+Timothy State „93Associate V.P. of Alumni Programsstate@lakeforest.eduFriend-Raising forDollarsApplying DevelopmentData t...
+Where Focus your Energy? Converting Non-Donors toDonors 1976 Graduate 250 Solicitations over 35years. What makes the ...
+Lake Forest: Focus on DonorsMoving existingdonors up in dollarvalueShifting irregulardonor to an annualdonor
+What We‟ll Cover Applying existing development data to alumniprogramming Alumni Attitudinal Survey Campaign Data Scree...
+Lake Forest CollegeThe CollegeTraditional 4-year national liberal artscollege1,400 students > 1,700 Students30 miles nort...
+About Me10 Years ConsumerMarketing ExperienceMarketing PlanningAdvertisingPublic RelationsSpecial EventsRetail Real Estat...
+Market Research is not Academic ResearchWe are looking for trends, no absolutes.
+Data MiningNot Just for Donors AnymoreApplying research and data screening tomore than just major donors
+Donors Like to Know… Organizations they give to have a need for themoney Organizations make good use of their money Wh...
+Attitudinal Survey Themes General lack of awareness and understanding of theCollege‟s financial status 1/3 of our alumn...
+Forester PrideStrongly/Agree, 95.50%Neither AgreeorDisagree, 2.30%SomewhatDisagree, 0.90%StronglyDisagree, 0.30%DontKnow,...
+Program Implications Draw out pride vs. convince of pride Messaging Integrate e-mail and web communications Incorpora...
+We have ducks. And they fly.But how do we know where they fly?
+Campaign Data Screening 17,127 Records screened by GG&A Includes Alumni, Non-Grad Alumni, Parents, Friends Assigned a ...
+Potential indicated by AG Code$-$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,000Potential
+Program to the alumni most likely to give50% of our alumni give to charity andwe know where they live.
+Lifestage SegmentationYounger YearsSingles & Couples <45No ChildrenY1 – MidlifeSuccessY2 – YoungAchieversY3 – StrivingSin...
+Defining a Primary Market738551022430PrimarySecondaryTertiary
+Draw the right crowdHow do we know if we are drawing the 50% who giveto charity?
+Relative Draw Index RDI is a percent divided by a percent to give you aratio. 1.0 is even. Below 1.0 is under-drawing. A...
+Homecoming Registration RDI00.20.40.60.811.21.4Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M42003-05
+Focus on Relevance
+ Data-DrivenHomecomingFamily CarnivalKid-friendly menus“Bring the entire family”Hand Sanitizer
+Data-Drive Homecoming
+ Use Data to Fine TuneEmotional EngagementLoad with the right ammunition
+Regional Event Attendance and GivingYear Alumni Attend ParticipationOverallParticipation2006 3.3% 47.6% 26.7%2007 2.8% 54...
+Average Gift of Event Attendees# of Events Attended Over a5-Year PeriodAverage 2007 Gift fordonations <$4,999.991 Event $...
+Event Frequency vs. Gift Frequency# of Events No Gifts 1-3 Gifts 4 Gifts 5 Gifts1 Event 6.89% 57.57% 13.24% 22.30%2 Event...
+New MessagingThe room is filled with donors.Reinforce their gift makes good things happen.
+When ducks fly, pull the trigger
+Total Volunteer AF Giving$-$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000FY 1 FY 2 FY 3 ...
+Homecoming RDI00.20.40.60.811.21.41.6Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M42003-05 2007-08
+Homecoming RDI00.20.40.60.811.21.41.6Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M42003-05 2007-08 2009-10
+Homecoming Attendance01000200030004000500060002006 2007 2008 2009 2010Attendance
+Managed ProspectHomecoming Registrants1 guestout of 4
+Mom, are we going to Homecoming?
+Homecoming WeekendOur greatest opportunity toreinforce our mission ispossible because of alumnisupport.
+First you engage them.Then you solicit them.Old wives tale
+Assist your Alumni OperationMany Alumni Operations arethinking about data incorrectly
+How do you go aboutapplying metrics? Think about the questions you need answers to Garbage in, Garbage out What do you...
+How do you go aboutapplying metrics? Think about where you store data Guests list vs. coded on people‟s records Think ...
+Review Market research is notacademic research Apply development data toalumni programs Define your market within your...
