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Donor Index
Data insights to improve fundraising efficiencies & performance
June 2017
V1.1 MLD - Open
2
Who we are
MyLife Digital (MLD) and Wood for Trees (WfT) help make things
happen through data analytics, insight and systems. We
collaborate with some of the world's best-known charities and
not-for-profit organisations to improve fundraising efficiency
and performance.
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Donor Index
Donor Index has been created using Wood for Trees unique perspectiveon fundraising data and their experience delivering data insight solutionsfor some of the UK’s best known charities.
Donor Index provides a ranking of a donor’s expected value; this can beapplied to data to improve fundraising efficiencies and performance.
Donor Index enables you to focus your fundraising budget and effort onthe right supporters with the right product; enabling a sympathetic,tailored marketing programme to be implemented.
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• MyLife Digital provides the power of ‘Big Data’ analytics and Machine Learning, for charities, via Donor Index
• Donor Index brings best practice from other sectors (retail/financial services) and applies it for the benefit of charities
• The Donor Index algorithm ranks donors, and prospects, based on their expected value to the charity for up to a maximum of 5 years
• It enables fundraisers to make informed decisions on their communications strategies; by providing donors expected value through different lenses:
- Characteristics of the supporters (age, gender, first payment method etc.) - Geographical location
• Fundraisers can use the insights to focus budget and effort to maximise returns across acquisition, retention and reactivation communications
• You don’t need to be an analytical expert to understand the output. Donor Index provides an easily interpretable value score from 1 to 100 and up to an expected 5 year value per donor.
What is Donor Index?
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Donor Index Algorithm
Identify patterns in your donors behaviours
Enrich each of these patterns with 3rd party data from WfT’sUK Intelligence File
Calculate the expected value of each donor given location and donation history
Rank Donors according to their expected value
𝐄 𝐃𝐢 = 𝐄[𝐂𝐚𝐬𝐡, 𝐂𝐡𝐫𝐢𝐬𝐭𝐦𝐚𝐬, 𝐓𝐕,𝐖𝐞𝐚𝐥𝐭𝐡]
Product
Channel
Method
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Simple Example
10 existing donors:- live in property valued between
£200k and £250k- are between 40 and 45 years old - on average give £150 each over 5
years.
Now imagine this example extended to cover up to 174 attributes such as: products, channel, payment method, social profile, wealth and income. Donor Index takes all these attributes into account when calculating a score.
5 new donors sign up: - live in property valued between
£200k and £250k- are between 40 and 45 years old - We can say, on average, you can
expect £150 from each of these donors over the next 5 years
- Some will stop giving after a few months and others will give more by responding to cash appeals.
- Donor Index takes all this information into account.
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Donor Index consists of two models
• The existing model is tuned to understand life-time value. This can be refined if other objectives are a specific priority.
Behavioural
✔ Based on transactional activity
✔ The behavioural model is likely to be best when dealing with longer term supporters as there will be more behaviour to understand
Profile
✔ Based on census demographics
✔ The profile model is likely to be best for new or low frequency donors
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Donor Index can help identify supporters beyond RFV
High current engagement
but longer term
prospects are not so high
Current engagement
low but potentially high value
High
High Med
Med
Low
LowRF
VDonor Index Rank
• For many donors, the Recency, Frequency and Value (RFV) and Donor Index models will have the same categorisations
• Donor Index has the advantage of considering elements of a donors profile or behaviour, relative to other donors, to identify hidden value or a variance on longer term prospects
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Acquisition - Areas to focus on Donor Index’s Regional Thematic report provides a list of post codes alongside several metrics with forecasts of what to expect from a region, to help gain a view of potential growth opportunities in that area.
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Profile of High Value Area• Healthy areas as reported by NHS• High levels of non-EU immigration• Wealthy areas as a measure by number of 4 car households,
education levels and types of jobs• High numbers of families with children at home• High number of retired couples• Low levels of students • Low numbers of single occupant homes
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Initial Insights report To help you gain insight from the Donor Index tool you will be supported with an ‘Initial Insights Report’.
Insights include:- Recruitment by type and channel- Recruitment history- Crossover in giving type- Change in active donors
Some report examples are included on the next slides
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SuperDonor index (90-100)
HighDonor index (60-89)
Donor Category being investigated e.g. Active Cash Donors who have given more than 2 donations
45
6.5
Next step recommendations based on data.
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5.6
8
4.5
5
3.9
AverageLTV
Average number of gifts
to date
Recommendation
Average tenure
Annual Value (2016) TBC TBC TBC TBC
Number of donors in each Donor Index grouping
Explanation of report format
MediumDonor index (30-59)
LowDonor index (0-29)
£923 £210 £84 £49
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Retention – Active Cash Donors
Super High Medium Low
Active Cash Donors who have given more than 2 donations
2,752 5,231 4,934 1,368
Very high value and loyalty.
Deepen engagement through more personal
approaches.
Retain and engageGood tenure but low
average value.Retain and upgrade *
Similar to Medium group but very low
average value.Reduce investment.
AverageLTV
Average number of gifts
to date
Recommendation
Average tenure
Annual Value (2016) TBC TBC TBC TBC
45
6.5
12
5.6
8
4.5
5
3.9
£923 £210 £84 £49
Behavioural model
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Reactivation – Lapsed Cash Donors
Super High Medium Low
Lapsed Cash Donors
203 1,187 5,698 4,356
£1,647
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3.6
Immediate action to re-engage through
personalised approach
£261
7
2.5
Attempt to reactivate at high value
£52
3
1.6
Attempt to reengage at low value
£22
2
1.2
Withdraw investment
AverageLTV
Average number of gifts to date
Recommendation
Average tenure
Annual Value (2016) NA NA NA NA
Behavioural model
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Base Report• Summary of donors by
behavioural score
• Major donor summary
• Ability to download donor scores
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Donor Deep Dive Report• Interactive report, make selection
on the pie and bar charts to filter table
• Donor’s who have made a donation in the last 5 years, deeply lapsed donors are excluded!
• Switch between Behavioural and Profile models
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Regional Report• Interactive report, select
regions and value bands to up date table
• Switch between Behavioural and Profile models
• Donor’s who have made a donation in the last 5 years, deeply lapsed donors are excluded!
• Select metric of interest to display on map
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How does it work?
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Upload a list of donors, and any donations they
have made, to the secure WfT SFTP
site. This is then
loaded into the WfT Master Data
Repository.
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• The data file is reviewed and a WfT consultant will discuss the summary output with you.
• WfT UK Intelligence file is appended to your donor file to build their profile.
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Each donor, their profile and
donation history is scored by the
Donor Index algorithm.
The algorithm has been built using
WfT unique perspective of the
UK fundraising sector.
4
You will be provided with an
initial insights report.
Access to the Donor Index tool will be given so the reports can be viewed and Donor Index
score downloaded.
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Donor Index PricingStandard
✔ Data ingestion to Donor index model
✔ Access to interactive reports including:
- Mini audit report
- Base data
- Deep Dive
- Regional
✔ Download of Donor Index score
✔ Insights report
✔ Data refresh available for an additional charge
Pricing
Number of Donors Annual Subscription
up to 50k £5,000
50k - 100k £6,000
100k - 200k £8,000
200k - 300k £10,000
300k - 500k £14,000
500k+ POA
• Up to five user logins included in the annual subscription
• A data refresh is available during the year for an additional 20% of the annual subscription
• All data input files will need to conform to the standard data specification supplied by MyLife Digital
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