Understanding Key Metrics Of DirectMail, Online, & Multi-Channel FundraisingMarch 2, 1:45-2:45
Welcome to Our Session!Introductions:• Bryan Terpstra, VP of Fundraising, LW Robbins• Paul Habig, Exec. VP, SankyNet (@pau...
This is a fundamentals session –- Understanding the most important metrics & buzz wordspeople use in offline, online, and ...
Here’s what we’ll cover today:    • File Audits: Essentials you need to      know!    • Key Metrics/Benchmarks used for:  ...
File Audits:    Essentials You Need to Know5
File Audits    • Measuring and tracking donors, not      campaign results    • Typically look at trends across years and  ...
New Donors –What you want to know                     “Is myprogram growing?”• Things to measure:      # of new donors ov...
New Donors –What you want to know                                                           “How Many DoYou Have?”• Number...
New Donors –What you want to know    “When will my new donors break even?”     Cost per new donor      Total cost of acqu...
First Year Renewal Donors –     Just a Date? Or are you in a Relationship?       • What you want to know          “Are my ...
First Year Renewal Donors –     Just a Date? Or are you in a Relationship?              Strategies for FYR donors         ...
Multi-Year Renewal Donors –     Some Very Good Friends …     • What you want to know                       “How       heal...
Multi-Year Renewal Donors –     Some Very Good Friends …        Strategies for MYR donors          Monthly Giving Opportun...
Lapsed Donors –Old Friends … with Benefits     • What you want to know                    “How many       are reactivating...
Lapsed Donors –Old Friends … with Benefits Strategies for Lapsed donors      Inception Package Mailings   Tailored Messagi...
Key Metrics used for   DM Appeals &  Email Appeals
Basic Metrics – DM Appeals     • Average Gift       Campaign Gross Revenue/ Total # of Gifts     • Cost Per Dollar Raised ...
Online Metrics • Everything digital can be measured • Too much information – you must give it context • How can this help ...
Email Metrics“How do I get metrics, and what should I measure?”• Keep data on EVERY email in one place• Aggregate by type ...
Email Metrics Open rate (# Clicks/ # Opens) “How many people opened your email?” What a good open rate means: - Subject li...
Email Metrics Click-Through Rate (# Clicks/ # Opens) “How many people clicked on the links?” What a good CTR means: - Mess...
Email Metrics Response Rate (# Donations/ # Sent) “How many people donated from the email?” What a good response rate mean...
Email Metrics Unsubscribe Rate (# Unsubscribes / # Sent) “How many people don’t want my emails?” What a high unsubscribe r...
Email Metrics  Example Tracking Table                            Online Donors   DM Donors   Prospects   Total Delivery # ...
Email Metrics “How can this data help me strategize?” Find costs vs income: • Revenue per 1,000 emails (1,000 / Sum of Don...
Email Metrics “How can this data help me strategize?” Track these metrics over time             Click-Though-Rate of Diffe...
Fundamentals ofWeb Site Analytics
Website Metrics“How do I get metrics, and what should I measure?”• Install and use Google Analytics. Do it now!• Use origi...
Website Metrics Pageviews (How many times the site loaded) Unique Visitors (How many individual visitors) “How many people...
Website Metrics Referring Sites (Number of people from a source) “How did people find my site?” What referring links mean:...
Website Metrics Time-on-Site (Average time spent on site) “How long did people stay?” What time-on-site means: - Longer ti...
Website Metrics Pages-per-Visit (# Pageviews / # Visitors) “How deep do visitors go?” What pages-per-visit means: - More p...
Website Metrics Bounce Rate (People who visit page / People who leave after 1 second) “Do I have quality traffic?” What bo...
Website Metrics Combinations of Metrics “How can I see where people viewing a page came from and if they are new visitors?...
Advanced Website Analyticsand Search Engine Analysis
Advanced Website Metrics Heatmapping                           • High traffic areas                           • Important ...
Advanced Website Metrics Search Engine Optimization “Where does my site come up on Google?” Google/Bing/Yahoo Pagerank: Ba...
Advanced Web Metrics Search Engine Marketing “How is my Google Grant doing?” Cost-per-Click (CPC): How much it costs to di...
Multi-Channel Analysis
Multi-Channel Donors     Your BFF!!     • Some key things about donors/constituents:        Move across many programs and...
