Databases and Analytics

June 10, 2015Kevin Moran

Principal

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What We Want to Cover

Marketing activity & results

B

MarketingDatabase

Analytics & Insights

Data-driven marketing!

Where we’ll focus within the process

Your organization

The “copycat” fundraising era is over, and it is imperative to articulate your unique position.

• The types of data collected and metrics that are important to your organizations are no longer the same even within the same verticals.

• Today’s leading organizations are leveraging their data to build new relationships, develop more dynamic segmentation strategies, and seeking new opportunities for growth.

“What is important to our organization?”

Database FundamentalsImagine that your organization effectively used all relevant information to make smarter decisions for sustained growth

First…How Things Have Changed…

Data and gift sources: The Old Model…or better yet, the “Good Ol’ Days”

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Donor

TM

Direct Mail

Website

Planned/Major Gifts

Social

Mobile

Video

Canvass

DRTV

Online Ads

Today, databases are more flexible to meet the evolving needs of

organizations

Landing Pages

Events

b

Email

ReduceCosts

ImproveLoyalty

IncreaseRevenue

Build Constituencies

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With any marketing database, the goals are the same

Has good “standard” reporting in order to increase productivity by allowing you to leverage data for better decision making.

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GiGo = Garbage in/ Garbage out…

Ask yourself, how should we be handling our data?

1. Collect what you only need to.2. Question how the data will be used.3. Discuss how will you get the data in…and just as

important, how will you get it out?4. Am I being consistent with how data is being collected

& stored?5. Is anything missing that will render the data less

useful (or useless)?10

AnalyticsThe key to maximizing value and sustained growth is getting the right information to the right people at the right time

Data and Decision-making Expectations

74%

67%

61%

78%

• How has access to useful data improved your ability to deepen your bond with your most valuable constituents over last year?

• To what extent do you believe that leveraging data to gain a deeper understanding of your most important customers has allowed you to grow/find more?

• To what extent do you believe that senior management expects you to make more data driven solutions over the next 12-24 months?

• To what extent do you believe that access to smart data has helped improve your ability to innovate over last year?

Source: Fall 2013 MIT and SAS Institute Study

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Big or Smart?

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Insight…

• into what levers you need to pull to grow – to make better decisions and create better business models.

Improve…

• current tactics through innovative testing.

Increase…

• your reach to new audiences and deeper ties with current supporters.

Invest…

• more effectively in order to manage risk, budgets, forecasts, communications.

What are we trying to do with all this data?

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Descriptive – What is happening now?

Diagnostic – Why is it happening?

Value in Your Analytics - DDPP4 types of data that need to utilized in strategic

decision-making:

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• Benchmarking – How do I compare to other organizations?

• Performance Indicator – Has my membership composition shifted?

• Investments Analytics – Which channel brings in the highest valued donor?

• Performance Reports – Which campaign brought in the most new donors?

• Segmentation – What segments worked for our test?

• Communication Analytics – How do I best convert online leads?

• Channel Analytics – How do you leverage Online media for growth?

Analytics – Many types

Some Measures of Success

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Basics

• Response Rates• Average Gifts• Net• ROI• Long Term Value• Conversion Rates• Upgrading/ Downgrading

Next Level

• Investment Level Metrics• MYM Target Development• Net LTV• Engagement - Retargeting • Community Impacts• Pathway to Value Metrics

“Orgs Manage What They Measure”

• Define what productivity means to you and your organization• Make sure the metrics are thought out and action oriented• Capture benchmarks and set sustainable goals• Ensure there are processes in place to get the data you need

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Watch out!

Unintended Analytical Biases – some may have an interest in a test working.

Manage what you Measure – be sure actions are in tune with KPIs.

Lack of Data or Experience hinders Insight – who is setting up and who is reviewing?

Always be skeptical!

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Kevin MoranPrincipal

202-494-8999Kmoran@integral-dc.com

www.integral-dc.com

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Appendix

Campaign Reports

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Package HPC MRC Date Mail Qty Gifts Resp Rate Income Avg GiftK37AAF5D: 2014 Calendar Appeal - Test 1

