how simple analysis opened up a new source of income lee gisbourne – database marketing manager
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How simple analysis opened up a new source of income Lee Gisbourne – Database Marketing Manager. Agenda. Background Database Marketing The Challenge The Analysis The Campaign Results Questions. 1 Background (a). Key dates. Charity founded in 1824 - PowerPoint PPT PresentationTRANSCRIPT
How simple analysis opened up a new source of income
Lee Gisbourne – Database Marketing Manager
Agenda
• Background
• Database Marketing
• The Challenge
• The Analysis
• The Campaign
• Results
• Questions
1 Background (a)
• Charity founded in 1824• (National Institution for the
Preservation of Life from Shipwreck …)
• Royal National Lifeboat Institution 1854
• First co-ordinated rescues with helicopters 1957
• Inland waters and beach lifeguards 2001
• Hovercraft and lifeboats on the Thames 2002
• Training college & survival centre 2004
Key dates
1 Background (b)
• Saving lives at sea • 235 stations• 330 lifeboats• 4,600 crew 3,000 shoreline
helpers• 163 beaches• 20 boats, 11 RWC• 900 lifeguards / 120 volunteers• 1,000+ fundraising branches
and guilds • 35,000 volunteer fundraisers • 97% volunteers
Key facts
1 Background (c)
• £64.2M rescue • £49.6M operational service• £4M prevention• £23M fundraising• No UK Government funding
The cost …
1 Background (d)
• 8,713 launches in 2010• 309 lives saved• 8,313 rescues (23 a day)• Beach Lifeguards called to
16,664 incidents in 2010• Assisted 18,779 people• 107 lives saved• Since 1824 more than 139,000
lives saved
… and the benefit
2 Database marketing
Key responsibilities
• Mailing selection & extraction – 100+ campaigns
• Data management - 2M supporter records
• Campaign results analysis
• Ad-hoc reporting
• KPI reporting
• Insight delivery
…delivery of data driven marketing
3 The challenge (a)
RNLI challenge
• Find a ‘significant’ new income stream
…from existing supporters
• Believed we have an affluent supporter base
• £25 average gift
• Full calendar of appeals and asks
• Within the constraints of current internal systems
3 The challenge (b)
Marketing challenge and aims
• Recognise ‘higher value’ supporters
• Provide a personalised supporter experience
• Introduce a tangible ask - £1214 to train a crew member
• Short term - 1 year commitment to training
• Allow the supporter to donate in the way that suited them
• Bridge the gap between ‘high level donors’ and ‘higher value’ supporters
4 Analysis (a)
Understanding the supporter base
• Past behaviour
• Transaction history
• Personal data
• Purchased demographics
Acorn classificationsWealth intelligenceAcxiom variables
4 Analysis (b)
• Do the RNLI have an affluent base?
• Is this just the charity supporting population?
Acorn classifications - wealthy achievers
4 Analysis (c)
• Acxiom waited attribute including;~ Household Income~ Type of Property~ Council Tax Banding of property~ Home ownership Status~ Number of earners in household~ Dependent children in household~ Investment Activity~ Credit Cards in household~ Technology in household
Household affluence
4 Analysis (d)
• Data audit• Wealth bands• Geographic region• Age bands• Social and corporate attitudes• Charity segments
Wealth intelligenceWealth band Total
£50m+ 250
£25m - £50m 250
£10m - £25m 700
£5m - £10m 3,500
£1m - £5m 18,500
Unknown 2,500
Grand Total 25,700
4 Analysis (e)
• 1/3 this year - active• 1/3 1 to 4 years• 1/3 5 years and over
Year of last donation
4 Analysis (f)
• 30% - under £25• 60% - £25 - £100• 3% - £200 - £5000
Total value of gifts over the last 12 months
Total value over 12 months Supporters
£1 - <£25 148,000
£25 - <£100 296,000
£100 - <£200 52,000
£200 - <£500 12,000
£500 - <£5000 3,000
£5000 or over 250
5 The Campaign (a)
The target market
• Analysis showed an affluent supporter base
• Decided to adapt a classic RFV
• Had given between £200 & £5,000 per year
• Had to have given it for the last 2 consecutive years
• Been supporting for over 5 years
• Personalised letter – giving history and years supporting
• A case for support document – highlighting what training crew go through
• Donation form and reply envelope
• Personal welcome call
• Several update mailings themed around training
The ‘pack’
5 The Campaign (b)
5 The Campaign (c)
3 Test segments
• High value committed givers - 370
• High value cash supporters - 410
• High value supporters choosing multiple payment methods - 370
Targets• Learn • 1% response rate
• Committed – 4% RR• Cash – 11% RR• Multi – 12% RR• 87 gave the full amount• Pack cost £5.16• Extra costs to manage
elements externally• Gift Aid Income £23K
• 12 months before £44,000• 12 months following £117,000 • 166% increase in income
KPI Results
Volume targeted 1175
Cash responses 67
Direct Debit response 37
Response Rate 9%
Income exc GA £106K
Expenditure £19K
ROI exc GA £5.60
6 Results (a)
Campaign results
6 Results (b)
Next Steps• Monitor the responders for the next 12 months - what do they do when they aren’t asked?
• 23 supporters have decide to continue
• Roll out to a large audience in 2012
• Tackle internal processing issues
6 Results (c)
Key Learning's and Advice• People will analyse your date for free … let them • You have a database full of data … you know your data better than anyone• Recency, Frequency, Value is always a good place to start
• Supporters will give high value gifts … but you do have to ask
• Do not let internal systems stop you testing something new … if you wait for systems to be perfect it will never happen