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The New Face of Prospect Development


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Today’s innovative prospect researchers are more focused on making business impact via informed decisions based on research, fact and business intelligence than ever before. In this session, learn about the direction in which the field of prospect research is moving, with the addition of social media and increased focus on data, analytics and ROI. This session will discuss the skills necessary for the prospect development professional, the “business intelligence agent," of tomorrow. Discussion will include how we spend our time, what is trending, and how to understand, measure and demonstrate the impact of prospect development in the context of nonprofit development. Prospect researchers are no longer the deckhands and are now steering the ship. Make sure that you are on the cutting edge of this shift.

The New Face of Prospect Development

  1. 1. The New Face ofProspect Development 800.933.4446 | |
  2. 2. Presented By Sally Boucher Director of Research, WealthEngine Institute Sally Boucher, CFRE, is the Director of Research at WealthEngine with a 15-year background in higher education, the arts, and human services development. She has provided professional services to hundreds of non-profit organizations. Sally is the primary author of the Growing Individual Gifts Workbook, the Best Practices for Prospect Research in Higher Education Fundraising Report, and a contributor to the Measuring Fundraising Return on Investment and the Impact of Prospect Research white paper. She regularly presents on analytics, return on investment, research and major | Page 2
  3. 3. WealthEngine Helps Nonprofits Find theRight People for the Right Purpose Who are my best donors and prospects? Analytics allows you to draw conclusions and make informed decisions. What can I learn about these people? In-depth, contextual information to better understand each of your prospects. How can I find more prospects just like them? Leading tools to build your prospect pipeline and thoughtfully expand your reach. What strategies should I use to reach them? Customized insight and advice to develop and execute your fundraising strategy with precision. Fully integrated. Scalable. Best in class. Your results are | Page 3
  4. 4. Agenda The Pulse of The Profession – How do we spend our time and what do we measure? What’s Trending? – What are the current trends and what are the skills we need? How does it all fit together? – Where does Prospect Development fit, and where do you fit? | Page 4
  5. 5. The Pulse of theProfession
  6. 6. The Pulse of the Profession Survey Results from Summer 2011 Received 100 responses We asked questions about five main categories of work within Prospect Development – Reactive Research – Proactive Research – Prospect Management – Analytics, Data Analysis and Information and Data Mining – Supervisory and Management For each area, we asked – What are your responsibilities? – What goals/metrics do you track? – If you track metrics, what were your results? | Page 6
  7. 7. Survey Respondents _________________________ Organization Type Current Title Administration/ Data Entry 8.9% Other 15% Director 22.8% Health Care Analyst 38.0% Education 60% Manager/Superv 25% isor 30.4%, Director 23% Non-profit Education Manager/Supervisor 30% Non-profit Hospital/Health Analyst 38% Care Other Non-profits Administration/Data Entry | Page 7
  8. 8. Salary Ranges of Respondents Over 50% of respondents fall into the $40K to $60K salary range Salary Ranges of Respondents $120,000 and above $90-99,000 $80-$89,000 $70-$79,000 $60-$69,000 $50-$59,000 Grand Total $40-$49,000 $30-$39,000 Below $30,000 Part-time No Answer 0% 5% 10% 15% 20% 25% | Page 8
  9. 9. Areas of Responsibility What are your current What job responsibilities responsibilities? do you aspire to in 1-3 years? Development Information… Dont Know/Not Sure Same Major Gifts Development Information Systems/Services Special Events Major GiftsStewardship/Donor Relations Special Events Annual Giving/Membership Stewardship/Donor Relations Planned Giving Annual Giving/MembershipCorporate/Foundation Giving Planned Giving Corporate/Foundation Giving Data Analysis/Analytics Data Analysis/Analytics Business/Finance Business/Finance Prospect Management Prospect Management Prospect Research Prospect Research 0% 20% 40% 60% 80% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% | Page 9
  10. 10. Time Spent in Key Areas 21%- 41%- 61%- 81%- Key Responsibility Area 0% 1%-5% 6%-20% 40% 60% 80% 100% Prospect Identification and Proactive Research 3% 6% 46% 33% 7% 2% 3% Prospect Research, Qualification and Reactive Research 2% 9% 19% 37% 18% 13% 1% Prospect Management and Tracking 10% 31% 29% 19% 0% 2% 0% Data Analytics, Data Management and Information Systems 15% 28% 27% 20% 3% 0% 1% Management and Supervisory 29% 23% 23% 10% 5% 1% | Page 10
  11. 11. Metrics and Goals Tracked in Proactive Research Metrics/Goals Proactive Research Number of prospects identified for major gifts Amount of capacity identified (For example, 10 prospects at…Number of prospects identified by source (such as wealth screening, … Do not track metrics in the area of proactive research Number of prospects identified for corporate and foundation giving Number of prospects identified for planned giving Number of hours spent doing proactive research Number of prospects identified for annual fund Number of publications reviewed 0% 10% 20% 30% 40% 50% 60% 70% | Page 11
