A Scientist in Your Communications Department:Segmenting MessagesCustomizing ContentDelivering Results<br />Jeff Shuck, Pr...
Why Am I Here?<br />OBJECTIVE:<br /><ul><li>Strengthen your effectiveness in your fundraising communications</li></ul>OUTC...
A case for data-driven communications</li></ul>AGENDA:<br /><ul><li>Descriptive analysis
Predictive analysis
How to analyze the impact of your segmentation & targeting strategy</li></ul>DOES THIS WORK?<br />
Situation<br />Problem: Using online communications to increase fundraising.<br />Hypothesis: Personalizingcommunications ...
PROBLEM:<br />How do I utilize online communications to generate real fundraising results?<br />
The first rule of fundraising is to ASK.<br />
Long-time major donor, milestone birthday approaching.<br />Participated in a different event with siblings, lives with pa...
HYPOTHESIS:<br />Personalizing communications strategies and tactics through segmentation will increase your fundraising r...
What is segmentation?<br />Understand what makes your constituents tick.<br /><ul><li>Group them together based on similar...
Identify your highest potential groups.
Forecast future behavior based on information.</li></ul>Speak to each group differently.<br />
What happens if I don’t segment?<br />Oversaturate people with information.<br />Hit or miss on your messaging = no consti...
What happens if I do segment?<br />Right message to the right person at the right time.<br />Create a connection and gener...
PROCEDURE:<br />Identify groups with unique characteristics and talk to them based on what motivates them.<br />
Step 1: Collecting Data<br />Start with why.<br />Use the donor information you already have.<br />Group based on basic in...
Case Study:Komen Global Race for the Cure, Year One<br />Existing database was inconsistent.<br />Added a question to regi...
Step 2: Descriptive Analysis<br />Focus on donor characteristics.<br />Evaluate past behavior.<br />Segment based on chara...
Went beyond fundraisers vs. non-fundraisers.<br />Discovered clustering of fundraising around specific levels.<br />Combin...
Final Segmentation<br />
Online Communication<br />75 unique messages:<br />17 recruitment messages <br />46 fundraising messages <br />10 general ...
Step 3: Predictive Analysis <br />Use your constituent knowledge and information about past activities as indicators of po...
Registration time increases the likelihood of being a Pacesetter significantly.<br />Age raises the likelihood significant...
At registration asked: <br />“Do you plan on fundraising?”<br />“Are you interested in incentives?”<br />Received differen...
Step 4: Building Strong Messaging<br />Build a clear case for your event.<br />NEED: What problem are you trying to solve?...
Step 4: Lessons on Messaging<br />Make a specific ask.<br />Be simple and concise.<br />Focus on mission.<br />Demonstrate...
Case Study: Susan G. Komen 3-Day for the Cure<br />Acknowledgement of<br />past participation.<br />Specific, realistic as...
RESULTS:<br />More meaningful connections with your event participants and more money raised for your mission.<br />
How do you measure results?<br />Evaluate click-through and open rates.<br />After your event or campaign is complete, rev...
Goal Performance<br />Structure minimums and goals so that they are attainable and motivational. <br />
Impact on Fundraising<br />Median amount raised per fundraiser increased 20%, from $100 to $120.<br />
Impact on Gift Size<br />
Overall Impact<br />
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Nonprofit Fundraising: How to increase response rates through segmentation & personalisation

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Jeff Shuck's slides from the Resource Alliance's 2011 Fundraising Online virtual conference. Formerly known as IFC Online, Fundraising Online is the world's best 100% online fundraising conference.

The session covered how to segment with descriptive analysis; how to target with predictive analysis; and, how to analyze the impact of your segmentation and targeting strategy.

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  • How many of you shop using Amazon.com?Have any of you ever received an e-mail like this?This e-mail is an example of highly specific targeting. When I was logged into the site, I was searching for (xxx) and it took note of my activity on the site, what I put in my shopping cart, but maybe didn’t purchase, or what I spent time browsing and sent me this e-mail to follow up on my interests.
