Stop Fighting, Start Analyzing:
Data Driven Strategy & Collaboration for Non-Profits

Presenters:
Keidra Chaney
Elizabeth ...
Who we are…
Keidra Chaney

Elizabeth Finlayson

• Started as web content manager,

• Started in development right

•
•
•

...
What we are here to solve
•
•
•
•
•
•
•
•

Lack of budget
Lack of strategy
Siloed organization
Lack of understanding of da...
WHEN FALL APPEAL
MEASUREMENT GOES WRONG…
Let’s meet the cast…
Development Director

-10-year senior manager
Likes:
-Free food
-Wine from Argentina
Dislikes:
A lot ...
Marketing Director

-15-year senior manager, 8 years at
this organization
Likes:
-Monkey figurines
-Bellydancing
Hates:
-T...
That guy in your office who only makes
suggestions after the plan is in motion…
Likes:
-To make suggestions after a
plan i...
How it starts…
The Development Director says to the new
Development Associate…
Hey new girl,
it’s time to
write the fall
c...
“New Girl, we need to do a Facebook
campaign…”

Development Associate doesn’t know the
organization has a Facebook page an...
Marketing Director pushes for a postcard mailer with
no trackable response. The Development Director
pushes for a landing ...
A week before the campaign
Got it!

Someone mentions…
Hey, don’t we
normally do an eblast?

Development Associate
copies l...
“That Marketing Director is a real stickler, you’ll
need to tag everything for the campaign.”
Um,
okay.

The Development D...
A few weeks later…
• The Development Director goes to the Marketing
Associate… Hey, can you
Why did you
get me the
numbers...
They discover…
Oh, no! Can
you draw up
the metrics?

Nothing is
tagged!

This e-blast went out the same day as the e-blast...
“These development people don’t
know what they’re doing.”
I know!

We need to
tag
everything
right away!

The Marketing As...
What Twitter
campaign???

Hey,
whatever
happened
to the
Twitter
campaign?

Last year, an intern ran a Twitter campaign tha...
What about
my new
letter
concept?

My postcard
was
awesome!

What
about my
new letter
concept?

When the direct mail porti...
The hardworking, idealistic
Development Associate is fired.
Due to:
• Missing income from
the Twitter campaign
• Missing m...
PLANNING A MEASUREMENT
STRATEGY
Top Down vs. Bottom Up
Approach to Measurement?
• Top Down: Starting with defined set of
goals and a selected group of rel...
Planning a Measurement
Strategy
• What is your campaign’s overall goals?
• What specific outcomes will help achieve
your g...
GOAL SETTING
MARKETING AUDIENCE
EFFORT
ACTION

GOAL

METRIC

Blog

Increased
readership

Reading an
article

Average time ...
Then think measurement tools!
METRIC

TOOL

Average time on website

Your Web Analytics Tool!

# info form signups

Your d...
Success Metric Example: New Visitor
Engagement
Subject: A mid-level ($1 mil annual budget)
non-profit’s newly launched fun...
New Visitor Engagement
• Standard Metric: video views
• Key Online Success Metric: # of videos
viewed per visit

• Standar...
Is it the right success metric?
• Does it show results? Can you use it to show definitive ROI
on your efforts? Does it sho...
The one metric you need to know…
Principle: If you’re not keeping people, you are wasting your time.

Donor retention/attr...
Know your benchmarks: ROI
Direct Mail

$1.00 of gross

Special Events

$35.00 -$100.00

Web & social media

$.20 - $.25

D...
QUESTIONS & ANSWERS
Take 10 minutes

BREAK!!!
Advanced Scenario
• “I manage a donor group of individuals who
give between $1k and $10k and we are about
to mail out our ...
Lifetime Value- Quick & Dirty
Current Project LTV Formula
(Total Dollars to Date - Total Costs to Date)
Number of First Gi...
Lifetime Value in Practice
Average Gift: $100
Attrition Rate: 61%

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8...
Lifetime Value in Practice
Lifetime Value
$180
$160

$154

$140

$160

$162

$163

$164

$164

$164

$139

$120
$100

Aver...
Segmentation
• Trends in aggregate may hide actual insights.
• Look at segmented traffic to compare traffic from
different...
Testing

Source: Lior Levin, InstantShift
Why Testing is hard
• It’s not, but working with people can be.
Designer says:
IT Dept says:
My design is rock
You want to...
Source: Avinash Kaushik, Occam’s Razor blog
Your Turn…
• Start with your audience & donors…
• Think about your groups
• What separates these people? What is similar
a...
COLLABORATION AND
COMMUNICATION
Data Silos & Communication
In-Person

