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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). …

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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  • 1. Understanding Key Metrics Of DirectMail, Online, & Multi-Channel FundraisingMarch 2, 1:45-2:45
  • 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. 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. 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. File Audits: Essentials You Need to Know5
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. Lapsed Donors –Old Friends … with Benefits Strategies for Lapsed donors Inception Package Mailings Tailored Messaging & Treatments Premium Packages Anniversary Style Packages Lapsed Modeling
  • 16. Key Metrics used for DM Appeals & Email Appeals
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Fundamentals ofWeb Site Analytics
  • 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. 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. 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. 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. 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. 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. 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. Advanced Website Analyticsand Search Engine Analysis
  • 36. Advanced Website Metrics Heatmapping • High traffic areas • Important placements on site
  • 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. 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. Multi-Channel Analysis
  • 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. 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. 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. 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. 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. 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. 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. Case Study #2:St. Labre WaterEmergency Email
  • 48. Case Study #2: St. Labre Water Emergency Email48
  • 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. Case Study # 3: Multi-Channel Donor Response
  • 51. Case Study # 3: Multi-Channel Donor Response
  • 52. Any Questions? These slides will be on Slideshare athttp://www.slideshare.net/SankyNet