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 GoToWebinarand pressing Send
Today’s SessionThe 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 GiftSubsequent
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 BlackwellVice President, Analytic Services
• 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 heardof Prospect
Heard ofProspect,
don't knowmuch about.
Knows someabout
Prospect.
Knows a lotabout
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 Analysis2011 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 AMOUNTEXPAND REVENUE BY ASSURING “OPTIMAL” GIFT
Target Analytics Target Gift RangeWhat 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 RangeOpportunity AnalysisHow 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 $
IncrementalOpportunity 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 & RETENTIONOPTIMIZE 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
TippersNew 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 DollarLow 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 YouHighly 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 & NoteworthyNew 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 ConnectedGive 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 GenerousHighly 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 BestHighly 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 ClientResults Using Traditional RFM Model (Recency, Frequency, Monetary Amount)
Total File Mailed Respond RevenueResponse
Rate
Average
Gift
Revenue
Per Piece% Mailed Total Cost Net
Net Per
1000
Campaign
Total509,185 259,649 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 RevenueResponse
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
Dollar94,619 51,660 1,055 $25,293 2.04% $ 23.97 $ 0.49 55% $24,797 $496 $10
Not That Into
You17,099 9,050 63 $3,740 0.70% $ 59.37 $ 0.41 53% $4,344 ($604) ($67)
New &
Noteworthy26,084 16,430 265 $18,410 1.61% $ 69.47 $ 1.12 63% $7,886 $10,524 $641
Truly
Connected106,157 53,781 959 $66,074 1.78% $ 68.90 $ 1.23 51% $25,815 $40,259 $749
Habitually
Generous155,210 80,557 2,829 $138,885 3.51% $ 49.09 $ 1.72 52% $38,667 $100,218 $1,244
Best of the
Best59,148 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
TippersNew 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 year17% 15% 7.0 5.7
Exploit - High Value Donors
Truly ConnectedGive 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
HabituallyGenerous
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 BestHighly 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 request6% 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
REACTIVATIONEXTRACT 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 DollarDonors 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 DollarDonors 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 ShotsDonors who are unlikely to give an additional giftbased 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 DollarGifts
Good Acquisition Names Currently
Likely to Give Lower DollarGifts
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 AdvertisingBrand 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 AdvertisingCampaign Lift Test vs. Control – Affect of Advertising on All Channels
ControlCookie No Ad Served
TestCookie 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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