Afp Congress Pres 2009 Jg Final

Donor Insights:a dull name for getting the real

lowdown on what your donors want, think, believe and will respond to

Donor Insights:a dull name for getting the real

Data Insights:a dull name for getting the real

Who we’ve worked with

What we’ll cover

1. Data: what’s that all about2. How to use insights3. Insights in action4. Critical data you need5. Bringing it all together

One: Data

What’s that all about?

Types of data available

• Environmental- how much is given, growth, competition

• Analytical- your growth, your donor behavior

• Personal - transactions, bequest status, motivations

Using Environmental data to benchmark

2002 2003 2004 2005 2006 2007 2008 2009$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Total Income Avg Gift

Using Analytical data to answer these questions

• What is the biggest variable driving attrition?

• What is the best time to ask for a 2nd gift?

• Are my donors giving at the level I ask them?

• Which acquisition source delivers the best value?

Using Personal data to get closer

Two: how to use insights

Some real examples

Second gift rates worsening

Taking too long to get back and ask

• Develop a 2nd gift strategy designed to:– Thank quicker– Include a ‘non ask’ feedback letter before

next ask– Find the best time to ask for a 2nd gift– Focus on monthly giving

What this allowed BC Cancer to do

They found the optimum time to ‘convert’

2 3 4 5 6 7 8 9 10 11

Weeks since Gift

• Determine the best time to approach new donors with a monthly conversion request

What this allowed the Heart Foundation to do

• Look at ways to increase average gift value at point of recruitment– As higher value recruits more likely to

‘convert’

• Look at ways to increase average gift value at point of recruitment– As higher value recruits more likely to

‘convert’• Understand that initial cash value drives

future monthly value

Ave VTD by Channel by Year

Ave Year 1 Net

Ave Year 2 Net

Ave Year 3 Net

Ave Year 4 Net

Getting the real lowdown: Net Value to Date

• Say things like:“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”

What this allowed SickKids to do

• Focus on areas generating the best real return

• Understand implications of future program decisions

What really drives attrition of street recruits?

• Recruitment Source

• Gender• Payment

Method• Payment

Frequency• Age

• Amount• Email Provided• Home Phone • Work Phone• Mobile Phone

What really drives attrition of street recruits?

Category % nNo 76.00 12012Yes 23.00 3793Total (100.00) 15805

Node 0

Category % nNo 76.06 6730Yes 23.94 2118Total (55.98) 8848

Node 16Category % nNo 75.92 5282Yes 24.08 1675Total (44.02) 6957

Node 15

Year2 attrition

GenderAdj. P-value=1.0000, Chi-square=0.0412, df=1

Some really ugly, but useful analysis

• Age is the most significant factor in predicting Year 1 attrition

• Payment type is significant, with credit card payers more likely to attrite

Insights: what we found

• Predict future value of supporters• Prioritize spend• Identify high risk supporters and treat

them differently

What this allowed Amnesty to do

Monthly Givers: to mail or not to mail

No. of donors

TerminatedAttrition

RateTotal months since 2008/01

Avg months given

Total Value since 2008/01

Included 3,434 287 8.36% 54,510 15.87 $14,334,329

Excluded 3,433 295 8.59% 53,979 15.72 $13,176,515

EXTRA DONATIONS GENERATED

No. of donors responded to

Appeal

Resp. Rate

No. of gifts for Appeals

TOTAL AMOUNT RAISED

No. of Other Gifts

Amount raised from Other Gifts

Included 896 26.09% 1,184 $1,080,230 219 $574,841

Excluded 0 0.00% 0 0 273 $239,319

• Prove that monthly donors will continue to give onetime gifts

What this allowed them to do

Three: Insights in action

Your turn, helping the Lost Dog’s Home

The Lost Dogs’ Home

State of Play: 2002

Struggling for 2nd Gifts

Most only giving once

Struggling to recruit

Appeals program stagnant

*2003 based on 3 staff + Graeme raising $500k

Where staff spent their time

Your challenge:

• As Development Director, what decisions would you have made?

A recap

• Large focus on a struggling cash program• Lots of time spent on events that weren't

making money• Had scaled back spend on acquisition • Elderly database • Spend or close their doors

So, what did they do?

• They told it like it was – Crisis appeal

• They told it like it was – Crisis appeal• Got personal with donors

What makes them tick?

Got really personal

• They told it like it was – Crisis appeal• Got personal with donors• Focused on areas of growth – monthly giving,

bequests

bequests• Were prepared to spend now, reap returns

later• Looked at what others were doing

Did it work?

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

This purple block represents income from the first ap-peal using the new strategy - to the same donors

Yes. In the short term.

Yes. In the medium term.

From 98 to 10,330 activemonthly donor’s$1.5m CAD a year

Yes. In the long term.

