connected crm a nonprofit view of getting great at centering
TRANSCRIPT
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A Nonprofit View of
Enterprise Connected CRM
Nonprofit Vertical Workshop
CONNECTED CRM Getting Great at Centering Your Organization Around the Constituent Presented By: Jeff Patrick
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Overview
• Nonprofit Industry Challenges – Organizations are seeking ways to optimize their fundraising in the post-
recession climate and with the emerging boomer donor segment – Constituents are demanding a more personalized experience – A 360-degree view of the constituent is desired but difficult to attain – Digital media is proliferating among donors and prospects – Multi-channel marketing is increasingly difficult to measure and manage – Enterprise-wide CRM data integration is valuable but complex – Internal challenges such as cross-departmental competing objectives
and metrics continue to hold back efforts to embrace CRM.
• Opportunity for Nonprofits We explore the opportunities delivered via cCRM to address these
nonprofit industry challenges including segmentation and analytics, personalization, attribution, financial planning, data integration, and organizational change management.
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4
Impact of US Recession on Charities:
Over the past five years the median household income has declined 7.3%.
Individuals gave about 1.9% of their household income to charity in 2011; down 22% since 2005.
In 2011 each household gave $351 less to charity than in 2007. As incomes begin to rise again, the question is whether giving percentages will return to pre-recession levels.
Less Income & Lower % to Charity = Less Charity Dollars
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Projected Growth in People 65+ Provides Opportunities
Over the next two decades the population of people age 65+ is expected to grow 80%. The growth will bring about new challenges for nonprofits as giving attitudes and behaviors are expected to be different than previous generations.
Baby boomers offer a big
opportunity for nonprofits
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1980 2013
Among consumers, the digitization of media delivery and consumption is here and it is picking up speed…
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Challenges and Opportunities
Lower DM Responsiveness
Proliferation of Media
Recovering Economy
Boomers as Savvier & More Demanding Donors
Unconnected Data
Missing Skill Sets
Organizational Silos
More Scrutiny of Investments
Attribution Data Integration Segmentation & Analytics
External Threats Internal Challenges
Personalization Financial Planning
Org Change Management
Opportunities
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The Evolution of a Constituent-Centric Organization
Traditional Direct Response
Targeted Direct Response
Constituent-Centric Marketing
Campaign-Based One Size Fits All
Campaign-Based One Size Fits All (with Exceptions)
Communications Optimized to Segment/Individual
Segmentation • DM - List level acquisition • RFM segmentation
• DM - List level acquisition • Limited off-the-shelf models • Special groups (ex. mid-tier
donors)
• Constituent segments • Individual targeting, new
constituencies • Custom targeting models
Channel & Messaging
• Direct Mail and Telemarketing • One size fits all
• DM – Big channel but waning • Digital – Fastest growing • Largely DM+EM integration • Some message personalization
• Proliferating targetable digital options
• Multichannel integration • Customized by segment
Efficiency & Control
• Everyone gets everything • List brokers control
• Multiple constituent data sources
• Everyone gets everything with limited exceptions
• Optimized to maximize constituent-level ROI
• Nonprofit has control
1980 - 2000 2000 - 2010 2010-Future
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Organization-wide constituent segments tie engagement to organizational strategy
Constituent Segmentation • Practical way to manage , plan
around, and strategize on constituents
• Enterprise segments are used to determine group(s) of constituents that align with organization strategy
• Multiple dimensions can be employed depending on purpose: attitudes, behaviors, demographics, psychographic, value, lifecycle
Program(s) | Transactions | LTV | Demographics | Psychographics
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Enterprise-wide view of the constituent
Social DM & EMail
Display
Search DRTV
Mobile
Website
Call Center
Telemarketing
Major Donor Meetings
Walk Events
Gala Event
Media
Channels
Development
Mission
Optimize the management of every constituent touchpoint across: • Media (Outbound) • Channels (Inbound) • Departments
Best experience for donors
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Personalized targeting for each constituent segment
Fundraising plan created by segment: - Media - Channel - Contact frequency - Fundraising program mix - Creative type
Media Preferences
Mid-tier Giving
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This increasingly data-driven fundraising is taking hold across all media and channels as digitization and innovation proliferates
• Cookies & PII • Targeting & Content
• Cookie & CRM Record • Targeting & Content
• CRM Record
• Device ID • Real-time bidding
• Cookie & Key Words • Bidding & Content
• Name & Address • Targeting & Content
• CRM Record • Treatment & Offer
• CRM Record • Offer
• CRM Record • Offer
• Social Handle • Targeting & Content
Display
Website
DRTV
Mobile
Search
DM & Email
Affiliate Office
Call center
Med
ia T
arge
ting
Major Gift Officer
Social Ch
anne
l Cus
tom
izat
ion
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Proliferation of media & channels generates a more complex contact history for each constituent
Contact history reflects the sequence of fundraising touches for this constituent
User ID Date Time Event ID Event Desc
1234 2/1/2012 DM437 DM Delivered
