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Trying Times: Making the Case for New Donor Acquisition

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Bridge Conference 2013: Big Data; Big ROI Track.

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Trying Times: Making the Case for New Donor Acquisition

  1. 1. Big Data – Big ROI Cathy Finney Deputy Vice President, Strategic Services The Wilderness Society Chuck Pruitt Co-managing Director, AB Data Kevin Moran Principal, Integral #AtTheBridge
  2. 2. #AtTheBridge Session Objectives 1. Learn how to put together a strong case to leadership for growth. 2. Understand how to monitor your acquisition progress. 3. Understand how different approaches impact your return on investment.
  3. 3. #AtTheBridge The state of the world today …
  4. 4. #AtTheBridge 2012 Fundraising Effectiveness Survey Report—done by the Association of Fundraising Professionals and the Urban Institute—found that the “net gain in giving” for charities in 2011 was $0. That is, for every $100 a nonprofit gained in 2011 from new donors, higher giving from current donors and the return of former donors, it lost $100 through lower gifts from current donors and the loss of donors who gave in 2010 but not in 2011. Where we are …
  5. 5. #AtTheBridge • For every 100 new and returning donors added to an organization in 2011, –107 departed • “net gain in donors” of -7. Why are we treading water?
  6. 6. #AtTheBridge PRESSURE!! 1. Economic turbulence 2. Reduce – or even keep flat – your expense budget year after year. 3. Bring in all your money online. 4. Expand beyond your core constituency (younger, other demographics, etc.) 5. Declining acquisition results. 6. Shrinking list universe. 7. Competing priorities – (advocacy vs fundraising) 8. Increased scrutiny from watchdog groups 9. Increased competition.
  7. 7. #AtTheBridge “Why don’t you just save the money you propose investing in new donor acquisition and focus on the donors we have already?”
  8. 8. #AtTheBridge As Roger Craver put it: “At a time when the media and watchdogs are focused on the high costs of fundraising, particularly acquisition, we all need to get much better at explaining the increasingly expensive but essential acquisition process. The alternative is to leave donors turned off, anxious and angry.” The Challenge …
  9. 9. #AtTheBridge
  10. 10. #AtTheBridge The Wilderness Society • Over the last 4 years, we’ve faced a 22% decrease in investment in acquisition … membership has dropped 17%
  11. 11. #AtTheBridge The Wilderness Society To further complicate matters: • We know that in the past, we hadn’t been breaking even on acquisition for at least 24 months • Over the last fiscal year, our control package has been in steep decline. There was a real need to begin to shift our approach from short-term gain to long-term investment. The solutions we sought relied both on DATA and CREATIVE.
  12. 12. #AtTheBridge The Data Developing a smart, data-driven strategy focusing on ROI and monitoring performance to this standard.
  13. 13. #AtTheBridge The Standard Measures
  14. 14. #AtTheBridge Quickly Understanding Investment Dynamics
  15. 15. #AtTheBridge Are Your Investments Right?
  16. 16. #AtTheBridge Is This Program Growing Smart? $20.96 $21.50 $22.13 $22.42 $23.86 $26.28 $32.76 $33.17 $0 $5 $10 $15 $20 $25 $30 $35 2010 2011 2012 2013 CPD & Subsequent Value - OutsideLists Sub Val 24 Sub Val 18 Sub Val 12 Sub Val 6 AG CPD As they grow, costs increased initial metrics suggested they would not be able to grow and stay within a 12 month ROI
  17. 17. #AtTheBridge What are the Right Measures of Success Investments focused on acquiring quality as they grew and long-term metrics became the primary investment drivers. They reduced the percentage of donors that will never break even.
  18. 18. #AtTheBridge And the program is getting stronger Retention, Conversion, Second gift timing, value metrics etc. (whatever is important for you). These data points provide immediate insight into forecasting short and long term and help monitor investments
