DM 201NYC

May 14, 2014

Analytics!Image that your organization effectively used all relevant information to make smarter decisions for sustained growth.

Post Join Strategies Drive Investments

Prospecting• Donors• Leads• Direct mail• Web

2nd Gift and retention• 1x Gifts• Sustainers

Upgrading• Mid-Level• Major Gifts

After donors are acquired value us created through second gift, retention and upgrading strategies

Generating Value From Prospecting

Join Channel•Direct Mail•Web•Monthly•Online Ads•Email•TV•F2F

Gift Type•1x Gift•Multi-gifts•Sustainer•Join level

Data Source•List/Package•Online Publishers•List•Digital Ads•Cities/Offices

Now examine these examples across all channels to drive investments.

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What We Want to Cover

• Renewals• Special Appeals• Monthly Giving• Digital

RenewalsTypically Renewals are the most effective marketing activity to keep donors engaged.

Renewal Programs

1. Primary Objective - Retain.

2. Cost Effectiveness

3. Program Types – Anniversary versus Annualized – Advantages of each

4. Typical Messages

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Key Renewal Metrics

1. Response Rate

2. Renewal Rates - channel and integrated

3. Segmentation Opportunities

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Renewal ReportExpire Performance

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Expire Group First Year Quantity Renewal Rate

Response Rate

Responses Avg Gift Gross Income Expenses Net

Early Bird 37,666 3.54% 3.53% 1,328 $29.53 $39,218 $12,241 $26,976

Notice A 37,498 5.37% 5.37% 2,012 $35.00 $70,426 $12,187 $58,239

Notice 1 159 0.62% 84.28% 134 $31.72 $4,250 $52 $4,198

Notice B 35,015 4.99% 5.35% 1,873 $36.94 $69,192 $11,380 $57,812

Notice C 33,012 3.80% 6.19% 2,045 $24.72 $50,549 $10,729 $39,821

Notice D 34,249 4.58% 5.02% 1,719 $25.54 $43,900 $11,131 $32,769

Notice E 3,922 1.50% 14.33% 562 $35.01 $19,674 $1,275 $18,399

Notice F 28,236 2.55% 3.39% 958 $25.99 $24,902 $9,177 $15,725

Notice G 27,400 2.51% 3.44% 943 $24.56 $23,158 $8,905 $14,253

Notice H 26,070 1.53% 2.20% 574 $26.07 $14,963 $8,473 $6,490

Notice J 23,455 0.82% 1.31% 308 $25.93 $7,988 $7,623 $365

Notice K 22,197 0.86% 1.45% 322 $25.44 $8,193 $7,214 $979

Notice L 21,234 0.05% 0.08% 17 $43.82 $745 $6,901 ($6,156)

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Existing Member Retention

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New Member Retention

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New Member Retention by Channel

Retention Monitoring

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1/23/2010 1/23/2011 1/23/2012 1/23/2013 TrendMulti-Channel 66.3% 70.3% 65.3% 72.9%Offl ine Only 52.2% 46.6% 43.7% 47.4%Online Only 26.9% 30.9% 21.3% 33.2%

1/23/2010 1/23/2011 1/23/2012 1/23/2013 TrendCore 71.1% 70.5% 67.4% 72.3%

Core 1st Yr 55.9% 52.7% 48.0% 55.8%Core 2nd Yr 67.6% 66.3% 62.0% 66.7%Core 3rd yr+ 80.5% 81.3% 79.6% 82.7%

Prior Lapsed 41.7% 36.8% 34.9% 40.9%Prior Recent Lapsed 48.4% 46.1% 42.1% 50.0%Prior Deep Lapsed 35.0% 30.1% 28.4% 32.9%

Prior New 22.7% 20.4% 17.2% 20.1%

Appeals Special Appeals can be a vital revenue stream to expand an relationship with key donors for long-term.

Appeals Programs

1. Primary Objective –Maximize Donor Value, Retain,

2. Feed the Pipeline – Define it

3. Mid-Level vs Monthly

4. Appeals versus renewals

5. Major Gifts and Planned giving

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Key Appeal Metrics

1. Value2. Average Gifts3. Upgrading4. Annualized Treatment and Investment5. Segmentation – Basic versus Integrated

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Appeal Reports

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Package HPC MRC Date Mail Qty Gifts Resp Rate Income Avg Gift

K37AAF5D: 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

Review Key Segments

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Behavior Mail Qty Gifts Resp Rate Income Avg Gift Productivity

Test Cell 1 13,541 188 1.39% $9,560 $50.85 $706

Appeal Responsive 28,352 1,608 5.67% $45,397 $28.23 $1,601

Behavior Model 1 24,120 3,562 14.77% $112,136 $31.48 $4,649

Notice Enclosed Series Behavior 61,053 2,148 3.52% $82,269 $38.30 $1,348

New Member 43,222 2,527 5.85% $63,077 $24.96 $1,459

Aria Responsive 4,864 185 3.80% $8,570 $46.32 $1,762

Behavior Model 2 21,063 1,812 8.60% $42,713 $23.57 $2,028

Lead Model 1 43,526 1,682 3.86% $55,508 $33.00 $1,275

Issues Appeal 16,018 693 4.33% $39,923 $57.61 $2,492

Advanced Expire 8,881 201 2.26% $10,140 $50.45 $1,142

Test 2 2,968 38 1.28% $1,990 $52.37 $670

Test 3 2,437 7 0.29% $775 $110.71 $318

Total 270,045 14,651 5.43% $472,058 $32.22 $1,748

Appeals or Renewals

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2011-03

2011-05

2011-07

2011-09

2011-11

2012-01

2012-03

2012-05

2012-07

2012-09

2012-11

2013-01

2013-03

2013-05

2013-07

2013-09

2013-11

2014-01$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

$2,000,000

$2,200,000

$2,400,000

$2,600,000

Renewals

Appeals General

Monthly Giving Image that your organization effectively used all relevant information to make smarter decisions for sustained growth.