1234 2/2/2012 3:05 pm DI9076 Display Impression
1234 2/2/2012 3:06 pm CC068 Inbound Call Center
1234 2/2/2012 5:05 pm EM087 Sent Email
1234 2/2/2012 9:30 pm EM088 Opened Email
1234 2/2/2012 9:30 pm EM089 Clicked Email
1234 2/6/2012 9:00 pm PS674 Clicks Paid Search
1234 2/6/2012 9:15 pm Q8740 Completes donation
Contact History Details
Contact History Data Master Record
Event ID EM088
Creative A2346 Making the difference in a child’s life
Offer OI92365 $0.30 per day
Program P978 Susatiner
DM Delivered 2/1/2012
Shown Display Ad 2/2/12 3:05pm
Calls 800# Requests Info and gives email 2/2/12 3:06 pm
Clicks Branded Paid Search Ad 2/6/12 9:00 pm
Sent Email 2/2/12 5:05pm Opens Email 2/2/12 9:30 pm
Completes sustainer donation on site 2/6/212 9:15 pm
4-day lag in interaction begs the question of what could be done to compress the time and push the interaction to “conversion”
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Attribution allow us to fractionally assign credit to each contact prior to the sustainer donation
15% 20% 20% 40% 5%
Event Cost
Attributed
Credit Value
DM Delivered $.35 .15 $300
Display Impression $.001 .20 $400
Inbound Call Center Experience $10.25 .40 $800
Sent Email $.02 .20 $400
Paid Search Ad $.03 .05 $100
Predicted Customer LTV: $2,000 Constituent Level Attribution
Campaign Level Attribution
This scenario represents success in that the predicted customer value is realized/confirmed and there is a strong program ROI. Next step is to “operationalize”
this scenario for maximum impact.
Campaign Display-DSP Spend $10,000 Impressions 1,504,014 Visits to Sustainer Donation Page 320
Sustainer Donation 45 Cost Per Sustainer $222 Total Sustainer Value $45,000
ROI 350%
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Fire trigger email based on completing call center interaction
User receives email with requested content plus relevant call to action to make a sustainer donation, tuned for Affluent Professional.
Request and customize search landing page content based on search keywords and user data
Landing page focuses on sustainer ask with higher ask string given relative affluence of Affluent Professional.
Contact Management Manages user interaction strategy and rules
Dynamic individual level contact optimizes the constituent experience and outcomes to create more value
DM Delivered Shown Display Ad
Calls 800# Requests Info and gives email
2/1/2012 2/2/12 3:05pm
2/2/12 3:06 pm
Personalization Dynamically assembles personalized communication package
Focusing on the 4-day lag: New contact rules fast track the “sustainer conversion” and reduce/eliminate the 4-day lag in the interaction.
Measure Assess Tune
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Connected Recognition (cR) enables the complete view of the constituent and builds the detailed contact history
The Connected Recognition process brings together the donor database and the digital media data into a new CRM Database.
Name Cookie
Address IP
Email User ID
Phone User ID
Customer Data
Integration (CDI)
Digital Data Integration
(DDI)
Connected Recognition
(cR) Donor
Database
Digital Media Data
CRM Database
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Building a CRM (Data) Center integrates constituent data and enables organization in new and powerful ways
Ability to target, customize and personalize media and channel experience
Ability to understand, identify, segment and manage constituents
Ability to create new metrics, attribute influence, and measure the incremental
impact of each fundraising activity
Ability to allocate resources that optimize ROI and long-term
constituent value
The ability to respond to changes in constituent, competitor, or marketplace conditions faster than your peers
Ability to create and manage a 360º view of the constituent
CRM Knowledge
Center
A robust technology platform, database skills and a clearly defined CRM management system are the key enablers of Connected CRM.
DBM
Skills
Interactions
Insights
Information
Measurement
Optimization
Agility
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Improved Constituent Experience in a CRM Organization
Major donor visits npo’s website for planned giving
info and receives a follow-up call from Major Gifts officer
Event participant uses mobile fundraising app and receives coaching emails
She searches on Google for “healthcare reform” and
selects highly placed org article about topic - visits site
Personalized fundraising interstitial ad presented via
site homepage during natural disaster
Digital ads target dm donor online around the period when dm appeal drops
Sees a DRTV ad, visits website and then sees ads for
sustainer giving on WebMD.com
Nonprofit asks him if he wants advocacy alerts via text for which he opts in via online giving form
Segment A shows a propensity for politics so
they receive dm advocacy appeal
She goes to facebook and sees ad that is
personalized based on content viewed on
nonprofit gift catalog
Within hours of seeing facebook ad she receives
targeted email – prompting her to go online to become monthly donor Sees Facebook sponsored
post after receiving email appeal but not giving
Social
DM & EMail
Display
Search DRTV
Mobile
Website
Fundraising Program
LTV Segment
Demographics Life Events
Call Center
Telemarketing
Major Donor Meetings
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Opportunity to build a best-in-class organization
• Consolidated view of the constituent across all touchpoints and programs
• Valuable insights on constituent value, attitudes, and behavior
• Better targeting and personalization to improve constituent experience
• Effective measurement of media/channel influence via attribution
• Multi-media/channel optimization based on facts
• Nonprofit able to build strategy based on accurate view of base
Social
DM & EMail
Display
Search DRTV
Mobile
Website
Fundraising Program
LTV Segment
Demographics Life Events
Call Center
Major Donor Meetings
Telemarketing
Will this transform the organization to best-in-class if
scaled?