Strategically
&
Relationally
Important

High levels of uncertainty

Phone

Strategically
Important

What, why,
...
Getting Ready for the Predictive
Analytics Future
Getting Qualitative & Subjective Data
into Your Database for Analysis
• Turn qualitative data into quantitative data
• Sou...
Closing your Campaign
• Do a quantitative & qualitative summary of
the campaign
• Make it visual
QUESTIONS & ANSWERS
If We Have More Time…
Arts Org. Analytics Project
•
•
•
•

$1.8 million organization
20,000 donors in database
$1,000 major gift entry point
$5,...
Show Attendance by Donor Quartile
Show Attendance by Giving
Modes of Contact by Giving
Stop Fighting Start Analyzing
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Stop Fighting Start Analyzing

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  • Data problems that comes from poor interdepartmental communication.One reason we were compelled to do this workshop is we knew that nonprofits have data in different departments that is not shared or looked at cohesively. This means that your marketing department may know that online communications are working better than direct mail and fundraising department may know that messaging from program staff works better than from the ED. How powerful would an email message from a program person be if they knew each other’s data???
  • Elizabeth: Development DirectorKeidra: Development Associate
  • Keidra: Marketing DirectorElizabeth: Marketing Associate
  • Keidra: That guy
  • Lou Rosenfeld- A List apart
  • Data, goals & metrics:Tons of data: web, direct mail, fundraising, social media, mobile.You don’t have to measure everything.Focus on the critical few, not the insignificant many.
  • Multi-channel marketingDo this with your departmental counterpartUsing annotations in Google Analytics
  • Look at time on site as a way to show more engagement for a content-driven siteYour database should have the means for attaching replies to your solicitation code and sign-ups to your event code. If you can’t do this, you should consider getting a database that does or figuring out how to easily do this in excel. (Boo!)
  • “Establish the right key metrics.Far too often, organizations track an array of metrics associated with a single channel but are much weaker at tracking cross-channel metrics. It was surprising to us, the degree that organizations stated that they did track integrated metrics, though upon further probing, we learned that many did not actively use the information (either because of lack of bandwidth or analytical expertise). Larger organizations should be tracking a majority if not most of those metrics and analyzing trends. Smaller organizations should be more selective, picking the metrics that really define the progress of the organization towards an integrated marketing approach. More focus is needed across the board on migration of constituents from one channel to another, as well as more granularity around retention rate by channels of engagement.” Convio whitepaper
  • The infographic on the left was created by Bloomerang summarizing the results of the 2013 Fundraising Effectiveness Project, which was created by The Association of Fundraising Professionals and the Center on Nonprofits and Philanthropy at the Urban Institute. The 2013 survey from the Fundraising Effectiveness Project showed some devastating findings for nonprofits:Donor attrition is at 61% and donor retention has plummeted from 50% 7 years ago to 39% today.Bounce rate:From KISS Metrics, a 2010 survey and breaks down bounce rate by function of website. Notice I said “function” and not industry. This is why figuring out what your website content is supposed to get your audience to do is so important. (raise money, generate potential donors)Bloomerang, who created this infographic, posits:Improving donor retention by just 10% can double the lifetime value of your entire database.
  • Expressed as a cost per dollar raised, meaning how much you spent to raised that moneyKnow that capacity building activities are important for long-term growthWeb & social media ROI, this is the beginning of a theory. Key is to have a strategy and test it, not just send stuff out ‘cause everyone else is.Tips: Know up front why you are doing something. Be honest with yourself. Is this event to raise money, or get sign-ups? You won’t know if you are successful, if you don’t know what you’re trying to do. Some activities like web, social media, awareness events, cultivation events, an acquisition mailings are not about up-front money. That is great. They have other goals. Live with it, know the maximum you can spend, and track the value to your goal.
  • Code each source list differently- series of letters & numbers may be necessary (ex. 1CHLA). This is important, so you know which lists to re-buy and which to drop for next time.Their first gift response will be informative, but the list cannot show value until you get the second gift. According to Grizzard Communications Group, the donor will break even on acquisition between 6 and 24 months of subsequent gifts.The best metric for this project is lifetime value.Some lists have low initial response rates, but high average gifts, high retention rates, and high upgrade rates. These will ultimately represent a higher value than lists with a high response rate, but low average gift and low retention rates.Keidra: Also track sourcing from e-blasts on URL builders