+Timothy State „93Associate V.P. of Alumni Programsstate@lakeforest.eduThank You!Questions?
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Friend Raising for Dollars - heds - june 2011 - 6-9-11

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Friend-raising for Dollars explores how you can use data to drive alumni programming strategies. Presentation to Higher Education Data Sharing Consortium, June 2011

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  • Thank Lori Sundberg, for the opportunity to speak.And to HEDS for focusing on measuring the effectiveness of Alumni Programs.Even CASE, which is the professional organization that supports alumni professionals provides little information or guidance beyond basic response rates and statistical data. Response rates are great, but how do you know if your programs are effective?Having solid data on your alumni is a cornerstone, but it doesn’t help you towards measuring effectiveness.
  • Matching your table skirts to your balloons is not a long-term strategy for program effectiveness.
  • Matching your table skirts to your balloons is not a long-term strategy for program effectiveness.How do you know if you are drawing the right people?What is the return on investment for that cocktail served?How do you know if you are delivering the right message?Ultimately, alumni programs are about raising money.
  • Both data collection methods were driven by the development office, and driven by us preparing to launch the public phase of a campaign.
  • The scale of event that we’re able to execute with 450 alumni in the Bay Area is completely different than the scale of an event that another institution is able to execute with 2,000 alumni in the Bay Area.
  • In that time, I’ve not only coordinated the details of nearly 500 Santa Arrivals, but I’ve helped to figure out how to prove their effectiveness. So when I joined Higher Education seven years ago, I began taking what I learned welcoming Santa and applying those lessons to Homecoming Parades and Cocktail Parties.
  • Identify trends to help inform our decisions, or in some cases, just back up what our gut says.We are not looking for absolutes.Marketing saying that you should shoot when the ducks fly.But are the ducks in range? Are you shooting in the right direction?By using data, we have fine-tuned the direction we are shooting.We have modified the ammunition.
  • You probably have a sophisticated data operation that is helping you to learn about your major donors. Why not apply that to your alumni programming efforts?
  • We know… not just from studies about giving in general, but also our own research that:Donors like to know that they are giving to an organization that:Needs the money.Makes good use of the money.And is an organization they believe passionately about.
  • 2004 Alford Group SurveyMail and telephone surveys; 3 focus groups. Surveys were mailed to 11,500 people with an 18% response rate.As we dove into the data, what we discovered is that our alumniDon’t know if we need the money1/3 have no idea if we use the money we have effectivelyThey believe they are receiving the right amount of information from us, but still feel uninformed.Survey led us to understand that we have some real messaging issues.It’s not that our alumni don’t want to support us, they just have no opinion.
  • Research suggests that the attitude a student graduates with is the attitude they carry with them, and the survey found this to be true for Lake Forest.Good news for us.By learning that our alumni are proud of their experience, we no longer had to develop initiatives that encourage them to be proud, rather they can draw out those feelings that already exist.
  • Pride – giving is emotional. If we’re not drawing out that pride from within, how are we convincing them to donate?Messaging – making sure we’re getting the importance to give everywhere, even to volunteers.Making sure we get giving into our messaging at events, and having those delivered from peer-to-peer rather than the President or staff member (Because that is their job).
  • PRIZM is a set of geo-demographic clusters that was developed by Claritas in the 1990s, and has since been acquired by the Nielson Company. It is widely used to segment customer bases for marketing purposes. The system categorizes consumers – or your alumni – into demographically and behaviorally distinct groups, or segments, to help a market discern those customers likes, dislikes, lifestyles, and purchase behaviors.
  • And we apply this screening to our fundraising programs.Codes are conservative, but this informed us that if everyone coded in the 5,000+ category gave $5,000, we would raise $1.2 million.If everyone in the $500-$1000 category gave $500, we would raise almost $1 million.So rather than focus our energies on 13,000 solicitable alumni, we now are creating unique initiatives for an exclusive pool of 250 alumni with the $5,000+ initiative, and a new focus in our mass market initiatives for 2,025 alumni who fall in the $500 to $1000.So now we know where the ducks are flying.
  • Last year, approximately 3,000 alumni gave.We don’t have to get 13,000 alumni to give to experience growth, we can focus on 7,000 alumni who we know where they live.
