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Customer Intelligence
Ludo Longin
Administrateur Délégué Direct Social Communications
                   My favourite song: Queen


           Geert Verstraeten
           Partner at Python Predictions
              My favourite song: Absynthe Minded
Analytics in
                               Fundraising
                          How knowing donors
                         helps in growing donors

                 Ludo Longin   Geert Verstraeten
Direct Social Communications   Python Predictions
Direct Social Communications nv
= communication agency

°1985

1 activity:
  fundraising for humanitarian organisations

Team:
 12 enthousiastic people
Health                                 Food
Belgium   Belgian Assocation for Burn Injuries   Food Banks
          Belgian Cystic Fibrosis Assocation     Restaurants of the Heart
          Kom op Tegen Kanker (Cancer Assoc.)

World     Mercy Ships
          Chain of Hope
          Damien Foundation
          Medics Without Vacation
Children                             Animals
Belgium   Collective Research and Expression
          Youth Village
          Pelicano Foundation

World     If Child Help                        Veterinarians Without Borders
Handicap                         People
Belgium   Blind Care Light & Love          Flemish Autism Association

World     Handicap International           Pilots Without Borders
          Sensorial Handicap Cooperation   Mamas for Africa
                                           The Voice of the Lebanese Women
                                           Friends of Sister Emmanuelle
± 400 fundraising campaigns using dm

> 8,000,000 letters to private individuals

> 1,500,000 inserts in newspapers
                       > 600,000 donations per year


                       > 24,000,000 euros
Typical dm-donor in Belgium
Female
60+ years old
religious

Fully owned appartement/house

Adult children have left the house
Normal results of dm-campaigns
 Response rate in housemailing:
 ◦ 8%

 ◦ 10 %

 ◦ 12 %

 ◦ 14 %

 ◦ More than 15 %
Normal results of dm-campaigns
 Response rate in Acquisition campaigns:
 ◦ 2%

 ◦ 2,5 %

 ◦ 3%

 ◦ 4 or More %
Recruitment campaigns
     Where do we get our donors from?



                  CONSUDATA
 D.S.C.
                   + criteria
                                      Other
± 220,000                           databases
                    6 million
addresses
                   addresses
Our Prospection Approach
Customer/Donor Cloning




 Use of analytics: advanced (predictive models,
                             similarity models)
Python Predictions
 Core business: Predictive Analytics
 Since 2006
 Based in Brussels
 References:
Cloning in a Nutshell
 STEP   1   Select the best donors:
Cloning in a Nutshell
 STEP   2   Calculate area conversion rate:
Cloning in a Nutshell
 STEP   3   Calculate area profile
                                     Residents


                                     Housing



                                     Neighbourhood
Cloning in a Nutshell
 STEP   4   Build Predictive Model
                                 Residents


                                 Housing



                                 Neighbourhood
Cloning in a Nutshell
      STEP            5    Validate Predictions
           4,0%
                                                    Cloning
Response
           3,0%                                     Geo Segmentation
                                                    Age
           2,0%

           1,0%

           0,0%
                  0       50000   100000   150000     200000   250000   300000
                              Number of Households Targeted
Cloning in a Nutshell
     STEP            5           Validate Predictions
                                                                                                     Households we
                                                                                                     would target
                                                  Age category
                                                                                                     Households we
9%
8%                                                                                                   would not target
7%
6%
5%
4%
3%
2%
1%
0%
     0‐4   5‐9 10‐14 15‐19 20‐24 25‐29 30‐34 35‐39 40‐44 45‐49 50‐54 55‐59 60‐64 65‐69 70‐74 75‐79 80‐84 86‐89 90‐94 >95
Cloning in a Nutshell
                                                               Households we

   STEP                 Validate Predictions
                                                               would target
               5                                               Households we
                                                               would not target

            House surface                            Number of bathrooms
                                              21%

                                            9%
                                                                             26%
                                                                        8%
N/A < 35 m2 35 till 55 till 85 till 105 till > 125
            54 m2 84 m2 104 m2 124 m2 m2              0        1       2 or more
Campaign Results (First Test)
     Response Percentage               Average Donation Amount
                          2,71%
              2,29%                                            28,6 €
 1,98%                                             25,5 €
                                      21,6 €




Age > 55y     Cloning    Cloning     Age > 55y     Cloning    Cloning
            Top 100.000 Top 10.000               Top 100.000 Top 10.000

   improvement of 37% in                 improvement of 32% in
       response rate                        donation amount
Campaign Results (First Test)
              Break
   (revenue per letter sent)
                          0,78 €
 0,43 €
              0,58 €
                                     Current and
                                     Future Usage
Age > 55y     Cloning    Cloning
            Top 100.000 Top 10.000

improvement of 82% in
 revenue per letter sent
QUESTIONS?
                               Or later?