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A new approach to nonprofit fundraising that focuses on individual, constituent-level optimization
Digitization of the end-to-end fundraising and marketing data management, planning, and execution process drives real-time optimization at the individual
level
Inte
grat
ion
The Connected Constituent Value Chain
Con
nect
ed
Con
stitu
ent V
iew
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So where does that leave the nonprofit?
What if the nonprofit could choose 20,000 people who would be most likely to commit to monthly giving in the next month
and target them directly across media and channels?
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Merkle’s Approach for the Future – Connected CRM
A systematic way to identify, engage and retain donors based upon their value better than competitors through orchestrated interactions that improve financial results, create competitive advantage and drive value for the
organization and its mission
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INFORMATION INSIGHTS INTERACTIONS MEASUREMENT OPTIMIZATION AGILITY
Ability to create and manage a 360º view of the constituent
Ability to understand, identify, segment and manage high value constituents
Ability to micro target, customize and personalize media and channel experience
Ability to create metrics as currencies and measure the incremental impact of each fundraising activity
Ability to allocate resources that optimize ROI and long-term constituent value
The ability to respond to changes in constituent, peer, or marketplace conditions faster than your competition
Connected CRM Enables ALL of the Key Ingredients for CRM success
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The Connected CRM Framework (CCF)
Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF
What data, systems, tools
and technologies
will be necessary?
How do we organize and
what capabilities and
business processes will be
necessary?
Organization In
frast
ruct
ure Experience Delivery
Financial Management
Customer Strategy
Financial management informs customer strategy and experience delivery decisions as a closed loop process
These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences
Portfolio Strategy
Segment Strategy Program Strategy
Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation
Media Planning Channel Planning
Targeting & Personalization
Measurement & Attribution
Budget Allocation
The foundation of Connected CRM is a clearly rationalized strategic framework that is widely adopted at all levels of the organization and forms an ongoing process
26
The Connected CRM Framework (CCF)
Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF
What data, systems, tools
and technologies
will be necessary?
How do we organize and
what capabilities and
business processes will be
necessary?
Organization In
frast
ruct
ure Experience Delivery
Financial Management
Customer Strategy
Financial management informs customer strategy and experience delivery decisions as a closed loop process
These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences
Portfolio Strategy
Segment Strategy Program Strategy
Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation
Media Planning Channel Planning
Targeting & Personalization
Measurement & Attribution
Budget Allocation
The foundation of Connected CRM is a clearly rationalized strategic framework that is widely adopted at all levels of the organization and forms an ongoing process
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It Starts with 4 Key Segments
Value Total annual income generated per donor
OnlineDonor’s likelihood to make an online donation over the course of the year
SustainerDonor’s likelihood to join the sustainer program over the course of the year
Program(s) | Transactions | LTV | Demographics | Psychographics
Affluent Retirees
Value Online Retention
26% Active Donors
Avg Gift
Affluent Professionals
Value Online Retention
23% Active Donors
Avg Gift
Average Janes
Value Online Retention
42% Active Donors
Avg Gift
Boomers Just Getting By
Value Online Retention
9% Active Donors
Avg Gift
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Segment Brief: Affluent Professionals
Affluent Professionals
Overview Another important segment for Komen to invest in – these donors are in their 40’s + 50’s, are highly educated + have means to spend more freely.
Who They are • High-earning professionals, with household incomes ranging from $50K to over $125K • Highly educated • Live in urban areas • Child present in the home • Physically active
Psychographics • Intelligentsia – interested in the arts, current affairs, politics • Attracted to + interact with higher end brands • Technologically savvy, shop online • Less involved in the community
Charitable Giving • Similar to Affluent Retirees, understand the investment in an organization • Slightly less loyal to an organization • Multi-channel engagement
Size of Segment • 25% of the active universe • Make up 26% of core giving
Giving Metrics • 1. 73 gifts per donor per year • $41 average gift
Marketing •Current direct marketing is not working for these donors • More responsive to more modern/contemporary packages •Online marketing should include both fundraising + engagement opportunities •Multi-Channel Donors
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Advanced Segments – FY13 Annual Metrics for Core
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Donors % Retained Gifts/Retained Avg Gift Income/Donor Net/Donor Net Income
Affluent Retirees 69,596 63% 1.66 $44 $46 $36 $2,530,442
Affluent Professionals 59,879 56% 1.75 $42 $42 $32 $1,918,257
Average Jane 110,737 60% 1.92 $28 $32 $23 $2,504,212
Boomers Just Getting By 22,819 55% 1.95 $26 $28 $19 $429,641
Affluent Retirees
26%
Affluent Professionals
23%
Average Jane42%
Boomers Just Getting By
9%
Donors
Affluent Retirees
34%
Affluent Professionals
26%
Average Jane34%
Boomers Just Getting By
6%
Net Income
Annual Online & Offline Giving Financial Snapshot
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Acquisition Performance and Response by Segment
There are dramatic differences in response to the current acquisition program for each segment. With the highest response rates coming from the lowest value segments.
