Acquisition workshop 2
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Transcript of Acquisition workshop 2
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Contact
LinkedIn, Sean Triner
Skype sean.triner
www.paretofundraising.com
www.seantriner.blogspot.com
Commercial in confidence ©Pareto Fundraising 2012
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Marie Stopes Growing Fundraising from Individuals
19 July 2011
A Plan for Fundraising Growth
A Plan for Fundraising Growth
Australian Diabetes Council
January 2011 n for Fundraising Growth
Greetings
Yooralla Fundraising Growth
Greetings
Australian Diabetes Council
January 2011
Thank you for your time
and welcome to
We all want more donors
© Pareto Fundraising 2012
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About me
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Our recent clients
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Commercial in confidence ©Pareto Fundraising 2012
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This is why we do what we do
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About You
Commercial in confidence ©Pareto Fundraising 2012
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ANALYTICAL -Your Growth
- Your donor
Behaviour
-Used for targeting
ENVIRONMENTAL -How much is given
- Growth
- Competition
PERSONAL -Transactions
- Legacy status
- Pet name
STRATEGIC DATA
- informs
TECHNICAL DATA
- used
© Pareto Fundraising 2008
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Bequests / Legacies
Major Donors Regular Giving
Cash Donors
All Supporters
Government
Trusts & Foundations Corporate & Events
Associations & Groups
Key Sources of Funds in Australia
Commercial in confidence ©Pareto Fundraising 2012
Individuals
Organisations
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The top fundraisers
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
Fundraising income
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€ -
€ 500,000
€ 1,000,000
€ 1,500,000
€ 2,000,000
€ 2,500,000
€ 3,000,000
€ 3,500,000
€ 4,000,000
€ 4,500,000
€ 5,000,000
Irish charity Income around (!) 2010
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Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
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Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A - no acq
No acq
7345
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0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A - no acq
No acq
Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A v B: No Acq v 10k per annum
W acq
No acqWrite down your guess
as to how many donors
you would have in
scenario B after 15 years 7345
42887
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Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
Just to stay still, the
charity would need to
actually acquire 12,000
or more donors per
annum 7345
0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A v B: No Acq v 10k per annum
W acq
No acq
12,000 new donors per annum
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0
10000
20000
30000
40000
50000
60000
70000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No Acq v 12k per annum
W acq
No acq
Must always acquire but if
we can increase retention
and 2nd gift rates….
Attrition 12%10%
2nd gift rate 50 55%
Only 9,000 donors
needed to stay flat,
12,000 grows DB to
62,700
9,000 new donors per annum needed
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Recency
Value Frequency
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Recency
Value Frequency
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Campaign
July Donor Care 2012 + EOYR
Spring (August) 2012
Survey (late September) 2012
Christmas Wave 1 2012
Christmas Wave 2 2012
January Donor Care 2013
Autumn (late Feb/early March) 2013
Tax 2013 Wave 1 - Last week April
Tax 2013 Wave 2 - Last week May
Tax 2013 Wave 3 - Last week June TEST
PLUS
Targeted thank you
letters
• Thank you
• RG Conversion
• Additional gift
Minimum appeals cycle
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?
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€ -
€ 500,000
€ 1,000,000
€ 1,500,000
€ 2,000,000
€ 2,500,000
€ 3,000,000
€ 3,500,000
€ 4,000,000
€ 4,500,000
€ 5,000,000
Irish charity Income around (!) 2010
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?
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?
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?
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?
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?
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Growth of Individual Giving in Australia and New Zealand
Commercial in confidence ©Pareto Fundraising 2012
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?
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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?
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
F2F Direct Mail
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Commercial in confidence ©Pareto Fundraising 2012
F2F
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Commercial in confidence ©Pareto Fundraising 2012
Direct Mail
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Commercial in confidence ©Pareto Fundraising 2012
F2F Direct Mail
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Premium direct mail
Commercial in confidence ©Pareto Fundraising 2012
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Commercial in confidence ©Pareto Fundraising 2012
Acquisition Campaign with Peter Mac
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Pack Components – Case Study Pack
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Pack Components – In House Pack
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Pack Components – Premium Pack
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Pack Components – Survey Pack
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3.41%
2.53%
1.65%
6.76%
2.37%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Case Study Pack Peter Mac Pack Premium Pack Survey Pack
Response Rate
Peter Mac Results
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$53.84 $50.57
$37.24
$42.89
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Case Study Pack Peter Mac Pack Premium Pack Survey Pack
Average Gift
$41.58
Peter Mac Results
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0.72
0.44
1.33
0.54
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Case Study Pack Peter Mac Pack Premium Pack Survey Pack
ROI
0.77
Peter Mac Results
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Acquisition Campaign with Cerebral Palsy Alliance
The mail campaign
•4 Waves
•Rented lists
•Total mailed 206,296
•Wheelchair proposition
•Trialed new markets
•Undertook many tests...