Multi-Channel Donors     Your BFF!!       • Talk to them where you find them       • Multi-channel donors are HIGH VALUE  ...
Multi-Channel Donors                    Your BFF!!            Strategies for          Multi-Channel donorsIntegrated Media...
Case Study #1:     St. Labre New Donor Series       Online       2 emails in welcome series       Telemarketing       1 au...
Case Study #1:     St. Labre New Donor Series     • Results:       – First-Year renewal rates jumped from         27% to a...
Case Study #2:St. Labre Water Emergency  Online  1 email – integrated message with DM  Direct Mail  1 appeal – includes bl...
Case Study #2:     St. Labre Water Emergency       Online       1 email – integrated message with DM       Direct Mail    ...
Case Study #2:St. Labre WaterEmergency Email
Case Study #2: St. Labre Water Emergency Email48
Case Study #2: St. Labre Water Emergency • Results:   Email – raised over $20,000 in gross     revenue   Direct Mail – ove...
Case Study # 3: Multi-Channel Donor Response
Case Study # 3: Multi-Channel Donor Response
Any Questions? These slides will be on Slideshare athttp://www.slideshare.net/SankyNet
Understanding Key Metrics Of Direct Mail, Online, & Multi-Channel Fundraising
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Understanding Key Metrics Of Direct Mail, Online, & Multi-Channel Fundraising

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Presentation of metrics and how to use them for fundraising, by Bryan Terpstra and Paul Habig (@paulhabig).

Covering direct mail metrics, email analysis, website analytics and how multi-channel fundraising increases results.

Presented at DMA Fresh Tracks in Washington, DC, March 2, 2012

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Understanding Key Metrics Of Direct Mail, Online, & Multi-Channel Fundraising

  1. 1. Understanding Key Metrics Of DirectMail, Online, & Multi-Channel FundraisingMarch 2, 1:45-2:45
  2. 2. Welcome to Our Session!Introductions:• Bryan Terpstra, VP of Fundraising, LW Robbins• Paul Habig, Exec. VP, SankyNet (@paulhabig)Tweet along with hashtag #DMA
  3. 3. This is a fundamentals session –- Understanding the most important metrics & buzz wordspeople use in offline, online, and multi-channel worlds- Will cover the basics – and get you started withadvanced- This session is useful for those: - New to the industry - Just starting out in online/multi-channel fundraising
  4. 4. Here’s what we’ll cover today: • File Audits: Essentials you need to know! • Key Metrics/Benchmarks used for:  DM Appeals  Online Appeals  Website Analytics  SEO/SEM Analysis  Multi-Channel Analysis4
  5. 5. File Audits: Essentials You Need to Know5
  6. 6. File Audits • Measuring and tracking donors, not campaign results • Typically look at trends across years and across multiple channels: direct mail, online, telemarketing, special events, etc. • Four major audiences:  New Donors, First Year Renewal Donors, Multi-Year Donors, Lapsed Donors6
  7. 7. New Donors –What you want to know “Is myprogram growing?”• Things to measure:  # of new donors over 3-5 years  Value : - Average Gift Gross Rev./ Total # of Gifts - Rev. Per Donor Gross Rev./ Total # of Donors - Gifts Per Donor Total # Gifts/ Total # of Donors
  8. 8. New Donors –What you want to know “How Many DoYou Have?”