The CFA Society New York Case Analysis and Marketing Plan

—An Implementation of the latest research

To: CFA Society New York

From: Ray Yu

Date: Feb 1, 2023

Executive Summary

According to New York Society of Security Analysts Inc dba CFA Society New York’s Form 990 from 2017 to 2021:

• Revenue: CFANY’s revenue saw an overall decreasing trend over the years, with the highest revenue observed in 2019 at $6,597,308. However, in 2021, the organization’s revenue dropped significantly to $4,837,133, which is the lowest in the five-year period. This could potentially be due to the impacts of the COVID-19 pandemic, as many non-profit organizations experienced a decline in revenues during this time due to various factors such as decreased donations and event cancellations.

• Net Income: Despite fluctuating over the years, net income maintained a generally steady level, except for a significant drop in 2020 ($297,930). This indicates that the organization managed to maintain its profitability even amidst challenging circumstances. However, the significant increase in net income in 2021 ($596,759) compared to 2020, despite lower revenue, suggests a reduction in expenses.

• Total Functional Expenses: The total functional expenses have been relatively stable from 2017 to 2020 but dropped dramatically in 2021 to $2,228,388. This could be a result of cost-cutting measures implemented due to the pandemic or other strategic decisions to streamline operations.

• Contributions: Contributions also saw a declining trend with a major drop in 2021. This could be attributed to the pandemic's effect on donors' ability to contribute, leading to a reduction in donations.

• Program Services: Interestingly, the spending on program services significantly increased in 2021 ($3,539,008) compared to the previous year, despite the drop in total functional expenses. This suggests a shift in the organization's spending priorities towards directly serving its mission.

Exhibits 2017 to 2021 CFANY Financial Report (Parts)

In conclusion, the financial data suggests that CFANY has faced challenges due to the pandemic but has managed to maintain its operations by adapting its spending patterns. The significant decrease in total expenses in 2021, coupled with the substantial increase in spending on program services, points to strategic decisions to streamline operations and focus more on core services. However, the sharp decline in contributions and revenues in 2021 could pose future challenges for the organization's financial sustainability.

By achieving the effort and maintaining the current contributed revenue, and boost current membership registration, CFANY could think about developing a theory of change for customers’ acquisitions and increasing membership revenues. However, due to the non-profit nature, the logic model should closely align with the mission statement. An initial logic model is as follows:

In essence, while the pandemic has posed significant challenges, it also provides an opportunity for non-profit organizations to rethink their strategies and adapt to a rapidly changing world. By focusing on digital transformation, diversifying revenue streams, reevaluating programs, re-engaging with stakeholders, and building financial resilience, CFANY can navigate the post-pandemic landscape more effectively.

Quick Tips

1. Leverage Digital Events: Even as in-person events start up again, consider continuing with online webinars, workshops, and conferences. They can have a broader reach and be more accessible to those who cannot travel.
2. Enhance Digital Presence: Invest in your organization's website, ensuring it's user-friendly, up-to-date, and informative. Highlight key programs, initiatives, and how people can get involved.
3. Social Media Engagement: Use social media platforms to engage with your audience regularly. Share updates, success stories, and behind-the-scenes content to keep your followers connected to your mission.
4. Video Content: As mentioned earlier, video content is crucial for engagement. Share video interviews with industry experts, testimonials from members, or educational content related to your mission.
5. Email Marketing: Keep your members and supporters informed about your activities, events, and relevant industry news through a regular newsletter.
6. Member Engagement: Find new ways to engage your members. This could be through exclusive content, member spotlight features, or networking opportunities.
7. Data-Driven Decisions: Use analytics tools to track which of your marketing efforts are working best and where improvements can be made. Make your decisions based on this data to ensure your marketing strategy is effective.
8. Invest in Physical Marketing Materials: Brochures, posters, banners, and other physical marketing materials can be effective for promoting your events and services in local businesses, universities, and other high-traffic areas.
9. Community Engagement: Engage with your local community through sponsorships, participation in local events, or by hosting community-focused events. This can build goodwill and increase your visibility.
10. Member Testimonials: Share testimonials from satisfied members at your events and on promotional materials. This can help potential members see the value of joining CFANY.

Ray’s Recent Research

In my latest research “The Synergy of Social Media Communication Engagement and Non-Profit Success: A Data-driven Investigation into the Correlations between Social Media Metrics, Website Traffic, and Financial Outcomes in the Non-Profit Sector,” I examined 41 nonprofit organizations in New York City, analyzing the correlations between various social media metrics, website traffic, and financial performance, shedding light on the importance of a robust online presence for non-profit organizations. The results demonstrate significant positive correlations for the majority of the proposed relationships.

