speed dating the data geeks: what you need to know about nonprofit analytic trends and services

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

[email protected]

mailto:[email protected]

• 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








Level #2 - Medium Threshold








Level # 3 - Low Threshold







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!

speed dating the data geeks: what you need to know about nonprofit analytic trends and services

Data & Analytics