  12. 12. Metrics and Goals Tracked in ReactiveResearch Metrics/Goals Reactive Research Number of research requests completed Number of full research profiles completed Number of research requests received Number of proactively identified prospects research-qualified Number of event bios completed Number of corporate and/or foundations researched Number of research briefs or rating memo’s completed Number of corporate and/or foundation research requests … Number of event bios requested Amount of capacity qualified (For example, 10 prospects at … Average response or turn-around time for research requests Average time to complete full profile Do not track metrics in the area of reactive prospect research Number of research hours worked Average time to complete research briefs or rating memosAverage time to complete corporate/foundation research brief Average time to complete event bios 0% 10% 20% 30% 40% 50% 60% | Page 12
  13. 13. Metrics and Goals Tracked in ProspectManagement Metrics/Goals Prospect Management Number of prospects assigned to front line fundraisers% of portfolios in various stages (i.e, qualification, cultivation, stewardship) Do not track metrics in the area of prospect management Number of group or prospect management meetings attended Number of one-on-one meetings with fundraisers Amount of capacity under management 0% 10% 20% 30% 40% 50% | Page 13
  14. 14. Metrics and Goals Tracked in Analytics andSupervisory Functions Metrics/Goals AnalyticsDo not track metrics in the area of analytics or data management Number of prospect lists for special events Number of prospect lists for planned giving Number of prospect lists of corporate and foundation funders Number of prospect lists for annual fund Number of predictive models created Number of predictive models deployed 0% 10% 20% 30% 40% 50% 60% 70% Goals/Metrics Supervisory Do not track metrics in the area of… Number of continuing education or… Number of staff supervised Number of staff training events conducted … 0% 10% 20% 30% 40% 50% 60% | Page 14
  15. 15. The Bottom Line Many people are happy where they are within the profession. The key areas where there is desired movement are into major gifts and stewardship/donor relations. The most time is still spent in Reactive Research. Proactive is next, with Prospect Management and Data Analytics activities almost equal. Most organizations track similar metrics in each of the major areas. These are relatively few and the actual measurements indicate that either few are truly tracking them, or that the results are not widely shared within the | Page 15
  16. 16. Trends in ProspectDevelopment
  17. 17. What do you see as trends in the field ofprospect development? “Increasing call upon the prospect researcher to lead in strategy development.” “Less emphasis on reactive research (i.e. profiles) and much more on prospect identification; use of analytic methodology.” “An increased focus on in-house analytics as a method of focusing fund raising efforts -- both on the annual and major giving fronts.” “Social media is making a difference and in many ways helps define who our audience is, especially in reaching different demographics.”Survey Says… | Page 17
  18. 18. What new skills are you learning or would you like to learnto help you keep pace with changes in the profession?? “Become more skilled at data mining.” “Data visualization - I just completed my first major data mining project, and the greatest challenge was conveying the information in an informative, revealing way.” “Keeping an open mind about Social Media availability, reliability and content.” “Just need more time to feel like I fully engage w/ social media, but what Ive done has been helpful and in so many ways beyond fundraising.”Survey Says… | Page 18
  19. 19. Trends in Prospect Development Relational – More collaborative, consultative relationships – More proactive, less reactive – Work with broader range of departments Analytic – More emphasis on data-driven decisions – More need for analysis, data mining, intelligent list-building – Predictive modeling gaining traction – Data visualization – Business Intelligence – Measure and Report Return on Investment Social Media – Crosses all boundaries – Flattens hierarchies – Anyone can talk, anyone can listen – Makes surveys and other forms of market research accessible – Increases data by magnitudes – big data! | Page 19
  20. 20. Trends: RelationalMore collaborative/consultative relationship with front line fundraisers and more interaction with other departments including marketing & communications, annual giving and planned giving What Does it Mean? Where Do I Start?• More involved in strategy • Schedule one-on-one meetings development • Build trust and credibility• Collaboration on improving • Develop partnerships fundraisers’ success means greater • Ask questions impact on organizational success • Learn more about their job• Influence which prospects are • Educate more about your job seen, which are prioritized, when • Make others aware of your gift is received interests and skills• Broader interface across entire unit means more opportunities to learn more and contribute more | Page 20
  21. 21. Trends: Relational Less Reactive/More Proactive Research What Does it Mean? Where Do I Start?• Less time reacting to others’ • Document time for reactive priorities research• More time setting priorities • Data speaks – use analytic skills to• More time planning full strategies show relative value of time spent• Collaborate on improving • If you work with a fundraiser who fundraisers’ performance metrics takes a list and gets the job done• Changing MGO expectations, skill without a lot of details, use that as sets evidence• More big picture/less small details • Make your case to limit requests to• Reactive is not ever going away so tie to specific development stages do not despair if that is your • Prioritize requests based on passion! importance – not time in the queue | Page 21