I provide a logic model to help deliver a clear visual representation of the research framework, illustrating how social media engagement can lead to increased financial revenue for non-profit organizations and contribute to achieving their mission and vision. It shows the steps and relationships between the output, outcome, and impact of social media strategies in non-profit organizations. The logic model emphasizes the importance of social media engagement and revenue generation for non-profit organizations and provides a framework for understanding the research findings in the literature review. It also serves as a guide for the data collection and analysis process, enabling the assessment of the social media strategy's effectiveness in achieving the desired outcome and impact.

Logic Model of Implementing SMMS for NPO’s Growth

The following is a graph showing the overall correlations with the model-regressing approach:

Correlation Analysis Result of Social Media Engagement, Followers, Website Traffic, and Organizational Performance

The regression analysis shows the positive correlations, and the results are:

1. A positive correlation exists between website traffic and financial revenue for non-profit organizations (H1). This suggests that higher website traffic can potentially lead to increased financial revenue for non-profit organizations.

2. A positive correlation exists between website traffic and total assets for non-profit organizations (H2). This indicates that increased website traffic is associated with larger asset holdings for these organizations.

3. A positive correlation exists between the number of social media followers on Instagram and total assets for non-profit organizations (H4). This indicates that organizations with larger Instagram followings tend to have larger asset holdings.

4. A positive correlation exists between social media average post interaction (measured by likes, comments, and shares) and the number of social media followers on Instagram for non-profit organizations (H5). This suggests that organizations with higher average post engagement rates tend to have larger Instagram followings.

5. A positive correlation exists between social media video post views and total followers (H6). This indicates that higher video post views are associated with a larger number of social media followers for non-profit organizations.

6. A positive correlation exists between social media total post interaction and total followers (H7). This suggests that higher total post engagement is linked to a larger number of social media followers for non-profit organizations.

7. A positive correlation exists between the amount of social media posts and total followers (H8). This indicates that organizations that post more frequently tend to have a larger number of social media followers.

However, Hypothesis H3, which postulated a positive correlation between the number of social media followers on Instagram and financial revenue for non-profit organizations, showed a positive correlation but could not be relied upon due to the low confidence level of the regression result. This suggests that the relationship between the number of social media followers on Instagram and financial revenue remains inconclusive and requires further research.

Additionally, Hypothesis H9, which postulated a positive correlation between the amount of social media interactions and website traffic, showed a positive correlation but could not be relied upon due to the low confidence level of the regression result. This suggests that the relationship between social media interactions and website traffic remains inconclusive and requires further research as well.

The Learnings

1. Focus on creating engaging content: With a strong positive correlation between social media engagement metrics (average post interaction, video post views, total post interaction) and the number of social media followers, non-profit organizations should prioritize creating content that resonates with their target audience. This may include sharing stories, images, videos, and other content that generates likes, comments, shares, and other forms of interaction.
2. Post frequently and consistently: The positive correlation between the number of social media posts and total followers suggests that non-profit organizations should maintain a consistent posting schedule to keep their followers engaged and attract new followers. By posting regularly, organizations can ensure their content remains visible and relevant to their audience.
3. Utilize video content: As the study found a positive correlation between video post views and the number of followers, non-profit organizations should consider incorporating more video content into their social media strategies. This could include creating short videos that showcase their work, share success stories, or provide educational content that aligns with their mission.
4. Invest in social media advertising: While the study did not specifically assess the impact of social media advertising on financial performance, the positive correlations found between social media metrics and financial outcomes suggest that non-profit organizations can benefit from investing in targeted advertising campaigns to increase their reach and attract new followers, donors, and supporters.
5. Monitor website traffic: With a positive correlation found between website traffic and both financial revenue and total assets, non-profit organizations should closely monitor their website traffic and work to improve their online presence. This may involve optimizing their website for search engines, enhancing their website's user experience, and linking their website to their social media profiles to drive more traffic.

The Questions:

How are we increasing membership?

How are we increasing event registrations?

How are we increasing event attendance?

How are we increasing revenue?

Current Data Performance (Instagram):

With 3 thousand followers, only 17.86%, which is about 5 hundred New York followers in the New York area, an engagement rate of 0.14% which is significantly lower than the majority of corporates’ social media profiles, and a follower growth rate of 0.19% and lower monthly (means only ONE follower growth each month,) that indicates a completely dysfunctional of social media posts and campaigns. This is not a good sign since research shows a correlation between social media platforms and a company’s revenue.