Ludo Longin                                        Geert Verstraeten
ludo.longin@dsc.be         geert.verstraeten@pythonpredictions.com
Tel +32 2 280 00 74                            Tel +32 2 762 69 00

Direct Social Communications                       Python Predictions
www.dsc.be                                 www.pythonpredictions.com

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Customerintel direct social communication analyticsinfundraising_ludo_l_geertv

  • 2. Ludo Longin Administrateur Délégué Direct Social Communications My favourite song: Queen Geert Verstraeten Partner at Python Predictions My favourite song: Absynthe Minded
  • 3. Analytics in Fundraising How knowing donors helps in growing donors Ludo Longin Geert Verstraeten Direct Social Communications Python Predictions
  • 4. Direct Social Communications nv = communication agency °1985 1 activity: fundraising for humanitarian organisations Team: 12 enthousiastic people
  • 5. Health Food Belgium Belgian Assocation for Burn Injuries Food Banks Belgian Cystic Fibrosis Assocation Restaurants of the Heart Kom op Tegen Kanker (Cancer Assoc.) World Mercy Ships Chain of Hope Damien Foundation Medics Without Vacation
  • 6. Children Animals Belgium Collective Research and Expression Youth Village Pelicano Foundation World If Child Help Veterinarians Without Borders
  • 7. Handicap People Belgium Blind Care Light & Love Flemish Autism Association World Handicap International Pilots Without Borders Sensorial Handicap Cooperation Mamas for Africa The Voice of the Lebanese Women Friends of Sister Emmanuelle
  • 8. ± 400 fundraising campaigns using dm > 8,000,000 letters to private individuals > 1,500,000 inserts in newspapers > 600,000 donations per year > 24,000,000 euros
  • 9. Typical dm-donor in Belgium Female 60+ years old religious Fully owned appartement/house Adult children have left the house
  • 10. Normal results of dm-campaigns Response rate in housemailing: ◦ 8% ◦ 10 % ◦ 12 % ◦ 14 % ◦ More than 15 %
  • 11. Normal results of dm-campaigns Response rate in Acquisition campaigns: ◦ 2% ◦ 2,5 % ◦ 3% ◦ 4 or More %
  • 12. Recruitment campaigns Where do we get our donors from? CONSUDATA D.S.C. + criteria Other ± 220,000 databases 6 million addresses addresses
  • 13. Our Prospection Approach Customer/Donor Cloning Use of analytics: advanced (predictive models, similarity models)
  • 14. Python Predictions Core business: Predictive Analytics Since 2006 Based in Brussels References:
  • 15. Cloning in a Nutshell STEP 1 Select the best donors:
  • 16. Cloning in a Nutshell STEP 2 Calculate area conversion rate:
  • 17. Cloning in a Nutshell STEP 3 Calculate area profile Residents Housing Neighbourhood
  • 18. Cloning in a Nutshell STEP 4 Build Predictive Model Residents Housing Neighbourhood
  • 19. Cloning in a Nutshell STEP 5 Validate Predictions 4,0% Cloning Response 3,0% Geo Segmentation Age 2,0% 1,0% 0,0% 0 50000 100000 150000 200000 250000 300000 Number of Households Targeted
  • 20. Cloning in a Nutshell STEP 5 Validate Predictions Households we would target Age category Households we 9% 8% would not target 7% 6% 5% 4% 3% 2% 1% 0% 0‐4 5‐9 10‐14 15‐19 20‐24 25‐29 30‐34 35‐39 40‐44 45‐49 50‐54 55‐59 60‐64 65‐69 70‐74 75‐79 80‐84 86‐89 90‐94 >95
  • 21. Cloning in a Nutshell Households we STEP Validate Predictions would target 5 Households we would not target House surface Number of bathrooms 21% 9% 26% 8% N/A < 35 m2 35 till 55 till 85 till 105 till > 125 54 m2 84 m2 104 m2 124 m2 m2 0 1 2 or more
  • 22. Campaign Results (First Test) Response Percentage Average Donation Amount 2,71% 2,29% 28,6 € 1,98% 25,5 € 21,6 € Age > 55y Cloning Cloning Age > 55y Cloning Cloning Top 100.000 Top 10.000 Top 100.000 Top 10.000 improvement of 37% in improvement of 32% in response rate donation amount
  • 23. Campaign Results (First Test) Break (revenue per letter sent) 0,78 € 0,43 € 0,58 € Current and Future Usage Age > 55y Cloning Cloning Top 100.000 Top 10.000 improvement of 82% in revenue per letter sent
  • 24. QUESTIONS? Or later? Ludo Longin Geert Verstraeten ludo.longin@dsc.be geert.verstraeten@pythonpredictions.com Tel +32 2 280 00 74 Tel +32 2 762 69 00 Direct Social Communications Python Predictions www.dsc.be www.pythonpredictions.com