  • First gift amount is a powerful predictor of high LTV. Even one-off donors with high first gift amounts improve the value of the list.After 5 years, most donor lists have lost significant value. However, the donors who stay with you beyond 5 years and often most valuable for your organization.Lots of ways to calculate this (unfortunately). Experts recommend choosing the variables and formulas that best suit your organization.
  • Your handout packet has a sample worksheet with data and a blank sheet so you can start this at your office.For your example, you need to keep a spreadsheet with the following data divided by list: number of first responding donors, income, costs, average gift, lifetime value and retention rate.To calculate the LTV the formula will be (total dollars to date- total costs to date)/number of first responding donors.
  • Finally, if you can manage It, a list size of 14,000 is perfect for testing. With sample sizes this large, you can get statistically significant results. Testing is important in all campaigns. If you aren’t testing, you aren’t learning. If you have been looking at the big picture and determining what questions you want answered, you are ready to test. Pick one thing to test.Pick something worth answering. Big organizations with large segments can test small things like how a stamp is affixed. For the rest of us, test something that is going to help you do everything else better.Tests I have done include: Are personal stories better than organizational stories? Does a mailing work better with or without a reply device? Does a small or large reply device work best? Do 2 mailings work better than 1? If you are communicating, you should be testing.Arthur Middleton Hughes says that for email you absolutely must test communication frequency. Too much you turn people off. Too few and you risk leaving money on the table.Follow the simplicity principle when testing. What one question can you answer with this campaign? Is it answerable? Can it be tested over every piece of your campaign?When you test, everything else needs to be consistent. This is not the time to also find out if your donors prefer purple or green envelopes. Test that same thing over the whole campaign. Because of small sample sizes, you will need to test over multiple communications to get valid answers.
  • How often should I test?AlwaysRun the tests for at least 4 weeks. Google won’t let you run a test for too short a time. If your test is too long or complicated, Google will tell you.
  • INTERNAL MEETING FREQUENCYMost online and offline marketing teams are still separate groups, even if they report to the same leader. As such, this 2011 Convio whitepaper on Multi-channel marketing wanted to understand if those teams met to collaborate. Groups that score higher on integrated multi-channel marketing sophistication met more often. They had someone accountable for making communication trade-off decisions based on an integrated calendar that tracks all planned messages and campaigns across channels.
  • Messages have no meaning, meaning is in peopleHave I correctly defined the context and provided context, so the odds of people getting the message are as high as possible?Specifically, media richness theory states that the more ambiguous and uncertain a task is, the richer the format of media that suits it. Theory by Richard Daft.Richer media-No other distractions. In-person: hear tone of voice, see body language and hand gestures.Leaner media-Email & text- practical detailsPrinciple: use the smallest bandwidth you can get away with without distorting your message. People are often using a smaller bandwidth than they need.What’s the leanest medium you can tolerate without distorting the media?Key stakeholder critical to your project, see them more, cultivate a relationship, instead of just inviting to a meeting.Don’t use meetings as a proxy for relationship development. Leads to “meetingitis”.Don’t go to any meeting that can happen without you. Does the meeting need to happen at all? Principles and process.
  • Create quantitative fields for qualitative dataUse single or multiple choice fields to create structured data for qualitative dataEx. Program interest: education, workforce development, leadership developmentBeen able to get much greater understanding of major donors from this informationExamples include: Program interest, political affiliations, demographic data, survey data
  • Great thing about arts is there are a lot of data points to analyze, because people are buying tickets to shows, buying merchandise, attending opening nights, filling out survey data and generally interacting with the organization frequently. This is a lot more difficult if you are, say, an advocacy organization with less interaction with the public. First, start with the data you do have. Second, create interaction points.
  • Discuss the components that indicated giving to create a full profile.
  • Stop Fighting Start Analyzing

