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DMA 2012: High Value Audiences Keep the Lights on

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Presented by Ashley Michael, Donor Conversion Manager at Heifer International, and Rob DiCesare, Director of Marketing Analytics at Acxiom

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DMA 2012: High Value Audiences Keep the Lights on

  1. 1. Ashley MichaelDonor Conversion Manager, Heifer International Rob DiCesare Director Marketing Analytics, Acxiom
  2. 2. Since 1944, Heifer has helpedmore than 15 million families inmore than 125 countries movetoward greater self-reliancethrough the gifts of animals andtraining.The most powerful aspect ofHeifer’s model is demonstrated aseach recipient passes on ananimal’s offspring and training inits care to another needyfamily, creating an ever-wideningcircle of hope.
  3. 3. • Acxiom provides data, processing, consulting, S MS / digital and/or other services to more than 7,500 recurring clients around the globe in approximately 50 countries and 20 languages• Named No. 1 U.S. Agency in 2010 for third year in a row, Ad Age• Named No. 2 in “World’s Top CRM/Direct Marketing Agencies” Ad Age
  4. 4. Spanning Business Models, One Thing Remains Constant…• A small portion of one’s potential audience accounts for a preponderance of success – the 80/20 rule• Heifer International has identified a program to improve their ability to define, recognize and understand the interaction of top audiences enabling them to increase impact and to keep the lights on for tens of millions of people in need around the world through self- sustaining gifts 4
  5. 5. High Value Audiences Keep theLights on…for Millions of People around the World Ashley Michael Rob DiCesare Donor Conversion Director Marketing Analytics, Manager, Heifer Acxiom International 5
  6. 6. Where Does It Start? Data Profile Analysis Giving • Lifestyle Profile Patterns Right • Demographics • Consumer Message, Right Behavior DonorMotivation Patterns Donor Product Types Selection 6
  7. 7. Behavioral Analysis A Donor InvestigationThe Six Ws Response Clusters • Donor Types Data Portrait • Giving PatternsWho: Giving Clusters and Analysis • Product Selection • Consumer • Motivation Patterns Donor Types • Lifestyle • DemographicsWhat: Product Clusters Predictive ModelingWhere: Transaction and Lifestyle Profiles Data Portrait AnalysisWhen: Transaction and Lifestyle ProfilesWhy: Motivation Clusters Right Message Right Donor • Increased Donor SatisfactionHow: Predictive Model • Increased Donor Engagement • Increased Revenue 7
  8. 8. Donor Profiles Segment 1 New Index Segment 2 Sustainer Index Segment 3 Active Index Occasional 4 Segment IndexAge 54 100 60 112 55 102 46 86Income $74,723 100 $68,701 92 $76,625 102 $79,011 106Net Worth $262,632 92 $249,186 87 $310,093 108 $325,211 113Home Value $236,843 98 $212,718 88 $253,996 105 $268,062 110Presence of Children 36% 104 26% 75 36% 104 40% 116Completed Graduate School 29% 94 31% 101 32% 103 31% 102International Travel 10% 98 12% 117 10% 97 9% 88Interest in the Arts 40% 95 45% 108 42% 101 41% 97Interest in Childrens Interests 53% 99 50% 93 55% 102 57% 105Interest in Environment 24% 91 33% 125 26% 97 23% 86Interest in Community/Charities 43% 94 53% 116 45% 99 42% 92Top Personicx Clusters 01 - Summit Estates 09 - Platinum Oldies 01 - Summit Estates 01 - Summit Estates 04 - Skyboxes & Suburbans 28 - Suburban Seniors 02 - Established Elite 04 - Skyboxes & Suburbans 02 - Established Elite 03 - Corporate Clout 04 - Skyboxes & Suburbans 07 - Lavish Lifestyles 8
