KIND Snacks Founder Daniel Lubetzky: "I wish I had understood the benefits of product sampling"

Republished from SamplingForGood Blog, Feb 18, 2015

In a rare opportunity to learn from the founder of a now-successful CPG brand, Daniel Lubetzky, founder and CEO of KIND Snacks, shared lessons and regrets growing his company in a Fast Company article ahead of the release of his new book, Do the KIND Thing (released March 31, 2015). 

A lesson Daniel shared is a typical marketing mistake we often see with new brands:

"I wish I had understood the benefits of product sampling. In the early days, sampling was a missing piece of my strategy because I viewed it as an expense rather than an investment. Around 2009, I finally realized that, given our products’ high quality and taste, letting people try KIND bars was the best way to build awareness. We expanded our sampling budget and the brand has grown fast and furiously since then."

What have we at DonationMatch seen sampling do better than other marketing?

• Generosity & Reciprocity: Receiving a samples as a gift, especially when it is unsolicited, elicits a natural tendency to want to pay back the favor. Delighted consumers purchase products and share you with others.

• Getting Personal: The ability to try something for free is more powerful than any advertising. If your brand can say, "when they try it, they'll buy it," enabling these experiences is the most direct path to purchase. Other channels try to drive consumers to real-life interactions; with sampling, you're already there.

• Cut the Marketing Funnel: Unlike digital marketing, sampling can provide awareness, trial, and a call-to-action (coupon, email opt-in, or invitation to engage)—all at the same time. Remove any doubt about liking your product in one touch.

As a consumer, I can personally testify to the success of Daniel's sampling strategy.  I first tried a KIND bar at a 1 Million Cups event in San Diego in 2014 (startup founders are prime targets for convenient, healthy foods). KIND Snacks had shipped a generous amount of bars for attendees. I grabbed one for breakfast, and within hours I had ordered a boxful on Amazon.com. Once that arrived, my kids dug in, and our home was never without KIND bars in the cupboard.

Having spoken to friends who have discovered their own favorite products through receiving them as gifts for sampling, this is a pretty typical result. Sampling is such a simple concept, yet a misunderstood strategy, that Daniel thankfully embraced in time for KIND Snacks. The question every CPG marketer should be asking is: How are we engaging consumers with our products in ways that compel them to pay it forward?

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Disclaimer: DonationMatch may earn a commission for any purchases made through links provided.

San Diego Business & Nonprofit Crisis Support Network

Thank you fo the San Diego Business & Nonprofit Crisis Support Network for aggregating resources for local organizations. Their spotlight video highlighted DonationMatch Co-founder Renee Zau, who is offering pro bono services of up to an hour per organization (business or nonprofit) to assist with in-kind (unpaid) marketing strategy and fundraising event coaching as we adjust and recover from COVID-19. To apply, use the link in the Free Consultants and Coaches section of the San Diego Business & Nonprofit Crisis Support Network website.

4 Bold Predictions for Benefit Galas in a Post-Pandemic World

Guest Post By Alex McDonald, Director of Customer Experience at TravelPledge

If you’re like thousands of nonprofits, the 2020 coronavirus pandemic left you scrambling to cancel, postpone or stream your annual fundraising event.

Now you and your team are probably wondering, “Will event fundraising return to business as usual once we have a vaccine?”

Almost certainly not.

In this post, I make bold predictions for event fundraising in 2021 and beyond.

Prediction #1: “Hybrid Galas” Will Become the Norm

The benefits of virtual galas are undeniable. Nonprofits can engage donors who moved away, feel uncomfortable in crowds, or are unwilling to leave their homes. Moreover, nonprofits save on staff, food and venue.

Unwilling to part with these benefits, nonprofits will incorporate virtual elements into their in-person galas to form a “hybrid gala.”

For example, some supporters will attend the gala in person, while others will stream it online and use mobile bidding software to participate in the silent auction and Fund-a-Need.

As a result, the nonprofit will serve a smaller in-person audience of presumably major donors while involving all who want to participate.

Prediction #2: Live Auctions Will Take a Back Seat to Silent Auctions & Fund-a-Needs

If indeed the hybrid gala gains rapid adoption, it stands to reason that the live auction revenue will shrink as a percentage of total event proceeds. Here’s why:

An organizer of a hybrid gala will have only two options for their live auction:

1. Make the live auction available to in-person attendees only (and allow pre-bidding by remote attendees).

2. Utilize mobile bidding software during the live auction.

With Option 1, bidding won’t be as competitive since there will be fewer in-person attendees. With Option 2, organizers risk their in-person audience getting distracted on their phones, which is why many benefit auctioneers insist on bid paddles.