And it is completely not the right direction by posting lower-funnel promotions as the main focus, because 5 hundred people won’t function to achieve our objectives. It should be about the engaging the new audience that has the interests or needs of our program.

Close and regular monitoring of social media channels’ data is urgently needed. As a professional in digital marketing, I suggest “membership”, “event registration”, and “event attendance” contributing to “revenue” should have clear separate social media campaigns, though it doesn’t mean we are increasing the expenses but lowering them.

How are we improving workflows or processes?

With workflow optimization, I can guarantee positive continuous outcomes that I have implemented with over 30 New York City businesses. We have a team in-house that capable of doing the following compared to the current non-performing digital media situation. During the last months of work, I have seen that we have produced content that was even utilized on social media:

1. Showcase Member Benefits and Testimonials: Use social media to highlight the benefits of being a member of CFANY. This could include posts featuring member testimonials, success stories, professional development opportunities, and networking events. This approach can help to attract potential new members and retain existing ones.
2. Promote Events: Use eye-catching graphics, videos, or animations to promote your events rather than simply posting schedules. Highlight the benefits of attending these events, such as the opportunity to learn from experts, network with professionals, or gain new skills. You might also consider offering early-bird discounts or exclusive benefits for members to boost event registrations.
3. Live Streaming Event Highlights: Consider using live-streaming parts of your events for sharing highlights on your social media channels. This can help attract attention to your events and increase attendance. It also provides value to your followers who may not be able to attend in person.
4. Collaborations and Partnerships: Collaborate with other organizations or influencers in your field to expand your reach. This could involve hosting joint events, sharing each other's content, or featuring guest posts on each other's social media channels.
5. Interactive Content: Create interactive content such as polls, quizzes, or Q&A sessions to engage with your audience. This could also provide valuable insights into your audience's interests and preferences, helping you to tailor your offerings and marketing strategies.
6. Paid Advertising: Invest in targeted social media advertising to reach a larger or more specific audience. This could help to increase your visibility, attract new members, and boost event registrations.
7. Clear Calls to Action: Ensure that all of your posts have clear calls to action, whether that's encouraging people to register for an event, become a member, or participate in a discussion. Make it as easy as possible for people to take the desired action.
8. Measure and Optimize: Finally, regularly review your social media analytics to measure your progress towards your goals. Use these insights to continually optimize your strategies. You might also consider conducting surveys or asking for feedback from your audience to understand what they value most from your organization.

Marketing Channels

The marketing channels for implementing the strategies targeting customers including prospective CFA charterholders, current CFA charterholders, the CFA program students, and businesses/organizations would be varied. The recommended channels would be used for the program of membership subscription are as followed:

Online Marketing Channels

• Facebook and Instagram

Use data analytics to track performance across channels and leverage this data to understand where improvements can be made. Experiment with different strategies, such as cross-promotion, channel-specific content, and retargeting, to maximize engagement and conversions. Continually test, analyze, and refine your strategies based on your results. Remember, the goal is not just to optimize each channel individually, but to ensure they work together effectively to create a seamless and engaging experience for your audience.

• Email Marketing

Email marketing channel would be the most effective channel for communication purposes, including targeting the current charter holders, engaging the current members, and re-targeting the previous members. The advantage of CFANY for this channel is it can have data support from the CFA Institute, with the information of the holders for accurate targeting. The weakness of this approach is it would highly depend on the CFA Institute, and the leads would only include the CFA charter holders and program students, but it won’t be helpful for community outreach.

• LinkedIn Ads Buying

LinkedIn ads in the US offer the largest group of LinkedIn advertising audiences with a reach of 160 Million.^[1]  Since LinkedIn enables advertisers to target your audience based on seniority, it's critical for marketers to comprehend the characteristics of those professionals that use the site. With the statics of half of all US adults with college degrees using LinkedIn,  36 percent of US adults – or around one out of every three – from 30 to 49 years old use LinkedIn, it would be a perfect match for CFANY. Since CFANY has a relatively strict rule regarding customers' diplomas and work experience, such as for its professional tier, qualified members are “a finance professional with 4+ years of acceptable professional work experience, and at least a bachelor’s degree”^[2], LinkedIn would help CFANY to filter out the unqualified members. It can be the most efficient way to reach the audience which meets the narrow niche of the programs. It would help generate a close loop with other marketing channels.

