1. 1

2. 2 Problem The Solution: Different Mindset, Insight & Strategy Turning Insights into Action Operation Smile Case Study 5 Things You Should Start Doing Differently Today

3. 3 We provide safe surgeries in remote places that deliver immediate life changing results.

4. 4

5. 5 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2007 2008 2009 2010 2011 AxisTitle Blackbaud Global Benchmarking Study Single Gift Recurring Giving

6. 6

7. 7

8. 8

9. Build & Customize Better overall Experience Insight into Donor Mindset Change Marketers Mindset 10

10. The Mind is a Terrible Thing to Waste! Impacting how the donor feels/thinks about your organization is THE key to retention. 12

11. Commitment to Organization Functional Connection Personal Connection Behavior Constituent Experiences Marketing/Brand Donor Service Fundraising Engagement Operations Reliable/Consistent Experience More emotive Motive/intent to maintain

12. Committed 59% Potential 24% Vulnerable 11% Transactional 6% Operation Smile Commitment Segmentation 14 High Commitment. They are your best donors historically and prospectively; these donors who will overlook mistakes, defend you, recommend you and provide greatest financial return. Potentials. This is your prospect pool for relationship building and moving folks to the tribe. Vulnerable. The vast majority are not worth putting extra spend against, the ROI simply is not there. Transactional. There is no cost effective way to improve the relationship there are simply too many other, better targets to focus marketing spend. Benchmark: National avg: 43% DV client avg: 44%

13. Overlaying Commitment (Cause) & Giving (Effect) 15 Average Operation Smile Commitment Average Total Actions Average Total Gift Average # of Gifts Average Months Since Last Gift Committed 91 3.5 $1,016.04 12.6 5.1 Potential 63 3.4 $819.98 9.1 7.3 Vulnerable 43 2.6 $369.82 8.0 6.5 Transactional 18 2.1 $253.16 3.2 9.9 TOTAL SAMPLE 75 3.3 $872.54 11.0 6.0 Identify Relationship segments, understand what you do to CAUSE strong relationships and manage the business here to increase giving and doing.

14. UK House File Benchmarking Overall Donor Commitment Score (DCS) High Commitment DCS % of File that is High Commitment % Difference in Giving for High vs. Low Commitment RSPCA 83 88 43% 57% TearFund 82 97 37% 149% ActionAid 81 99 33% 41% WaterAid 79 95 32% 34% AICR 76 97 27% 9% RSPB 76 95 32% 13% Barnardos 71 94 29% 34% Univ Bristol 63 86 24% 138% Guidepost 44 75 17% 443% House File Average 73 92 30% 105%

15. 79 162 0 20 40 60 80 100 120 140 160 180 Low Commitment High Commitment 3 year giving average 83,000 more for every 1,000 donors = Source: National UK Study Reason to believe

16. 18

17. 19 Purchased from Online Shop Taken Activist Action Purchased a Branded product in Retail 52% 39% 32% 52% 58% 26% 53% 33% 30% Current Monthly Lapsed Monthly Never Monthly Purchased from Online Shop Taken Activist Action Purchased a Branded product in Retail 68% 40% 40% 61% 35% 30% 47% 29% 28% 56% 21% 28% Commited Potential Vulnerable Transactional

18. Single Gift Donors Regular Donors Emergency Donors High Commitment Potential for High Commitment Low Commitment How Donors View Your Organization How Your Organization Views the Donors 20

19. 50 55 60 65 70 75 80 85 90 95 100 87 87 81 77 68 55 Donor and Activist Special Donor Monthly Donor Regular Donor Lapsed Activist Only The Problem with Organization Centric Segmentation Source: UK House File Study Participant

20. Because All of Your Offers Arent for Everyone 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 1 2 3 4 5 Low Commitment High Commitment Number of products Source: UK House File Study Participant

21. 23

22. Making Sense of Key Experiences What if we could separate all of these experiences into three buckets: 1. Key drivers of relationship 2. Important but not key driver 3. Low impact experiences to re-evaluate 24 CURRENT STATE FUTURE STATE

23. 25 Repair and/or Replace Refine and/or Scale Repair and/or Refine Performance Importance High High

24. Delivering safe surgery to remote places Delivering immediate, life changing results Helping children live with dignity Having the highest standards of safety, hygiene and care Using Global Standards of Care so every child benefits from the same equipment and procedures Importance Performance What Message Connects Donors with Operation Smile

25. 27 Better Brand Message Better Results (BEFORE) Subject: Holiday shopping tips from Brooke Burke Charvet (AFTER) Subject: Get Your Life-Changing Gift NOW

26. Using Social Media Sharing Success through Photo Albums & Video Provide materials (DVDs) Conference Calls Promoting Student Programs Raising Money from Friends Celebrity Endorsers Inlcude in My Will Support through Consumer Purchases Gift Catalog Importance Performance Understanding What Good Engagement Means

27. 72% of Facebook likes are High Commitment Donors 78% of Twitter followers are High Commitment Donors Offering a Map vs. Menu

28. Calling to personally thank you for your gift Delivering a personalized thank you for your support Showing their appreciation for your support with token gifts (e.g. t- shirt, magnet, shopping tote, scarf) Thanking you for your gift within 48 hours 30 Importance Performance Expressing Appreciation for Gifts

29. Putting the Donor First at Operation Smile Prompt deposit of gifts Speed of acknowledgement 48 hours Appeal Acknowledgements personalized and linked to reason for giving From a Thank You Strategy to a new Gratitude Strategy 31

30. Providing bilingual customer service support Providing convenient hours for customer service Providing helpful customer service Providing knowledgeable customer service Providing convenient options for reaching customer service e.g. email, website, live chat, etc. Providing opportunities to make my views known (e.g. solicit your opinion on where to focus effort, easy to make suggestions 32 Importance Performance Donor Service Dimension

31. 33

32. 5 Things You Should Start Doing Today 34 1) Make Retention THE Priority Not A Priority 1) Invest in Collecting Actionable Donor Feedback 2) Make changes to the overall experience 3) Tailor an experience to a specific segment 4) Donor Service = Marketing

33. Contact Information Jann Schultz AVP Donor Services, Operation Smile jschultz@operationsmile.org +1 757.321.7645 +1 757.593.6560 LinkedIn: Jann (Erickson) Schultz Twitter: @jannschultz Josh Whichard Partner, Donor Voice jwhichard@thedonorvoice.com +1 240.888.6301 LinkedIn: Josh Whichard www.thedonorvoice.com 35

34. 36

35. Commitment is not only a framework it is THE best Commitment Favorability Satisfaction Recommend/NPS High 162.07 154.10 154.62 125.88 Low 79.22 92.14 97.93 120.45 % increase 105% 67% 58% 5% Highest HIGH & lowest LOW Biggest % Increase Source: National UK Study

36. 38 1 Roadmap Impact H M L H M L Level of Effort EXPERIENCE DIMENSION DESCRIPTION 1 Engagement Expand use of conf. calls, Photos & Video 2 Engagement Expand promotion of social media 3 Engagement Commitment segment/frequency for Catalog 4 Mission/Focus New combination of message and images to refine Acquisition 5 Mission/Focus Editorial emphasis on key dimensions in Renewal 6 Donor Service Promote Donor First Commitment & Create donor feedback opportunities 7 Acknowledgement Improve performance via improved relevance 8 Relevant Info Align Smile Report to Commitment 9 The Ask Inform ask strategy using Commitment score 10 Transforming Donors High $ Directed Giving & Donor Testimonial 1 23 4 5 7 9 6 10 Organizational Focus Over Next 12 Months 8