Annual Giving and Development Services Partnerships “ Segmentation is a team effort” CASE VIII 2/19/2009 9:15 am

Preliminaries Ask questions & make comments at any time during presentation, but be considerate of time. Definitions Segment : a grouping of prospects Touch : all the various ways that an entity comes into contact with our brand on a daily basis. Filter : a sequence of planned touches designed to identify the most efficient way to reach a segment

Ask questions & make comments at any time during presentation, but be considerate of time.

Definitions

Segment : a grouping of prospects

Touch : all the various ways that an entity comes

into contact with our brand on a daily

basis.

Filter : a sequence of planned touches designed

to identify the most efficient way to reach

a segment

Take Aways Theory of partnerships Vs. The reality of most advancement offices Perception of development officers by advancement services professionals Perception of advancement services professionals by development officers Tips on how to work together & why you should constantly work on improving the relationship Why a partnership is needed to properly segment prospects

Take Aways Why partner? Don’t we already do that? Efficiency Places ownership in the project for all involved It clarifies issues (helps establish who does what) Helps resolve conflicts and disputes (A respected partner is treated differently than a co-worker) You can’t do it alone – “Even Batman had Robin”

Why partner? Don’t we already do that?

Efficiency

Places ownership in the project for all involved

It clarifies issues (helps establish who does what)

Helps resolve conflicts and disputes (A respected partner is treated differently than a co-worker)

You can’t do it alone – “Even Batman had Robin”

The Challenge : Reorganize 15 independent Annual Fund programs into 1 centralized Annual Giving Office

The Challenge Database considerations How you use your data helps determine how your data is collected, maintained, and reported! Every program feels that they “own” prospects 15 different ways of looking at one database 15 different ways of requesting data from the database 15 different sets of business rules on how the data is kept and reported 15 different ways of complaining about the database

Database considerations

How you use your data helps determine how your data is collected, maintained, and reported!

Every program feels that they “own” prospects

15 different ways of looking at one database

15 different ways of requesting data from the database

15 different sets of business rules on how the data is kept and reported

15 different ways of complaining about the database

Partners – Not Silos

Silos Us vs. them Minor things Communication styles Personalities Working conditions Major things A fundraiser rarely understands what an advancement services professional does on a daily basis An advancement services professional rarely understands what a development officer does on a daily basis

Us vs. them

Minor things

Communication styles

Personalities

Working conditions

Major things

A fundraiser rarely understands what an advancement services professional does on a daily basis

An advancement services professional rarely understands what a development officer does on a daily basis

Silos Us vs. them What development officers wish advancement service professionals knew -That it takes forever to get the info I need -That I can’t get the info I need -That I don’t understand what they are saying (tech talk) -That I don’t feel like they understand what I’m saying -That they make mountains out of molehills (overcomplicate)

Silos Us vs. them What advancement services professionals wish development officers knew -How to use the system properly and put in the correct data -That it may sound simple, but one change can have a ripple effect -Talk to us first / Don’t expect things done after the fact -Patience -To ask questions / We can’t read minds

The Challenge Building trust: Asking the right questions to the right people Being able to explain & ask “why” & “how” To fundraisers and department heads To Development Services professionals To donors & volunteers

Building trust:

Asking the right questions to the right people

Being able to explain & ask “why” & “how”

To fundraisers and department heads

To Development Services professionals

To donors & volunteers

The Challenge Building trust: It simply isn’t enough to know exactly what you want & how you want it….. YOU MUST BE ABLE TO EXPLAIN IT, AND EVERYTHING MUST BE MEASURABLE!

Building trust:

It simply isn’t enough to know exactly what you want & how you want it…..

YOU MUST BE ABLE TO EXPLAIN IT, AND EVERYTHING MUST BE MEASURABLE!

The Challenge Building trust: Don’t assume anything Everyone has a right to know “why” Why we do things a certain way Why is this touch going out now Why do we need this field in this report Why can’t we do it the way we’ve always done it Everyone has a right to know “how” How are you using this data How will you measure success How are you communicating these results How do you keep your sanity

Building trust:

Don’t assume anything

Everyone has a right to know “why”

Why we do things a certain way

Why is this touch going out now

Why do we need this field in this report

Why can’t we do it the way we’ve always done it

Everyone has a right to know “how”

How are you using this data

How will you measure success

How are you communicating these results

How do you keep your sanity

The Challenge Communicating with partners Be honest If you don’t know why—FIND OUT! FOLLOW UP! THEN FOLLOW UP AGAIN! Be confident If you are not confident in answering “Why”, they will not be confident in us Remember change isn’t easy There is always a ripple effect to every one thing that changes—discuss these in detail. It does make a difference in how individuals will approach the situation A by-product of passion is defensiveness. DO NOT DOWNPLAY THE HARD WORK THAT EVERYONE HAS PUT IN OVER THE YEARS Face time Ask Why and How

Communicating with partners

Be honest

If you don’t know why—FIND OUT! FOLLOW UP! THEN FOLLOW UP AGAIN!

