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Speed Dating the Data Geeks: What you need to know about Nonprofit Analytic Trends and Services

The session titled 'Speed Dating the Data Geeks' covers nonprofit analytic trends and services, focusing on how organizations can leverage data to improve fundraising and donor engagement. Panelists provide insights on important metrics, actionable data, and analytic methodologies while sharing real-world examples of successful data-driven strategies. Attendees are encouraged to develop priorities for testing and analytics based on their organizational objectives, opportunities, and resources.

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Speed Dating The Data Geeks – What you need to know about nonprofit analytic trends and services February 20, 2015 | 1:30 – 2:30 pm Eastern Speakers: John Ernst, John Blackwell, Joe Churpek and Richard Becker Thank you to our session sponsor:
SPEAKERS Richard Becker President Target Analytics/Blackbaud John Blackwell VP of Analytics Integral Joe Churpek Partner Analytical Ones
Let us know what you’re thinking! • Ask questions at any time by typing them into the Chat window within GoToWebinar and pressing Send
Today’s Session The era of Big Data… big isn’t always better • Which are the most important metrics? • What data can I make actionable? • Who can help me impact my program Panelists will give 3 distinct points of view and real world examples leveraging multi-channel data GOAL = Leave with better grasp of concepts and at least 1 idea that can impact your organization
Agenda • Integral - presentation and quick Q&A • Analytical Ones – presentation and quick Q&A • Target Analytics/Blackbaud – presentation and quick Q&A • Group Q & A
– Independent analytical consulting firm specializing in servicing the non-profit community – Experience includes working with more than 80 leading non-profits – Our strategic services and analytical applications enable clients to gain a comprehensive view of their business models and provide the insight to improve performance • Advanced analytics and modeling • Investment analysis and management • Scenario planning and forecasting
“How should my organization approach analytics?”
Create your priorities for testing and analytics based on: • Organizational objectives • Areas of opportunity • Budget • Timeline • Operational bandwidth (Some organizations need assistance creating objectives and determining priorities…and that’s okay, too!)
Example 1: Ask Optimization
Test: Ask Optimization • Improve ask strings across all donor groups • Improve reactivation rates of recently-lapsed, higher value donors • Due to weaker retention metrics for $50+ donors, this group became our first priority Opportunity: • Test names 15-36 months lapsed with HPC $50+ • Ask strings developed in the following order of priority (with a $15 floor applied to each scenario): • Use MRC where lower than HPC • Lowest gift amount in the last 60 months • 75% of donor’s HPC36 Methodology
Ask Test Results – 2 Month Test RESULTS: • Test treatment = Increase in responses (793 versus 674) • Test treatment = No decline seen in number of $50+ donors • Test treatment = Increase in responses at $25-$49 level • Test treatment = 25% increase in subsequent giving driven by the increased number of reactivated donors Responses Initial Revenue Average Gift Subsequent Revenue A: <$25 61 $862 $14.13 $633 B: $25-49.99 165 $4,891 $29.64 $3,162 C: $50+ 448 $41,307 $92.20 $12,214 TOTAL CONTROL 674 $47,060 $69.82 $16,009 A: <$25 53 $765 $14.43 $438 B: $25-49.99 278 $8,140 $29.28 $4,783 C: $50+ 462 $46,603 $100.87 $14,734 TOTAL TEST 793 $55,508 $70.00 $19,995 TEST LIFT 18% 18% 0% 25% CONTROL TEST
Bottom Line(s) Simple tests can be very productive “Uncomplicated” and “Analytics” can peacefully co-exist Analytics can benefit any organization, regardless of size or maturity level
Example 2: Planned Giving Model
Model: Planned Giving Donors • Assist Planning Giving officers with identifying PG prospects for improved targeting and productivity Opportunity: • Conducted exploratory analysis of interactions with PG touches/inquiries, along with birth date and score providing by prior vendor, in order to determine what variables will increase predictability • Built predictive model that ranks donors by likelihood to give Planned Gift • Validated model against hold-out group (group not used to build model) Methodology
PG Model Test Results RESULTS: • The new model (blue) sees a lift in response to PG interactions over the prior ranking system (orange) • Sees increased response over using no ranking at all (grey) DETAILS: • 80% of the PG $ last year came from the top 7% of the newly modeled file • Mailing just 30% of the eligible universe will yield nearly all available PG revenue, compared to mailing 70% of the universe as done in the past • #winning Prior Method Lift over Prior Vendor Ranking
Bottom Line(s) Aligning analytics with size of opportunity paid off in increased productivity Okay, fine… some analyses are complex But still, analytics can benefit any organization, regardless of size or maturity level
Question time! John Blackwell Vice President, Analytic Services jblackwell@integral-dc.com
• Full-service research team • Database Analytics • Donor Insight Research • We work exclusively with non-profits and the agencies who serve them
$167 $158 $170 $164 $202 $0 $50 $100 $150 $200 $250 FY10 FY11 FY12 FY13 FY14 CFL High Benchmark Low Benchmark _ 23.5% $38.45 Change from FY13 Database Analytics FY10 FY11 FY12 FY13 FY14 CFL $126 $189 $250 $301 $340 High Benchmark $99 $174 $278 $397 $513 Low Benchmark $62 $103 $147 $189 $225 $340 $513 $225 $0 $100 $200 $300 $400 $500 $600 # of Donors: Total Revenue: 4,058 $1,379,622
Database Analytics The Basics: • Revenue • Retention • Frequency, Gift Size • Long-term value • 5-Year projections • Giving by value segment • Giving by lifecycle • RFM Segment ROI • Major donor giving • Peer benchmarking Beyond the Basics: • Response modeling • Geographic analysis • Demographic analysis • Event analysis • Digital analysis • Response Curves • Upgrade/Downgrade • Acquisition “Break-even” • DM and Web testing • You dream it, we do it