Over time, the mix of new donors has been increasingly shifting away from the higher value segments towards the lower value segments.
The current acquisition program has essentially been optimized for the Average Janes, as they are the largest segment.
While, this kind of optimization can on the surface, appear to produce positive results, it often ignores the impact on who the organization is acquiring.
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Segment Financial Metrics FY12 Acquisition
Affluent Retirees Affluent Professionals Average Jane’s Boomers Just Getting By
Acquisition Metrics
New Donors 20,062 28,399 50,112 13,641
Net/Donor to Acq -$16 -$17 -$20 -$17
1st Gift Amount $29.51 $26.45 $20.18 $19.92
5 Yr Subs Net* $38.07 $34.13 $26.03 $25.70
5 Yr Total Net* $22.54 $17.35 $6.28 $8.75
5 Yr ROI on Acq* 145% 103% 32% 52%
• While there are minimal differences in the upfront cost to acquire a donor by segment (net/donor), there are substantial differences in the subsequent value & long-term ROI of each segment
• Looking at projected long-term ROI of the Acquisition program, it’s clear that shifting investment to the higher value segments would yield higher long-term ROI & higher 5 Yr Net
*Projected
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Renewal Performance by Segment
• Current appeal program is optimized around the responsiveness of Average Jane’s who have a 15-25% higher response rate than the other segments
• Affluent Professionals have the lowest response
• Affluent Retirees & Affluent Professionals have 50-60% higher average gifts than the other segments
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Segment Strategies
Expand Existing Audience •New Lists •New and Multi-Channels •Advance Measurement(s)
Volume Redistribution
•Post-Merge Targeting •Data Source
Increase Response Rate
•Audience to Offer •Messaging/Ask Strategy •Creative Execution •Cadence •Demonstrate Impact
Increase Contact Frequency •Enhance “Seasonal” Offers
Optimization of Budget •Allocate more marketing dollars to this segment
Enhance Experience •Multi-Channel Engagement •E-Mail •Personal Fundraising
Retention Campaigns •Audience to Offer •Creative Execution •Cadence •“Connect” to the Cause
Decrease Contact Frequency •Eliminate low yield campaigns
Maximize ROI •Reduce package costs •Contact cadence
Minimize Upgrade “Asks” Deploy “Prod and Cull” Strategies
Strategic Acquisition (to help offset cost of acquiring AP and AR) Optimize use of Premiums Reduce Contact Cadence Cultivate for Enhanced Giving •Sustainers •Planned Giving
Retention Campaigns •Traditional FR Creative •Emotional Connection
37
Differentiated Segment Approach
FY12: “One-Size-Fits-All” Cadence
Optimize Cadence by Segment
Cost: $4.2M Net: $1.3M
Cost: $4.2M Net: $1.9M
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Optimal Constituent Portfolio
Affluent Retirees
Affluent Professionals
Average Janes
Boomers Just Getting By
20% $200k
42% $2.2M 47% 38%
$42.50 $1.4M $27.60
New Donors
Average Gift
Retention
Cost to Raise a Dollar $.40 $500k
Layered together, Komen will target prescribed new donor mix, retention, average gift, and cost to raise a dollar
metrics to achieve the optimal portfolio.
$44.40
11% 29% 40%
37%
$26.00
$.36 $.39 $.32
Revenue Gained Cost Saved Increase from current state
Decrease from current state
3 Yr Incremental
Net Gain
+$4.3M
*Retention, Avg Gift, & CTRD for 0-24 Month Donorfile
39
Optimized Portfolio Budget by Segment
Affluent Retirees
Affluent Professionals
Average Janes
Boomers Just Getting By
20%
42% 47% 38%
$42.50 $27.60
New Donors
Average Gift
Retention
Cost to Raise a Dollar $.40
$44.40
11% 29% 40%
37%
$26.00
$.36 $.39 $.32
Revenue Gained Cost Saved Increase from current state
Decrease from current state
*Retention, Avg Gift, & CTRD for 0-24 Month Donorfile
Acq Budget Allocation 12% 47% 25% 17%
Ret Budget Allocation 9% 38% 26% 27%
40
The Connected CRM Framework (CCF)
Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF
What data, systems, tools
and technologies
will be necessary?
