Download - Performance Fundraising - Using Analytics and Insights-Driven Strategy to Grow Fundraising
MODULE 1USING ANALYTICS AND INSIGHTS-DRIVEN STRATEGY
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What Is the Biggest Challenge Faced by Your Direct Mail Program?
CHALLENGE ACCEPTED.
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Four Big Questions
Who is the audience?
What is the offer?
When do you engage?
Where do you engage?
4 big questions
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Who: Targeting Acquisition in Direct Mail
Tapping into your Lapsed Pool1.
Focusing on donor value in your Cold Acquisition2.
Cutting costs where they add no value3.
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FY 2013 FY 2014 FY 2015 P
-$4M
-$3.5M
-$3M
-$2.5M
-$2M
-$1.5M
-$1M
-$.5M
$M
-$3,684,605
-$2,537,213
-$1,319,865
Acquisition Net Revenue
Arthritis Foundation: Increasing Net by over $2 million
FY 2013 FY 2014 FY 20150%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Quantity MixCold Lapsed
$1.1M
$1.2M
Strategic shift towards Acquisition Net RevenueDriven by change in mix – more lapsed and fewer cold
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Enhanced Lapsed Model Increases Efficiency
Former Co Op Model New Model$0
$5
$10
$15
$20
$25
$30
$15
$28
Average Gift
83%
Former Co Op Model New Model
$M
$M
$M
-$48
-$32
First Year Net Revenue per Donor
$16
Testing Results
Average gift increased by 83%
Response rate increased by 4%
Net Revenue per donor increased by $16
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Increasing Average Gift Opens Up Lapsed Pool
Increasing average gift allows us to acquire more deeply into the lapsed donor pool at the same CPDR.
This leverages a bigger portion of the increasing lapsed donor pool.
Example
25.00
$30.00
PreviousAvg Gift = $15
NewAvg Gift = $28
$40.00
Cost/donor
Incremental donorsreactivated at same cpdr
Current Limit($1.50 cpdr)
New Limit ($1.50 cpdr)
$35.00
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Just Getting By segment represents a high % of donors (18%) but delivers a proportionally small % of revenue (8%).
Young at Heart represent a small
% of donors (13%) but delivers a
proportionally large % of revenue
(20%).
13%
14%
24%13%
18%
18%
24%
12%
16%
20%
20%
8%
Benevolent Boomers Golden Oldies Traditional Retirees
Young at Heart Modern Middle Class Just Getting By
AHA Utilizes Segmentation to Make List Buys
Young at Heart
Online PG
Avg age 73, college educated, nice home, travels & invests
13%Active Donors
Value
LOW
VA
LUE
Just Getting By
Value Online PG
Avg age 61, HS Educated, kids, lower income, modest home
18%Active Donors
HIG
H V
ALU
E
DM acquisition decisions that redirect investment from low to high(er) value segments.
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AHA: Identifies $1.3 Million In Net In Cold Acquisition
Tier 1/2 Tier 3/4 Top Segments
Tier 3/4 Bottom Segments
$0.00
$0.04
$0.08
$0.12
$0.16
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
Performance by GIPN and Response RateGIPN RR%
Tactical Approach
Lowest Performing lists ordered by segments
Dropped low value segments
Redirect savings into higher performing
segments
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“Value” Segments Instead of Demographic Segments
Value Segment
Email response likelihood
Expected average gift Online giving propensity
Retention likelihood Large donor propensity
AHA needed a way to identify highest value donors in cold acquisition
Define Value• Most focus on expected value this year within DM
• Best practice looks at expected value over time within SM
• AHA focused on expected value over time to the Entire Association
Build Value Driven Segments• Five separate models focused on value levers
• Intersection of these models creates Segments
1 2
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Watch the full presentation in Merkle’s
Donor-Centric Fundraising: Challenges, Opportunities & Digital
Integration on-demand webinar series.
Chris PritcherVice President, Analytics, Nonprofit
Merkle