Donor Insight Research 5% 27% 45% 67%66% 39% 17% 21% 0% 25% 50% 75% Never heard of Prospect Heard of Prospect, don't know much about. Knows some about Prospect. Knows a lot about Prospect. Gift to Prospect Gift to National Brand
The Three Ways to Improve Your Fundraising WIN LIFT KEEP
WIN: Offer Forecasting (Survey) Control Offer 3 Offer 2 Virtual Gift Rate Virtual Gift Rate Virtual Gift Rate
WIN: Integrated Marketing Analysis 2011 2012 2013 2014 Percent Diff. New Donors All sources Number New 2,447 792 1,175 2,201 87.32% Source: DM 1,696 297 598 1,438 140.47% Source: Newsletter 104 37 57 83 45.61% Source: Behavior Lessons 5 14 28 42 50.00% Source: Bequests 1 1 1 - -100.00% Source: Events 32 9 20 95 375.00% Source: General 187 264 274 270 -1.46% Source: Memorial 123 97 143 173 20.98% Source: Other 284 73 54 100 85.19% Source: Capital 15 - - Total Gifts 2,540 824 1,209 2,274 88.09% Total Revenue $636,952.00 $84,308.00 $148,172.00 $203,053.00 37.04% Average Gift Size $250.77 $102.32 $122.56 $89.29 -27.14% Revenue Per New $260.30 $106.45 $126.10 $92.25 -26.84% New DM Only Donors Number New 1,696 297 598 1,438 140.47% Total Gifts 1,758 310 614 1,475 140.23% Total Gross Revenue $63,009.00 $6,483.00 $23,383.00 $63,826.00 172.96% Average Gift Size $35.84 $20.91 $38.08 $43.27 13.62% Gross Revenue Per New $37.15 $21.83 $39.10 $44.39 13.51% Retained/Reactivated DM Only Donors (DM & Newsletter only revenue) Number Retained/Reactivated 4,274 2,925 3,075 3,657 18.93% Total Gifts 4,919 3,177 3,467 4,055 16.96% Total Gross Revenue $291,191.30 $194,819.28 $232,960.75 $289,900.00 24.44% Average Gift $59.20 $61.32 $67.19 $71.49 6.40% Revenue per Retained/Reactivated $68.13 $66.60 $75.76 $79.27 4.64% Gross Revenue by Channel DM $341,333 $195,807 $240,614 $334,657 39.08% Newsletter $22,700 $8,085 $19,777 $28,367 43.43% Behavior Lessons $647 $1,785 $3,879 $5,752 48.29% Bequests/Trusts $90,234 $100,847 $95,333 $125,788 31.95% Events $139,840 $58,986 $48,404 $29,420 -39.22% General $169,981 $233,564 $493,592 $307,070 -37.79% Memorial $26,914 $13,343 $84,079 $47,523 -43.48% Other $239,347 $329,540 $209,478 $215,315 2.79% Capital Campaign $671,845 $579,002 $2,025,244 $0 -100.00% Previous Years Current Year
LIFT: Major Donor Modeling 4% General Donor Major Donor
LIFT: Major Donor Modeling 4% 8% 7% 1% General Donor Major Donor Quantity Prospect Balanced Prospect Precision Prospect
LIFT: Major Donor Modeling Initiative Channel April May June July August Sept Oct Nov Dec Jan Feb March Level #1 - High Threshold Communications #1 Direct Mail Communications #2 Email Communications #3 Social Communications #4 Phone Communications #5 Direct Mail Communications #6 Email Communications #7 Social Communications #8 Phone Communications #9 Direct Mail Communications #10 Email Communications #11 Social Level #2 - Medium Threshold Communications #1 Direct Mail Communications #2 Email Communications #3 Social Communications #4 Phone Communications #5 Direct Mail Communications #6 Email Communications #7 Social Level # 3 - Low Threshold Communications #1 Direct Mail Communications #2 Email Communications #3 Social Communications #4 Phone Communications #5 Direct Mail Communications #6 Email
KEEP: Donor Letters (Focus Group) Donor perceptions of organization Value of a gift Emotional tone
Questions? – Thank You!
DIRECT MARKETING HIGH TOUCH FUNDRAISING DATA ENHANCEMENT / HYGIENE PERFORMANCE MANAGEMENT ACQUISITION MARKETING LISTS TARGET TAG MODELS: • LIKELIHOOD TO REACTIVATE MODEL • LIKELIHOOD TO CONVERT MODEL • LIKELIHOOD TO UPGRADE MODEL • LONG TERM VALUE MODEL (VEAM) SEGMENTATION: • LOYALTY INSIGHTS • LAPSED INSIGHTS • DONORVIEW APPENDS CONNECTION360 • ON-LINE ADVERTISING • MOBILE ADVERTISING NOZADONORS.COM RESEARCHPOINT NOZASEARCH.COM PROSPECTPOINT MODELS: • ANNUAL GIFT LIKELIHOOD • MAJOR GIFT LIKELIHOOD • PLANNED GIFT LIKELIHOOD • PRINCIPAL GIFT LIKELIHOOD • TARGET GIFT AMOUNT SEGMENTATION • WEALTH RATING • POWER SEGMENTS • INCOME360 • DISCRETIONARY SPEND INDEX ENTERPRISE DATA QUALITY • ADDRESS STANDARDIZATION (CASS) • ADVANCED ADDRESS CORRECTION (ACC) • NATIONAL CHANGE OF ADDRESS (NCOA) • PROPRIETARY CHANGE OF ADDRESS (PCOA) • DECEASED SUPPRESSION FINDER • ADDRESS FINDER (NCOA) • MATCHING GIFT FINDER • DECEASED INDIVIDUAL FINDER • E-MAIL FINDER • PHONE FINDER • CELL PHONE FINDER • AGE & BIRTH DATE FINDER • EMPLOYER FINDER • SOCIAL HANDLE FINDER COLLABORATIVE PEER BENCHMARKING OVERALL PROGRAM ASSESSMENT INTERACTIVE TOOLS • LTV EXPLORER • SCENARIO BUILDER • DASHBOARDS Enable NPOs to effectively engage supporters via DM channels Enable NPOs to effectively engage major giving prospects Enable NPOs to assess and benchmark their fundraising effectiveness Enable NPOs to improve the quality and level of insight within their CRM database Our Mission Target Analytics is the leading provider of analytic-driven insight for the non-profit market, leveraging our privileged data assets to enable effective supporter relationships BLACKBAUD TARGET ANALYTICS
Target Analytics Key Assets • TA Cooperative Database: World’s largest source of individual charitable giving • 80+ Million US Households, 3B+ Individual Gift Records, 1,000+ Non-Profit Contributors • NOZA Database: World’s largest source of sourced major gift information • 102+ Million Donation Records, Over 1 Million Records Added Per Month • donorCentrics: Non-profit industry’s largest fundraising performance benchmarking practice • Over 650 individual benchmarking participants • ResearchPoint: Non-Profit industry’s most prevalent prospect research software solution • Over 3,200 ResearchPoint clients in the U.S. • DataNet: Consumer Enterprise Data Platform • API Access to Consumer Data from 40+ providers
Acquire Convert Grow Retain Reactivate Target Analytics 3 Big Ideas for Fundraising Customer Lifecycle Optimize Gift Amount Combine insight around capacity, affinity, and behavior to optimize gift amount & increase donor lifetime value… you are “under-asking” & your donors are capable of giving more! Drive Brand Awareness Re-introduce your brand to create awareness, favorability, and consideration. Don’t give up on your lapsed donors, they are giving elsewhere! Drive Long Term Value Focus on LTV, not response. Use loyalty characteristics to determine where to invest marketing dollars. Not all donors are create equal, double down on high LTV prospects!