  9. 9. Donor Profiles Compared Estimated HH Income 50% 40% Segment 1 30% New Segment 2 20% Age 1st Individual in HH Active Segment 3 Sustainer 10% Segment 4 70% Occasional 0% 60% 50%NewSegment 1 40%ActiveSegment 2 30%SustainerSegment 3Segment 4 20%Occasional 10% Net Worth 0% 50% 18-35 36-65 45% 66 + 40% 35% 30% 25% New Segment 1 20% Active Segment 2 15% Sustainer Segment 3 10% Segment 4 5% Occasional 0%
  10. 10. Results of Donor Analysis• Understanding differences and similarities between donor types ignited strategic discussions about how to personalize the approach to the donor base• Results: Generation of many actionable ideas about how to anticipate and influence donors 10
  11. 11. From Understanding to Anticipating and Influencing…
  12. 12. Work StepsStep 1 – Enhanced Donor Data with External Attributes• Append InfoBase® geo-demographic lifestyle data to the New Donor and Sustainer universe. Only records that matched used for modelingStep 2 – Identified Most Important Attributes for Modeling• Statistical analysis of individual variables to determine correlation to being a SustainerStep 3 – Built Regression Model• Determine a final regression equation for the Heifer International Sustainers 12
  13. 13. Predictive Model Example Data Only Top Decile is 4.5 Model enables precision times more likely targeting of best targets to be a SustainerDemi- % of Cumulative Cumulative CumulativeDecile N Target=Yes Pen Rate Index Target % Target % Index 1 5,356 2,272 42.4% 454 22.7% 22.7% 42.4% 454 Model targeting 2 5,356 1,231 23.0% 246 12.3% 35.0% 32.7% 350 3 5,356 919 17.2% 184 9.2% 44.2% 27.5% 295 lift vs. Random 4 5,356 779 14.5% 156 7.8% 52.0% 24.3% 260 5 5,356 649 12.1% 130 6.5% 58.5% 21.8% 234 6 5,356 639 11.9% 128 6.4% 64.9% 20.2% 216 7 5,357 535 10.0% 107 5.4% 70.3% 18.7% 201 8 5,356 498 9.3% 100 5.0% 75.2% 17.6% 188 9 5,356 426 8.0% 85 4.3% 79.5% 16.5% 177 10 5,356 358 6.7% 72 3.6% 83.1% 15.5% 166 11 5,356 324 6.0% 65 3.2% 86.3% 14.6% 157 12 5,356 279 5.2% 56 2.8% 89.1% 13.9% 149 13 5,356 238 4.4% 48 2.4% 91.5% 13.1% 141 14 5,357 238 4.4% 48 2.4% 93.9% 12.5% 134 15 5,356 162 3.0% 32 1.6% 95.5% 11.9% 127 16 5,356 137 2.6% 27 1.4% 96.9% 11.3% 121 17 5,356 110 2.1% 22 1.1% 98.0% 10.8% 115 18 5,356 89 1.7% 18 0.9% 98.8% 10.3% 110 19 5,356 71 1.3% 14 0.7% 99.6% 9.8% 105 20 5,356 44 0.8% 9 0.4% 100.0% 9.3% 100Total 107,122 9,998 9.3% - 13
  14. 14. Results• Targeted messaging to the most likely sustainers yielded larger gifts.• Targeting only the most likely sustainers will decrease campaign cost and allow for expense re-investment. 14
  15. 15. Takeaways• Understanding the donor base creates a more personalized approach to communications• This understanding enables anticipation and influence, which helps accelerate the conversion to a Sustainer• Donor insight development is an iterative process. These efforts create a path to a closer connection between donors and the cause 15
  16. 16. Questions?How to get involved.1. Choose Heifer holiday gifts this year. Chicks, a llama or even a Heifer will make an unexpected gift, and your friends and family will be honored you’ve given a gift of hope and self-reliance in their honor.2. Become a monthly donor and give animals throughout the year to help families build a brighter future.Find out more at www.heifer.org. 16
  17. 17. Thank You! www.heifer.org www.acxiom.com Stop by our Booth #513 17

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