    1. 1. Stop Fighting, Start Analyzing: Data Driven Strategy & Collaboration for Non-Profits Presenters: Keidra Chaney Elizabeth Finlayson
    2. 2. Who we are… Keidra Chaney Elizabeth Finlayson • Started as web content manager, • Started in development right • • • knowledge of HTML, CSS, PHP at mid-sized non-profits Trained through books, courses and experience. Became a web analytics evangelist (and nag) at my workplace. Started consulting on digital analytics and website optimization to non-profits of all sizes • • before September 11th and have managed flourishing programs during 2 recessions Because of my direct mail training, database and analytics have always been a personal passion Started consulting on fundraising program development, analytics, and providing coaching to nonprofit professionals
    3. 3. What we are here to solve • • • • • • • • Lack of budget Lack of strategy Siloed organization Lack of understanding of data Too much data Poor technology Lack of staff Lack of trust in analytics
    4. 4. WHEN FALL APPEAL MEASUREMENT GOES WRONG…
    5. 5. Let’s meet the cast… Development Director -10-year senior manager Likes: -Free food -Wine from Argentina Dislikes: A lot of numbers Development Associate- New! -Right out of college -Happy to have joined the nonprofit workforce Likes: -Creating new vegan dessert recipes
    6. 6. Marketing Director -15-year senior manager, 8 years at this organization Likes: -Monkey figurines -Bellydancing Hates: -The Development Director Marketing Associate -5-year Marketing Associate, waiting for the Marketing Director to leave so she can take her job. Likes: -Experimental, noise music -Playing the viola
    7. 7. That guy in your office who only makes suggestions after the plan is in motion… Likes: -To make suggestions after a plan is in motion -Russian ballet
    8. 8. How it starts… The Development Director says to the new Development Associate… Hey new girl, it’s time to write the fall campaign letter. Go do that. Yes, ma’am. You can count on me. I’m on it!
    9. 9. “New Girl, we need to do a Facebook campaign…” Development Associate doesn’t know the organization has a Facebook page and makes a new one!
    10. 10. Marketing Director pushes for a postcard mailer with no trackable response. The Development Director pushes for a landing page or reply device to no avail. I’ve been doing this longer than her, why doesn’t she listen to what works? I thought this was my campaign!
    11. 11. A week before the campaign Got it! Someone mentions… Hey, don’t we normally do an eblast? Development Associate copies last year’s eblast, makes a couple of changes & sends it out.
    12. 12. “That Marketing Director is a real stickler, you’ll need to tag everything for the campaign.” Um, okay. The Development Director shows the Development Associate how to tag in Google Analytics. Her profile was incorrectly configured by the previous Development Associate. Also, she doesn’t know is that the Marketing Director also has her own unshared profile.
    13. 13. A few weeks later… • The Development Director goes to the Marketing Associate… Hey, can you Why did you get me the numbers on the last e-blast? I didn’t! send an eblast without telling me? Huh, what e-blast? …who goes to the Marketing Director…
    14. 14. They discover… Oh, no! Can you draw up the metrics? Nothing is tagged! This e-blast went out the same day as the e-blast for their first advocacy campaign!
    15. 15. “These development people don’t know what they’re doing.” I know! We need to tag everything right away! The Marketing Associate & Marketing Director both go to their offices and tag everything- resulting in all campaign communications being double tagged!
    16. 16. What Twitter campaign??? Hey, whatever happened to the Twitter campaign? Last year, an intern ran a Twitter campaign that brought in $2,000- unfortunately, because she saved it on her home drive, there was no documentation of the campaign.
    17. 17. What about my new letter concept? My postcard was awesome! What about my new letter concept? When the direct mail portion of the campaign beats last year’s goal, the Marketing Director takes full credit.
    18. 18. The hardworking, idealistic Development Associate is fired. Due to: • Missing income from the Twitter campaign • Missing metrics • And… …Pissing off the Marketing Director. Don’t let this happen to you!!!
    19. 19. PLANNING A MEASUREMENT STRATEGY
    20. 20. Top Down vs. Bottom Up Approach to Measurement? • Top Down: Starting with defined set of goals and a selected group of relevant metrics • Bottom Up: Starting without a defined set of goals
    21. 21. Planning a Measurement Strategy • What is your campaign’s overall goals? • What specific outcomes will help achieve your goal? • What is the purpose of your organization’s marketing materials? (ex. sell tickets, raise awareness?) • How will you measure whether your outcomes have been achieved?
    22. 22. GOAL SETTING MARKETING AUDIENCE EFFORT ACTION GOAL METRIC Blog Increased readership Reading an article Average time on website Event Prospective donor engagement Collecting potential donor information # info form signups Direct mail letter Completed and returned mail donation $$$ # of direct mail replies
    23. 23. Then think measurement tools! METRIC TOOL Average time on website Your Web Analytics Tool! # info form signups Your database! # of direct mail replies Your database!
