Segmentation And Personalisation Final Iwrm Bangalore 2009
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Transcript of Segmentation And Personalisation Final Iwrm Bangalore 2009
Presented by Sean Triner
Segmentation and personalisation
What we’ll cover today
1. Types of data to fuel growth
2. Segmenting and targeting your next fundraising campaign
3. The power of personalisation – The Lost Dogs’ Home Case Study
© Pareto Fundraising 2009
1. Types of data to fuel growth
ANALYTICALYour Growth
Your donor behaviourENVIRONMENTALHow much is given
GrowthCompetition
PERSONALTransactions
Bequest statusPet name
Motivations
Types of data
Technical Data• used
Strategic Data• informs
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environmental data
Mystery Shopping
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Benchmarking
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• Understand trends - scan industry and body reports
• Look at others - mystery shop
• Don’t have to be formally involved in benchmarking studies
• But, sharing for the greater good helps
Using environmental data
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analytical data
Gross Income By Calendar Year 1992-2008 - All
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Bequest Cash Community Corporate Event Gift In Kind Grants/TrustsIn Memoriam Merchandise Other Regular Gift Capital Campaign In Celebration Event Merchandise
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Where your money comes from
New Recruits By Year - All
13,243
6,0786,627
5,305
4,402
8,470
4,807
5,579
6,223
5,243
7,734 7,918
7,125
6,402
9,070
6,560
5,642
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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Number of donors recruited
$86
$58
$46
$34
$132
$174
$63
$4
$25
$14
$81
$164
$58
$5
$23
$11
$64
$131
$69
$9
$21
$10
$55
$57
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Direct Mail Face to Face Phone Phone Face to Face Phone
Cash Lottery Regular Gift
Value to Date by Gift and Channel
Ave Year1 Inc Ave Year2 Inc Ave Year3 Inc Ave Year4 Inc
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Value to date by donor type
YearRetained Donors Income
Retained %
Retained Donors Income
Retained %
Retained Donors Income
Retained %
2003 2,413 $285,664 75.8% 1,209 $58,668 53.4% 34,206 $1,253,913 42.0%2004 2,537 $300,404 71.7% 7,608 $383,625 45.4% 33,203 $1,220,102 40.7%2005 2,558 $294,457 66.4% 8,973 $407,627 50.1% 29,862 $1,157,286 41.9%2006 2,882 $335,475 67.4% 8,619 $430,831 48.0% 27,883 $1,138,266 45.9%2007 3,173 $361,419 59.1% 15,871 $899,425 53.6% 22,599 $692,119 32.1%2008 4,127 $465,254 25.2% 17,243 $923,565 45.3% 28,240 $1,587,719 59.4%
DM Cash Donors Phone Cash Donors Lottery Players
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Retention Rates
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personal data
Appeal letter
Dear Tania
Thank you for continued support of the Lost Dogs’ Home and especially for completing our recent survey.
As winter approaches it saddens me to think of the thousands of kittens that unlike Chi Cha and Zer Zac will need rescuing from the streets by our trained staff…
Benchmarking
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2. Segmenting and targeting
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Prospect or donor?
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100
0
10
20
30
40
50
60
70
80
90
100
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Recency Frequency Value
0-12 months >1 A $10,000+
13-24 1 B $5,000 - $9,999.99
25-36 C $2,500 - $4,999.99
37-48 D $1,000 - $2,499.99
49-60 E $500 - $999.99
61-72 F $250 - $499.99
73-84 G $100 - $249.99
85+ H <$100
Using RFV
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Segment # mailed # Resp % Resp Gross Net<=12 12,283 2,142 17.40% $149,008 $127,02213-24 3,905 285 7.30% $14,763 $7,77325-36 2,629 101 3.80% $6,328 $1,62237-48 1,055 32 3.00% $1,990 $10249-60 1,355 46 3.40% $2,640 $21561-84 1,166 42 3.60% $2,028 $2984+ 777 11 1.40% $1,650 $259
This illustrates the importance of recency in determining whether a donor will respond or not
Why is recency important?
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Segment # mailed # Resp % Resp Gross Net
Single 7,930 633 7.98% $58,719 $43,246
Multi 15,240 2,282 14.97% $132,118 $107,021
Donors who have made more than one gift have a much higher propensity to give again
Why is frequency important?
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The importance of value is not in the response rate but in the income generated
Why is value important?