  • Another example of how people use your interests and what they know about you to target recommendations to what you might like, and therefore increase your interaction with their business.
  • You’re probably saying to yourself: “But, I’m not Amazon or Netflix. They have lots of money to do targeting like that. Isn’t that what big marketers do? I don’t have anything to sell these people, I’m asking them to donate to me. They aren’t giving me any information about who they are or what they’re interested in. They’re just writing me a check or making a donation online. How am I supposed to use these same tactics as those big marketers?”
  • So, that’s what we’re here today to discuss. How to segment your messages, customize your content – and most importantly, deliver event fundraising results.Using the science fair analogy to walk us through the process:First, we’ll discuss utilizing online communications to stimulate results in event fundraising. We’ll make the connection between new communications methods and traditional fundraising theory.Then, we’ll talk about what segmentation is – and why it will generate results.After we understand WHY segmentation, we’ll get into the nitty gritty and discuss how it works, how you can make it work for your organization and the different ways you can take it back to your organization now.Finally, we’ll talk about measuring the results. You want to make sure that the effort that you are putting in to analyzing your audience is actually generating your desired results.Along the way, I’ll be giving you some examples of how segmentation has worked for some of our most successful clients.
  • Main message for this section: Connect mass communications strategies to traditional fundraising techniques. Communicating with your event participants should utilize the same strategies that you use for smaller groups or individual major donors.
  • In order to better understand how to find a solution to the problem, let’s go back to the basics – in chemistry, you break it down to the basic elements, so let’s go back to some fundraising basics. I want you to look at your event participants as more than just event participants. They are valuable donors and fundraisers for your organization. Look at the lifetime amounts that some of your event participants have brought into your organization – they may have raised the same amount of money as a major donor, but you haven’t looked at them in that way because they are in your “event” bucket. This is why we’re going back to the fundraising basics – to remember that event participants are also fundraisers.Other fun fact: Au (Gold) is the most malleable and ductile of all metals; a single gram can be beaten into a sheet of 1 square meter, or an ounce into 300 square feet. Its uses vary from monetary exchange to jewelry to practical applications in electronics and industry. Like our communications plans, it can be shaped in whatever way we please and if we use it in the right way, it can return more value to us.
  • You won’t generate results unless you ask.You already know this – we’re going to apply some of the tools that you are already familiar with to your event communications strategies.The event has been created as a REASON to ask. Make sure that you are asking.You probably have a good group of supporters that you know will participate in your event. How are they going to know about your event unless you tell them about it and then ask them to be part of your event?Think about what you are saying in your e-mails? Are you giving people information? Are you asking them to do something? Ideally, you are offering both – information AND a call to action in your e-mails. Offering only one is not utilizing your communications methods to the full potential. You have to foster a give and take relationship with your donors and constituents. Give them a reason to give and offer them information and inspiration, so that when you ask, their answer is yes.
  • Animation comes out one-by-one. (one click, delay by 2 seconds)How do you get to the YES? Ask in a personal way.You would never approach a major donor with a form letter or a generic brochure, right? With the ability to personalize messages now, there is no reason that you should be sending generic communications to your constituent base via e-mail communications. While the audience is savvy enough to know that you aren’t sitting at your computer typing out an email in Outlook just to them, you should give them information that they care about and that is relevant to their reasons for supporting your organization in the first place.Understand why someone already supports your organization and speak to that.
  • Main message for this section: Sell the idea of segmentation.What is segmentation and WHY do we think it’s the right tool?Why segment with your eCommunications?
  • This is the strategy you use with your major donors. Look at your overall constituent base as all potential major donors and utilize your technology and your data to personalize your communications.
  • When you send the same messages to your entire constituent base, you run the risk of diluting your message – oversaturating people with information or asks from your organization that do not speak to their original reasons for supporting you. Your messages may resonate with some people very strongly, but may get lost with other people. If you overcommunicate with non-specific messaging, chances are you will get lost in the email clutter.