• Number of new donors in 2010 had a big impact on 2011 and will continue to have a big impact for years … 2010 to 2011 2007 2008 2009 2010 2011 Percent Change New Donor Acquisition Current Year Donors 10,968 7,279 4,869 5,528 4,789 -13.37% Current Year Gifts 15,074 10,490 7,262 7,358 6,426 -12.67% Current Year Revenue $493,217 $505,453 $317,652 $402,106 $452,097 12.43% Current Year Average Gift $32.72 $48.18 $43.74 $54.65 $70.35 28.74% Current Year Revenue per Donors $44.97 $69.44 $65.24 $72.74 $94.40 29.78% Current Year Gifts per Donor 1.37 1.44 1.49 1.33 1.34 0.81% First Year Donor Renewal Previous Year Donors 4,609 10,968 7,279 4,869 5,528 13.53% Previous Year Revenue $260,665 $493,217 $505,453 $317,652 $402,106 26.59% Current Year Donors 1,512 3,449 1,751 1,548 1,342 -13.31% Current Year Gifts 3,273 7,374 3,951 3,299 2,908 -11.85% Current Year Revenue $131,438 $283,970 $242,690 $140,649 $143,484 2.02% Donor Retention Rate 32.81% 31.45% 24.06% 31.79% 24.28% -23.64% Current Year Average Gift $40.16 $38.51 $61.43 $42.63 $49.34 15.73% Current Year Revenue per Donor $86.93 $82.33 $138.60 $90.86 $106.92 17.68% Current Year Gifts per Donor 2.16 2.14 2.26 2.13 2.17 1.68%8
  9. 9. New Donors –What you want to know “When will my new donors break even?”  Cost per new donor Total cost of acquisition/ # of new donors  LTV analysis Tracking costs and rev. by list over a period of time Acq Cost Per Cost at 12 Value at 12 12 Month Value Mailing List Donor Months Months minus Cost List A $14.00 $35.00 $33.00 -$2.00 List B $14.00 $37.00 $55.00 $18.00 List C $18.00 $40.00 $67.00 $27.009
  10. 10. First Year Renewal Donors – Just a Date? Or are you in a Relationship? • What you want to know “Are my new donors giving again after their first year in the program?” • Things to measure:  First Year Retention/Renewal Rate: - Total # of new donors previous year giving a gift this year/ Total # of all new donors previous year  Value: Average Gift, Rev. Per Donor, Gifts Per Donor10
  11. 11. First Year Renewal Donors – Just a Date? Or are you in a Relationship? Strategies for FYR donors Welcome & Acknowledgments Second gift series Pre-lapsing program at 9 -12 months11
  12. 12. Multi-Year Renewal Donors – Some Very Good Friends … • What you want to know “How healthy are the stats for my core, loyal donors?” • Things to measure:  Multi-Year Retention/Renewal Rate: - Total # of MYR donors previous year giving a gift this year/ Total # of all MYR donors previous year  Value : Avg Gift, Rev Per Donor, Gifts Per Donor12
  13. 13. Multi-Year Renewal Donors – Some Very Good Friends … Strategies for MYR donors Monthly Giving Opportunities Mid-Level Programs & Packages Loyalty & Retention Mailings/Messages Major & Planned Giving Leads13
  14. 14. Lapsed Donors –Old Friends … with Benefits • What you want to know “How many are reactivating?” • Reactivated donors more valuable than new donors, have much higher renewal rates • Things to measure:  Reactivation Rate (1 year vs. 2 year vs. 3+ year lapsed) - Total # of lapsed donors previous year giving a gift this year/ Total # of all lapsed donors previous year  Value: Average Gift, Rev Per Donor, Gifts Per Donor14
  15. 15. Lapsed Donors –Old Friends … with Benefits Strategies for Lapsed donors Inception Package Mailings Tailored Messaging & Treatments Premium Packages Anniversary Style Packages Lapsed Modeling
  16. 16. Key Metrics used for DM Appeals & Email Appeals
  17. 17. Basic Metrics – DM Appeals • Average Gift Campaign Gross Revenue/ Total # of Gifts • Cost Per Dollar Raised Total Campaign Cost/ Gross Revenue • Cost Per Piece Total Campaign Costs/ Total # of Pieces Mailed • Response Rate Total # of Gifts/ Total # of Pieces Mailed • Net Revenue Total Campaign Gross Rev. minus Total Campaign Cost • ROI Total Gross Rev/ Total Campaign Cost17
  18. 18. Online Metrics • Everything digital can be measured • Too much information – you must give it context • How can this help create a strategy? Email Website
  19. 19. Email Metrics“How do I get metrics, and what should I measure?”• Keep data on EVERY email in one place• Aggregate by type of email (newsletter, appeal, etc.)• Segment out groups (donors, prospects, etc.) to track response separately and compareWhat to Measure:• Open Rate – Does anyone care?• Click-Through Rate – Does anyone read it?• Conversions – Does anyone donate?• Unsubscribe – Does anyone want it to stop?