60,014 1,905 3.17% $77,810 $40.85

$15-19.99 1,258 101 8.03% $1,370 $13.56

$20-24.99 1,503 74 4.92% $1,390 $18.78

$25-49.99 32,478 1,129 3.48% $33,453 $29.63

$50-99.99 15,637 424 2.71% $23,945 $56.47

$100-249.99 8,734 175 2.00% $17,352 $99.15

250 plus 404 2 0.50% $300 $150.00

K37AAF8D: 2014 Calendar Appeal - Test 2

59,964 1,948 3.25% $81,609 $41.89

K37AAFCD: 2014 Calendar Appeal - Control

59,893 1,724 2.88% $68,037 $39.46

K37AAFHD: 2014 Calendar Appeal - High Dollar

5,535 75 1.36% $27,043 $360.57

K37AAFJD: 2014 Calendar Appeal - Core 1

49,364 4,699 9.52% $86,526 $18.41

K37AAFPD: 2014 Calendar Appeal - Core 2

23,226 3,864 16.64% $111,528 $28.86

K37AAFXD: 2014 Calendar Appeal - Extra responders

12,049 436 3.62% $19,505 $44.74

Total 270,045 14,651 5.43% $472,058 $32.22

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Tier Quantity % Resp Gifts AG Revenue Total Cost @ $.32 Net NPP:4: Net Neg - OT Donor HPC $10+ 557 1.08% 6 $275.00 $1,650.00 $178.24 $1,471.76 $2.641: Net Positive 336,900 4.14% 13,954 $39.57 $552,114.19 $107,808.00 $444,306.19 $1.325: Net Neg - HPC $100+ 0-36 Mos 9,690 0.18% 17 $267.35 $4,545.00 $3,100.80 $1,444.20 $0.153: Net Neg - NPP -$.26- -$.50 OT Donor HPC $10+ 16,107 0.80% 129 $49.05 $6,328.00 $5,154.24 $1,173.76 $0.076: Net Neg - HPC $25+ 0-12 Mos Freq 1+ 13,258 1.16% 154 $18.05 $2,780.20 $4,242.56 ($1,462.36) ($0.11)2: Net Neg - NPP -$.01- -$.25 OT Donor HPC $10+ 31,124 0.47% 145 $23.46 $3,401.00 $9,959.68 ($6,558.68) ($0.21)8: Net Neg - NPP -$.01- -$.25 HPC $5 - $49 Freq Ever 2+ 53,806 0.36% 192 $12.29 $2,360.53 $17,217.92 ($14,857.39) ($0.28)7: Net Neg - HPC $50+ 0-36 Mos Freq Ever 2+ 6,440 0.03% 2 $25.00 $50.00 $2,060.80 ($2,010.80) ($0.31)

467,882 3.12% 14,599 $39.26 $573,228.92 $149,722.24 $423,506.68 $0.91

Segmentation

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Existing Member Retention

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New Donor LTV

FY13 Program LTV JoinSource AG CPD VPD6 VPD12Offline Direct Response $20.64 $38.74 $31.59 $39.78Offline Total $20.64 $38.74 $31.59 $39.78Online Email Conversion $41.39 $4.59 $115.54 $123.61

Website $76.60 $0.00 $105.96 $125.56Online Advertising $93.67 $72.19 $100.33 $115.33Social Media $29.17 $157.68 $41.67 $78.17Acquired Email $26.51 $168.86 $44.14 $52.43

Online Total $60.89 $45.56 $89.10 $105.06Grand Total $22.51 $36.28 $34.27 $42.82

Objective: Monitor Return on Investment by Join Source and establish benchmarks for each source

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Channel Initial Value 6 Value 12 Value 24 Activation 12Mail - Acq 190476 $24.57 $34.93 $44.91 $57.65 36.14%

2008 60799 $27.32 $38.71 $51.16 $74.13 38.84%2009 47354 $24.02 $35.86 $47.42 $63.32 39.32%2010 74159 $22.83 $31.54 $39.31 $43.05 32.96%2011 8164 $23.25 $32.16 $34.79 $34.79 26.37%

Web 67724 $97.92 $108.98 $121.97 $135.97 12.52%2008 12931 $93.26 $124.37 $145.43 $183.89 16.30%2009 10592 $74.78 $86.81 $104.94 $123.65 20.86%2010 43710 $104.99 $109.83 $119.26 $125.04 9.27%2011 491 $89.71 $106.86 $112.66 $112.66 21.18%

Grand Total 258200 $43.85 $53.67 $62.97 $74.26 27.49%

Deeper Dives

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Dive Down Just One LevelChannel Percentage Initial Value 6 Value 12 Value 24 Second Gifts Conversion Activation 12

Mail - Acq 190230 100.00% $24.36 $34.71 $44.71 $57.45 84352 44.3% 36.16%$1,000-$4,999 93 0.05% $1,271.12 $1,487.25 $1,994.78 $2,380.26 52 55.9% 43.01%$500-$999 220 0.12% $515.74 $673.50 $930.78 $1,298.61 112 50.9% 43.18%$250-$499 326 0.17% $281.60 $371.53 $481.35 $633.30 187 57.4% 46.93%$100-$249 6648 3.49% $115.17 $160.62 $209.15 $271.75 3521 53.0% 42.95%$50-$99 16971 8.92% $50.83 $72.13 $94.37 $123.84 8520 50.2% 40.81%$30-$49 17325 9.11% $31.94 $46.26 $59.37 $75.71 8580 49.5% 40.53%$20-$29 57728 30.35% $21.39 $30.46 $38.69 $49.38 26100 45.2% 36.68%$10-$19 76824 40.38% $10.88 $16.22 $20.52 $25.75 31861 41.5% 33.65%<$10 14095 7.41% $4.16 $6.94 $9.03 $11.87 5419 38.4% 33.08%

Channel Percentage Initial Value 6 Value 12 Value 24 Second Gifts Conversion Activation 12Web 66441 $88.54 $95.80 $108.06 $121.63 11226 16.9% 12.70%

$1,000-$4,999 921 1.39% $1,271.19 $1,340.40 $1,524.58 $1,693.07 209 22.7% 16.72%$500-$999 1546 2.33% $520.74 $559.50 $627.18 $675.10 312 20.2% 16.11%$250-$499 2902 4.37% $266.81 $282.04 $315.14 $350.22 636 21.9% 16.13%$100-$249 15368 23.13% $111.27 $119.31 $132.61 $148.32 2771 18.0% 13.19%$50-$99 15756 23.71% $51.90 $57.72 $65.02 $75.00 2857 18.1% 13.13%$30-$49 4979 7.49% $40.80 $46.86 $54.03 $63.40 885 17.8% 14.06%$20-$29 12267 18.46% $23.04 $26.59 $31.11 $37.65 2079 16.9% 12.71%$10-$19 8686 13.07% $11.01 $13.25 $16.59 $20.86 1105 12.7% 10.36%<$10 4016 6.04% $5.77 $7.34 $8.46 $10.42 372 9.3% 7.79%