Big Data – Big ROI

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Big Data Big ROI. Cathy Finney Deputy Vice President, Strategic Services The Wilderness Society Chuck Pruitt Co-managing Director, AB Data Kevin Moran Principal, Integral. # AtTheBridge. Session Objectives. Learn how to put together a strong case to leadership for growth. - PowerPoint PPT Presentation

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Big Data Big ROICathy FinneyDeputy Vice President, Strategic Services The Wilderness SocietyChuck PruittCo-managing Director, AB DataKevin Moran Principal, Integral#AtTheBridge

#AtTheBridge

Session ObjectivesLearn how to put together a strong case to leadership for growth.

Understand how to monitor your acquisition progress.

Understand how different approaches impact your return on investment.Cathy2#AtTheBridge

The state of the world today Chuck3#AtTheBridge

2012 Fundraising Effectiveness Survey Reportdone by the Association of Fundraising Professionals and the Urban Institutefound that the net gain in giving for charities in 2011 was $0.

That is, for every $100 a nonprofit gained in 2011 from new donors, higher giving from current donors and the return of former donors, it lost $100 through lower gifts from current donors and the loss of donors who gave in 2010 but not in 2011.Where we are Chuck4#AtTheBridge

For every 100 new and returning donors added to an organization in 2011, 107 departed

net gain in donors of -7. Why are we treading water?Chuck then pass to Cathy5#AtTheBridge

PRESSURE!!Economic turbulenceReduce or even keep flat your expense budget year after year.Bring in all your money online. Expand beyond your core constituency (younger, other demographics, etc.)Declining acquisition results.Shrinking list universe. Competing priorities (advocacy vs fundraising)Increased scrutiny from watchdog groupsIncreased competition. (but grow your membership base).Because thats free you know.

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Why dont you just save the money you propose investing in new donor acquisition and focus on the donors we have already?We have to answer the most irritating of questions:And the answer, as we all know, cant be because or thats just stupid or 7#AtTheBridge

As Roger Craver put it: At a time when the media and watchdogs are focused on the high costs of fundraising, particularly acquisition, we all need to get much better at explaining the increasingly expensive but essential acquisition process. The alternative is to leave donors turned off, anxious and angry.The Challenge We have to answer the most irritating of questions:And the answer, as we all know, cant be because or thats just stupid or 8#AtTheBridge

At TWS, we are smack dab in the middle of this very challenge. 9#AtTheBridge

The Wilderness SocietyOver the last 4 years, weve faced a 22% decrease in investment in acquisition membership has dropped 17%

The past three years weve seen declining acquisition investment, and therefore declining membership numbers.10#AtTheBridge

The Wilderness SocietyTo further complicate matters:

We know that in the past, we hadnt been breaking even on acquisition for at least 24 months

Over the last fiscal year, our control package has been in steep decline.

There was a real need to begin to shift our approach from short-term gain to long-term investment.

The solutions we sought relied both on DATA and CREATIVE.

At TWS, we are smack dab in the middle of this very challenge. The past three years weve seen declining acquisition investment, and therefore declining membership numbers.11#AtTheBridge

The Data

Developing a smart, data-driven strategy focusing on ROI and monitoring performance to this standard.Kevin12#AtTheBridge

The Standard Measures

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Quickly Understanding Investment Dynamics

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Are Your Investments Right?#AtTheBridge

Is This Program Growing Smart?

As they grow, costs increased initial metrics suggested they would not be able to grow and stay within a 12 month ROI#AtTheBridge

What are the Right Measures of Success

Investments focused on acquiring quality as they grew and long-term metrics became the primary investment drivers. They reduced the percentage of donors that will never break even.#AtTheBridge

And the program is getting stronger

Retention, Conversion, Second gift timing, value metrics etc. (whatever is important for you). These data points provide immediate insight into forecasting short and long term and help monitor investments#AtTheBridge

Now Compare to Other Channels to Determine the Value of Each

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Build Your Media Investment Map#AtTheBridge

Where to BeginBegin with end in mindWhat are your measures of success?Lagging, Current, Leading, StrategicDont Chase Metrics Shape ThemWhat Drives Value for YOUForget Big Data Think Smart DataCompare ChannelsCommunicate, Communicate, CommunicateEmbrace Inefficiency but move fast#AtTheBridge

Building the Investment Map#AtTheBridge

Creative Approaches to Improve Acquisition Performance and ROI

23#AtTheBridge

The Creative:

Different creative approaches both in messaging and production and the kind of new donor acquisition you engage in both by channel and message will significantly affect your return on investment.#AtTheBridge

Keeping Your Promise to the BossesUnderstand ROI

Smart, Data-Driven Investment Strategy that is:TransparentCarefully and Continually MonitoredConstantly Adjusted#AtTheBridge

Creative Approaches to Improve Acquisition Performance and ROIStrategies to Shorten ROI

Strategies to Reduce Initial InvestmentBig Data / Big ROI: A Case Study

Its More Than a Body Count:Changing the Mix to Improve ROI

#AtTheBridge27Big Data / Big ROI: A Case StudyValue Per Acquisition Joins in their 1st YearValue Per Member of the Overall Donor File

#AtTheBridge28#AtTheBridge

Big Data / Big ROI: A Case Study

Obama for AmericaBig Data and Big ROI on Steroids State-of-the-Art Micro-Targeting for Potential Donors Multi-Channel Integration to Improve ROI Cutting-Edge Donor File Segmentation Creative Strategies to Reduce Initial Investment

Authentic Voices

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The Internet is Change the Direct Mail Experience: Multi-Channel Marketing

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Breaking Your Bond with #10 Envelope

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The Wilderness SocietyOld StrategyFocus was on short-term metricsKey goal was quantity not quality

New StrategyBalance short and long term metrics ROI, retentionQuality then quantityROI is the primary measure of successMore donors joining over $20

Testing new creative approachesMoving toward a balance of non-premium and premium offersTrying to provide some channel balance

Additional half-million investment in acquisition has been approved for FY14.

At TWS, we are smack dab in the middle of this very challenge. The past three years weve seen declining acquisition investment, and therefore declining membership numbers.33Thank youDont forget to visit the Solutions Showcase! Many of the ideas discussed today are on display at the Solutions Showcase! #AtTheBridge

Cathy Finney Deputy Vice President, Strategic Servicescathy_finney@tws.orgChuck Pruitt Co-Managing Director of the A.B. Data GroupChuck_pruitt@abdata.com.

Kevin Moran Principal, Integral, LLCKevin@integral-dc.com

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