Be confident

If you are not confident in answering “Why”, they will not be confident in us

Remember change isn’t easy

There is always a ripple effect to every one thing that changes—discuss these in detail. It does make a difference in how individuals will approach the situation

A by-product of passion is defensiveness. DO NOT DOWNPLAY THE HARD WORK THAT EVERYONE HAS PUT IN OVER THE YEARS

Face time

Ask Why and How

The Challenge : Condense 15 independent Annual Fund programs into 1 centralized Annual Giving Office What does the segmentation look like?

Segmentation Touch Plan Guiding Principles: Reach the greatest number of prospects possible Simplify Contact prospects in a way that is most meaningful and effective for them: “donor focused” Use resources as efficiently (cost-effective) as possible Reinforce key messages that will lay groundwork for potential future giving Make the donation process as easy as possible for the donor Create a habit of giving that will lead to increased loyalty

Guiding Principles:

Reach the greatest number of prospects possible

Simplify

Contact prospects in a way that is most meaningful and

effective for them: “donor focused”

Use resources as efficiently (cost-effective) as possible

Reinforce key messages that will lay groundwork for

potential future giving

Make the donation process as easy as possible for the

donor

Create a habit of giving that will lead to increased loyalty

The Challenge First steps: Ask development officers: “ If you had to segment AG prospects together, how would you do it?” Ask development/advancement services professionals: “ If you had to segment AG prospects together, how would you do it?”

First steps:

Ask development officers:

“ If you had to segment AG prospects together, how would you do it?”

Ask development/advancement services professionals:

“ If you had to segment AG prospects together, how

would you do it?”

The Challenge Top 5 Answers: Fundraisers Program/department interests, Wealth indicators, Total amount given, Feelings toward institution, Relationship w/ institution Development Services Total amount given, # of gifts, Consecutive giving, Constituency code, Age Assumptions Vs. Measurable fields Assumptions are not in the database and need specific business rules to clarify. A measurable field already exists in the database. Segmentation must use measurable fields

Top 5 Answers:

Fundraisers

Program/department interests, Wealth indicators, Total amount given, Feelings toward institution, Relationship w/ institution

Development Services

Total amount given, # of gifts, Consecutive giving, Constituency code, Age

Assumptions Vs. Measurable fields

Assumptions are not in the database and need specific business rules

to clarify. A measurable field already exists in the database.

Segmentation must use measurable fields

Segmentation Basic Structure Four main groupings Loyal (gifts in last 3 consecutive FY) Retention (gave last year) Reacquisition (within last 5 yrs, but not last) Acquisition (no gift history / no gifts within last 5 years) Two subgroups (to identify affinity if possible) Pure Multi

Basic Structure

Four main groupings

Loyal (gifts in last 3 consecutive FY)

Retention (gave last year)

Reacquisition (within last 5 yrs, but not last)

Acquisition (no gift history / no gifts within last 5 years)

Two subgroups (to identify affinity if possible)

Pure

Multi

Touch Plans/Calendar TARGETED MARKETING Variations Each segment receives one variation of the touch based on the specifics of that particular segment. For example: Loyal donor = 1 variation using variable data for subgroup Retention = 1 variation using variable data for subgroup Reacquisition = 1 variation using variable data for subgroup Acquisition = 1 variation

Touch Plans/Calendar 1 st Quarter: Sept/Oct 2 nd Quarter: Nov/Dec 3 rd Quarter: Feb/Mar 4 th Quarter: May/June Calendar Quarters Timing The calendar is broken into four “quarters” of two months each. Each segment will receive at least one touch during each quarter.

Touch Plans/Calendar TARGETED MARKETING 1 st Q 2 nd Q 3 rd Q 4 th Q Touch/Variation Loyal 1/16 2/19 2/19 1/16 6 / 70 Retention 1/16 2/19 2/19 1/16 6 / 70 Reacquisition 1/16 2/19 2/19 1/16 6 / 70 Acquisition 1/1 2/2 2/2 1/1 6 / 6 Total 4/33 8/59 8/59 4/33 = 24 / 216

QUESTIONS?