How do we organize and
what capabilities and
business processes will be
necessary?
Organization In
frast
ruct
ure Experience Delivery
Financial Management
Customer Strategy
Financial management informs customer strategy and experience delivery decisions as a closed loop process
These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences
Portfolio Strategy
Segment Strategy Program Strategy
Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation
Media Planning Channel Planning
Targeting & Personalization
Measurement & Attribution
Budget Allocation
The foundation of Connected CRM is a clearly rationalized strategic framework that is widely adopted at all levels of the organization and forms an ongoing process
41
Look Back at Creative Performance by Segment
AP’s respond best to Annual Fund, Holiday Card, & V-Day
*
* Gross Income per Name
AJ’s respond least well to Annual Fund & Year-end Appeal
42
Detailed Look Back by Segment and Creative Concept
42
Package Qty Mail Gifts % Resp Avg Gift Income Gross/M %Resp Diff Gross/M DiffAJ HVD-Ctrl-Personal Ntcrd Verif 4,810 229 4.76% $49 $11,270 $2,343
HVD-Test-Personal Ntcrd w/Open Ask 4,825 176 3.65% $57 $10,031 $2,079 -23.4% -11.3%HVD-Test-Personal Ntcrd w/Word-Collage Cover Art 4,730 218 4.61% $55 $11,892 $2,514 -3.2% 7.3%HVD-Test-Photo Essay w/Vellum Window OE 4,783 199 4.16% $49 $9,830 $2,055 -12.6% -12.3%
AR HVD-Ctrl-Personal Ntcrd Verif 4,747 197 4.15% $82 $16,174 $3,407HVD-Test-Personal Ntcrd w/Open Ask 4,739 158 3.33% $83 $13,146 $2,774 -19.7% -18.6%HVD-Test-Personal Ntcrd w/Word-Collage Cover Art 4,842 199 4.11% $85 $16,988 $3,508 -1.0% 3.0%HVD-Test-Photo Essay w/Vellum Window OE 4,918 177 3.60% $62 $10,947 $2,226 -13.3% -34.7%
AP HVD-Ctrl-Personal Ntcrd Verif 4,365 158 3.62% $75 $11,831 $2,710HVD-Test-Personal Ntcrd w/Open Ask 4,346 134 3.08% $53 $7,160 $1,647 -14.8% -39.2%HVD-Test-Personal Ntcrd w/Word-Collage Cover Art 4,338 183 4.22% $81 $14,791 $3,410 16.5% 25.8%HVD-Test-Photo Essay w/Vellum Window OE 4,268 140 3.28% $96 $13,497 $3,162 -9.4% 16.7%
BJGB HVD-Ctrl-Personal Ntcrd Verif 1,078 37 3.43% $47 $1,750 $1,623HVD-Test-Personal Ntcrd w/Open Ask 1,091 39 3.57% $48 $1,855 $1,700 4.1% 4.7%HVD-Test-Personal Ntcrd w/Word-Collage Cover Art 1,091 50 4.58% $48 $2,405 $2,204 33.5% 35.8%HVD-Test-Photo Essay w/Vellum Window OE 1,032 37 3.59% $47 $1,744 $1,690 4.5% 4.1%HVD-Ctrl-Personal Ntcrd Verif 15,000 621 4.14% $66 $41,025 $2,735HVD-Test-Personal Ntcrd w/Open Ask 15,001 507 3.38% $63 $32,192 $2,146 -18.4% -21.5%HVD-Test-Personal Ntcrd w/Word-Collage Cover Art 15,001 650 4.33% $71 $46,076 $3,072 4.7% 12.3%HVD-Test-Photo Essay w/Vellum Window OE 15,001 553 3.69% $65 $36,018 $2,401 -11.0% -12.2%
FY12 CYE FU & Personal Notecard
45
Personalization by Segment
Affluent Retirees Affluent Professionals Average Janes Boomers Just Getting By
46
The Connected CRM Framework (CCF)
Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF
What data, systems, tools
and technologies
will be necessary?
How do we organize and
what capabilities and
business processes will be
necessary?