  19. 19. #AtTheBridge Now Compare to Other Channels to Determine the Value of Each JoinSourceId AG CPD VPD6 VPD12 Act12 NPD 12 Offline Direct Response $22.17 $33.17 $32.91 $42.22 36.85% 9.05$ Offline Total $22.17 $38.74 $32.91 $42.22 36.85% 3.48$ Online Email Conversion $64.89 $8.28 $82.63 $93.24 37.64% 84.96$ Website $84.11 $0.00 $115.65 $143.22 23.25% 143.22$ Online Advertising $66.99 $131.00 $92.66 $121.36 13.48% (9.64)$ Social Media $109.45 $157.68 $146.19 $163.83 18.39% 6.15$ Acquired Email $37.17 $168.86 $53.48 $74.85 27.29% (94.01)$ Online Total $75.42 $15.02 $162.25 $177.88 24.37% $162.86 Grand Total $29.28 $35.57 $38.79 $65.92 33.88% $30.35
  20. 20. #AtTheBridge Build Your Media Investment Map Media Investment Map Direct Marketing Module 1-Time Acquisition Major Gifts Planned Gifts Web Online Ads New Initiatives Monthly Conversion Online Ads Web Increased Investments Online ads DRTV Direct Mail Face to face Web
  21. 21. #AtTheBridge Where to Begin 1.“Begin with end in mind” 2.What are your measures of success? 3.Lagging, Current, Leading, Strategic 4.Don’t Chase Metrics – Shape Them 5.What Drives Value for YOU 6.Forget Big Data – Think Smart Data 7.Compare Channels 8.Communicate, Communicate, Communicate 9.Embrace Inefficiency – but move fast
  22. 22. #AtTheBridge Building the Investment Map Step 1 • Begin with End in Mind • Understand the your value driving metrics. • Identify your lagging, current, leading, strategic. • Incorporate these into today’s strategies. Step 2 • Shape your Metrics don’t chase them • Compare the channels. • Paint your media investment map. • Embrace the inefficiencies, but move fast. Step 3 • Communicate • Communicate to the Senior Management • Communicate to your partners • Communicate to your team. • Monitor your measurements against multiple growth scenarios.
  23. 23. #AtTheBridge Creative Approaches to Improve Acquisition Performance and ROI
  24. 24. #AtTheBridge The Creative: Different creative approaches – both in messaging and production – and the kind of new donor acquisition you engage in – both by channel and message – will significantly affect your return on investment.
  25. 25. #AtTheBridge Keeping Your Promise to the Bosses • Understand ROI • Smart, Data-Driven Investment Strategy that is:  Transparent  Carefully and Continually Monitored  Constantly Adjusted
  26. 26. #AtTheBridge Creative Approaches to Improve Acquisition Performance and ROI • Strategies to Shorten ROI • Strategies to Reduce Initial Investment
  27. 27. Big Data / Big ROI: A Case Study It’s More Than a Body Count: Changing the Mix to Improve ROI #AtTheBridge
  28. 28. Big Data / Big ROI: A Case Study $36.47 $38.37 $45.58 FY10 FY11 FY12 $111.04 $113.01 $126.85 FY10 FY11 FY12 Value Per Acquisition Joins in their 1st Year Value Per Member of the Overall Donor File #AtTheBridge
  29. 29. #AtTheBridge Big Data / Big ROI: A Case Study Obama for America Big Data and Big ROI on Steroids… • State-of-the-Art Micro-Targeting for Potential Donors • Multi-Channel Integration to Improve ROI • Cutting-Edge Donor File Segmentation • Creative Strategies to Reduce Initial Investment
  30. 30. Authentic Voices #AtTheBridge
  31. 31. The Internet is Change the Direct Mail Experience: Multi- Channel Marketing #AtTheBridge
  32. 32. Breaking Your Bond with #10 Envelope #AtTheBridge
  33. 33. #AtTheBridge The Wilderness Society Old Strategy • Focus was on short-term metrics • Key goal was quantity not quality New Strategy • Balance short and long term metrics – ROI, retention • Quality then quantity • ROI is the primary measure of success • More donors joining over $20 • Testing new creative approaches • Moving toward a balance of non-premium and premium offers • Trying to provide some channel balance Additional half-million investment in acquisition has been approved for FY14.
  34. 34. Thank you Don’t forget to visit the Solutions Showcase! Many of the ideas discussed today are on display at the Solutions Showcase! #AtTheBridge Cathy Finney – Deputy Vice President, Strategic Services cathy_finney@tws.org Chuck Pruitt – Co-Managing Director of the A.B. Data Group Chuck_pruitt@abdata.com. Kevin Moran – Principal, Integral, LLC Kevin@integral-dc.com

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