  20. 20. Email Metrics Open rate (# Clicks/ # Opens) “How many people opened your email?” What a good open rate means: - Subject line was effective - Sender was recognizable - Sent at a ideal time of day (morning on weekdays) Industry Average is 18%
  21. 21. Email Metrics Click-Through Rate (# Clicks/ # Opens) “How many people clicked on the links?” What a good CTR means: - Messaging drove action - Links were well placed - Compelling images were linked Industry Average is 1.69%
  22. 22. Email Metrics Response Rate (# Donations/ # Sent) “How many people donated from the email?” What a good response rate means: - Messaging drove donations - Donors were ready to give (cultivated) - You made some money! Industry Average is 0.23%
  23. 23. Email Metrics Unsubscribe Rate (# Unsubscribes / # Sent) “How many people don’t want my emails?” What a high unsubscribe rate means: - Too many emails going to same group - Subject line and messaging were mismatched - The person is a donor, and the message asked for a gift without acknowledging previous giving Industry Average is 0.04%
  24. 24. Email Metrics Example Tracking Table Online Donors DM Donors Prospects Total Delivery # Emails Sent 2,062 1,585 12,464 16,613 # Delivered Successfully 2,056 1,580 12,410 16,547 Delivery Rate 99.71% 99.68% 99.57% 99.60% Email Activity # Emails Opened 321 112 701 1,242 Open Rate 15.61% 7.09% 5.65% 7.51% # Emails Clicked 32 8 22 67 # Total Clicks 53 10 35 103 Click-To-Open 9.97% 7.14% 3.14% 5.39% Click-Through Rate 1.56% 0.51% 0.18% 0.40% Non-Fundraising # Unsubscribe 13 10 23 48 Unsubscribe Rate 0.63% 0.63% 0.19% 0.29% Fundraising # Donations 16 3 1 30 $ Donated $640 $250 $50 $3,455 Average Donation $40.00 $83.33 $50.00 $115.17 Overall Response Rate 0.78% 0.19% 0.01% 0.18%
  25. 25. Email Metrics “How can this data help me strategize?” Find costs vs income: • Revenue per 1,000 emails (1,000 / Sum of Donations) • Cost per 1,000 emails (1,000 x Cost) • ROI (Spent / Donations)
  26. 26. Email Metrics “How can this data help me strategize?” Track these metrics over time Click-Though-Rate of Different Email Types 2.50% 2.00% Appeal Click- Through-Rates 1.50% 1.00% Recipe Mailing Click-Though- Rates 0.50% 0.00% July August September October November December
  27. 27. Fundamentals ofWeb Site Analytics
  28. 28. Website Metrics“How do I get metrics, and what should I measure?”• Install and use Google Analytics. Do it now!• Use origin code tracking or custom segments from referring sites to measure traffic from specific sources (like emails)What to Measure:• Pageviews & Unique Views – Is my site being seen?• Referring Sites – How do they get there?• Time-on-Site – How long do they stay?• Top Content – What part of my site is most interesting?• Bounce Rate – How many people click then leave?
  29. 29. Website Metrics Pageviews (How many times the site loaded) Unique Visitors (How many individual visitors) “How many people are coming to my site?” What pageviews vs. unique visitors means: - Are there lots of people visiting your site multiple times? - Are there traffic spikes? Industry Average is anywhere from 6,000 to 20,000
  30. 30. Website Metrics Referring Sites (Number of people from a source) “How did people find my site?” What referring links mean: - Is there a pattern in traffic sources that can be used to find new online partners? - Are there spikes in referrals (from press, etc.)? - Set a goal to have more traffic from a source (a partner, a social network, etc.) Direct traffic (to your url) is usually first, then Google
  31. 31. Website Metrics Time-on-Site (Average time spent on site) “How long did people stay?” What time-on-site means: - Longer time means deeper engagement? - Only a few seconds means irrelevant or unappealing content. Look at what pages are keeping people reading!
  32. 32. Website Metrics Pages-per-Visit (# Pageviews / # Visitors) “How deep do visitors go?” What pages-per-visit means: - More pages means deeper engagement - One page isn’t bad – but it’s not ideal Average is 2.03 pages per visit
  33. 33. Website Metrics Bounce Rate (People who visit page / People who leave after 1 second) “Do I have quality traffic?” What bounce rate means: - High bounce rate means your traffic sources are not delivering good leads - Paid traffic from ads may have higher bounce rate - New visitors are more likely to bounce 60% is average, anything over 90% is a problem!