Organization In
frast
ruct
ure Experience Delivery
Financial Management
Customer Strategy
Financial management informs customer strategy and experience delivery decisions as a closed loop process
These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences
Portfolio Strategy
Segment Strategy Program Strategy
Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation
Media Planning Channel Planning
Targeting & Personalization
Measurement & Attribution
Budget Allocation
The foundation of Connected CRM is a clearly rationalized strategic framework that is widely adopted at all levels of the organization and forms an ongoing process
47
Improving fundraising program performance relies on an accurate view of multi-channel attribution
Day 30 ………………………………………………….. 8 Day 7 ……………………………. 2 Day 1 ……… 0
Online Donation from Prospect
Actual experience
Constituent gives online “Last touch” was Website Website over-attributed
Direct
Constituent clicked on site link. Rules: DM and Email exposure in last 72 hours, so assign credit accordingly Better but still not accurate
Rules Based
5` Modeled Model-adjusted interaction Most accurate and actionalble 5% 10% 5% 5% 5% 15% 5% 5% 40%
$
Direct mail sent Email Sent (Retargeting) Display view Social visit Website Visit Paid search click
Mass and Offline Digital
30% 60% 10%
100%
Telemarketing Call
5%
48
Attribution Informs Decision-making at Multiple Levels
Results by Segment (Mthly) • Visibility into how each tactic was driving
new constituents by segment
• Important data to feed into constituent experience to drive better personalization and targeting by tactic and segment
Program Diagnostics (Daily) • Visibility into ‘why’ different programs
e.g. sustainers, 1x gifts, events - are and are not performing
• Highlight those specific variables in each program that are problematic
Results by Media Type (Mthly) • More accurate view into media
performance
• Important input into ongoing budgeting and planning processes
Jan Feb March April May DM 110 115 120 125 135 TM 205 200 198 200 207 EM 200 190 204 195 195 Display 200 205 210 205 195 Social 210 195 185 190 210 Paid Search 115 110 112 120 118
49
New modeled attribution approach produces very different results vs. basic last touch (Direct)
Probabilistic (MMO) attribution approach yields dramatically different results than direct attribution. Conclusion: Shift dollars from offline to search and display.
$110
$205 $200 $210
$115 $135
$215
$110
$310
$95
$-
$50
$100
$150
$200
$250
$300
$350
Direct Mail Telemarketing Display (Retargeting)
Social Paid Search
Direct (Before) Model (After)
Donor Acquisition Cost (Average) • Observation: Display even cheaper than we thought
• Recommendation: Ramp up vol by broadening targeted site footprint, # touches / contact
• Observation: DM & TM too expensive
• Recommendation: Reduce DM cadence to lower value segments; Increase initial price point ask on TM sustainer calls
• Observation: Facebook custom audiences not working – too expensive
• Recommendation: Suspend FB custom audiences trial for now
• Observation: Search is lowest cost media option
• Recommendation: Redirect FB & DM reduced spend into search
50
Scenario 1: AP Segment Estimated Spend by Media
Estimated Spend by Media Type: Affluent Professional Segment
Scenarios and output estimated based on most granular level for media execution example Direct Mail: Segment level
Search: Keyword level
Display: Cookie level
2013 OPTIMIZED Q1-Jan Q1-Feb Q1-Mar Total 2013
Direct Mail $1,463,410 $1,654,118 $2,058,457 $12,985,289 $145,779 $140,063 $125,571 $810,000 Display General $83,823 $80,536 $72,203 $465,750 Retarget $175,426 $192,968 $201,739 $2,192,820 Banner $175,426 $192,968 $201,739 $2,192,820 Search $744,504 $818,954 $856,179 $9,306,297
Brand Google $31,091 $34,200 $35,754 $388,635
Non Brand Google $559,902 $615,892 $643,887 $6,998,775
Brand Yahoo $7,773 $8,550 $8,939 $97,159
Non Brand Yahoo $145,738 $160,312 $167,599 $1,821,727
$5,058,238 $5,612,205 $6,483,894 $50,588,811
51
The Connected CRM Framework (CCF)
Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF
What data, systems, tools
and technologies
will be necessary?
How do we organize and
what capabilities and
business processes will be
necessary?