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Value of Highest Gift ever Mailed Response Gross Ginc/'000 Av Gift
F <$10 584 22 3.80% $334 $572 $15
E $10-$24.99 1,860 137 7.40% $3,054 $1,642 $22
D $25-$49.99 1,308 129 9.90% $4,504 $3,443 $35
C $50-$99.99 1,667 154 9.20% $9,851 $5,909 $64
B $100-$249.99 1,588 134 8.40% $18,233 $11,482 $136
A $250+ 909 38 4.20% $19,711 $21,684 $519
Grand Total 7,916 614 7.80% $55,687 $7,035 $91
Decile Cumulative Gross Income Count Cumulative
Count % of Donors Cumulative % of Donors
1 $ 6,854,383 45 45 0.0% 0.0%
2 $ 13,708,765 292 337 0.2% 0.3%
3 $ 20,563,148 716 1,053 0.6% 0.9%
4 $ 27,417,531 1,291 2,344 1.1% 1.9%
5 $ 34,271,913 2,171 4,515 1.8% 3.7%
6 $ 41,126,296 3,557 8,072 2.9% 6.6%
7 $ 47,980,679 5,712 13,784 4.7% 11.2%
8 $ 54,835,061 10,018 23,802 8.2% 19.4%
9 $ 61,689,444 19,807 43,609 16.1% 35.5%
10 $ 68,543,827 79,193 122,802 64.5% 100.0%
122,802 122,802 100.0% 100.0%
80%
Pareto Principle – focusing where it matters
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• RFV drives your warm/house program
• Be smart, dig deep
• Focus on value, not cost
• Find out where you can have the biggest impact
Using analytical data
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Other Segmentation Possibilities
Payment type
Past campaign responses
Gender
Age
Type of credit card
Expressed wish
Using personal data
Find out who your donors are
Find out who your donors are
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Using the data
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Using the data, donor type
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Using the data, donor type
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Using the data, area
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Using the data, area
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Use transactional history
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• Survey, survey, survey
• Ask the questions, capture the answers, use the data
• Use transactional history to help drive response and gift levels
Using personal data
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A case study: The Lost Dogs’ Home
The Lost Dogs’ Home
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Gross Income for Individuals Over Years
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Direct Mail Event Membership Merchandise Other In Memoriam Internet Gift In Kind
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State of play
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Struggling for second gifts
Less donors giving multiple gifts
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Struggling to recruit
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Appeals program not thriving
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So, what did they do
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Found out who their donors were
What makes them tick?
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Got really personal
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Solicited real opinions
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Didn’t tippy toeing around bequests
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WARM SURVEY RESULTS 2004 2005 2006 2007 2008
Quantity Mailed 15,888 16,357 18,835 24,883 21,563
Total Response 2,769 3,947 4,874 6,746 5,509
Response Rate % 17% 24% 26% 27% 26%
Immediate Gross Income $104,178 $130,926 $111,890 $215,189 $178,381
Immediate Net Income $55,011 $64,494 $92,326 $148,860 $114,999
Confirmed Bequest 373 191 86 81 120
Intend to Bequest n/a 560 232 522 115
Consider Bequest 1056 647 614 335 156
Surveys rock
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They went online
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They went online, to get personal
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Asking the tough questions
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Getting personal: using the data
• Got personal with donors• Focused on areas of growth – monthly
giving, bequests• Put the fundraising into relationship
fundraising • Used data driven, disciplined direct
marketing• Were prepared to spend now, reap returns
later• Looked at what others were doing
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Getting cute
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Getting cute, but still data driven
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• Got personal with donors• Focused on areas of growth – monthly giving,
bequests• Put the fundraising into relationship fundraising • Used data driven, disciplined direct marketing• Were prepared to spend now, reap returns
later• Looked at what others were doing
So, what did they do?
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They changed donor behavior
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They changed donor behavior
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They talked honestly about bequests
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• Got personal with donors• Focused on areas of growth – monthly giving,
bequests• Put the fundraising into relationship fundraising • Used data driven, disciplined direct marketing• Were prepared to spend now, reap returns
later• Looked at what others were doing
So, what did they do?
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Solicited genuine feedback
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Solicited genuine, personal feedback
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Replayed it back
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They involved donors
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They involved donors
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© Pareto Fundraising 2009
• Got personal with donors• Focused on areas of growth – monthly giving,
bequests• Put the fundraising into relationship fundraising • Used data driven, disciplined direct marketing• Were prepared to spend now, reap returns
later• Looked at what others were doing
So, what did they do?
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They were disciplined through the mail
Getting clever, but data driven
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1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
This purple block represents income from the first appeal using the new strategy - to the same donors
Crisis appeal: immediate impact
© Pareto Fundraising 2009
• Got personal with donors• Focused on areas of growth – monthly giving,
bequests• Put the fundraising into relationship fundraising • Used data driven, disciplined direct marketing• Were prepared to spend now, reap returns
later• Looked at what others were doing
So, what did they do?
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Spend now, reap returns later
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
Income Net COF© Pareto Fundraising 2009
• Got personal with donors• Focused on areas of growth – monthly giving,
bequests• Put the fundraising into relationship fundraising • Used data driven, disciplined appeals• Decided to spend now, reap returns later• Looked at what others were doing
So, what did they do?
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Looked at what others were doing
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So, was it all worth it?
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Yes. In the short term..
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Yes. In the short term..
Knowing Bilbo increases upgrade
rates by 43%!
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$m
$1m
$2m
$3m
$4m
$5m
$6m
$7m
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Cash Regular Gift Bequest Merchandise Unsolicited In Memoriam Membership Event
Yes. In the medium term..
From 98 to 10,330 activemonthly donor’sApprox 1m USD
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0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Lost
Dog
s
Bush
Her
itage
Fund
Bene
vole
nt S
oc
TCCN
SW ACF
Hear
t
Jew
ish C
are
Wes
ley
CCIA
CHW
WW
F
SLS
Hear
t Fou
ndati
on N
Z
CMRI
Stro
ke Fo
unda
tion
The
Alfr
ed H
ospi
tal
MS
Rese
arch
Aus
tral
ia
Yes. In the long term..
5.7% of their active donors have confirmed they are leaving a bequest – that’s 1.649 donors
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$m
$1m
$2m
$3m
$4m
$5m
$6m
$7m
1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08
Cash Regular Gift Bequest Merchandise Unsolicited In Memoriam Membership Event
Yes. In the long term..
BUT, only now reaping the rewards
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1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 $-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
0%
10%
20%
30%
40%
50%
60%
70%
80%
Total Cost COF
Getting the balance right: cost v value
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THANK YOU
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