  34. 34. Website Metrics Combinations of Metrics “How can I see where people viewing a page came from and if they are new visitors?” - Referring sites on top content, and unique views “How can I see if traffic from Facebook stays on my site?” - Bounce rate Time on Site of visits from referring site of Facebook “How can I see how many people complete my donation form?” - Unique visits on donation form divided by donations in a certain time period.
  35. 35. Advanced Website Analyticsand Search Engine Analysis
  36. 36. Advanced Website Metrics Heatmapping • High traffic areas • Important placements on site
  37. 37. Advanced Website Metrics Search Engine Optimization “Where does my site come up on Google?” Google/Bing/Yahoo Pagerank: Backlines, keywords, and magic = Where your site is listed for each search term. Alexa Rank: Rank of popularity across all internet sites. Lower is more popular in terms of visitors.
  38. 38. Advanced Web Metrics Search Engine Marketing “How is my Google Grant doing?” Cost-per-Click (CPC): How much it costs to display your ad for that search term Google Grants are capped at $1.00 CPC Impressions: How many people see your text ad Average Ad Position: Where on the search page the ad appears. Higher is more visible, but only the highest bid gets that spot. Remember Google Grant only lets you bid up to $1!
  39. 39. Multi-Channel Analysis
  40. 40. Multi-Channel Donors Your BFF!! • Some key things about donors/constituents:  Move across many programs and channels  Have different habits, ways of communicating, levels of commitment  Receive information (intentional and unintentional) about mission and brand at all touch points  Will be significantly impacted by how your organization communicates with them along the way40
  41. 41. Multi-Channel Donors Your BFF!! • Talk to them where you find them • Multi-channel donors are HIGH VALUE donors, much higher retention rates than single channel donors All Donors Giving DM Giving Web Gifts Giving to 2 or Year XX (Any Gifts to DM, Web, Tele, Gifts Only Only More Channels WM) Annual Revenue/Donor $102.00 $54.00 $181.00 $190.00 First Year Renewal Rate 22.35% 29.26% 5.63% 76.88% First Year Revenue/Donor $85.00 $58.00 $188.00 $134.00 Multi-Year Renewal Rate 58.83% 53.30% 36.95% 64.55% Multi-Year Revenue/Donor $154.00 $89.00 $377.00 $185.00 Recapture Rate – 1 Year Lapsed 17.59% 15.31% 5.55% 25.10% 1 Year Lapsed Revenue/Donor $89.00 $57.00 $210.00 $124.0041
  42. 42. Multi-Channel Donors Your BFF!! Strategies for Multi-Channel donorsIntegrated Media Plan: communicate in many channels Have a multi-touch plan for major appeals Conversion series for online to offline Update website often42
  43. 43. Case Study #1: St. Labre New Donor Series Online 2 emails in welcome series Telemarketing 1 automated call to welcome donors Direct Mail 3 appeals for conversion series – #1 photo of kids, #2 certificate, #3 tote bag43
  44. 44. Case Study #1: St. Labre New Donor Series • Results: – First-Year renewal rates jumped from 27% to about 35% – Overall response rates to direct mail series very high, effort 1 at 8%, effort 2 at 7%, effort 3 at 12%44
  45. 45. Case Study #2:St. Labre Water Emergency Online 1 email – integrated message with DM Direct Mail 1 appeal – includes blueprints for new water system needed Telemarketing Coordinated campaign to donors, lasted several weeks
  46. 46. Case Study #2: St. Labre Water Emergency Online 1 email – integrated message with DM Direct Mail 1 appeal – includes blueprints for new water system needed Telemarketing Coordinated campaign to donors, lasted several weeks46
  47. 47. Case Study #2:St. Labre WaterEmergency Email
  48. 48. Case Study #2: St. Labre Water Emergency Email48
  49. 49. Case Study #2: St. Labre Water Emergency • Results: Email – raised over $20,000 in gross revenue Direct Mail – over $1 million in gross revenue mailed universe of about 400,000You can do this type of multi-channelcampaign forMANY reasons: matchinggift, budget short falls, year-endappeals, specific need appeals, mid-leveloffers
  50. 50. Case Study # 3: Multi-Channel Donor Response
  51. 51. Case Study # 3: Multi-Channel Donor Response
  52. 52. Any Questions? These slides will be on Slideshare athttp://www.slideshare.net/SankyNet
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