TARGET ASK AMOUNT EXPAND REVENUE BY ASSURING “OPTIMAL” GIFT
Target Analytics Target Gift Range What is Target Gift Range? Target Gift Range provides an optimal $ gift amount range for each of your constituents, enabling you to optimize your gift requests How does Target Gift Range work? Targeted gift range is modeled specific for your organization, based on a 360 degree view of a constituent’s philanthropic, behavioral, and financial profile Highest Gift by Donor Previous 12 Months by Target Analytics’ Target Gift Range Highest Gift Received Previous 12 Months Target Gift Range $ Amount # of Donors % of Donors $1-50 $50-100 $100-250 $250-500 $500-1k $1k-2.5k $2.5k-5k $5k-10k $10-25k $25k-50k $50-100k $100k+ $100K+ 2 0.0% 2 $50k–$100k 2 0.0% 1 1 $25 –$50k 12 0.0% 12 0 0 $10k–$50k 38 0.0% 33 4 1 0 $5k–$10k 101 0.0% 81 6 11 2 1 $2.5k-$5k 249 0.1% 177 30 18 23 1 0 $1k-$2.5k 855 0.2% 550 136 95 33 41 0 0 $500-$1k 2,256 0.5% 1,134 489 297 137 168 31 0 0 $250-$500 6,728 1.6% 2,570 1,600 1,221 453 578 286 20 0 0 $100-$250 29,938 7.1% 6,207 6,445 5,729 2,220 1,970 1,191 165 10 1 0 $50-$100 55,494 13.3% 10,841 14,671 13,898 7,074 4,679 3,035 1,214 79 3 0 0 $1-$50 323,067 77.2% 75,832 87,191 82,035 36,577 25,194 10,687 4,074 1,455 22 0 0 0 TOTAL ACTIVE 418,742 100.0% 75,832 98,032 102,913 59,490 40,731 19,846 10,142 4,781 810 155 6 4 Total File = 4,112,941, No Gift Prior 12 Months = 3,694,199 (89% of Total File) 75% of Client X’s Donors in the Previous 12 months gave a “High Gift” lower than their optimal gift potential
Target Analytics Target Gift Range Opportunity Analysis How much opportunity exists with improved accuracy of “ask amount” Highest Gift Received Previous 12 Months Target Gift Range Incremental Opportunity Highest Gift $ Amount Previous 12 Months Actual # of Donors Actual $ Raised Target Gift Range # of Donors Target Gift Range Low $ Target Gift Range Maximum $ Incremental Opportunity at Minimum Incremental Opportunity at Maximum $100K+ 2 $768,032 4 $400,000 $400,000 ($368,032) ($368,032) $50k–$100k 2 $127,892 6 $300,000 $600,000 $172,108 $472,108 $25k –$50k 12 $484,267 155 $3,875,000 $7,750,000 $3,390,733 $7,265,733 $10k–$50k 38 $706,706 810 $8,100,000 $20,250,000 $7,393,294 $19,543,294 $5k–$10k 101 $816,443 4,781 $23,905,000 $47,810,000 $23,088,557 $46,993,557 $2.5k-$5k 249 $989,037 10,142 $25,355,000 $50,710,000 $24,365,963 $49,720,963 $1k-$2.5k 855 $1,436,070 19,846 $19,846,000 $49,615,000 $18,409,930 $48,178,930 $500-$1k 2,256 $1,792,811 40,731 $20,365,500 $40,731,000 $18,572,689 $38,938,189 $250-$500 6,728 $2,571,545 59,490 $14,872,500 $29,745,000 $12,300,955 $27,173,455 $100-$250 29,938 $4,127,693 102,913 $10,291,300 $25,728,250 $6,163,607 $21,600,557 $50-$100 55,494 $4,802,216 98,032 $4,901,600 $9,803,200 $99,384 $5,000,984 $1-$50 323,067 $8,049,395 75,832 $75,832 $3,791,600 ($7,973,563) ($4,257,795) TOTAL 418,742 $26,672,107 418,742 $132,287,732 $286,934,050 $105,615,625 $260,261,943 At a similar response rate, had the optimal gift been given, Client X could have raised in incremental $105M - $260M Mid-Level Giving offers the greatest incremental revenue opportunity, $84M - $184M in incremental opportunity
LOYALTY & RETENTION OPTIMIZE ENGAGEMENT SPEND BASED ON LOYALTY AND LONG TERM VALUE
Loyalty insights What is Loyalty Insights? Segmentation system based on the charitable giving loyalty characteristics of an individual, based on their complete giving history to all non-profit organizations. How does Loyalty Insights work? Loyalty Insights places a non-profit’s active donors into one of 7 clusters based on their charitable giving and loyalty characteristics, enabling marketing prioritization and investment decisions Segment Description Recommended Client Strategy Tippers New donors to you and most frequently single gift donors to other organizations in your sector • Minimize Mailings • Treat with a transactional message (e.g. gift catalog offer) Constant Low Dollar Low dollar donors to you who are observed giving many low dollar donations to many organizations • Mail more frequently with low upgrade ask strings • Use a cheaper package to improve ROI Not That Into You Highly philanthropic donors to the Coop who have given only a few gifts to you over many years • Test with an acquisition message • Minimize solicitations New & Noteworthy New donor to you but highly philanthropic overall and gives higher than average gifts • Upgrade to maximize revenue quickly • Mail this group more frequently, especially in year one Truly Connected Give to very few Coop organizations and given on average 2X as many gifts to you • Treat with multi-channel approach, identify optimal channel • Cultivate for sustainer program, volunteering, & major giving Habitually Generous Highly philanthropic to you and in the Coop but not noticeable preference to you vs. other organizations • Stay the course, but consider smaller upgrade ask • Use caution when testing higher cost packages Best of the Best Highly philanthropic to you and in the Coop but give you 2X as much money annually as other orgs • Screen for wealth and cultivate for upgrade to major giving • Screen for age and include in planning giving mail strategy
Sample Client Results: Loyalty insights Example: International Relief Client Results Using Traditional RFM Model (Recency, Frequency, Monetary Amount) Total File Mailed Respond Revenue Response Rate Average Gift Revenue Per Piece % Mailed Total Cost Net Net Per 1000 Campaign Total 509,185 259,649 6,565 $ 353,797 2.53% $ 53.89 $ 1.36 51% $124,632 $229,165 $883 Results Using Loyalty Insights (Client identifies wasted mailings on unprofitable & unresponsive segments) Total File Mailed Respond Revenue Response Rate Average Gift Revenue Per Piece % Mailed Total Cost Net Net Per 1000 Tipper 50,868 20,032 255 $11,058 1.27% $ 43.36 $ 0.55 39% $9,615 $1,442 $72 Constant Low Dollar 94,619 51,660 1,055 $25,293 2.04% $ 23.97 $ 0.49 55% $24,797 $496 $10 Not That Into You 17,099 9,050 63 $3,740 0.70% $ 59.37 $ 0.41 53% $4,344 ($604) ($67) New & Noteworthy 26,084 16,430 265 $18,410 1.61% $ 69.47 $ 1.12 63% $7,886 $10,524 $641 Truly Connected 106,157 53,781 959 $66,074 1.78% $ 68.90 $ 1.23 51% $25,815 $40,259 $749 Habitually Generous 155,210 80,557 2,829 $138,885 3.51% $ 49.09 $ 1.72 52% $38,667 $100,218 $1,244 Best of the Best 59,148 28,139 1,139 $90,337 4.05% $ 79.31 $ 3.21 48% $13,507 $76,831 $2,730
