Nonprofit Lowdown Episode #310: Empathy Marketing with John Lepp

Release Date: October 28, 2024

Introduction

In episode #310 of Nonprofit Lowdown, host Rhea Wong engages in a compelling conversation with John Lepp, a partner at Agents of Good and a seasoned expert in marketing with a specialized focus on empathy-driven strategies. This insightful discussion delves into the nuances of marketing within the nonprofit sector, emphasizing the critical role of empathy in fostering meaningful donor relationships.

Guest Background and Journey into Nonprofit Marketing

John Lepp begins by sharing his diverse background, which spans journalism, advertising, and direct response fundraising. He recounts his early career at Stephen Thomas in Toronto, where he honed his skills in direct mail fundraising alongside notable fundraisers like David Love and Ken Burnett. In 2009, alongside his partner Jen, John founded Agents of Good, a consultancy dedicated to empowering nonprofits through innovative marketing strategies.

Defining Marketing in the Nonprofit Context

Rhea Wong prompts John to define "marketing" within the nonprofit sphere, recognizing that many nonprofit professionals may not have formal training in this area. John clarifies:

"When I'm talking about fundraising, I'm talking about direct marketing or direct response. ... Direct marketing means having one-on-one conversations with other human beings, whether it's through digital channels or mail."
(02:58)

He distinguishes between direct marketing and mass marketing, emphasizing the importance of personalized communication over broad, generic outreach. John underscores that effective direct marketing relies heavily on understanding and segmenting donors to tailor messages appropriately.

The Power of Direct Mail Amid Digital Dominance

Addressing the resurgence of direct mail, John highlights its enduring relevance despite the digital shift:

"Mail is still very much alive. And I love mail especially; it's such an interesting channel for conversation."
(02:58)

He argues that direct mail offers a unique opportunity for deep, personalized engagement, particularly with the primary demographic of donors—women aged 65 to 95—who value tangible, thoughtful communication.

Empathy in Marketing: Understanding Donor Behavior

Central to the discussion is the concept of empathy in marketing. John explains how empathy involves:

• Putting Himself in the Donor’s Shoes: Even though he is a 50-year-old, white male, John strives to understand the perspectives and motivations of his predominantly older, female donor base.

"I have to always, as strange as it’s going to sound, put myself in the shoes of a 70-year-old woman to do my job the best I can."
(04:41)

• Segmenting Donors Effectively: Recognizing that different donor segments (e.g., $50 vs. $5,000 donors) require distinct communication approaches to resonate effectively.

Building and Segmenting Donor Lists

Rhea inquires about best practices for list segmentation, especially for nonprofits with large but impersonal donor lists. John advises:

"You have to figure out who they are first before you can really talk to them."
(10:31)

He recommends conducting donor surveys to capture essential data and understanding the relationship dynamics between the organization and its donors. This foundational work enables more targeted and meaningful engagements.

Overcoming Communication Challenges with Donors

The conversation addresses common hurdles nonprofits face when initiating conversations with donors, such as receiving minimal responses to outreach efforts. John attributes this to:

• Prior Relationship Management: Poorly managed or burned bridges from previous staff can hinder new attempts at engagement.
• Donor Perceptions: Understanding how donors view the organization and tailoring interactions to meet their expectations.

"Where are the donors at? What are they? It's about understanding their behavior and what they actually want out of this relationship."
(11:01)

Transactional vs. Relational Fundraising

Rhea shares insights from her series on transactional versus relational fundraising, emphasizing the pitfalls of viewing donors purely as revenue streams. John concurs, highlighting the detrimental effects of neglecting donor relationships for short-term gains.

"It's about being more present. It means you have to be thoughtful, reactive, and listen."
(15:47)

He advocates for a long-term investment in donor relationships, fostering genuine connections that go beyond mere transactions.

The Role of Creativity in Nonprofit Communications

Addressing the often bland and uninspiring nature of nonprofit communications, Rhea questions why nonprofits are hesitant to infuse creativity into their messaging. John responds by tracing this reluctance to inherent human instincts to conform and avoid standing out, which historically aided survival but now stifles innovation in the sector.

"Being human means being imperfect. Professionalism and perfection in our sector are crippling it one human at a time."
(26:58)

He encourages nonprofits to embrace creativity and authenticity, even at the risk of occasional criticism, to distinguish themselves and engage donors more effectively.

Leveraging AI in Empathetic Communications

The discussion shifts to the impact of artificial intelligence on donor communications. While John acknowledges the efficiency AI can offer, he warns against over-reliance on technology that may depersonalize interactions.

"AI is just another tool. It's only as good as what you're building into it."
(37:19)

He emphasizes the importance of maintaining the human touch, suggesting that AI should augment rather than replace empathetic engagement strategies.

Donor Retention and the Thousand True Fans Concept

Rhea introduces the concept of "A Thousand True Fans," proposing that nonprofits can thrive by focusing on a smaller, more dedicated donor base rather than dispersing efforts across a broad audience. John reflects on this by highlighting the Pareto Principle in fundraising, where a significant portion of donations often comes from a minority of donors.

"I like the idea of less and more. Less people, more attention to those who care the most."
(36:50)

He advocates for nurturing and valuing the top-tier donors who form the backbone of sustained support.

Conclusion: Embracing Empathy for Sustainable Nonprofit Success

The episode culminates with a reaffirmation of empathy as the cornerstone of effective nonprofit marketing. John urges organizations to prioritize genuine human connections, creative engagement, and thoughtful segmentation to build lasting donor relationships.

"Let's be curious and open. There's no failure here. It's all learning."
(42:15)

Rhea and John emphasize the need for nonprofits to balance technological advancements with heartfelt, personalized interactions to truly resonate with their donor base.

Key Takeaways

1. Empathy is Essential: Understanding and relating to donors' perspectives enhances engagement and loyalty.
2. Personalized Communication Outperforms Mass Outreach: Tailoring messages to specific donor segments leads to higher response rates.
3. Creativity Distinguishes Your Organization: Innovative and authentic communications capture attention and foster deeper connections.
4. Balance Technology with Human Touch: Utilize AI and digital tools to support, not replace, empathetic interactions.
5. Focus on Retention of Core Donors: Nurturing a dedicated base of "true fans" can provide sustainable support for your nonprofit.

Notable Quotes

• "Direct marketing means having one-on-one conversations with other human beings, whether it's through digital channels or mail."
  — John Lepp (02:58)

• "I have to always, as strange as it’s going to sound, put myself in the shoes of a 70-year-old woman to do my job the best I can."
  — John Lepp (04:41)

• "Being human means being imperfect. Professionalism and perfection in our sector are crippling it one human at a time."
  — John Lepp (26:58)

• "Let's be curious and open. There's no failure here. It's all learning."
  — John Lepp (42:15)

About the Host and Guest

• Rhea Wong is a passionate nonprofit leader dedicated to helping organizations thrive through effective marketing and fundraising strategies. She shares her expertise weekly on Nonprofit Lowdown and offers a wealth of resources through her newsletter and programs.

• John Lepp brings over 25 years of experience in direct marketing and fundraising. As a partner at Agents of Good, he specializes in crafting empathetic marketing strategies that build strong, lasting relationships between nonprofits and their donors.

For more insights and strategies on running your nonprofit like a pro, subscribe to Rhea Wong's newsletter at riawong.com and tune into more episodes of Nonprofit Lowdown.