Organization In
frast
ruct
ure Experience Delivery
Financial Management
Customer Strategy
Financial management informs customer strategy and experience delivery decisions as a closed loop process
These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences
Portfolio Strategy
Segment Strategy Program Strategy
Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation
Media Planning Channel Planning
Targeting & Personalization
Measurement & Attribution
Budget Allocation
The foundation of Connected CRM is a clearly rationalized strategic framework that is widely adopted at all levels of the organization and forms an ongoing process
52
CRM Database
Targeting & Personalization
cR
TM DM EM Display Search Social
Offline Media Database
Digital Data Mgmt Platform
First, Second and Third Party Data Sources
Integrated attribution and targeting
All anonymous and known digital exposures keyed to a universal user key (cookie level) or UID
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the anonymous marketplace – mass and digital
Foundational view of the prospect and customer including segmentation,
contact history, and value
All offline media interactions mapped to the individual level including overlays for
demographics, psychographics
Segmentation
Measurement & Attribution
Constituent Event Stream
Connected Recognition sits at the heart of the Connected Data Management Platform (cDMP)
The Nonprofit Connected Data Management Platform (cDMP)
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CRM Database
Targeting & Personalization
cR
Donor Database
Digital Data Mgmt Platform
First, Second and Third Party Data Sources
Integrated attribution and targeting
All anonymous and known digital exposures keyed to a universal user key (cookie level)
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the anonymous marketplace – mass and digital
Foundational view of the prospect and constituent including segmentation,
contact history, and value
Segmentation
Measurement & Attribution
Constituent Event Stream
A closer look at the offline media database
The Nonprofit Connected Data Management Platform (cDMP)
TM DM EM Display Search Social
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Ektron CMS
CRM Database
Targeting & Personalization
cR
Team Approach Digital Data Mgmt Platform
First, Second and Third Party Data Sources
Integrated attribution and targeting
All anonymous and known digital exposures keyed to a universal user key (cookie level)
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the anonymous marketplace – mass and digital
Foundational view of the prospect and constituent including segmentation,
contact history, and value
Segmentation
Measurement & Attribution
Constituent Event Stream
Team Approach Database Aggregates the DM Constituent Data
The Nonprofit Connected Data Management Platform (cDMP)
Convio
TM Partner
Feed
DM Caging
TM DM EM Display Search Social
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CRM Database
Targeting & Personalization
cR
TM DM EM Display Search Social
Offline Media Database
Digital Data Mgmt Platform
First, Second and Third Party Data Sources
Integrated attribution and targeting
Display + Search + Social advertising aggregated with each record keyed to a universal user key (cookie level)
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the anonymous marketplace – mass and digital
Foundational view of the prospect and constituent including segmentation,
contact history, and value
Team Approach = DM Data from TA +
EM Data from Convio + TM Partner Feed
Segmentation
Measurement & Attribution
Constituent Event Stream
Phase I – Aggregation & Management of Human-driven media and channels
The Nonprofit Connected Data Management Platform (cDMP)
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CRM Database
Targeting & Personalization
cR
TM DM EM Display Search Social
Offline Media Database Merkle Exstonet
First, Second and Third Party Data Sources
Integrated attribution and targeting
Merkle’s digital platform Exstonet aggregates, manages, and executes the digital advertising
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the anonymous marketplace – mass and digital
Foundational view of the prospect and constituent including segmentation,
contact history, and value
Team Approach = DM Data from TA +
EM Data from Convio + TM Partner Feed
Segmentation
Measurement & Attribution
Constituent Event Stream
Phase I – Aggregation & Management of Human-driven media and channels
The Nonprofit Connected Data Management Platform (cDMP)
57
CRM Database
Targeting & Personalization
cR
TM DM EM Display Search Social
Team Approach Database
Digital Data Mgmt Platform
First, Second and Third Party Data Sources
Integrated attribution and targeting
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the digital (anonymous) marketplace.
360l view of your prospects and constituents including segmentation,
contact history, and value
Segmentation
Measurement & Attribution
Constituent Event Stream
Phase I – Aggregation & Management of Human-driven media and channels
The Nonprofit Connected Data Management Platform (cDMP)
Merkle Exstonet
Merkle’s digital platform Exstonet aggregates, manages, and executes the digital advertising
58
CRM Database
Targeting & Personalization
cR
TM DM EM Display Search Social
Team Approach Database
Digital Data Mgmt Platform
First, Second and Third Party Data Sources
Integrated attribution and targeting
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the digital (anonymous) marketplace.
360l view of your prospects and constituents including segmentation,
contact history, and value
Team Approach = DM Data from Caging + EM Data from Convio +
Contact History + TM Partner Feed
Segmentation
Measurement & Attribution
Constituent Event Stream
Phase I – Aggregation & Management of Human-driven media and channels
The Nonprofit Connected Data Management Platform (cDMP)
Merkle Exstonet
Merkle’s digital platform Exstonet aggregates, manages, and executes the digital advertising
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Covio ID UID Date/Time Event Site/Page Creative
1234 98765 12:30 PM Banner Impression CNN.com A1
98765 12:31 PM Banner Impression NYTimes.com A1
98765 1:00 PM Facebook login NYTimes FB
98765 2:10 PM Banner Impression FB B2
Nancy, a donor gets a DM piece and visits Komen’s website to learn more, signs up for email, and ultimately donates online 1 day later after viewing several display retargeting ads.