Loyalty Insights – Active Donors Description Suggested Treatment Strategy % of Active Donors % of Revenue Prev. 24 Months # Orgs. Supported Previous 24 Mos. Avg. # Gifts Per Organization Caution – Low Value Donors Tippers New Donors to Client and most frequently single gift donors to other organizations • Minimize mailings • Treat with a transactional message (e.g. gift rather than mission based mail) 17% 12% 3.2 1.9 Constant Low Dollar Low dollar Donors to Client and other organizations • Mail more frequently with low upgrade ask strings • Use a cheaper package to improve return on investment 23% 8% 6.2 5.1 Not That Into You Highly philanthropic donors to other organizations, with only a few gifts to Client over many years • Test with acquisition message • Minimize solicitations 3% 2% 7.5 6.5 Explore - Mid-Value Donors New & Noteworthy Newer Donors who have given Client fewer gifts but are highly philanthropic with other orgs and give a higher than average gift • Upgrade to maximize revenue quickly • Mail this group more frequently, especially in the first year 17% 15% 7.0 5.7 Exploit - High Value Donors Truly Connected Give to very few organizations and give on average 2X as many gifts to Client • Treat with a multi-channel approach to determine optimal channel • Cultivate for sustainer program, mid / major giving, and planned giving 17% 28% 1.8 2.9 Habitually Generous Highly philanthropic to Client and other organizations but not noticeable preference to Client relative to other organizations • Stay the course, but consider smaller upgrade asks • Use caution when testing higher $ packages 18% 19% 7.6 7.1 Best of the Best Highly philanthropic to Client and other orgs but gives Client 2X much money annually as they do other organizations • Screen for upgrade in to mid / major giving • Include a planned gift request 6% 16% 7.2 7.2 44% of Client X revenue from 23% of Active Donors Constant Low Dollar looks good on response, but has terrible LTV
REACTIVATION EXTRACT VALUE FROM FORMERLY ENGAGED LAPSED DONORS
Reactivation Opportunity Description Suggested Treatment Strategy % of Lapsed (24-120 Month) 12 Month Revenue to Other Orgs # or Orgs Given to Since Lapsing # of New Orgs Given to Since Lapsing Re-Engage Missed Connections Donors who at the time of lapsing had shown engagement to Client beyond what they show other organizations. They are active donors with other organizations • Remind them of the value of their previous contributions, but also that more still needs to be done • Survey to determine why they stopped giving 19% 437,015 $25,714,954 $58.84 / Donor 4.43 1.73 Absent Allies Donors who at the time of lapsing with Client had shown engagement to Client beyond that with other organizations. They are no longer active with other organizations • If older, use infrequent stewardship only mailings • If younger, reconnect through non- traditional channels e.g. events and on- line 5% 106,603 $0 $0 / Donor 0.46 0.22 Re-Acquire Higher Dollar Donors who consistently give higher dollar gifts based on their giving history to Client and other organizations • Mail in an acquisition campaign with a higher ask string 10% 223,977 $18,777,952 $83.84 / Donor 3.86 1.63 Coop Stalwarts Donors who showed little engagement with Client prior, but are currently philanthropic with other organizations and are re-acquirable through acquisition • Mail in an acquisition campaign as if they are a new donor 39% 884,330 $81,746,279 $92.44 / Donor 7.24 2.74 Lower Expectations Lower Dollar Donors who are unlikely to give anything but a low dollar gift given their history to Client and other organizations • Mail in an acquisition campaign with a lower cost package and / or lower ask string 5% 106,337 $379,795 $3.57 / Donor 1.63 0.62 Long Shots Donors who are unlikely to give an additional gift based on their past and present giving to other organizations • Do not mail unless you are short on volume 23% 531,014 $6,446,192 $12.14 / Donor 1.53 1.01 45-55% of Client’s lapsed donors gave to another health related cause in the previous 12 months MC, HD, & CS (1.6M lapsed donors, 68% of lapsed donors) gave $126M to other organizations in the past 12 mos.
Additional Detail – Lapsed donors Missed Connections Absent Allies Higher Dollar Coop Stalwarts Lower Dollar Long Shots Previously engaged to Client, Active with Other Organizations Previously engaged to Client, No Longer Active w/ Other Orgs. Likely to Give Higher Dollar Gifts Good Acquisition Names Currently Likely to Give Lower Dollar Gifts Unlikely to Give an Additional Gift Total 437,015 106,603 223,977 884,330 106,337 531,014 Percentage 19% 5% 10% 39% 5% 23% Client Gifts Prior 6.25 3.43 2.14 2.05 1.82 1.37 Client Recency (Yrs.) 5.16 6.05 5.41 5.69 5.64 6.04 Recency with Other Orgs. 1.69 9.02 2.79 1.55 2.92 4.68 Total Gifts to Other Orgs. Since Lapsing 13.81 2.89 13.97 27.62 13.14 5.78 # Other Orgs Since Lapsing 4.43 0.46 3.86 7.24 1.63 1.53 Times Acquired Since Lapsing 1.73 0.22 1.63 2.74 0.62 1.01 Gift Size to Client $27.99 $23.93 $138.22 $25.49 $6.35 $38.45 Gift Size to Other Org. Since Lapsing $38.76 $32.52 $67.79 $39.40 $6.52 $40.87 Gifts Per Other Org. Since Lapsing 2.47 1.44 2.63 3.04 2.94 1.93 Total Gifts to Other Orgs. Lifetime 58.05 8.66 52.26 94.74 28.43 12.35 $17M in Opportunity $35M in Opportunity$15M in Opportunity
Reinforce the Brand with On-line AdvertisingClient • International Relief Organization Campaign Objective • Complement direct mail campaign targeting lapsed donors with on-line display advertising, serving direct mail recipients advertising impressions during 3 month direct marketing campaign • Improve overall campaign response and donations as a result of on-line advertising • Realize a minimum 1:1 return on advertising spend (ROAS) Campaign Scope # of Household Records – Mail File 1,006,374 Campaign Duration 3 Months Campaign Timing October 3, 2011 – December 31 Digital Campaign Spend $50,207 Cost per Thousand Impressions $9.60
Reinforce the Brand with On-line Advertising Brand Exposure Total Mail File - # of Households 1,006,374 Total # of Households with Cookies 518,402 % of Mail File with Cookies 51.5% Total # of Households Served Ads During Campaign 183,160 % of Mail File Served Ads 18.2% % of Mail File with Cookies Served Ads 35.3% # of Ads Served 5,229,916 Average Number of Ad Impressions Per Household 28.6 Average Number of Ad Impressions Per Household Per Month 9.5 183,160 Households were delivered 5,229,916 Ad Impressions Over 3 Months
Reinforce the Brand with On-line Advertising Campaign Lift Test vs. Control – Affect of Advertising on All Channels Control Cookie No Ad Served Test Cookie Ad Served Lift Unique Households 183,160 183,160 - Total Conversions 12,999 16,642 3,643 Total Revenue $906,729 $1,165,136 $258,407 Total Conversion Rate 7.10% 9.09% 28.0% $ Per Household $4.95 $6.36 28.5% Average Gift Per Donor $69.75 $70.01 0.4% Total Activity Associated with Connection360 produced 3,643 donors and $258,407 in donations, yielding an Total Return on Ad Spend of 5:1
Wrap up Key Ideas • Use analytics to assure the optimal gift amount, increasing your revenue and donor long term value • Focus retention and cultivation efforts on donors with high LTV potential and strong loyalty characteristics, ensuring marketing spend optimization. • Focus on reactivating lapsed donors, reintroducing your brand to create favorability and consideration – and leveraging analytics to target high value, actively philanthropic donors
Key Take Aways • Organizational priorities drive data needs, not the other way around • Simple still works! • Core Metrics like LTV, retention, high-value gifts, etc. still rule • Analysis/Modeling time and resources should be proportional to the size of the opportunity
Continue the discussion! • The vision of the IMAB is to promote a discussion of the various successes and failures related to integrated marketing: understandings, trends, benefits and adoptions of integrated marketing activities within the nonprofit community. • Visit us at imabgroup.net today!

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Speed Dating the Data Geeks: What you need to know about Nonprofit Analytic Trends and Services

  • 1.