  • Refer back to the six rights. Catch people when they are in the right mindset. Talk to people about what they care about and tap into the reasons that they chose to support your organization in the first place.As you are able to segment people with more detail and into more specific groups – you will have more luck in generating real results.
  • Main message for this section: Getting into the nitty-gritty of how to segment.What information do you need to begin segmentation and how do you get it?The mechanics of descriptive analysisThe mechanics of predictive analysis
  • Often we don’t know the most important data. Start with why.What’s your connection to the cause? Why did you choose to donate? Use the donor information you already have:Address informationGift history (how much, how many, to what projects)Gender, birthdate (age)Group based on basic information, identify trends and adjust communications based on trends.Work towards standardizing your process, your questions, and your data entry to make measurement and evaluation easier.Need to start somewhere with segmentation. You have to see what you already know about your donors and constituents.Look at your registration or donation form. What information are you collecting?How can you use the information that you already have?Donor history, address information, gender, birthdate (age)To bring your data collection to the next level, use your event management tools to look at the following types of information:- How frequent is participation? (Once and done? Repeat participation?)How much are they collecting in donations?How many donors do they have?How soon do they make an ask after signing up?How far in advance of an event are people signing up?Are they recruiting other people to participate? What actions are those people taking?
  • We made sure everyone had to register online, including their connection to the cause.
  • “Take a microscope to your data – and this is where we use it and interpret”Now, you have your information - this is where we start to take action with it. You can use simple tools within your e-mail communication systems, or even a basic excel worksheet, to group your audience together based on various characteristics. Even if your organization only has basic information (address, gift history) – there is a lot that you can do to personalize your messages at this stage to generate initial responses.Give examples on how to use each type of data.Is your organization sponsoring events or projects in a specific geography? Use address information to communicate more directly. Acknowledge based on their specific gift history, not on your predefined levels. People love it when they feel like you know them personally and their specific gift is making an impact. By saying, your “$140 donation” versus seeing their name on a donor list of “gifts between $100 and $150 – you are developing a more personal connection with the specific action that person has taken.Talk about projects that they have donated to in order to keep them engaged. Ask their opinions about future projects – involve them in your community beyond just an ask for more money.If appropriate, use gender or birthdate information to talk to groups:Birthdate – time based communications, thank them for their support on their birthday with a personalized message from someone who has benefitted from your work. If your organization does work based on gender or age, tailor your project communications in that way.
  • Maybe add histogram.
  • 82: $2,250 and over2,393: Over about $250
  • Two ways of approaching predictive analysis:1 – sophisticated statistical analysis (via a tool such as SPSS)2 – can also do basic predictive analysis based on intuition, for example: “women survivors will react differently than men survivors.”Keep in mind, no predictive model will ever be completely accurate, but it will allow you to direct behavior more effectively.
  • An event case:Sets the tone and culture of the eventRecruits participantsCreates an easily repeatable fundraising ask for participants to makeSets a metric to report onPresents a purpose for growing over timeBe passionate.Be focused.
  • Thank you is key to relationship management. Validate their reasons for participating and/or giving:To feel good by doing something goodTo feel like they are part of a communityTo be acknowledged(Jimmy Fund bus example)
  • Segmentation e-mail example – past participant that hasn’t participated in a while.Acknowledge the way that they have participated in the past.Ask them to continue their involvement with your organization in a meaningful and realistic way for them.
  • Main message for this section: Analyzing resultsHow do you measure the results?Using case studies to demonstrate success.
  • Evaluate click-through and open rates.Compare to number of gifts and actions taken (e.g. event registration).After your event or campaign is complete, review the median gift size.If the asks are more powerful through segmentation, there will be a rise in the median gift size.Begin with measuring against year-ago to ensure change.Results provide important data for you to make adjustments and changes for campaigns in following years. Make note of trends and adjust your strategies accordingly.