The Fund-a-Need, by contrast, can be executed with bid cards for in-person attendees and mobile bidding software for remote viewers. There’s no bidding, so donations can be committed in any manner at any time.

For the silent auction, mobile bidding software makes it easy for all participants to find items, read descriptions and pay. Additionally, the nonprofits will sell more items since bidding can start days before the gala.

Thus, while the live auction will likely have decreased participation, the Fund-a-Need and silent auction will likely have increased participation and revenue.

Prediction #3: “Elevated” Virtual Experiences Will Be Paramount

The most commonly envisioned form of virtual participation is someone streaming the event on their laptop and bidding on their smartphone.

Creative organizers will seek to elevate the at-home experience to increase engagement. Some examples:

• Partner with a restaurant to deliver dinner to remote attendees.

• Recruit “living room captains” to host people at their home to stream the event. Captains can distribute paddles and record Fund-a-Need pledges.

• Show photos and tweets from remote attendees on the live stream and on the event’s big screen.

The organizers who can best engage the remote audience will enjoy the highest donor attendance, giving and retention. Further, their costs as a percentage of revenue will decrease as they move more of their audience online.

Prediction #4: Some Organizers Will Opt for Smaller, More Frequent Events

Improved fundraising technology, plus organizers and donors becoming comfortable with virtual events, will make virtual events more cost-effective and quicker to plan than ever.

Thus, while many organizers will throw a single big hybrid gala, others will throw multiple smaller events throughout the year to tailor each event to an audience segment.

For example, a nonprofit may throw a small in-person auction, then a virtual streaming event, then a virtual golf tournament (i.e., teams have a two-week period to complete their round). Donors will attend only the events that fit their lifestyle, schedule and interests.

As a result, nonprofits will engage donors in a deeper way, but at the same or lower cost as before. Moreover, event revenue from sponsors will increase because businesses can sponsor the event that best aligns with their target customers.

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Alex McDonald is the Director of Customer Experience for TravelPledge, the benefit auction’s connection to generous business owners. Alex manages TravelPledge’s content strategy and customer onboarding. He is passionate about helping nonprofits exceed their auction goals.

The views and opionions expressed are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer or company.

6 Expert Sales Strategies Nonprofit Fundraisers Need to Steal

Guest Post By Tatiana Morand, Content & SEO Manager at Wild Apricot by Personify

You might think that your fundraising work is worlds away from that of Fortune 500 sales professionals. You’re cold-calling in hopes of a double-digit gift, while they’re landing six-figure deals over a boozy lunch.

But if you’re dismissing the strategies they’re using, it might be time to take another look.

You both have the same task: convince your prospects that your mission is a good investment.

So, before you pull your hair out trying to think of new “viral” fundraising strategies, take a look at how sales pros successfully pitch their products and consider how this could translate into funding for your organization.

1. Make It Personal.

Research has shown that consumers prefer personalized sales experiences. With so many analytic tools available, individualized recommendations have become the norm. Just think of the way Netflix curates “Recommended For You” selections based on your viewing history.

Mailing out stock donation envelopes doesn’t cut it anymore. Your donors and supporters expect communication that shows you’ve taken the time to get to know them.

That doesn’t mean you have to send handwritten notes for every gift. Instead, identify easy things that you can customize a bit more.

Possible Actions:

• Use personalization fields (merge tags) to address donation letters and emails.

• Send individualized welcome and thank you emails to new donors.

• Handwrite thank you letters at major donors. Affirm their sense of importance by including specifics about the use of their gifts.

• Create drip email campaigns to ask donors questions and elicit replies. Drip emails can be triggered by actions or criteria in your database to make them seem like personal inquiries.

• Look for commonalities and create targeted segments. Let’s say you work for a literacy organization and realize that 10% of your donors and members are licensed educators. Why not send them unique volunteer opportunities perfect for teachers? Figure out how to leverage their common experience for your organization’s benefit.

2. Go Beyond Your Direct Connections.

A survey by LinkedIn found that consumers are five times more likely to engage with a sales professional if an introduction is made through a shared connection. In your case, this could mean asking your current donors to invite their friends and families to a fundraising event or encourage your current followers to share a post about a new campaign.

Possible Actions:

• Start a peer-to-peer fundraising campaign via your current supporters to grow your network.

• Look at your executive leadership team’s LinkedIn connections and make a prospect list.

• …And then move to your board and do the same!