    Speed Dating TheData Geeks – What you need to know about nonprofit analytic trends and services February 20, 2015 | 1:30 – 2:30 pm Eastern Speakers: John Ernst, John Blackwell, Joe Churpek and Richard Becker Thank you to our session sponsor:
  • 2.
    SPEAKERS Richard Becker President Target Analytics/Blackbaud JohnBlackwell VP of Analytics Integral Joe Churpek Partner Analytical Ones
  • 3.
    Let us knowwhat you’re thinking! • Ask questions at any time by typing them into the Chat window within GoToWebinar and pressing Send
  • 4.
    Today’s Session The eraof Big Data… big isn’t always better • Which are the most important metrics? • What data can I make actionable? • Who can help me impact my program Panelists will give 3 distinct points of view and real world examples leveraging multi-channel data GOAL = Leave with better grasp of concepts and at least 1 idea that can impact your organization
  • 5.
    Agenda • Integral -presentation and quick Q&A • Analytical Ones – presentation and quick Q&A • Target Analytics/Blackbaud – presentation and quick Q&A • Group Q & A
  • 6.
    – Independent analyticalconsulting firm specializing in servicing the non-profit community – Experience includes working with more than 80 leading non-profits – Our strategic services and analytical applications enable clients to gain a comprehensive view of their business models and provide the insight to improve performance • Advanced analytics and modeling • Investment analysis and management • Scenario planning and forecasting
  • 7.
    “How should myorganization approach analytics?”
  • 8.
    Create your prioritiesfor testing and analytics based on: • Organizational objectives • Areas of opportunity • Budget • Timeline • Operational bandwidth (Some organizations need assistance creating objectives and determining priorities…and that’s okay, too!)
  • 9.
  • 10.
    Test: Ask Optimization •Improve ask strings across all donor groups • Improve reactivation rates of recently-lapsed, higher value donors • Due to weaker retention metrics for $50+ donors, this group became our first priority Opportunity: • Test names 15-36 months lapsed with HPC $50+ • Ask strings developed in the following order of priority (with a $15 floor applied to each scenario): • Use MRC where lower than HPC • Lowest gift amount in the last 60 months • 75% of donor’s HPC36 Methodology
  • 11.
    Ask Test Results– 2 Month Test RESULTS: • Test treatment = Increase in responses (793 versus 674) • Test treatment = No decline seen in number of $50+ donors • Test treatment = Increase in responses at $25-$49 level • Test treatment = 25% increase in subsequent giving driven by the increased number of reactivated donors Responses Initial Revenue Average Gift Subsequent Revenue A: <$25 61 $862 $14.13 $633 B: $25-49.99 165 $4,891 $29.64 $3,162 C: $50+ 448 $41,307 $92.20 $12,214 TOTAL CONTROL 674 $47,060 $69.82 $16,009 A: <$25 53 $765 $14.43 $438 B: $25-49.99 278 $8,140 $29.28 $4,783 C: $50+ 462 $46,603 $100.87 $14,734 TOTAL TEST 793 $55,508 $70.00 $19,995 TEST LIFT 18% 18% 0% 25% CONTROL TEST
  • 12.
    Bottom Line(s) Simple testscan be very productive “Uncomplicated” and “Analytics” can peacefully co-exist Analytics can benefit any organization, regardless of size or maturity level
  • 13.
  • 14.
    Model: Planned GivingDonors • Assist Planning Giving officers with identifying PG prospects for improved targeting and productivity Opportunity: • Conducted exploratory analysis of interactions with PG touches/inquiries, along with birth date and score providing by prior vendor, in order to determine what variables will increase predictability • Built predictive model that ranks donors by likelihood to give Planned Gift • Validated model against hold-out group (group not used to build model) Methodology
  • 15.
    PG Model TestResults RESULTS: • The new model (blue) sees a lift in response to PG interactions over the prior ranking system (orange) • Sees increased response over using no ranking at all (grey) DETAILS: • 80% of the PG $ last year came from the top 7% of the newly modeled file • Mailing just 30% of the eligible universe will yield nearly all available PG revenue, compared to mailing 70% of the universe as done in the past • #winning Prior Method Lift over Prior Vendor Ranking
  • 16.
    Bottom Line(s) Aligning analytics with sizeof opportunity paid off in increased productivity Okay, fine… some analyses are complex But still, analytics can benefit any organization, regardless of size or maturity level
  • 17.
    Question time! John Blackwell VicePresident, Analytic Services jblackwell@integral-dc.com
  • 18.
    • Full-service researchteam • Database Analytics • Donor Insight Research • We work exclusively with non-profits and the agencies who serve them
  • 19.
    $167 $158 $170 $164 $202 $0 $50 $100 $150 $200 $250 FY10 FY11FY12 FY13 FY14 CFL High Benchmark Low Benchmark _ 23.5% $38.45 Change from FY13 Database Analytics FY10 FY11 FY12 FY13 FY14 CFL $126 $189 $250 $301 $340 High Benchmark $99 $174 $278 $397 $513 Low Benchmark $62 $103 $147 $189 $225 $340 $513 $225 $0 $100 $200 $300 $400 $500 $600 # of Donors: Total Revenue: 4,058 $1,379,622
  • 20.
    Database Analytics The Basics: •Revenue • Retention • Frequency, Gift Size • Long-term value • 5-Year projections • Giving by value segment • Giving by lifecycle • RFM Segment ROI • Major donor giving • Peer benchmarking Beyond the Basics: • Response modeling • Geographic analysis • Demographic analysis • Event analysis • Digital analysis • Response Curves • Upgrade/Downgrade • Acquisition “Break-even” • DM and Web testing • You dream it, we do it
  • 21.
    Donor Insight Research 5% 27% 45% 67%66% 39% 17% 21% 0% 25% 50% 75% Neverheard of Prospect Heard of Prospect, don't know much about. Knows some about Prospect. Knows a lot about Prospect. Gift to Prospect Gift to National Brand
  • 22.
    The Three Waysto Improve Your Fundraising WIN LIFT KEEP
  • 23.
    WIN: Offer Forecasting(Survey) Control Offer 3 Offer 2 Virtual Gift Rate Virtual Gift Rate Virtual Gift Rate
  • 24.