• Youtube or other Content Platforms

While CFANY produces a large amount of content for the members only, some of the organics traffic by taking advantage of the social media and content platforms’ algorithm can be adapted for both non-profit educational purposes and customers’ education and organization’s content marketing. Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience — and, ultimately, to drive profitable customer action.^[3]

Offline Marketing Channels

• Events for Universities

Community outreach can be critical for the organization’s longevity, not only for the CFANY but also for the CFA Institute. With some of the largest business schools in the metropolitan area, such as NYU Stern, Columbia Business School, Rutgers Business School, CUNY Bernard M. Baruch College, Fordham University Gabelli, and so much more, it can be a great opportunity to acquire prospective students by providing students information sessions, educating the benefits about CFA Charterholder, and joining CFANY. Combination of influencer marketing can be combined with the events such as collaborating with community leaders, for example, the campus ambassador or business school president, to maximize the effect.

• Physical Marketing Materials

When we have more engagement with certain communities, such as a business school, we can produce physical marketing materials that are proven particularly effective for promoting offline events.

• Direct Mails: Direct mail can be a great channel for targeting subscribed customers for events or for the objective of retention. It can be used for its low costs compared to other offline channels but with the difficulty of the consent of the personal information. The cost could be high for gaining personal data from the non-CFA charterholders, such as a promise of a gift in exchange for updates of the address information.
• Brochures: These small booklets provide an overview of your organization, its mission, and its offerings. They can be distributed at events, left at local businesses, or mailed to potential members or donors.
• Posters: Larger than flyers, posters can be displayed in public spaces to catch the attention of passersby. They're particularly effective for promoting upcoming events. These can be public transportation posters, locate in Wall Street or other financial districts and areas to promote certain events or renew membership.
• Business Cards: While not necessarily for mass distribution, business cards are a staple of professional networking. They provide essential contact information and can be easily shared during in-person meetings or events.

Marketing Indicators and Budgeting

How are we reducing expense(s)?

Marketing testing is about ROI. When we talk about reducing expenses, it can be better considered as reducing the low ROI activities. By doing that, close data tracking should be initiated as a daily operation activity.

Questioning the activities such as: Do this month’s posts on Instagram/LinkedIn help grow the revenue/membership? What are the numbers of engagement, website traffic, and lead generation that can be proved are directly related to the registration/consumers’ actions? Why do we keep spending money on the same marketing and creative strategy without any numbers increase?

If anything on digital media doesn’t work well, it won’t mean social media marketing is not helpful. Since I have provided the study results that a strong correlation exists between revenue and social media engagement in New York City’s non-profit. It means the strategy is not working, not the social media isn’t working.

The main objective of CFANY marketing would be customer acquisition, according to the discussion with the marketing team. The segmentation of the overall marketing targeted audiences is the prospective members,  the current members, and the previous members.

The cost of each channel can be varied, due to the limit of the data access. Online digital channels usually would be the cheapest option, but the budget can be changed due to the returns and outcomes. However, the mission statement is the heart and soul of a non-profit organization, and besides the revenue, the customers’ value should be always prioritized for any decision-making, balancing the profit income.  I would suggest after testing, and the efforts in different perspectives of outcomes measurement, adjusting the resources monthly and yearly.

The indicators for prospective members' acquisition can be easily identified for different marketing campaigns. The measurement of the outputs can be the increase in the members’ subscriptions. For brand awareness campaigns, if digital ads are utilized, the indicator would be the CPC(cost per click) and CTR(Click Through Rate). Holding events occasionally that are available for interested members can be considered for the goal of acquiring customers through offline conversions.

The email marketing campaigns would accurately target certain events to boost community engagement. The indicators would be the CTR and Open Rate. This channel can also be used to measure the other outcomes for indicators regarding the satisfaction of the events for better product development.

Content marketing in digital media or even influencer marketing in the finance field would be looked closely into the engagement. The indicators would be average content watch time and engagement rate, and for paid content, it would be CPE (cost per engagement).

The offline channels for community outreach would be a long-term data tracking effect; It is still trackable with a discount code, and though it may have a longer-conversion effect, it would be beneficial for the brand and aligned with the mission statement in providing access for the audience with fiance career interests. The indicator for the channel can be the lead generation for contact information.

Though the largest portion of the revenue for CFANY was from the contribution, the efforts in tracking the program's data of events benefit the finance and investment field, which would be critical for fundraising purposes. More than marketing efforts for helping the finance perspective, a customer-centered perspective regarding the programs should be tracked and analyzed regularly.  These can be indicators of customers’ success and feedback from the programs and can be used in marketing campaigns for customer education about the benefits, fundraising for contributed revenue, and program development.

Final Word

Media and the marketing team should work closely as a content production house, and closely utilize a data-driven approach in external communications. It is all about testing creativity with data indicators as results. A regular check of marketing performance and in-house media utilization is urgently needed.