  • F1 – Accumulated Wealth – The presence of children is the defining characteristic of the segments in the Family Life Class. Accumulated Wealth contain the wealthiest families, mostly college-educated, white-collar Baby Boomers living in sprawling homes beyond the nation’s beltways. These large family segments are filled with upscale professionals – the groups median income is nearly six figures – who have the disposable cash and sophisticated tastes to indulge their children with electronic toys, computer games, and top-of-the-line sporting equipment. These adults in households are also a prime audience for print media, expensive cars and frequent vacations – often to theme parks as well as European destinations.M1 – Affluent Empty Nesters. Americans in the mature crowd tend to be over 45 years old living in houses that have empty-nested. They feature upscale couples who are college educated, hold executive and professional positions and are over 45. While their neighborhoods are found across a variety of landscapes – from urban to small-town areas – they all share a propensity for living in large, older homes. With their children out of the house, these consumers have plenty of disposable cash to finance active lifestyles, rich in travel, cultural events, exercise equipment, and business media. These folks are also community activists who write politicians, volunteer for environmental groups and vote heavily in elections.Y3- Striving Singles – Make up the most downscale of the Younger Years class. Centered in exurban towns and satellite cities, these 20-something singles typically have low incomes – often under $25,000 a year – from service jobs or part-time work they take on while going to College. Housing for this groups consists of a mix of cheap apartment complexes, dormitories, and mobile homes. As consumers, the residents in these segments score high for outdoor sports, movies and music, fast food and inexpensive cars.So this might suggest that we should be planning high-end play dates; rather than exclusively upscale cocktail parties.
  • We have the greatest chance of donor conversion and upgrade in our primary market.F1 – Accumulated WealthM1 – Affluent Empty NestersThose two segments are the people who have the money to give and give it.
  • Last year, approximately 3,000 alumni gave.We don’t have to get 13,000 alumni to give to experience growth, we can focus on 7,000 alumni who we know where they live.
  • So in the same way we have fine-tuned our fundraising efforts, we have been focusing our alumni programs.Forced us to ask: what are we doing that we shouldn’t do?What are we NOT doing that we should be doing?So we know what segment we are now looking for. How do we know if they are turning out?
  • Overdraw in Accumulated Wealth and Affluent Empty Nesters
  • Creating a great marketing program is about being relevant. How are you being relevant to your alumni donors?
  • Family-FriendlyModified tailgating to make it less invasive or dominate in the weekendAdded a family carnival and goodie bags for childrenModified menus with more finger foods/Hand sanitizer“Bring your entire family”
  • Attitudinal Survey… Don’t know we need the money or that we’re well-managed…Showcasing we’re providing the same education, but only better – Academic Festival componentMoney Message – Delivered by alums
  • So now we know who we need to talk to, and we’re thinking about how we get them to come out.But if giving is an emotional decision how do we hit the triggers? How do we know what to say to them?When ducks fly, what kind of ammunition do we use?
  • Wanted to look at the relationship between giving and attendance. Again, looking for trends to help inform our programs.We discovered that basically 1 out of 2 of our attendees to our regional events made a donation in that year. What this said to us is that we have a room of predominately donors.As such, what greater opportunity to engage them emotionally in a manner that reinforces the money they donate is a wise investment. So we changed our talking points, and began coaching our volunteers differently on this.
  • The relationship between gift performance and event attendance. In this chart, we took out gifts over $5000, which is primarily our trustee pool. A few trustees at an event can really create chaos when trying to figure out mass market measures.No real surprises here – a person who attends more events over time has a higher average gift. The average gift between an attendee who has been to four events and five events is a pretty significant jump.This again reinforces the idea that we need to talk about money when we have alumni as a captive audience.
  • Taking that idea, we were hoping for a magic number here – that if you went to three events, you were more likely to be an annual donor.Unfortunately, no such truths were revealed.But, there is a clear coloration between event frequency and gift frequency.
  • Recruit volunteers to share their story.What happened at Lake Forest College that it is so important to them that they are volunteering 20, 30, 40 years later?
  • Similar to events, one out of two volunteers give. Different dialogue with a volunteer than we do the mass market alum.Total volunteer giving increased about $150,000 over four years.
  • Increased the draw to 1.5 for F1 – Affluent Family category.M1 is at 1.0, but that is a reflection of greater growth in other areas. Actual attendance numbers for this category more than doubled.