  22. 22. Trends: Analytic Analysis, Data Mining, Segmentation, Predictive Modeling What Does it Mean? Where Do I Start?• More involvement in strategy • Think “analytically” development • Need access to data• Measurable impact on fundraising • Start with Excel, may progress to success (ROI) specialized software• Influences decision-making at • Start with small projects every level of the development • Build credibility with audience unit • Learn how to explain results• Benefits can accrue to any/all visually and in layman’s terms departments • Find a willing collaborator • Show the benefit – what’s in it for them? | Page 22
  23. 23. Trends: Analytic Data Visualization/Business Intelligence Return on Investment What Does it Mean? Where Do I Start?• Impact is enterprise-wide • Take analysis one step further to• Drives decision making represent visually• Communication with all levels • Need good communications skills• All working from the same page • Excel, specialized software, CRM• Underline critical and actionable • Know what message you are information promoting• Report and communicate successes• Define Key Performance Indicators• Straddles IS, Research, Marketing• | Page 23
  24. 24. Trends: Social Media and New Technologies Social Media/New Technologies What Does it Mean? Where Do I Start?• New sources and types of information • Facebook, LinkedIn• Verification and interpretation key • Get comfortable with the platforms• New data to feed analytics and list • Keep an open mind building • Join your organization’s online• Enterprise-wide activity communities• Research opportunities • Join other communities that are• Listening opportunities (market relevant to your mission research) • Understand your organization’s• Responding opportunities policies or guidelines• Engagement opportunities • Listen and respond where• Talking to your donors and supporters appropriate yields better understanding and more • Surveys effective work • Experiment with analytic tools: Google analytics, Simply Measured, Sprout Social, Hootsuite | Page 24
  25. 25. The Changing Paradigm • Prospect Development is widening and deepening. • More data means more and Front Line Fundraising deeper insights. More data Development Major means more expertise Leadership Planned needed to extract, verify, Annual interpret and translate it. • The things Prospect Development is doing are touching more Communicatio departments and crossing Prospect Information more boundaries. ns and Development Systems Marketing • All of the trends are pointing to more strategy development, more influence in more areas, and more measurable | Page 25
  26. 26. What is your impact? Shorter time to Identified Donor cultivate and close Higher Gift Amount Alert improved timing More Gift Officer More Donor Satisfaction (ROPE) Satisfaction •Fewer “cold” calls •Started relationship •Larger Gift Amount from a more •Easier to build enlightened position relationship and •Involved in more engage prospect meaningful ways •Improved ability to get •Asked for appropriate referrals amount and type of Identified gift •Stirred Passions Natural Partner •Attended to | Page 26
  27. 27. Measuring Value What Are The Best Metrics? Number of prospects ID’d? Number of profiles completed? Or, number of gifts touched? Number of PD “influences” during the gift cycle? Time from ID to Close? Ratio of % of capacity ID’d/asked/received? Number of calls it takes a gift officer to get an appointment? Success of marketing/annual giving outreach based on list testing – improved response rates, average gift size, renewal rates? Is it all ROI? What about ROE? What about ROPE? | Page 27
  28. 28. Where Do You Fit?
  29. 29. Holland’s Six Personality Tendencies Who Do You Enjoy Working With? Enterprising Conventional Entrepreneur E C Banker Business Executive Bookkeeper Salesperson Secretary Travel Agent Data Computer Programmer Manager Financial Analyst Buyer Tax PreparerSocial RealisticReligious Worker Auto MechanicClinical Psychologist S People Things R Aircraft ControllerSpeech Therapist ElectricianNurse FarmerCounselor SurveyorTeacher Ideas Artistic Investigative Actor Geologist Composer Chemist Musician A I Physicist Designer Laboratory Assistant Interior Decorator Medical Technician Dancer Biologist | Page 29
  30. 30. This is a GREAT time to be in ProspectDevelopment 1. Determine : •What you are good at •What you enjoy doing •Who you enjoy working with 2. Be proactive and think outside the boundaries 3. Talk with colleagues and make sure they know what you want to do and where you want to go 4. Look for continuing education opportunities 5. Look for ways to start small and grow skills 6. Always think about how what you do adds value to your colleagues, department and | Page 30
  31. 31. More Wealth and FundraisingIntelligence
  32. 32. Knowledge Center & Thought LeadershipWe support innovation and advancement in the field… Growing Individual Gifts Workbook Tools you need to grow your fundraising results Free tools for every research request WealthEngine Institute Free education, knowledge sharing and | Page 32
  33. 33. Questions? Contact Us!If you’d like to learn more about how you can implementdata driven solutions in your nonprofit, contact us! 800.933.4446 Read more about WealthEngine’s Analytics for Nonprofits | Page 33