    WIN: Integrated MarketingAnalysis 2011 2012 2013 2014 Percent Diff. New Donors All sources Number New 2,447 792 1,175 2,201 87.32% Source: DM 1,696 297 598 1,438 140.47% Source: Newsletter 104 37 57 83 45.61% Source: Behavior Lessons 5 14 28 42 50.00% Source: Bequests 1 1 1 - -100.00% Source: Events 32 9 20 95 375.00% Source: General 187 264 274 270 -1.46% Source: Memorial 123 97 143 173 20.98% Source: Other 284 73 54 100 85.19% Source: Capital 15 - - Total Gifts 2,540 824 1,209 2,274 88.09% Total Revenue $636,952.00 $84,308.00 $148,172.00 $203,053.00 37.04% Average Gift Size $250.77 $102.32 $122.56 $89.29 -27.14% Revenue Per New $260.30 $106.45 $126.10 $92.25 -26.84% New DM Only Donors Number New 1,696 297 598 1,438 140.47% Total Gifts 1,758 310 614 1,475 140.23% Total Gross Revenue $63,009.00 $6,483.00 $23,383.00 $63,826.00 172.96% Average Gift Size $35.84 $20.91 $38.08 $43.27 13.62% Gross Revenue Per New $37.15 $21.83 $39.10 $44.39 13.51% Retained/Reactivated DM Only Donors (DM & Newsletter only revenue) Number Retained/Reactivated 4,274 2,925 3,075 3,657 18.93% Total Gifts 4,919 3,177 3,467 4,055 16.96% Total Gross Revenue $291,191.30 $194,819.28 $232,960.75 $289,900.00 24.44% Average Gift $59.20 $61.32 $67.19 $71.49 6.40% Revenue per Retained/Reactivated $68.13 $66.60 $75.76 $79.27 4.64% Gross Revenue by Channel DM $341,333 $195,807 $240,614 $334,657 39.08% Newsletter $22,700 $8,085 $19,777 $28,367 43.43% Behavior Lessons $647 $1,785 $3,879 $5,752 48.29% Bequests/Trusts $90,234 $100,847 $95,333 $125,788 31.95% Events $139,840 $58,986 $48,404 $29,420 -39.22% General $169,981 $233,564 $493,592 $307,070 -37.79% Memorial $26,914 $13,343 $84,079 $47,523 -43.48% Other $239,347 $329,540 $209,478 $215,315 2.79% Capital Campaign $671,845 $579,002 $2,025,244 $0 -100.00% Previous Years Current Year
  • 25.
    LIFT: Major DonorModeling 4% General Donor Major Donor
  • 26.
    LIFT: Major DonorModeling 4% 8% 7% 1% General Donor Major Donor Quantity Prospect Balanced Prospect Precision Prospect
  • 27.
    LIFT: Major DonorModeling Initiative Channel April May June July August Sept Oct Nov Dec Jan Feb March Level #1 - High Threshold Communications #1 Direct Mail Communications #2 Email Communications #3 Social Communications #4 Phone Communications #5 Direct Mail Communications #6 Email Communications #7 Social Communications #8 Phone Communications #9 Direct Mail Communications #10 Email Communications #11 Social Level #2 - Medium Threshold Communications #1 Direct Mail Communications #2 Email Communications #3 Social Communications #4 Phone Communications #5 Direct Mail Communications #6 Email Communications #7 Social Level # 3 - Low Threshold Communications #1 Direct Mail Communications #2 Email Communications #3 Social Communications #4 Phone Communications #5 Direct Mail Communications #6 Email
  • 28.
    KEEP: Donor Letters(Focus Group) Donor perceptions of organization Value of a gift Emotional tone
  • 29.
  • 30.
    DIRECT MARKETING HIGHTOUCH FUNDRAISING DATA ENHANCEMENT / HYGIENE PERFORMANCE MANAGEMENT ACQUISITION MARKETING LISTS TARGET TAG MODELS: • LIKELIHOOD TO REACTIVATE MODEL • LIKELIHOOD TO CONVERT MODEL • LIKELIHOOD TO UPGRADE MODEL • LONG TERM VALUE MODEL (VEAM) SEGMENTATION: • LOYALTY INSIGHTS • LAPSED INSIGHTS • DONORVIEW APPENDS CONNECTION360 • ON-LINE ADVERTISING • MOBILE ADVERTISING NOZADONORS.COM RESEARCHPOINT NOZASEARCH.COM PROSPECTPOINT MODELS: • ANNUAL GIFT LIKELIHOOD • MAJOR GIFT LIKELIHOOD • PLANNED GIFT LIKELIHOOD • PRINCIPAL GIFT LIKELIHOOD • TARGET GIFT AMOUNT SEGMENTATION • WEALTH RATING • POWER SEGMENTS • INCOME360 • DISCRETIONARY SPEND INDEX ENTERPRISE DATA QUALITY • ADDRESS STANDARDIZATION (CASS) • ADVANCED ADDRESS CORRECTION (ACC) • NATIONAL CHANGE OF ADDRESS (NCOA) • PROPRIETARY CHANGE OF ADDRESS (PCOA) • DECEASED SUPPRESSION FINDER • ADDRESS FINDER (NCOA) • MATCHING GIFT FINDER • DECEASED INDIVIDUAL FINDER • E-MAIL FINDER • PHONE FINDER • CELL PHONE FINDER • AGE & BIRTH DATE FINDER • EMPLOYER FINDER • SOCIAL HANDLE FINDER COLLABORATIVE PEER BENCHMARKING OVERALL PROGRAM ASSESSMENT INTERACTIVE TOOLS • LTV EXPLORER • SCENARIO BUILDER • DASHBOARDS Enable NPOs to effectively engage supporters via DM channels Enable NPOs to effectively engage major giving prospects Enable NPOs to assess and benchmark their fundraising effectiveness Enable NPOs to improve the quality and level of insight within their CRM database Our Mission Target Analytics is the leading provider of analytic-driven insight for the non-profit market, leveraging our privileged data assets to enable effective supporter relationships BLACKBAUD TARGET ANALYTICS
  • 31.
    Target Analytics KeyAssets • TA Cooperative Database: World’s largest source of individual charitable giving • 80+ Million US Households, 3B+ Individual Gift Records, 1,000+ Non-Profit Contributors • NOZA Database: World’s largest source of sourced major gift information • 102+ Million Donation Records, Over 1 Million Records Added Per Month • donorCentrics: Non-profit industry’s largest fundraising performance benchmarking practice • Over 650 individual benchmarking participants • ResearchPoint: Non-Profit industry’s most prevalent prospect research software solution • Over 3,200 ResearchPoint clients in the U.S. • DataNet: Consumer Enterprise Data Platform • API Access to Consumer Data from 40+ providers
  • 32.
    Acquire Convert GrowRetain Reactivate Target Analytics 3 Big Ideas for Fundraising Customer Lifecycle Optimize Gift Amount Combine insight around capacity, affinity, and behavior to optimize gift amount & increase donor lifetime value… you are “under-asking” & your donors are capable of giving more! Drive Brand Awareness Re-introduce your brand to create awareness, favorability, and consideration. Don’t give up on your lapsed donors, they are giving elsewhere! Drive Long Term Value Focus on LTV, not response. Use loyalty characteristics to determine where to invest marketing dollars. Not all donors are create equal, double down on high LTV prospects!
  • 33.
    TARGET ASK AMOUNT EXPANDREVENUE BY ASSURING “OPTIMAL” GIFT
  • 34.
    Target Analytics TargetGift Range What is Target Gift Range? Target Gift Range provides an optimal $ gift amount range for each of your constituents, enabling you to optimize your gift requests How does Target Gift Range work? Targeted gift range is modeled specific for your organization, based on a 360 degree view of a constituent’s philanthropic, behavioral, and financial profile Highest Gift by Donor Previous 12 Months by Target Analytics’ Target Gift Range Highest Gift Received Previous 12 Months Target Gift Range $ Amount # of Donors % of Donors $1-50 $50-100 $100-250 $250-500 $500-1k $1k-2.5k $2.5k-5k $5k-10k $10-25k $25k-50k $50-100k $100k+ $100K+ 2 0.0% 2 $50k–$100k 2 0.0% 1 1 $25 –$50k 12 0.0% 12 0 0 $10k–$50k 38 0.0% 33 4 1 0 $5k–$10k 101 0.0% 81 6 11 2 1 $2.5k-$5k 249 0.1% 177 30 18 23 1 0 $1k-$2.5k 855 0.2% 550 136 95 33 41 0 0 $500-$1k 2,256 0.5% 1,134 489 297 137 168 31 0 0 $250-$500 6,728 1.6% 2,570 1,600 1,221 453 578 286 20 0 0 $100-$250 29,938 7.1% 6,207 6,445 5,729 2,220 1,970 1,191 165 10 1 0 $50-$100 55,494 13.3% 10,841 14,671 13,898 7,074 4,679 3,035 1,214 79 3 0 0 $1-$50 323,067 77.2% 75,832 87,191 82,035 36,577 25,194 10,687 4,074 1,455 22 0 0 0 TOTAL ACTIVE 418,742 100.0% 75,832 98,032 102,913 59,490 40,731 19,846 10,142 4,781 810 155 6 4 Total File = 4,112,941, No Gift Prior 12 Months = 3,694,199 (89% of Total File) 75% of Client X’s Donors in the Previous 12 months gave a “High Gift” lower than their optimal gift potential
  • 35.