    24. 24. Success Metric Example: New Visitor Engagement Subject: A mid-level ($1 mil annual budget) non-profit’s newly launched fundraising website, rich with multimedia content (videos, blog) Objective: Increase leads for offline individual gifts through engagement with website content
    25. 25. New Visitor Engagement • Standard Metric: video views • Key Online Success Metric: # of videos viewed per visit • Standard Metric: offline donation • Key Online Success Metric: # of newsletter/info contact signups
    26. 26. Is it the right success metric? • Does it show results? Can you use it to show definitive ROI on your efforts? Does it show that it’s helping you sell widgets, create awareness? Increase registrations? • Does it give insight? Can you learn more about your users, the effectiveness of your content/campaign by looking at it? • Is it actionable? Can you look at it and take some kind of immediate action to make things better? • Can you benchmark it? Can you look at data month or month/week or week and see trends?
    27. 27. The one metric you need to know… Principle: If you’re not keeping people, you are wasting your time. Donor retention/attrition Created by Bloomerang based on Fundraising Effectiveness Project 2013 Survey Data Website Bounce Rate From survey by KISS Metrics
    28. 28. Know your benchmarks: ROI Direct Mail $1.00 of gross Special Events $35.00 -$100.00 Web & social media $.20 - $.25 Direct Mail $.50 of gross Special Events $.10 - $.20 Major Gifts $.20 - $.30 Planned Giving $.20 Grants Acquisition/ Capacity Building Fundraising Cost per Dollar Raised $1.25 - $1.50 Sources: Fundraising, Second Edition by James M. Greenfield and ROI Analysis by Baruch College's Nonprofit Management Group.
    29. 29. QUESTIONS & ANSWERS
    30. 30. Take 10 minutes BREAK!!!
    31. 31. Advanced Scenario • “I manage a donor group of individuals who give between $1k and $10k and we are about to mail out our fall promotion to a list to around 14,000 potential donors (including both cold leads from a purchase list and warm leads from our own database).”
    32. 32. Lifetime Value- Quick & Dirty Current Project LTV Formula (Total Dollars to Date - Total Costs to Date) Number of First Gift Donors Historical LTV Formula Average first gift Attrition Rate
    33. 33. Lifetime Value in Practice Average Gift: $100 Attrition Rate: 61% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Lifetime Value $100 $139 $154 $160 $162 $163 $164 $164 $164
    34. 34. Lifetime Value in Practice Lifetime Value $180 $160 $154 $140 $160 $162 $163 $164 $164 $164 $139 $120 $100 Average Gift: $100 Attrition Rate: 61% $100 $80 $60 $40 $20 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9
    35. 35. Segmentation • Trends in aggregate may hide actual insights. • Look at segmented traffic to compare traffic from different audiences. • Segmentation allows you to give context to your data by focusing on a specific slice of your audience or audience behavior. • Recency, frequency, amount (RFM) • More helpful: Interaction with your organization • The future…
    36. 36. Testing Source: Lior Levin, InstantShift
    37. 37. Why Testing is hard • It’s not, but working with people can be. Designer says: IT Dept says: My design is rock You want to put solid. You’re an idiot CODE on MY pages? and don’t know No way. anything about design. Dev. Asst. says: I have enter all these stupid numbers??? Marketing says: I know what I’m doing. You want to prove me wrong? No way! So present it to the BOSS: Long term, we can make more money/get more signups/ for a minimum cost. It’s stupid not to do it. Oh, and the utility is free. Dev. Dir. says: I have to pay for two mailing lists???
    38. 38. Source: Avinash Kaushik, Occam’s Razor blog
    39. 39. Your Turn… • Start with your audience & donors… • Think about your groups • What separates these people? What is similar about them? • Can you look at behavioral as well as financial data? • Ex. Click-throughs, attend events, average gift
    40. 40. COLLABORATION AND COMMUNICATION
    41. 41. Data Silos & Communication
    42. 42. In-Person Strategically & Relationally Important High levels of uncertainty Phone Strategically Important What, why, Email Use for highly routine activities Spending more than 3 minutes, it’s a phone call Text Use for highly routine activities Confirming Leaner When Persuasive What, why, not how not how Details of How existing plans Details of How Internal Communication Channels Noise & distortion increases Richer Use to Communication Channel
    43. 43. Getting Ready for the Predictive Analytics Future
    44. 44. Getting Qualitative & Subjective Data into Your Database for Analysis • Turn qualitative data into quantitative data • Sources of this data: – In-Person meetings – Surveys – Social media- follow your donors on Facebook and LinkedIn- have a relationship manager keep track of important posts from major donors • Get into your database
    45. 45. Closing your Campaign • Do a quantitative & qualitative summary of the campaign • Make it visual
    46. 46. QUESTIONS & ANSWERS
    47. 47. If We Have More Time…
    48. 48. Arts Org. Analytics Project • • • • $1.8 million organization 20,000 donors in database $1,000 major gift entry point $5,000 - $25,000 majority of major givers in this range • Goal: looking to create a donor and major giving profiles to predict future giving
    49. 49. Show Attendance by Donor Quartile
    50. 50. Show Attendance by Giving
    51. 51. Modes of Contact by Giving
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