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Database Marketing in Fundraising
Griet Verhaert
Direct Social Communications
Direct Social Communications NV
•
•
•
•
•
•
•
•
•

Fundraising Agency
°1985
21 partners
Turnover: 10 million euro
Team: 16 people + outsourcing
No cure no pay
Member of
Pooled database (DSC is co-owner)
Full service
Fundraising
• Most effective channel?
• Direct Mail at DSC:
– 400 campaigns
– 11 million letters
– 23 million euro
Measurable?
Campaign Success Rate
Revenue per
solicitation

e.g. N=10000

1000 
10%

Total: €30000
Per mail: €3

Response

Giftsize

1/0

€

€30
Donor Lifecycle
Prospect

(Acquisition)

Lapsed

Active

(Reactivation)

(Retention)
How to optimize direct-mail?
• Content (inside & outside)
• Target
Measuring, analyzing, testing & evaluating
(long term & costs!)
Learning  optimizing
Direct Mail: Testing MAMAS
Shopping bag

Agenda

?
Handkerchiefs
Recruiting MAMAS  incentive!
Shopping bag: 4.67%

Agenda: 2.18%

Handkerchiefs: 1.69%
Multichannel
•
•
•
•
•
•

Direct mail
Telemarketing
Face-to-face
Online
Email
Mobile (Emergency)
Difficult to measure
Consistent messaging!
Integration database : follow 1 individual across multiple channels
4 topics related to database marketing
•
•
•
•

Integrated Data Management Platform
Donor Cloning
Hyperpersonalisation
Eye-tracking
Integrated Data Management Platform
• Channel integration
• Extended donor dashboard
13
Integrated Data Management Platform
•
•
•
•
•
•
•
•

Channel integration
Extended donor dashboard
CRM: one-to-one contacts
Selection tool
Sepa direct debit payments
Document Management tool
Reporting tool
Maps
15
16
17
18
Donor Cloning

• Donor Acquisition: List optimization
• Geomarketing (+- 20.000 NIS9-zones)
• Predictive models, similarity models
Roadmap to Cloning
1

Define interesting donors
= donors ‘to be cloned’ ( actives)

2

Calculate Targets
= historic conversion rate per area (# donors/# households)

3

Calculate Predictors
= objective socio-demographic criteria per area
(+-700; housing, residents, neighborhood)

4
5

Predict future conversion
= Select & combine best predictors
Validate predictions
= Compare predicted vs real response, and profile
Project Approach
Area
Number

Historic

Age 55-60y

Conversion

Number of
Households

1

0%

270

10%

2

0.05%

100

30%

3

0.20%

65

70%

…

…

2

Predicted
Conversion

Cloning
Model

0.01%
0.02%
0.15%

…

…

3

4
Heatmap

(predicted conversion)

• Example: Region of Bruges

Bruges
Real-life Prospection Campaign
Response

Average Gift
2.71%

1.98%

Age > 55y

2.29%

21.6 €

Cloning
Top 100.000

Cloning
Top 10.000

improvement of 37% in
response rate

Age > 55y

25.5 €

Cloning
Top 100.000

28.6 €

Cloning
Top 10.000

improvement of 32% in
donation amount
Real-life Prospection Campaign
Break
(revenue per letter sent)
0.78 €
0.43 €

Age > 55y

0.58 €

Cloning
Top 100.000

Cloning
Top 10.000

improvement of 82% in
revenue per letter sent

 Current and Future Usage
Hyperpersonalisation:
transactional data
• Ask
• Thank you
• Miss You
Hyperpersonalisation:
transactional data
Hyperpersonalisation: survey
(Sean Triner – Pareto Fundraising)
• Survey Lost Dogs’ Home
• Your pet names:
Appeal letter
Dear Griet
Thank you for continued support of the Lost Dogs’
Home and especially for completing our recent survey.
As winter approaches it saddens me to think of the
thousands of puppies that unlike Max will need
rescuing from the streets by our trained staff…

© Pareto Fundraising August 2012
Personalization  Proximity (Sargeant)
• Before: "Hello. Thank you so much for supporting
public radio. How much would you like to give
today?“
• After: "Hello. Thank you so much for supporting
public radio. Someone from your town just called a
few minutes ago and gave $150. How much would
you like to give today?"
Personalizing  Muco
Personalizing  Muco
Muco: Results
Prospect

7% Response (ROI:34%)

(Acquisition)

25% Response (ROI: 1135%)

10% Response (ROI:144%)
Lapsed

Active

(Reactivation)

(Retention)
Eye-tracking
•
•
•
•

MMA-project (Ghent University)
Pictures / logo
Qualitative
Quantify through testing
Before/After
Difference in viewing time
8

7.087

7

6
5
4

3.099

3
2
1
0
Before

After
Blur

Normal

Frame
Difference in viewing time
35
30.901
30

27.449

25
20.312
20

15

10

5

0
Blur

Normal

Frame
Eye-tracking: conclusions
• Need, poverty, urgency, quite shocking
• Eye contact
• Close up
• Western children: be careful
• Logo charity
 test to quantify!
Questions?
Interested in working at DSC?
griet.verhaert@dsc.be

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Database Marketing Optimization for Nonprofit Fundraising

Editor's Notes

  1. 20000 areas and 700 variables: thisis !not! BIG DATA => 151MB4 Dec 2010 – The Verizon company offers a $15.00 plan that gives you 150 megabytesof data usage each month, but you would probably go over that levelYou don’tneedhigh-performance analyticsyetOn the other hand, acquisition isboth the first step in the customerlifecycle AND a first stepintoanalytics