    Target Analytics TargetGift Range Opportunity Analysis How much opportunity exists with improved accuracy of “ask amount” Highest Gift Received Previous 12 Months Target Gift Range Incremental Opportunity Highest Gift $ Amount Previous 12 Months Actual # of Donors Actual $ Raised Target Gift Range # of Donors Target Gift Range Low $ Target Gift Range Maximum $ Incremental Opportunity at Minimum Incremental Opportunity at Maximum $100K+ 2 $768,032 4 $400,000 $400,000 ($368,032) ($368,032) $50k–$100k 2 $127,892 6 $300,000 $600,000 $172,108 $472,108 $25k –$50k 12 $484,267 155 $3,875,000 $7,750,000 $3,390,733 $7,265,733 $10k–$50k 38 $706,706 810 $8,100,000 $20,250,000 $7,393,294 $19,543,294 $5k–$10k 101 $816,443 4,781 $23,905,000 $47,810,000 $23,088,557 $46,993,557 $2.5k-$5k 249 $989,037 10,142 $25,355,000 $50,710,000 $24,365,963 $49,720,963 $1k-$2.5k 855 $1,436,070 19,846 $19,846,000 $49,615,000 $18,409,930 $48,178,930 $500-$1k 2,256 $1,792,811 40,731 $20,365,500 $40,731,000 $18,572,689 $38,938,189 $250-$500 6,728 $2,571,545 59,490 $14,872,500 $29,745,000 $12,300,955 $27,173,455 $100-$250 29,938 $4,127,693 102,913 $10,291,300 $25,728,250 $6,163,607 $21,600,557 $50-$100 55,494 $4,802,216 98,032 $4,901,600 $9,803,200 $99,384 $5,000,984 $1-$50 323,067 $8,049,395 75,832 $75,832 $3,791,600 ($7,973,563) ($4,257,795) TOTAL 418,742 $26,672,107 418,742 $132,287,732 $286,934,050 $105,615,625 $260,261,943 At a similar response rate, had the optimal gift been given, Client X could have raised in incremental $105M - $260M Mid-Level Giving offers the greatest incremental revenue opportunity, $84M - $184M in incremental opportunity
  • 36.
    LOYALTY & RETENTION OPTIMIZEENGAGEMENT SPEND BASED ON LOYALTY AND LONG TERM VALUE
  • 37.
    Loyalty insights What isLoyalty Insights? Segmentation system based on the charitable giving loyalty characteristics of an individual, based on their complete giving history to all non-profit organizations. How does Loyalty Insights work? Loyalty Insights places a non-profit’s active donors into one of 7 clusters based on their charitable giving and loyalty characteristics, enabling marketing prioritization and investment decisions Segment Description Recommended Client Strategy Tippers New donors to you and most frequently single gift donors to other organizations in your sector • Minimize Mailings • Treat with a transactional message (e.g. gift catalog offer) Constant Low Dollar Low dollar donors to you who are observed giving many low dollar donations to many organizations • Mail more frequently with low upgrade ask strings • Use a cheaper package to improve ROI Not That Into You Highly philanthropic donors to the Coop who have given only a few gifts to you over many years • Test with an acquisition message • Minimize solicitations New & Noteworthy New donor to you but highly philanthropic overall and gives higher than average gifts • Upgrade to maximize revenue quickly • Mail this group more frequently, especially in year one Truly Connected Give to very few Coop organizations and given on average 2X as many gifts to you • Treat with multi-channel approach, identify optimal channel • Cultivate for sustainer program, volunteering, & major giving Habitually Generous Highly philanthropic to you and in the Coop but not noticeable preference to you vs. other organizations • Stay the course, but consider smaller upgrade ask • Use caution when testing higher cost packages Best of the Best Highly philanthropic to you and in the Coop but give you 2X as much money annually as other orgs • Screen for wealth and cultivate for upgrade to major giving • Screen for age and include in planning giving mail strategy
  • 38.
    Sample Client Results:Loyalty insights Example: International Relief Client Results Using Traditional RFM Model (Recency, Frequency, Monetary Amount) Total File Mailed Respond Revenue Response Rate Average Gift Revenue Per Piece % Mailed Total Cost Net Net Per 1000 Campaign Total 509,185 259,649 6,565 $ 353,797 2.53% $ 53.89 $ 1.36 51% $124,632 $229,165 $883 Results Using Loyalty Insights (Client identifies wasted mailings on unprofitable & unresponsive segments) Total File Mailed Respond Revenue Response Rate Average Gift Revenue Per Piece % Mailed Total Cost Net Net Per 1000 Tipper 50,868 20,032 255 $11,058 1.27% $ 43.36 $ 0.55 39% $9,615 $1,442 $72 Constant Low Dollar 94,619 51,660 1,055 $25,293 2.04% $ 23.97 $ 0.49 55% $24,797 $496 $10 Not That Into You 17,099 9,050 63 $3,740 0.70% $ 59.37 $ 0.41 53% $4,344 ($604) ($67) New & Noteworthy 26,084 16,430 265 $18,410 1.61% $ 69.47 $ 1.12 63% $7,886 $10,524 $641 Truly Connected 106,157 53,781 959 $66,074 1.78% $ 68.90 $ 1.23 51% $25,815 $40,259 $749 Habitually Generous 155,210 80,557 2,829 $138,885 3.51% $ 49.09 $ 1.72 52% $38,667 $100,218 $1,244 Best of the Best 59,148 28,139 1,139 $90,337 4.05% $ 79.31 $ 3.21 48% $13,507 $76,831 $2,730
  • 39.
    Loyalty Insights –Active Donors Description Suggested Treatment Strategy % of Active Donors % of Revenue Prev. 24 Months # Orgs. Supported Previous 24 Mos. Avg. # Gifts Per Organization Caution – Low Value Donors Tippers New Donors to Client and most frequently single gift donors to other organizations • Minimize mailings • Treat with a transactional message (e.g. gift rather than mission based mail) 17% 12% 3.2 1.9 Constant Low Dollar Low dollar Donors to Client and other organizations • Mail more frequently with low upgrade ask strings • Use a cheaper package to improve return on investment 23% 8% 6.2 5.1 Not That Into You Highly philanthropic donors to other organizations, with only a few gifts to Client over many years • Test with acquisition message • Minimize solicitations 3% 2% 7.5 6.5 Explore - Mid-Value Donors New & Noteworthy Newer Donors who have given Client fewer gifts but are highly philanthropic with other orgs and give a higher than average gift • Upgrade to maximize revenue quickly • Mail this group more frequently, especially in the first year 17% 15% 7.0 5.7 Exploit - High Value Donors Truly Connected Give to very few organizations and give on average 2X as many gifts to Client • Treat with a multi-channel approach to determine optimal channel • Cultivate for sustainer program, mid / major giving, and planned giving 17% 28% 1.8 2.9 Habitually Generous Highly philanthropic to Client and other organizations but not noticeable preference to Client relative to other organizations • Stay the course, but consider smaller upgrade asks • Use caution when testing higher $ packages 18% 19% 7.6 7.1 Best of the Best Highly philanthropic to Client and other orgs but gives Client 2X much money annually as they do other organizations • Screen for upgrade in to mid / major giving • Include a planned gift request 6% 16% 7.2 7.2 44% of Client X revenue from 23% of Active Donors Constant Low Dollar looks good on response, but has terrible LTV
  • 40.
