this on many programs and can report with confidence that the Power Hour exists and is not a myth.  The number of solicitations the students are able to make improves significantly within this block of time, mainly because more people arrive home as the evening progresses.  Knowing this, management needs to think about a few key elements when setting their calling plan up for that night.

 

Maximizing Time Management

The power hour is short, so waste no time.  Make sure all your callers are working to the best of their ability and stay in their seats during this period.  Most importantly, make sure that you call up to 9:00.  Avoid letting callers go early.  Even 5 or 10 minutes here and there will add up to great potential when contacts are often 20% higher during this hour of the night.  It’s all about efficiency.

 

Calling Assignments

Because we know that the number of contacts will be highest during this last hour, we should selectively choose to emphasize those segments that we most want to concentrate on that evening.  For example, if you are trying to reach those last remaining donors and you only had enough prospects to keep callers busy in lybunts for three hours, consider putting three callers in lybunts for the last 60 minutes of the night instead of one caller for the full three hour shift.  Call the less productive areas earlier in the shift and switch to lybunts during the Power Hour.  So long as all three callers can make good lybunt phone calls, your productivity is likely to be higher because you’re loading up your calls during the time of highest contacts…the later part of the shift.

 

Motivational Strategies

I like motivational contests and games that emphasize time management and reward callers who give strong effort during the later parts of their calling shift.  One of my favorite techniques when I want to maximize the Power Hour is to double the value of the points for whatever game I’m playing during this period of time.  Callers then see the value in trying to dial the phones more quickly and use good time management, while also remembering that it takes a quality presentation to achieve their goal and win the contest.  I also make it a point to keep the callers in the seats as much as possible, so I limit games that make them stop calling to participate.

 

The bottom line is this- remember that not all calling time is of equal value.  There are times during the shift that phonathon managers must take advantage of, simply because the productivity value is higher within those periods.  Study those times within your own program and adjust accordingly.