Australian Red Cross Leverages Personalized Messaging to Boost Funding in Digital Transformation
The Australian Red Cross is planning to enhance its fundraising efforts by leveraging personalized messaging as it nears the completion of its foundational digital transformation. Over the past year, the charity has been working on a comprehensive digital transformation project that includes the development of various systems, such as finance, customer relationship management (CRM), marketing automation, human resources information system (HRIS), risk management, and data platforms.
The final step in this transformation is to integrate all the organization’s staff, volunteers, and members into a single platform, replacing the current fragmented system that relies on tools like Excel. This unified view will not only improve internal visibility but also enhance engagement with the entire Red Cross community, which consists of 400 staff, 25,000 volunteers, and around 8,000 members.
To accomplish this, the Red Cross has selected Microsoft’s Dynamics 365 for finance and operations, CRM, and marketing automation systems. Additionally, they have opted for Microsoft Purview as the underlying data platform. These solutions have allowed for the integration of various systems and the utilization of Microsoft’s Dataverse, enabling seamless data sharing across different applications.
The charity has partnered with KPMG and other partners to deliver this digital transformation, which they view as the foundation for future advancements. With these robust technical foundations in place, the Red Cross plans to explore further possibilities, such as leveraging the Power Platform and utilizing Boomi for a master data hub.
Looking ahead, the Red Cross is eager to incorporate generative artificial intelligence (AI) into its operations. One area of focus for 2024 is the use of AI in marketing automation to personalize the donor experience. By segmenting donors based on their giving patterns and preferences, the Red Cross aims to send customized electronic direct mail (EDM) messages that suggest higher donation amounts tailored to each donor’s giving history.
The organization aims to strike a balance between increasing donor contributions and not making requests that are too high, which could potentially lead to donor disengagement. Leveraging the power of AI, the Red Cross plans to analyze data from previous transactions and internal sources to identify opportunities to uplift low-value donors to the median range.
These efforts come at a time when the Red Cross has experienced a decline in donations over the past five years. Instead of sending generic electronic direct mailings (EDMs), the charity recognizes the need for more targeted and tailored messaging to potential donors.
By implementing generative AI and advanced analytics capabilities, the Red Cross aims to optimize its resources and make better use of its existing technical personnel.
The organization is currently in discussions with Microsoft to identify the best use cases for AI implementation.
CIO Brett Wilson sees a broader technology transformation on the horizon for the not-for-profit sector, suggesting that many charities will need to undergo digital transformations in the next three to five years to stay relevant and overcome rising costs. While acknowledging that not all charities will undergo this transformation, Wilson believes that those who do embrace digital advancements will drive innovation within the industry.
The Australian Red Cross’s digital transformation journey has laid a strong foundation for future growth and the adoption of emerging technologies. By leveraging personalized messaging and AI capabilities, the charity aims to increase donor engagement and ultimately boost funding for their humanitarian aid and community services programs.
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In summary, the Australian Red Cross is implementing personalized messaging as part of its digital transformation efforts to enhance fundraising. By combining various systems and leveraging Microsoft’s solutions, the organization is transitioning towards a unified platform that will improve visibility and engagement. Generative AI will be used to personalize the donor experience, thereby increasing contributions. In the context of a declining donation trend, the Red Cross is embracing technology to tailor messages to potential donors and make the most effective use of its resources. By undergoing digital transformations, charities can adapt to changing times and drive innovation in the sector.