    REACTIVATION EXTRACT VALUE FROMFORMERLY ENGAGED LAPSED DONORS
  • 41.
    Reactivation Opportunity Description SuggestedTreatment Strategy % of Lapsed (24-120 Month) 12 Month Revenue to Other Orgs # or Orgs Given to Since Lapsing # of New Orgs Given to Since Lapsing Re-Engage Missed Connections Donors who at the time of lapsing had shown engagement to Client beyond what they show other organizations. They are active donors with other organizations • Remind them of the value of their previous contributions, but also that more still needs to be done • Survey to determine why they stopped giving 19% 437,015 $25,714,954 $58.84 / Donor 4.43 1.73 Absent Allies Donors who at the time of lapsing with Client had shown engagement to Client beyond that with other organizations. They are no longer active with other organizations • If older, use infrequent stewardship only mailings • If younger, reconnect through non- traditional channels e.g. events and on- line 5% 106,603 $0 $0 / Donor 0.46 0.22 Re-Acquire Higher Dollar Donors who consistently give higher dollar gifts based on their giving history to Client and other organizations • Mail in an acquisition campaign with a higher ask string 10% 223,977 $18,777,952 $83.84 / Donor 3.86 1.63 Coop Stalwarts Donors who showed little engagement with Client prior, but are currently philanthropic with other organizations and are re-acquirable through acquisition • Mail in an acquisition campaign as if they are a new donor 39% 884,330 $81,746,279 $92.44 / Donor 7.24 2.74 Lower Expectations Lower Dollar Donors who are unlikely to give anything but a low dollar gift given their history to Client and other organizations • Mail in an acquisition campaign with a lower cost package and / or lower ask string 5% 106,337 $379,795 $3.57 / Donor 1.63 0.62 Long Shots Donors who are unlikely to give an additional gift based on their past and present giving to other organizations • Do not mail unless you are short on volume 23% 531,014 $6,446,192 $12.14 / Donor 1.53 1.01 45-55% of Client’s lapsed donors gave to another health related cause in the previous 12 months MC, HD, & CS (1.6M lapsed donors, 68% of lapsed donors) gave $126M to other organizations in the past 12 mos.
  • 42.
    Additional Detail –Lapsed donors Missed Connections Absent Allies Higher Dollar Coop Stalwarts Lower Dollar Long Shots Previously engaged to Client, Active with Other Organizations Previously engaged to Client, No Longer Active w/ Other Orgs. Likely to Give Higher Dollar Gifts Good Acquisition Names Currently Likely to Give Lower Dollar Gifts Unlikely to Give an Additional Gift Total 437,015 106,603 223,977 884,330 106,337 531,014 Percentage 19% 5% 10% 39% 5% 23% Client Gifts Prior 6.25 3.43 2.14 2.05 1.82 1.37 Client Recency (Yrs.) 5.16 6.05 5.41 5.69 5.64 6.04 Recency with Other Orgs. 1.69 9.02 2.79 1.55 2.92 4.68 Total Gifts to Other Orgs. Since Lapsing 13.81 2.89 13.97 27.62 13.14 5.78 # Other Orgs Since Lapsing 4.43 0.46 3.86 7.24 1.63 1.53 Times Acquired Since Lapsing 1.73 0.22 1.63 2.74 0.62 1.01 Gift Size to Client $27.99 $23.93 $138.22 $25.49 $6.35 $38.45 Gift Size to Other Org. Since Lapsing $38.76 $32.52 $67.79 $39.40 $6.52 $40.87 Gifts Per Other Org. Since Lapsing 2.47 1.44 2.63 3.04 2.94 1.93 Total Gifts to Other Orgs. Lifetime 58.05 8.66 52.26 94.74 28.43 12.35 $17M in Opportunity $35M in Opportunity$15M in Opportunity
  • 43.
    Reinforce the Brandwith On-line AdvertisingClient • International Relief Organization Campaign Objective • Complement direct mail campaign targeting lapsed donors with on-line display advertising, serving direct mail recipients advertising impressions during 3 month direct marketing campaign • Improve overall campaign response and donations as a result of on-line advertising • Realize a minimum 1:1 return on advertising spend (ROAS) Campaign Scope # of Household Records – Mail File 1,006,374 Campaign Duration 3 Months Campaign Timing October 3, 2011 – December 31 Digital Campaign Spend $50,207 Cost per Thousand Impressions $9.60
  • 44.
    Reinforce the Brandwith On-line Advertising Brand Exposure Total Mail File - # of Households 1,006,374 Total # of Households with Cookies 518,402 % of Mail File with Cookies 51.5% Total # of Households Served Ads During Campaign 183,160 % of Mail File Served Ads 18.2% % of Mail File with Cookies Served Ads 35.3% # of Ads Served 5,229,916 Average Number of Ad Impressions Per Household 28.6 Average Number of Ad Impressions Per Household Per Month 9.5 183,160 Households were delivered 5,229,916 Ad Impressions Over 3 Months
  • 45.
    Reinforce the Brandwith On-line Advertising Campaign Lift Test vs. Control – Affect of Advertising on All Channels Control Cookie No Ad Served Test Cookie Ad Served Lift Unique Households 183,160 183,160 - Total Conversions 12,999 16,642 3,643 Total Revenue $906,729 $1,165,136 $258,407 Total Conversion Rate 7.10% 9.09% 28.0% $ Per Household $4.95 $6.36 28.5% Average Gift Per Donor $69.75 $70.01 0.4% Total Activity Associated with Connection360 produced 3,643 donors and $258,407 in donations, yielding an Total Return on Ad Spend of 5:1
  • 46.
    Wrap up Key Ideas •Use analytics to assure the optimal gift amount, increasing your revenue and donor long term value • Focus retention and cultivation efforts on donors with high LTV potential and strong loyalty characteristics, ensuring marketing spend optimization. • Focus on reactivating lapsed donors, reintroducing your brand to create favorability and consideration – and leveraging analytics to target high value, actively philanthropic donors
  • 47.
    Key Take Aways •Organizational priorities drive data needs, not the other way around • Simple still works! • Core Metrics like LTV, retention, high-value gifts, etc. still rule • Analysis/Modeling time and resources should be proportional to the size of the opportunity
  • 48.
    Continue the discussion! •The vision of the IMAB is to promote a discussion of the various successes and failures related to integrated marketing: understandings, trends, benefits and adoptions of integrated marketing activities within the nonprofit community. • Visit us at imabgroup.net today!