Episode Summary: Ep 211 – The Maverick Marketing Approach (with Seth Godin)

In Episode 211 of Nonprofits Are Messy, host Joan Garry engages in a thought-provoking conversation with renowned marketing guru Seth Godin. The episode delves deep into the intersections of marketing, innovation, and leadership within the nonprofit sector, offering invaluable insights for CEOs, board members, fundraisers, and nonprofit marketers striving to amplify their organizations' impact.

Introduction: Setting the Stage for Innovation

Joan Garry kicks off the episode by sharing a series of impactful quotes that frame the discussion:

• "Everything that has ever happened in the nonprofit sector was once an innovation."
• "The nonprofit sector is trying to solve hard problems. It's worth failing. It's worth experimenting to find the key to the solution."

Garry emphasizes the importance of marketing in nonprofits, remarking, "Marketing is essential to the impact a nonprofit organization can have," and highlights a prevalent challenge: "nonprofit leaders are risk-averse."

She introduces Seth Godin, highlighting his extensive contributions to marketing and innovation, including his best-selling books like Linchpin, Tribes, The Dip, and Purple Cow. Godin’s commitment to the nonprofit sector is deeply ingrained, making him an ideal guest to explore unconventional marketing strategies.

Understanding Marketing in the Nonprofit Context

Seth Godin begins by challenging traditional perceptions of marketing within nonprofits. He states, “marketing is the story you live by. Marketing is the choices you make” (05:29). Godin argues that many nonprofits misunderstand marketing, equating it with mere hype or promotional tactics. Instead, he posits that every interaction a nonprofit has—whether it’s how they treat clients or the sources from which they raise funds—is a marketing decision.

Garry probes further, noting that many nonprofit leaders find marketing “icky” or “yucky,” terms Godin confirms, saying, “They think marketing is hype and promo and shortcuts and spam and hustling people” (06:59). He redefines marketing as a holistic approach encompassing the organization's values, interactions, and the narratives they create.

The Hidden Gem Myth and Donor Dynamics

Garry challenges the notion of nonprofits branding themselves as "hidden gems," questioning its effectiveness in attracting support. “If it's hidden, it's not a gem,” she asserts (08:13). Godin responds by illustrating that exclusivity can sometimes enhance desirability, much like a renowned restaurant with an unlisted phone number creates an allure of exclusivity (08:34).

However, he emphasizes the importance of aligning donor expectations with the organization’s goals. “If you decide to raise money from foundations, you made a marketing choice,” Godin explains (08:30), underscoring that nonprofits must be intentional about who they aim to attract and how they engage with different donor segments.

Donor Retention vs. Acquisition: The Leaky Bucket

A critical point of discussion is the challenge nonprofits face in retaining donors. Garry introduces the metaphor of the "leaky bucket," where organizations can attract new donors but struggle to maintain those relationships. Godin elaborates on this by distinguishing between different types of donors:

• Emergency Donors: Those who give in response to immediate crises but may not return.
• Opportunity Seekers: Individuals who participate in events like charity auctions for personal gains, such as networking or status.
• Committed Donors: Those who donate consistently because they resonate deeply with the organization’s mission and story.

He asserts, “If you're not turning away donors, you are not serious about how you are marketing your organization” (23:37), emphasizing the need for nonprofits to curate their donor base thoughtfully.

Garry counters by advocating for nurturing relationships with all levels of donors, illustrating with an example from her time at GLAAD where a modest donor eventually contributed $3 million. She suggests that with proper stewardship, even smaller donors can evolve into significant supporters.

Redefining Failure and Embracing Innovation

The conversation shifts to the cultural aversion to failure within nonprofits. Godin challenges this mindset, asserting, “If you are trying to solve a problem where the solution is not yet known or optimized, which means that you're a scientist” (30:04). He encourages nonprofits to adopt a scientific approach—embracing trial and error, documenting failures, and learning from them.

Garry shares her observations during the pandemic, noting how nonprofits had to innovate out of necessity, showcasing their inherent capacity for creativity and resilience. However, she expresses concern that this innovative spirit is waning, becoming replaced by risk aversion driven by boards focused solely on risk management rather than strategic growth.

Godin concurs, advocating for a system where nonprofits have both a Board of Directors focused on governance and risk management, and a Board of Advisors dedicated to innovation and strategic brainstorming. He advises, “A nonprofit should have both a board of directors and a board of advisors” (35:20), to balance oversight with creative freedom.

Strategic Recommendations for Nonprofit Leaders

As the episode nears its conclusion, Godin offers three key pieces of advice for nonprofit leaders:

1. Appreciate Your Existing Efforts: “Thank you for showing up and doing the work. It's not appreciated enough and the work is super important,” Godin begins (41:44). He urges leaders to recognize that they are already engaging in marketing through their daily operations and interactions.

2. Clarify Your Service Purpose: “Who exactly are you being of service to? Who's it for? What's it for? What is the change you seek to make?” (42:00). Godin emphasizes the importance of nonprofits clearly defining their target audience and the transformational impact they aim to achieve for both donors and beneficiaries.

3. Understand and Leverage Systems: “Everything in our life is impacted by the systems around us, unseen or seen,” Godin advises (42:30). He encourages nonprofits to discern which systems are beneficial and how they can adapt or utilize them to further their missions effectively.

Garry reiterates the importance of embracing "messiness" as a fertile ground for innovation, challenging the stigma associated with it. She concludes by encouraging listeners to implement the episode's insights into their board meetings and organizational strategies.

Closing Thoughts

Joan Garry wraps up the episode by urging listeners to revisit the conversation, share it with their boards, and integrate its lessons into their strategic planning. She underscores the necessity of marketing and innovation as pivotal tools for nonprofits aiming to address complex societal issues effectively.

Seth Godin leaves listeners with a powerful reminder:

“Showing up to do our job is insufficient. There are urgent problems that need to be addressed, chronic problems that need to be relieved. But we get to address those things when we be strategic about it, when we make difficult decisions in the short run to help us get the results we seek tomorrow.” (43:20)

This episode serves as a compelling guide for nonprofit leaders seeking to navigate the intricate landscape of marketing and innovation, advocating for a balanced approach that honors both stability and creative experimentation.

Key Takeaways:

• Redefine Marketing: Beyond promotions, marketing encompasses every interaction and decision that shapes your organization’s narrative and mission.
• Strategic Donor Relationships: Focus on attracting and retaining donors whose values align with your mission, rather than indiscriminately increasing donor numbers.
• Embrace Failure: Foster a culture where failure is seen as a learning opportunity, driving continuous innovation and improvement.
• Balanced Governance: Implement dual board structures—one for governance and risk management, and another for strategic innovation and advisory.

For more insights and resources, visit Joan Garry’s website.