Monthly Giving1. Primary Objective – Giving Option

2. When to do it! High-Level Approach

3. Operational Issues

4. Typical Messages

5. To Brand or Not To Brand

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Key Monthly Metrics

1. Conversion2. Attrition Rates3. File Penetration4. Revenue Penetration5. Investment Levels6. Segmentation Opportunities

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Monthly DonorsTypically a sustainer is worth more than twice as much as another member.

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Sustainer File RetentionThe graph below displays sustainer retention for the past four 12-month periods.

Non-sustainers have been excluded.

Past 12 MonthsPrior 12 Months

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Decline Rates.

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Monthly activation by channels

Digital Digital marketing offers both greater rewards in terms of higher engagement and ROI and greater risk - due to the execution complexity and the need for behavioral changes across the organization. Defining your Digital experience is key

Digital

1. The 4 Digital Presence Models

2. Primary Objective – All of the Above

3. Articulating Valuation

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4 Primary Model4 revenue models

Deciding aligns metrics

1. Brand2. Education3. Advocacy/Community4. Revenue

1. Philanthropy2. Lead Generation3. Transactional – Subscription based - Ads4. Innovate

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Key Digital Metrics

1. Conversion2. Qualified Visitor Valuation3. Lead Investment Needs4. Email Valuation5. Online Advertising 6. Integrated Segmentation

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Traffic & Revenue TrendsObjective: Understand organization exposure - Analyze visitor traffic composition and monitor qualified traffic trends.

Client Recommendation: Although traffic was increasing, the current strategy was bringing in unqualified traffic thus impacting website revenue.

24-Month Trend Overview Past 12 Months

Unique Visitors 21,880,675

% New Visitors 73.1 %

PageViews 58,219,354

Bounce Rate 71.4 %

Branded Traffi c 1,112,863

Non Branded Traffi c 20,865,495

Direct Traffi c 4,955,452

Search 10,108,182

Paid Search 880,885

Non Paid Search 9,283,060

Referral 3,679,613

Campaign 4,761,815

Revenue $7,299,162

Webs ite $5,907,854

Onl ine Ads $1,391,308

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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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Email List Valuation

MemberGroup EmailsOpened12 Registrants % Registrants Donors Revenue Revenue 0to12Mos R12 Offl ine Revenue R12 WebRevenue Active 0-12 Mos A: 1-5 1575 1.25% 1575 $1,568,661 $410,404.09 $305,508.13 $104,895.96

B: 6-11 756 0.60% 756 $868,349 $240,390.36 $176,613.25 $63,777.11C: 12+ 2388 1.89% 2388 $4,918,766 $1,069,889.84 $962,897.62 $106,992.22Z: Zero 1392 1.10% 1392 $1,328,183 $309,393.58 $268,192.47 $41,201.11

Active 0-12 Mos Total 6111 4.84% 6111 $8,683,959 $2,030,077.87 $1,713,211.47 $316,866.40Short lapsed 13-24 Mos A: 1-5 769 0.61% 769 $403,357 $0.00 $0.00 $0.00

B: 6-11 386 0.31% 386 $141,225 $0.00 $0.00 $0.00C: 12+ 1584 1.26% 1584 $272,272 $0.00 $0.00 $0.00Z: Zero 893 0.71% 893 $493,227 $0.00 $0.00 $0.00

Short lapsed 13-24 Mos Total 3632 2.88% 3632 $1,310,081 $0.00 $0.00 $0.00Deep lapsed 25+ Mos A: 1-5 2955 2.34% 2955 $1,347,028 $0.00 $0.00 $0.00

B: 6-11 1801 1.43% 1801 $460,487 $0.00 $0.00 $0.00C: 12+ 11220 8.89% 11220 $1,328,913 $0.00 $0.00 $0.00Z: Zero 2469 1.96% 2469 $1,618,313 $0.00 $0.00 $0.00

Deep lapsed 25+ Mos Total 18445 14.61% 18445 $4,754,741 $0.00 $0.00 $0.00Prospects A: 1-5 215 0.17% 0 $0.00 $0.00 $0.00

B: 6-11 228 0.18% 0 $0.00 $0.00 $0.00C: 12+ 96532 76.48% 0 $0.00 $0.00 $0.00Z: Zero 1050 0.83% 0 $0.00 $0.00 $0.00

Prospects Total 98025 77.67% 0 $0.00 $0.00 $0.00Grand Total 126213 100.00% 28188 $14,748,781 $2,030,077.87 $1,713,211.47 $316,866.40

Emails Opened in the past 12 months

Show me the money!

Objective: Monetize email list by segment allowing for creation of select strategies.

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Keep an Eye on Unsubscribe

Thanks

Kevin MoranPrincipal

Integral, LLC202-452-9731

kevin@integral-dc.comwww.integral-dc.com