Constituent ID First Last Address DM Key Code Campaign ID Date
123322777 Nancy McCorry 123 Main St. DM42343 999 12/09/2012
Convio ID
Constituent ID
Opt-in
Email Action Date/Time Email Address First Last
1234 Yes 12/15/2012 8:30 PM
123 Main Street Nancy McCorry
Connected Recognition integrates across these domains and drives opportunities for multi-channel optimization
Team Approach
Convio
Merkle Exstonet
Convio ID
Constituent ID Donation Amount Donation
Date/Time Email Address
1234 123322777 Yes $65.00 2:13 PM [email protected] 123 Main Street Convio
DM Send
Email Signup
Digital Touches
Online Donation
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UID Constituent ID Date Time Event Campaign Site/Page Creative Amount
98765 123322777 12/09/13 DM Send 999 Style B
98765 123322777 12/15/13
8:30 PM Email Signup Komen.org
98765 123322777 12/16/13
12:30 PM Banner Impression 3456 CNN.com A1
98765 123322777 12/16/13
12:31 PM
Banner Impression 3456 NYTimes.c
om A1
98765 123322777 12/16/13
1:00 PM
Facebook login NYTimes
FB
98765 123322777 12/16/13
2:10 PM
Banner Impression 3456 FB B2
98765 123322777 12/16/13
2:13 PM Donation $65.00
CRM Database
Connected Recognition integrates across these domains and drives opportunities for multi-channel optimization cR
Offline Digital
CRM Database
61
CRM Database
Targeting & Personalization
cR
TM DM EM Display Search Social
Team Approach Database
Digital Data Mgmt Platform
First, Second and Third Party Data Sources
Integrated attribution and targeting
Connected Recognition (cR) links known consumers (and their value) to their media interactions in the digital (anonymous) marketplace.
360l view of your prospects and constituents including segmentation,
contact history, and value
Team Approach = DM Data from Caging + EM Data from Convio +
Contact History + TM Partner Feed
Segmentation
Measurement & Attribution
Constituent Event Stream
Phase I – Aggregation & Management of Human-driven Media and Channels
The Nonprofit Connected Data Management Platform (cDMP)
Merkle Exstonet
Merkle’s digital platform Exstonet aggregates, manages, and executes the digital advertising
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The Connected CRM Framework (CCF)
Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF
What data, systems, tools
and technologies
will be necessary?
How do we organize and
what capabilities and
business processes will be
necessary?
Organization In
frast
ruct
ure Experience Delivery
Financial Management
Customer Strategy
Financial management informs customer strategy and experience delivery decisions as a closed loop process
These strategies are then translated into actionable media and channel plans that result in highly personalized, targeted experiences
Portfolio Strategy
Segment Strategy Program Strategy
Experience delivery performance is continuously attributed across media and channels which, in turn, drives optimized budget allocation
Media Planning Channel Planning
Targeting & Personalization
Measurement & Attribution
Budget Allocation
The foundation of Connected CRM is a clearly rationalized strategic framework that is widely adopted at all levels of the organization and forms an ongoing process
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True competitive advantage will go to organizations that transform their operating approach to deliver enterprise level Connected CRM
Program-centric
Channel-centric
Segment-centric
Value from greater
constituent focus
• Lack of clarity on what to do
• Competing leadership priorities
• Entrenched metrics
• Conflicting incentives
• Uncertainty • Risk avoidance
Challenges is to overcome…
Decision-maker or Program Owner
Any organization can become more constituent focused…but there are challenges that must be faced
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How Top-performers Achieve Break-away Change
Start Strong
Disciplined Approach
Focus on Lasting Change
+58% +33% 8%
Funding Management
Data Governance Culture and People Change Management
Defined Project Objectives
Multi-phase Execution Roadmap
Program Governance
Business Process Change
Organizational Realignment
Sponsorship
Assessments
Chance of success
Top performing organizations are increasing their success rate by focusing on lasting organization change
August 2009, nearly 400 business leaders worldwide, Success drivers explained 65%. Low percentage indicates activities common to high and low performers. High percentages indicate activities more unique to top performers
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Executive leadership and governance team Change champions – CCRM vision stewards – Organizational integrators
Program governance, value pro forma and business case (revenue, programmatic) including identifying interim milestones and quick wins
Technology assessment
Approach consists of five work streams including a series of workshops to align the organization to the vision and build an effective roadmap
Constituent Strategy and Vision
Operating Model Assessment
A ConnectedCRM Roadmap for the Organization
• Detailed experience-based, constituent use cases • Enterprise wide segmentation strategy
Constituent blueprint and roadmap
• CRM organization alignment, roles and responsibilities • Systems and processes evolution • Change management plan
• Assessment of current state – data, systems, processes • Detailed technology plan and recommendations
• Future state vision and roadmap • Initiative prioritization including quick wins
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Summary
• Nonprofit Industry Challenges – Organizations are seeking ways to optimize their fundraising in the
post-recession climate and with the expanding, emerging boomer donor segment
– Constituents are demanding a more personalized experience – A 360-degree view of the constituent is desired but difficult to attain – Digital media is proliferating among donors and prospects – Multi-channel marketing is increasingly difficult to measure and
manage – Enterprise-wide CRM data integration is valuable but complex – Internal challenges such as cross-departmental competing objectives
and metrics continue to hold back efforts to embrace CRM.
• Opportunity for Nonprofits We explore the opportunities delivered via cCRM to address these
nonprofit industry challenges including segmentation and analytics, personalization, attribution, financial planning, data integration, and organizational change management.
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Thanks for attention.
For more information contact:
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Tony Danzy [email protected] (410) 794 7086
Greg Fox [email protected] (443) 542 4017
Jeff Patrick [email protected] (415) 672 1986