• Create content for your board members to post on their social media feeds. For example, ask them to share a link to a blog post or event announcement.

• Familiarize yourself with the community through local chambers of commerce and networking groups. Learn who might want to help your organization.

• Introduce yourself to local media outlets. Offer to write articles about the nonprofit sector or mission-related issues.

• Pay for your leadership staff and board chair to attend a few key events, such as trainings, conferences, or even other fundraisers. This allows them to network with philanthropists and other nonprofit leaders in the community.

3. Be Confident.

Another essential way sales professionals build trust is through professional competence. They speak with conviction about the products and services they’re offering.

We know that people, unfortunately, perceive nonprofits as dysfunctional or financially unsound.
As a result, you may face an uphill battle when speaking about your organization’s stability and success.

Possible Actions:

• Refine a succinct and clear elevator pitch, and professional and consistent branding.

• Train your employees and board members to give statistic-backed responses to questions.

• Equip your employees and board members with case study examples that prove your organization’s success.

• Prepare a 5-10 year strategic plan that can be shared externally. This shows you’re confident that you’re in it for the long haul.

4. Try Out This Tactic.

It seems counterintuitive, but some of the most successful sales pros encourage customers to explore competitors.

While it may feel terrifying or downright foolish to lead potential donors away from your organization, this type of honesty shows you’re so confident that you know they’ll ultimately choose you.

More importantly, it shows that your primary concern is the mission, which will reassure your prospects.

This may mean discussing the other organizations in your area that have similar programs. This openness lets prospects know that you have a mission-first mindset. Potential supporters will appreciate that you care about the greater good, not just the good of your particular organization.

(But hopefully you’ve sold them on why you’re the best option!)

Possible Actions:

• Understand others in your nonprofit niche.

• Develop your value proposition so you can effectively compare and contrast your organization with others.

• Foster and emphasize collaborative partnerships with other nonprofits, so it’s clear you’re willing to share resources if it leads to greater impact.

5. Think Outside the Box.

When it comes to fundraising, it feels safe to play to the audience we already have a relationship with. However, creating new donors is necessary for organizational growth. Businesses are always trying new ways to expand their market share and reach new populations.  That means taking risks and allocating resources to new products or novel marketing approaches.

For your nonprofit, this might mean investing in online outreach to engage younger donors or trying a new theme or venue for your annual fundraiser.

Who knows… you might find a huge new base you didn’t know existed!

Possible Actions:

• Dedicate a small portion of your budget to experimentation.

• Track results in terms of cost-benefit as well as engagement and retention.

• Try out a few different fundraising ideas.

6. Less Is More.

One of the most important characteristics of a successful sales pro is tenacity. The same goes for a nonprofit fundraiser.  

You’re probably accustomed to being hung up on and just picking up the phone with a smile on your face and trying again and again… and again.

But some sales pros suggest backing off and giving the prospect some space. When it comes to donation calls, less can be more.

So, equip your prospective donors with everything they need to know about your organization within the first couple of touchpoints, including ways to give. After that, the ball is in their court.

This strategy has two benefits: they’ll feel empowered, and you’ll be freed up to pursue other new supporters.

Possible Actions:

• Prepare call scripts, sponsorship packages, and presentations that include a clear expectation of follow-up communication and call to action. (i.e. “We will send you an email and follow up in a few days.”)

• Donors can also feel empowered by a challenge. A recent study shows that creating fundraising challenges (for example, saying “A generous sponsor has committed to give $1000 if you and your coworkers raise $2000 by the end of the month”) can positively influence giving. These types of fundraisers appeal to humans’ competitive nature and makes donors feel urgent and integral to the operation.

At the end of the day, a top sales executive and a fundraising manager aren’t that different (although the beverage selection may be a little better at one of their offices...).

To get yourself started, think of something you were recently compelled to purchase and consider what made you make that decision. How can you evoke that same feeling or experience for your potential donors?

Start thinking like a sales pro, and it might just pay off.

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The views and opinions expressed are those of the author and do not necessarily reflect the official policy or position of any other agency, organization, employer or company.

5 Podcasts for Charity Fundraising Advice

As a nonprofit professional (or professional volunteer), hosting a charity fundraiser is a lot of work. It requires organizing, marketing, event planning, sales, people management, and so much more. As fundraisers, we are always looking for improved methods for making our events more cost-effective and profitable. Here are 5 podcasts to help make the efforts of a nonprofit event planner a little easier, or more effective. These podcasts are in no particular order and range from 30 minutes to over an hour in length per episode. It can be great to fit in these helpful tips during a lunch break, long drive, or even during a daily workout routine.