  • Still holding strong in the Affluent F1 Category.Drawing stronger in the Mature crowd.Growth in “downscale” family areas represents more our commitment to make Homecoming accessible to all alumni, and we keep registration fees low.Decrease in the young, “downscale” categories reflects our hard-line approach to decrease the impact of alcohol.Overall, we are drawing more of the type of donor we want to be drawing.
  • Total head count for all events over the course of the Homecoming weekend, we’ve seen consistent growth.In 2010, of our registered participants in the weekend, over 250 are on our system as managed prospects, meaning they are on our radar as a major donor or a potential major donor.
  • Homecoming is about:Creating an emotional experience. That makes an alum think about their experience at the College.That had an impact on their life.In a way that compels them to make Lake Forest a priority in their charitable giving.
  • The best measures are sometimes the simplest. You don’t need to really overthink this, but just come up with a way that you can measure a program and stick with it.There is no real secret, and it’s often just a simple math equation.
  • Friend Raising for Dollars - heds - june 2011 - 6-9-11

    1. 1. +Timothy State „93Associate V.P. of Alumni Programsstate@lakeforest.eduFriend-Raising forDollarsApplying DevelopmentData to AlumniProgrammingHEDSJune 2011
    2. 2. +Where Focus your Energy? Converting Non-Donors toDonors 1976 Graduate 250 Solicitations over 35years. What makes the difference insolicitation 251?
    3. 3. +Lake Forest: Focus on DonorsMoving existingdonors up in dollarvalueShifting irregulardonor to an annualdonor
    4. 4. +What We‟ll Cover Applying existing development data to alumniprogramming Alumni Attitudinal Survey Campaign Data Screening How that helps drive strategy Talking points to actual programming Advice on guiding alumni programs data review
    5. 5. +Lake Forest CollegeThe CollegeTraditional 4-year national liberal artscollege1,400 students > 1,700 Students30 miles north of ChicagoOur Alumni13,000 Forester solicitable alumni6,000 alumni, parents and friends inChicagolandTop 5 markets 500 to 800 alumniTop 20 markets over 100 alumni1997 – Beginning of Alumni ProgramCompleting $100 Million Campaign –1 year early
    6. 6. +About Me10 Years ConsumerMarketing ExperienceMarketing PlanningAdvertisingPublic RelationsSpecial EventsRetail Real Estate industry
    7. 7. +Market Research is not Academic ResearchWe are looking for trends, no absolutes.
    8. 8. +Data MiningNot Just for Donors AnymoreApplying research and data screening tomore than just major donors
    9. 9. +Donors Like to Know… Organizations they give to have a need for themoney Organizations make good use of their money When donating, it is an organization they arepassionate about assisting
    10. 10. +Attitudinal Survey Themes General lack of awareness and understanding of theCollege‟s financial status 1/3 of our alumni have no opinion as to whether ornot the College is manage well Our alumni believe they receive adequatecorrespondence from us; but feel uninformed aboutimportant matters
    11. 11. +Forester PrideStrongly/Agree, 95.50%Neither AgreeorDisagree, 2.30%SomewhatDisagree, 0.90%StronglyDisagree, 0.30%DontKnow, 1.10%Alumni believe Lake Forest College is aQuality Educational Institution
    12. 12. +Program Implications Draw out pride vs. convince of pride Messaging Integrate e-mail and web communications Incorporate giving messages to volunteers Reinforce the importance of giving Event Programming Talking Points
    13. 13. +We have ducks. And they fly.But how do we know where they fly?
    14. 14. +Campaign Data Screening 17,127 Records screened by GG&A Includes Alumni, Non-Grad Alumni, Parents, Friends Assigned a “geocode” and appended with census block andtract information Enhanced with Claritas PRIZM Lifestage Segments 16,631 (97.1%) of records matched GG&A enhanced with “Prospect Profile” and “ProspectExplorer” Provided Annual Giving, Major Gift, and Planned GivingCodes, PRIZM Segments
    15. 15. +Potential indicated by AG Code$-$200,000$400,000$600,000$800,000$1,000,000$1,200,000$1,400,000Potential
    16. 16. +Program to the alumni most likely to give50% of our alumni give to charity andwe know where they live.
