2009 Metrics Presentation by Steve McLaughlin, Blackbaud

Online Metrics Demystified Steve MacLaughlin, Director – Internet Solutions October 13, 2009 Read our blog: www.netwitsthinktank.com

The Market is Noisy Online Metrics Demystified Topics  What is a Metric and Why Should You Care  Website Metrics  Email Metrics  Online Fundraising Metrics  Social Media Metrics  Online Nonprofit Benchmarking  Where We Go from Here Page #3 © 2009 Blackbaud

The Market is Noisy What is a Good Metric?  Simple You understand it. Your boss understands it  Measurable You can get accurate and complete data for it  Actionable You can do something with it and measure the impact.  Relevant You are measuring something that’s actually important.  Timely You can get the data when you need it. Page #8 © 2009 Blackbaud

Hits  A request for a file from the web server.  A single web page typically consists of multiple files.  A hit is registered for the page, every image, and any other files present on that page. Page #11 © 2009 Blackbaud

Unique Visitors  A visit by a unique individual.  A unique visitor is typically based on an IP address or cookie.  A unique visitor metric helps compare new visitors to repeat visitors. Page #14 © 2009 Blackbaud

Unique Identified Visitors  A visit by a unique identified individual.  A unique identified visitor is tracked based on information stored in a central database.  A unique identified visitor metric is the ultimate metric for tracking website visitor behavior. Page #15 © 2009 Blackbaud

Deliverability  Deliverability measures the % emails successfully delivered or not  This is an inexact number as not all ISPs report delivered email Your Sender’s Reputation Impacts Deliverability  Blackbaud: Sender Score= 70 Accepted Rate= 99.03% Risk= Low Source: ReturnPath Page #21 © 2009 Blackbaud

Open Rate  Open Rate measures the % of opened emails that were delivered  Open Rate can only be tracked on HTML-based emails, not Text emails  Many systems block images used to track whether an email has been opened  Preview Panes can also provide false-positive open rates  The average open rate for known recipients is 19%. Your results may vary BUT…  Just getting the message opened doesn’t mean you’re safe  A recent Email Sender and Provider Coalition (ESPC) study showed that… 80% of respondents decide whether to click on the "Report Spam" or "Junk" button without opening the actual message 73% based that decision on the "From" name 69% percent based the decision on the subject line Source: MarketingSherpa Page #22 © 2009 Blackbaud

Click-Through Rate  CTR measures the % of links clicked by unique individuals in an email  Be sure to look at both unique and per-individual CTRs in your metrics  CTRs are highly dependant on the quality of the email segmentation, content, and design Unsubscribe Rate  Unsubscribe Rate measures % of opt-outs from the email  Remember…to be CAN-SPAM compliant you must allow for opt-outs  Allow people to remove themselves from certain email lists as well as all communication Page #23 © 2009 Blackbaud

Conversion Rate  Conversion Rate measures % of clickthroughs that resulted in an action  Actions could be making a donation, registering for an event, taking a survey, renewing a membership, or some other trackable action  Conversion Rate is the ultimate measure of the success of an email campaign Deliverability Rate Open Rate Click-Through Rate Conversion Rate Unsubscribe Rate Page #24 © 2009 Blackbaud

The Metrics that Matter (# Sent – Bounced)  Deliverability = # Sent # Unique Opens  Open Rate = (Sent – Bounced) # Unique Clicks  Click-Through Rate (Sent – Bounced) # Unsubscribes  Unsubscribe Rate = (Sent – Bounced) # Actions Completed # Actions Completed  Conversion Rate = (Sent – Bounced) or Unique Responders (Clicks) Source: Email Marketing by the NUM8ERS Page #25 © 2009 Blackbaud

How Long Does it Take to Measure Results?  50% of people will open an email in the first 9 hours  75% of people will open an email in the first 28 hours  The remaining 25% may take several days  The average email campaign has its peak open rate in 14 days What is the Best Day of the Week to Send Email?  There is no magic formula…so test, test, and oh yes, TEST!  But…the most popular days are Tuesday through Thursday  Saturday is the lowest volume email day of the week Source: MarketingSherpa Page #26 © 2009 Blackbaud

US Fundraising Trends $300,000,000,000 $250,000,000,000 $200,000,000,000 $150,000,000,000 $100,000,000,000 $50,000,000,000 $0 2001 2002 2003 2004 2005 2006 2007 2008 $246B $245B $243B $245B $283B $295B $314B $307B Source: Giving USA Page #30 © 2009 Blackbaud

US Online Fundraising Trends 16,000,000,000 14,000,000,000 12,000,000,000 10,000,000,000 8,000,000,000 6,000,000,000 4,000,000,000 2,000,000,000 0 2001 2002 2003 2004 2005 2006 2007 2008 $550M $1.1B $1.9B $2.62B $4.5B $6.87B $10.7B $15.42B 120% 100% 73% 38% 72% 53% 56% 44% Growth Growth Growth Growth Growth Growth Growth Growth Source: ePhilanthropy Foundation, Blackbaud Page #31 © 2009 Blackbaud

More Fundraising Metrics  # Retained Donors Retained Donor Revenue Revenue Per Retained Donor All Donor Retention Rate Multi-Year Donor Retention  # New Donors New Donor Revenue Revenue Per New Donor Retained New Donors New Donor Retention  # Reactivated Donors Reactivated Donor Revenue Revenue Per Reactivated Donor Donor Reactivation Rate Reactivated Donor Retention Page #34 © 2009 Blackbaud