1. The Classy Podcast

This weekly podcast has stories from leading founders and executives in the social sector who hope to inspire the next generation seeking to drive change. 

2. Events with Benefits

Hosted by three longtime event fundraising professionals with 50+ years of combined experience, this podcast seeks to help nonprofits achieve greater success in their fundraising events with less effort. The episodes feature special guests from all different sectors of the nonprofit industry who share their biggest lessons learned, including nonprofit attorneys, directors of events that raise over $1 million or more, benefit auctioneers, and technology companies.

3. CauseTalk Radio: The Cause Marketing Podcast

This weekly podcast, hosted by Joe Waters and Megan Strand, keeps you up to date on the world of cause marketing.  The podcast covers trends, tactics and news related to cause marketing and corporate-nonprofit partnerships.

4. Driving Participation Podcast

This podcast talks with marketers, fundraisers and consultants in order to explore what’s been successful for schools, nonprofits, and associations, in order to attract the right people, maintain their excitement, and encourage them to give back.  

5. Raise and Engage

This podcast if for nonprofit professionals and covers the latest trends and hot topics.  With people speaking from the social good community, it’s designed to help listeners in doing more for their cause.  

Questions To Ask When Holding an “In-Store Fundraiser”

In-store fundraisers (a.k.a. on-site fundraisers, restaurant nights, or giveback campaigns) can be a lot of fun and excitement for both hosting venues and the organizations inviting supporters to dine or shop. Before doing one for the first time with a new venue or organization, it's a good idea to get these details clarified in order to set expectations for both sides.

1. What percentage of sales will be donated to the charity?  

It is quite common for a store or restaurant to donate around 15%-25% of sales, or a specific dollar amount per package or service sold. However, percentages can vary, and there could be exclusions, such as alcohol, gift cards, or specific product lines.  Make sure to confirm the timeline of the event, whether donations will apply to sales all day or only during certain hours, and if there is a minimum number of guests or total sales required for payout.

2.  Can the event be held over the weekend?

It is very common for a restaurant to hold giveback fundraisers between Sunday-Thursday, so as to avoid their busiest times during weekends. Stores may have similar policies depending on their sales and other special events as well. Consider exploring other creative options, such as a late brunch or early lunch for a restaurant not normally open in the morning, or even longer-term fundraisers focusing on online or gift card sales for up to a month or more. 

3.  Will the percentage donated include all sales, or only those from guests referred by the organization?

Be sure to clarify whether the percentage of sales to be donated will be limited to only those who bring in a specific flyer, use a code, or mention the recipient organization, or all sales during the time period. It is also best to find out whether coupons and other promotions can be used during your event and/or affect the amounts you earn.

4. Does the percentage of sales include both food and drink items?  Does this include alcoholic drinks as well?

Depending on the restaurant, venues may only donate a percentage of food sold, some include both food and non-alcoholic drink sales, while others will donate a percentage of everything sold. Partnering to create a signature drink or dessert for the event can also drive additional sales-based donations.

5.  How will the business help market the event? And what type of promotions can the organization do?

What marketing materials will the restaurant provide to the organization? It’s important to think ahead about how to make promotion easier through social media, flyers, e-mail newsletters, message boards, and online calendars. It is common for a restaurant to provide the charity with a flyer to be used for tracking sales and promotion.  However, many businesses will not allow the charity to distribute the flyer immediately outside the venue during the time of the event, such as in the parking lot, so it's necessary to market the event in advance. If the fundraiser is at a store or boutique, find out if shoppers can arrive early and put items on hold to purchase during the event. Ask also if purchases can be made online, which would invite sales from out-of-towners.

7.  How can the event be personalized?  

One of the best ways to increase event attendance and traffic is to be creative and feature something unique, such as teachers cooking or serving food; an officer, director, or the school band performing; a special discount; or a raffle for a coveted prize or experience, donated by the venue in conjunction with the charity. If there are any limitations based on insurance or capacity, be sure to figure those out ahead of time, too!

6.  How will the organization receive the donation?  

After all sales are tallied, when and how will the organization be receiving the donation? It’s common for a restaurant to prepare a check for pickup within a few weeks from the date of the event, mail it, or even electronically deposit the funds into the organization's account. Some states have deadlines for how quickly funds must be transferred, so it's always a good idea to refer to your state's Attorney General's office for help.

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Great partnerships begin with a clear understanding of what each partner brings and what to expect. We hope these ideas enable you to ask the right questions, clarify details, get creative, drive more sales, and raise more money!