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Tests Undertaken
•Premiums
•Letter length and approach
•Ask
•Lists
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1) ‘Pareto 4 page’ versus ‘Simple 1 page’
Winner = Pareto 4 page
Response Ave Gift ROI
Pareto 4 page 3.2 % $ 43 0.71
Simple 1 page 3.0 % $ 38 0.63
Key Test Results
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2) Key Chain (premium) versus Address Labels (more standard lift mech)
Winner = Key Chain
Response Ave Gift ROI
Key Chain 4.0 % $ 41 0.85
Labels 2.2 % $ 39 0.47
Key Test Results
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3) ‘$25 Ask’ versus ‘$35 Ask’
Winner = $25 Ask
Response Ave Gift ROI
$25 Ask 3.5 % $ 39 0.68
$35 Ask 2.9 % $ 45 0.66
Key Test Results
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The Future
“Our best pack for next acquisition will be …
•Key Chain premium pack
•4 Page Pareto style letter
•Ask value of $25
•Best time to mail is when TV is playing, Xmas or Tax
•We know which lists to mail; out of the 15 we tested we’ll
drop 4
•Plus we’ll add a few more tests for further refinement.”
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Acquisition Campaign with Assistance Dogs Australia
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Results
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UPDATE
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FEB PREMIUM ACQUISITION 2012 RESULTS
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FEB PREMIUM ACQUISITION 2012
•Background
• Objectives
• Strategy
• The Pack
• Campaign results
• Observations, Learnings & Recommendations
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FEB PREMIUM ACQUISITION 2012
The Objectives
• To recruit 5,250 new donors from a mailing volume of 150,000
• Raise $170,635 (gross income)
• Test two different premiums to see which is the most successful (measured against response rate, average gift and ROI)
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FEB PREMIUM ACQUISITION 2012
OBJECTIVES
Volume 150,000
Response Rate 3.5%
Average Gift $60.00
Gross Income $170,625
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FEB PREMIUM ACQUISITION 2012
PACK TYPE Qty
Mailed Target
PACK A; Notepad 59,780
PACK B; Totebag 59,781
Total 119,561 150,000
Actual Mailed
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FEB PREMIUM ACQUISITION 2012
Strategy
Timing
•Lodgment 9 February 2012
Channel
•Direct Mail
Message
• Will you please send an urgent gift < of Ask1> and help children like Mia Francesca beat a diagnosis of cancer by funding more life-saving cancer research projects in 2012.
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FEB PREMIUM ACQUISITION 2012
Ask Strategy
Ask1 Ask2 Ask3
All Donors 25 50 100
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FEB PREMIUM ACQUISITION 2012
The Pack
PACK B: TOTEBAG PACK A: NOTEPAD
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CAMPAIGN RESULTS OVERVIEW Pack Mailed Responses Gross Income RR% Avg Gift
Pack A: Notepad
59,780 2,975 $86,389.50 5.0% $29.04
Pack B: Totebag
59,781 3,292 $95,878.00 5.5% $29.12
Unknown 0 25 $660.00 0 $26.40
TOTAL 119,561
(target 150k) 6,292
(target 5,250)
$182,927.50 (target
$170,625)
5.3% (target 3.5%)
$29.07
Comments
New donor target exceeded objective even
with lower mailing qty
Income exceeded target
thanks to a strong response
rate
There is a significant
different in RR between the
two test packs
Premium does not effect
average gift
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FEB PREMIUM ACQUISITION 2012
Response Rate (Notepad vs Totebag)
5.0% 5.5%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Pack A - Notepad Pack B - Totebag
Response Rate
Pack A - Notepad
Pack B - Totebag
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FEB PREMIUM ACQUISITION 2012
Average Cash Gift (Notepad vs Totebag)
$29.04 $29.12
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Pack A - Notepad Pack B - Totebag
Average Gift
Pack A - Notepad
Pack B - Totebag
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FEB PREMIUM ACQUISITION 2012
ROI (Notepad vs Totebag)
0.76
0.63
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
Pack A - Notepad Pack B - Totebag
ROI
Pack A - Notepad
Pack B - Totebag
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FEB PREMIUM ACQUISITION 2012
5.3%
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POST acquisition
Commercial in confidence ©Pareto Fundraising 2012
Email me your contact details & LinkIn
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Would direct mail work for you?
Commercial in confidence ©Pareto Fundraising 2012
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Thank you!