How much should you be raising online? Online Fundraising as Percentage of Total Contributions Total Contributions $1,000,000 $10,000,000 $15,000,000 $25,000,000 $50,000,000 $75,000,000 $100,000,000 1% Raised Online $10,000 $100,000 $150,000 $250,000 $500,000 $750,000 $1,000,000 3% Raised Online $30,000 $300,000 $450,000 $750,000 $1,500,000 $2,250,000 $3,000,000 5% Raised Online $50,000 $500,000 $750,000 $1,250,000 $2,500,000 $3,750,000 $5,000,000 7% Raised Online $70,000 $700,000 $1,050,000 $1,750,000 $3,500,000 $5,250,000 $7,000,000 10% Raised Online $100,000 $1,000,000 $1,500,000 $2,500,000 $5,000,000 $7,500,000 $10,000,000 12% Raised Online $120,000 $1,200,000 $1,800,000 $3,000,000 $6,000,000 $9,000,000 $12,000,000 15% Raised Online $150,000 $1,500,000 $2,250,000 $3,750,000 $7,500,000 $11,250,000 $15,000,000 20% Raised Online $200,000 $2,000,000 $3,000,000 $5,000,000 $10,000,000 $15,000,000 $20,000,000  In 2008, approximately 5% of all fundraising was done online.  In 2008, approximately 11% of revenue came from the Internet for Nonprofits in the 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis Page #35 © 2009 Blackbaud

Event Fundraising Metrics  Number of Events  Number of Team Captains • Online • Offline  Number of Emails Sent by Team Captains  Number of Participants • Online • Offline  $ Raised per Event • Online • Offline  $ Raised per Team Captain  $ Raised per Event participant  $ Raised per Email Sent Page #37 © 2009 Blackbaud

More Event Fundraising Metrics  % of participants registered online  % of participants sending email  % of participants changing personal page  % of participants with >0 gifts, >5 gifts  % of participants that meet goal Page #39 © 2009 Blackbaud

What We’ve Learned  A small number of participants raise most of the money.  Average participant sends 27 emails  Participant sent emails have a 90% greater open rate  32%of emails result in a transaction  Online participants raise six times that of offline participants Page #40 © 2009 Blackbaud

2009 Online Giving Trends  Online Fundraising Remains Strong Our analysis found that online transactions grew 68% for Q1 2009 compared with Q1 2008. Online revenue was up 57% over the same time period last year.  Year Over Year Performance Grows Our analysis looked at a sub-group of 1,274 nonprofits to compare their online fundraising results for the first six months of 2008 to the same period of 2009. These nonprofits had a 22.13% year- over-year growth in online revenue.  Online Major Giving Trends An analysis of data for January 1st through June 30th of 2009 found that 1,245 nonprofits had at least one online gift of $1,000 or more. 38 nonprofits in the analysis had at least one online gift of $20,000 of more so far in 2009. Page #49 © 2009 Blackbaud

Email List Churn 2006 List Churn 2007 List Churn 16% 6% 13% 5% 79% 81% Retained Retained Unsubscribed Unsubscribed Other Churn Other Churn Source: 2008 / 2009 eNonprofit Benchmarks Study Page #50 © 2009 Blackbaud

Email List Churn 2007 List Churn 2008 List Churn 6% 13% 6% 13% 81% 81% Retained Retained Unsubscribed Unsubscribed Other Churn Other Churn Source: 2008 / 2009 eNonprofit Benchmarks Study Page #51 © 2009 Blackbaud

Online Fundraising Benchmarks Open Rate Click-Through Rate Page Completion Rate Response Rate 2008 14.0% 0.6% 19% 0.12% 2007 14.8% 1.1% 16.5% 0.13% 2006 17.3% 1.2% 17.2% 0.17% eNewsletters Benchmarks Open Rate Click-Through Rate 2008 15.0% 2.1% 2007 17.6% 3.6% 2006 21.8% 4.3% Online Advocacy Benchmarks Open Rate Click-Through Rate Page Completion Rate Response Rate 2007 16.0% 5.5% 88.0% 4.5% 2006 18.9% 10.2% 85.3% 8.6% 2006 23.8% 8.6% 88.5% 7.5% Page #53 Source: 2008/ 2009 eNonprofit Benchmarks Study © 2009 Blackbaud

The Experience Gap The Market is Noisy Seven Conversion Rate Best Practices # 7: Start with overall site conversion rate # 6: Trend over time and don’t forget seasonality # 5: Understand exactly what the acquisition strategy of your organization is # 4: Conversion rate by top five referring URLs # 3: Don’t measure conversion rate by page or link # 2: Segment like crazy # 1: Always show revenue next to conversion rate # 0: Never measure conversion rate without a goal Source: Excellent Analytics Tip#5: Conversion Rate Basics & Best Practices, Avinash Kaushik Page #54 © 2009 Blackbaud

Where We Go from Here  Metrics help you understand what’s working and or not.  Metrics give you insights into your constituents.  If you can’t measure it, then you can’t manage it.  Start measuring! Page #56 © 2009 Blackbaud

The Market is Noisy Want to learn more? Be sure to check out….  NetWits Blog www.netwitsthinktank.com  My Blog www.blackbaud.com/connections  The Baudcast www.blackbaud.com/thebaudcast  Blackbaud Internet Resources www.blackbaud.com/internetresources Page #57 © 2009 Blackbaud

Questions? Answers? steve.maclaughlin@blackbaud.com www.blackbaud.com/connections

2009 Metrics Presentation by Steve McLaughlin, Blackbaud

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2009 Metrics Presentation by Steve McLaughlin, Blackbaud — Presentation Transcript