SPURspectives

Frequent readers of SPURspectives know that I often write about issues related to investment or philanthropy — two seemingly disparate, yet related subjects. Spur Communications contends that investing and philanthropy are related from a marketing standpoint by sharing similar psychological motivators. Inspiring someone to invest in ensuring they have a better future is a short step from inspiring someone to invest in a better future for others. To invest well, according to Gary Burtless at The Brookings Institution, it’s necessary to be well informed, far-sighted and rational. This explains the current dismal state of our economy and nonprofit sector. When it comes to investing (and I believe philanthropy), Burtless tells us the average person is not well informed, far-sighted or rational. We are easily swayed by emotion. We are prone to follow a herd mentality and we too often rely on rules of thumb for making complex, multi-variable decisions that have extraordinary implications.

It’s unlikely that we can change human nature, so we will remain prone to emotional decision-making and herd mentality. Knowing this the investment and philanthropic sectors can work with the public to create positive results for everyone. Social media and personalized interactive communications can help. So, in a nutshell, here’s how to herd your cats:

Provide a safe environment, add value, build community, offer help and gently nudge

As long as people feel safe they will reveal quite a bit about themselves. Social media promotes this kind of behavior. It is an ideal source of information about your constituents that can be used to help them make informed decisions. Platforms such as Facebook, Care2 and Mint collect personal information and provide value so that participants are willing to share. They show you the norm. Mint in particular does a great job of comparing a participant’s spending habits with others like them. Knowing how your habits relate to the norm makes it much easier to decide how to act. We all try to fit in.

But, we also want to stand out as an individual. So using personal communications channels available through social media enables one-to-one communication and allows us to acknowledge people individually. Collecting information about your constituents and using it to communicate in a relevant manner with individualized communications demonstrates that you listen, understand and care.

Mining customer data to help like-minded individuals find one another and form communities around their interests is one of the most powerful results of participating in social networks. It is easier to communicate with a cohesive community since there are fewer distractions and less noise. They can more readily become well informed. Communities share common goals and aspirations. They can become more far-sighted. Cohesive communities are also cooperative and efficient at making rational decisions.

As the facilitator of social interaction, you can help build the community by making sure they have the tools and information that they need when they need it to be effective. You get to guide and gently nudge community participants to take the path that is in their best interest. A concerted, coordinated effort can result in a well informed, far-sighted, rational approach toward planned investment and planned giving that results in positive outcomes for everyone involved. The current state of investing and philanthropy is a social problem with a social solution.

Tags: investment, marketing, philanthropy, social media