  • When we were chatting the other day, you asked about the % of people who hit the 2008 suggested goal of $250. In 2008, 6.2% hit $250 or above. In 2009, 6.4% hit $250 or above.  In 2009, we shifted our suggested goal to $125. In 2008, 10% hit $125 or above.In 2009, 12% hit $125 or above.
  • How do you get to the YES? Ask in a personal way.You would never approach a major donor with a form letter or a generic brochure, right? With the ability to personalize messages now, there is no reason that you should be sending generic communications to your constituent base via e-mail communications. While the audience is savvy enough to know that you aren’t sitting at your computer typing out an email in Outlook just to them, you should give them information that they care about and that is relevant to their reasons for supporting your organization in the first place.Understand why someone already supports your organization and speak to that.
  • Nonprofit Fundraising: How to increase response rates through segmentation & personalisation

    1. 1. A Scientist in Your Communications Department:Segmenting MessagesCustomizing ContentDelivering Results<br />Jeff Shuck, President/CEO, Event 360<br />
    2. 2.
    3. 3. Why Am I Here?<br />OBJECTIVE:<br /><ul><li>Strengthen your effectiveness in your fundraising communications</li></ul>OUTCOME:<br /><ul><li>A few good ideas to test
    4. 4. A case for data-driven communications</li></ul>AGENDA:<br /><ul><li>Descriptive analysis
    5. 5. Predictive analysis
    6. 6. How to analyze the impact of your segmentation & targeting strategy</li></ul>DOES THIS WORK?<br />
    7. 7.
    8. 8.
    9. 9.
    10. 10.
    11. 11. Situation<br />Problem: Using online communications to increase fundraising.<br />Hypothesis: Personalizingcommunications to generate results.<br />Procedure: Identify groups and talk to them based on their motivations.<br />Results: More meaningful connections and more money raised for your mission.<br />
    12. 12. PROBLEM:<br />How do I utilize online communications to generate real fundraising results?<br />
    13. 13.
    14. 14. The first rule of fundraising is to ASK.<br />
    15. 15. Long-time major donor, milestone birthday approaching.<br />Participated in a different event with siblings, lives with parents at home.<br />Team captain for top fundraising team, thinking about retirement.<br />Board Member, married, no kids.<br />Directly affected by your cause, city-dweller.<br />New volunteer with your organization, parent.<br />“Likes” you on Facebook because a friend participated in an event, lives abroad.<br />Lapsed participant, but consistent donor.<br />The key is to ask in a personal way.<br />
    16. 16. HYPOTHESIS:<br />Personalizing communications strategies and tactics through segmentation will increase your fundraising results.<br />
    17. 17. What is segmentation?<br />Understand what makes your constituents tick.<br /><ul><li>Group them together based on similar characteristics.
    18. 18. Identify your highest potential groups.
    19. 19. Forecast future behavior based on information.</li></ul>Speak to each group differently.<br />
    20. 20. What happens if I don’t segment?<br />Oversaturate people with information.<br />Hit or miss on your messaging = no constituent action.<br />Lose the opportunity to build a meaningful connection.<br />
    21. 21. What happens if I do segment?<br />Right message to the right person at the right time.<br />Create a connection and generate a response.<br />Deepen relationships with people who care about your mission.<br />
    22. 22. PROCEDURE:<br />Identify groups with unique characteristics and talk to them based on what motivates them.<br />
    23. 23. Step 1: Collecting Data<br />Start with why.<br />Use the donor information you already have.<br />Group based on basic information.<br />Identify trends and adjust communications.<br />Work towards standardizing your process.<br />
    24. 24. Case Study:Komen Global Race for the Cure, Year One<br />Existing database was inconsistent.<br />Added a question to registration form: “What is your connection to the cause?”<br />Focused on building our understanding of who was actually coming and why, instead of deciding we already knew.<br />
    25. 25. Step 2: Descriptive Analysis<br />Focus on donor characteristics.<br />Evaluate past behavior.<br />Segment based on characteristics and past activity.<br />
    26. 26.