    17. 17. +Lifestage SegmentationYounger YearsSingles & Couples <45No ChildrenY1 – MidlifeSuccessY2 – YoungAchieversY3 – StrivingSinglesFamily LifeWith Children25-54F1 – AccumulatedWealthF2 – YoungAccumulatorsF3 – MainstreamFamiliesF4 – SustainingFamiliesMature YearsSingles & Couples >45ChildlessM1 – AffluentEmpty NestersM2 – ConservativeClassicsM3 – CautiousCouplesM4 – SustainingSeniors
    18. 18. +Defining a Primary Market738551022430PrimarySecondaryTertiary
    19. 19. +Draw the right crowdHow do we know if we are drawing the 50% who giveto charity?
    20. 20. +Relative Draw Index RDI is a percent divided by a percent to give you aratio. 1.0 is even. Below 1.0 is under-drawing. Above1.0 is over-drawing. Group of 100 at homecoming, 20% yellow Population of 1,000, 30% yellow Divide 20% by 30% = 0.66, or underdraw
    21. 21. +Homecoming Registration RDI00.20.40.60.811.21.4Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M42003-05
    22. 22. +Focus on Relevance
    23. 23. + Data-DrivenHomecomingFamily CarnivalKid-friendly menus“Bring the entire family”Hand Sanitizer
    24. 24. +Data-Drive Homecoming
    25. 25. + Use Data to Fine TuneEmotional EngagementLoad with the right ammunition
    26. 26. +Regional Event Attendance and GivingYear Alumni Attend ParticipationOverallParticipation2006 3.3% 47.6% 26.7%2007 2.8% 54.2% 24.2%2008 5.9% 57.6% 29.5%2009 7.9% 51.9% 30.0%
    27. 27. +Average Gift of Event Attendees# of Events Attended Over a5-Year PeriodAverage 2007 Gift fordonations <$4,999.991 Event $1082 Events $1263 Events $1454 Events $1675 Events $275Benchmark for Total Alumni Total Average Gift ~ $252.99
    28. 28. +Event Frequency vs. Gift Frequency# of Events No Gifts 1-3 Gifts 4 Gifts 5 Gifts1 Event 6.89% 57.57% 13.24% 22.30%2 Events 6.33% 50.63% 18.67% 24.37%3 Events 8.51% 45.39% 15.60% 30.50%4 Events 6.25% 39.58% 16.67% 37.50%5 Events 7.41% 25.93% 14.81% 51.85%6 Events 0.00% 31.82 9.09% 59.09%
    29. 29. +New MessagingThe room is filled with donors.Reinforce their gift makes good things happen.
    30. 30. +When ducks fly, pull the trigger
    31. 31. +Total Volunteer AF Giving$-$50,000$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000FY 1 FY 2 FY 3 FY 4A&DCACAdmissions
    32. 32. +Homecoming RDI00.20.40.60.811.21.41.6Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M42003-05 2007-08
    33. 33. +Homecoming RDI00.20.40.60.811.21.41.6Y1 Y2 Y3 F1 F2 F3 F4 M1 M2 M3 M42003-05 2007-08 2009-10
    34. 34. +Homecoming Attendance01000200030004000500060002006 2007 2008 2009 2010Attendance
    35. 35. +Managed ProspectHomecoming Registrants1 guestout of 4
    36. 36. +Mom, are we going to Homecoming?
    37. 37. +Homecoming WeekendOur greatest opportunity toreinforce our mission ispossible because of alumnisupport.
    38. 38. +First you engage them.Then you solicit them.Old wives tale
    39. 39. +Assist your Alumni OperationMany Alumni Operations arethinking about data incorrectly
    40. 40. +How do you go aboutapplying metrics? Think about the questions you need answers to Garbage in, Garbage out What do you have to track to get the information you need? What do you have to do to get that information easily? Are you tracking information you don‟t need to track, or youare not using?
    41. 41. +How do you go aboutapplying metrics? Think about where you store data Guests list vs. coded on people‟s records Think about what data you have from your screening What should you import onto your system? Where should your importing it onto your system?
    42. 42. +Review Market research is notacademic research Apply development data toalumni programs Define your market within yourbase Use data to fine tune emotionalengagement Data suggests: Ask for moneyas you engage Assist your alumni operation
    43. 43. +Timothy State „93Associate V.P. of Alumni Programsstate@lakeforest.eduThank You!Questions?

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