    27. 27. Went beyond fundraisers vs. non-fundraisers.<br />Discovered clustering of fundraising around specific levels.<br />Combined cause information with amount raised to create blended messages.<br />Don’t forget donors! <br />Case Study: Komen Global Race for the Cure<br />
    28. 28.
    29. 29.
    30. 30.
    31. 31. Final Segmentation<br />
    32. 32. Online Communication<br />75 unique messages:<br />17 recruitment messages <br />46 fundraising messages <br />10 general updates<br />2 donor messages<br />Yielded over 850,000 e-mail impressions.<br />
    33. 33. Step 3: Predictive Analysis <br />Use your constituent knowledge and information about past activities as indicators of potential future activity.<br />Identify a predisposition towards a specific action, give them messaging and tools to get there faster.<br />
    34. 34. Registration time increases the likelihood of being a Pacesetter significantly.<br />Age raises the likelihood significantly.<br />Cause motivation raises the likelihood significantly.<br />
    35. 35.
    36. 36. At registration asked: <br />“Do you plan on fundraising?”<br />“Are you interested in incentives?”<br />Received different messaging based on what they expected themselves to do, versus what they had already done.<br />Case Study:Komen Global Race for the Cure, Year Two<br />
    37. 37. Step 4: Building Strong Messaging<br />Build a clear case for your event.<br />NEED: What problem are you trying to solve?<br />IMPACT: What difference will you be making?<br />
    38. 38. Step 4: Lessons on Messaging<br />Make a specific ask.<br />Be simple and concise.<br />Focus on mission.<br />Demonstrate impact.<br />Say thank you.<br />
    39. 39. Case Study: Susan G. Komen 3-Day for the Cure<br />Acknowledgement of<br />past participation.<br />Specific, realistic ask that is tied to event.<br />
    40. 40. RESULTS:<br />More meaningful connections with your event participants and more money raised for your mission.<br />
    41. 41. How do you measure results?<br />Evaluate click-through and open rates.<br />After your event or campaign is complete, review the median gift size.<br />Results provide important data for you to make adjustments and changes for campaigns in following years. <br />
    42. 42. Goal Performance<br />Structure minimums and goals so that they are attainable and motivational. <br />
    43. 43. Impact on Fundraising<br />Median amount raised per fundraiser increased 20%, from $100 to $120.<br />
    44. 44. Impact on Gift Size<br />
    45. 45. Overall Impact<br />
    46. 46. Now what? The cheat sheet to take home.<br />Ask WHYpeople are supporting your organization’s mission.<br />GROUP people based on their interests.<br />PERSONALIZE your messages based on what you know about people’s motivations.<br />Build your CASE: Illustrate your NEED and the IMPACT a donation will make.<br />TEST and MEASURE the response to different messages.<br />THANK your donors.<br />
    47. 47. Long-time major donor, milestone birthday approaching.<br />Participated in a different event with siblings, lives with parents at home.<br />Team captain for top fundraising team, thinking about retirement.<br />Board Member, married, no kids.<br />Directly affected by your cause, city-dweller.<br />New volunteer with your organization, parent.<br />“Likes” you on Facebook because a friend participated in an event, lives abroad.<br />Lapsed participant, but consistent donor.<br />CONCLUSION: You have a diverse group of constituents.<br />
    48. 48. CONCLUSION: DATA + SEGMENTATION = INCREASED FUNDRAISING<br />
    49. 49. CONTACT<br />Event 360<br />205 N. Michigan Avenue, Suite 2640<br />Chicago, IL 60601<br />773.247.5360 | fundraising@event360.com<br />www.event360.com<br />www.facebook.com/EventFundraising<br />www.twitter.com/Event360<br />www.linkedin.com/company/Event-360<br />

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