5.7% of their active donors have confirmed they are leaving a bequest – that’s 1,649 donors

Yes. In the long term.

Four: Critical data you need

Look beyond the simple measures

A Recap: Types of data available

A Recap: Data you must have

• Environmental– Understand where growth is coming from– Look around at what others are doing– Benchmarking is about more than

comparative data

• Analytical– Look deeper than top line measures

• Net Income v ROI

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Why ROI alone can be dangerous

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Why ROI alone can be dangerous

• Net Income v ROI• Net value to data v cost to acquire

• You want to be able to say:“A donor acquired in 2005 by <insert channel> is worth $450 whereas a donor acquired in 2005 by <insert channel> is worth $200”

Cost to acquire is just one measure

• Net Income v ROI• Net value to data v cost to acquire• What you asked for v what was given

Do you really know if your ask really works?

• Personal– Find the ‘emotional triggers’– Play it back. Getting closer builds long term

Data + Intelligence = Insights

Remember..

Five: bringing it all together

What to do when youleave the room

• Scan environmental data to look at what others are doing

Final takeaways

• Dig deeper within your analytical data

Final takeaways

• Dig deeper within your analytical data • Get personal with your donors

Final takeaways

• Dig deeper within your analytical data • Get personal with your donors• Be disciplined with your direct

marketing

Final takeaways

• Dig deeper within your analytical data • Get personal with your donors• Be disciplined with your direct

marketing • Apply the Pareto Principle. Spend time

where you will get the greatest return

Final takeaways

Ultimately, let’s not forget…

Data = People

And people are good.

Even at age 101, Ethel Perrin is committed to helping children in need.

This sprightly great-grandmother has dedicated her

life to helping impoverished children nationally and

internationally.

This sprightly great-grandmother has dedicated her

life to helping impoverished children nationally and

internationally.

Ethel’s first donation was a child sponsorship of a little girl in

Pakistan.

She then sponsored two aboriginalboys in Canada. With five children of her own, Ethel and her family were more than happy to give

what they could.

She then sponsored two aboriginalboys in Canada. With five children of her own, Ethel and her family were more than happy to give

what they could.

Over the years, she supported dozens of children in many countries

throughout the world.

Since joining in 2004, Ethel has continued to be a generous

supporter of Canadian Feed the Children’s programs.

Since joining in 2004, Ethel has continued to be a generous

supporter of Canadian Feed the Children’s programs.

Nowadays, Ethel crochets and knits quilts, which she sells to

raise funds for CFTC.

Ethel explains her situation like this:

“I can’t walk, I can’t sit up too well, but my hands are fine, and as long as my hands work, I will keep making quilts to help

children in need.”

This man by the name of Tony called the Breast Cancer

Foundation of Singapore one day…

QuickTime™ and a decompressor

are needed to see this picture.

…to say that he was auctioning a collection of coins belonging to his sister Cheryl, who had died

of breast cancer.

…to say that he was auctioning a collection of coins belonging to his sister Cheryl, who had died

of breast cancer.

Prior to Cheryl’s death, a volunteer counsellor with the

Breast Cancer Foundation who was a breast cancer survivor

herself, had visited her.

Cheryl found great comfort from the visit of the counsellor and

the help from the Breast Cancer Foundation.

Upon Cheryl’s death, Tony felt that a good way of appreciating the service and commitment of the Breast Cancer Foundation…

was to donate the sum raised from the auction of his coins.

He raised $11,000...

Sue, a donor from Ohio, demonstrated a high level of

passion and personal commitment to Operation Smile.

QuickTime™ and a decompressor

are needed to see this picture.

Sue has recently helped more than 53 children receive new smiles through per personal donations and fundraising.

Sue first learned about Operation Smile on TV back in

December 2004.

At that time she called and made a $240 donation for a

single smile surgery.

At that time she called and made a $240 donation for a

single smile surgery.

Later, moved by what she had learned, Sue carried the

message of Operation Smile to her co-workers, customers and

friends.

Sue is a hairdresser and with the support of co-workers, she

established an “Operation Smile Day” each month at her shop

where her tips and contributions by customers are donated to

Operation Smile.

But she didn’t stop there...

Sue then took the next step and made a commitment to hold a

fundraising event and organized a special evening in April.

Sue then took the next step and made a commitment to hold a

fundraising event and organized a special evening in April.

All proceeds were donated to Operation Smile.

Sue and her friend raised $12,766…

Last year an old man walked into the Princess Margaret

Hospital Foundation, straight off the street and wanted to speak

to the boss.

In his hand he had an envelope. He sat down and got straight

to the point.

In his hand he had an envelope. He sat down and got straight

to the point.

He had just sold a home unit and he didn’t need the money.

After making sure that he would never be identified…

he took out of the envelope a bank cheque for $375,000, crossed out his name and

endorsed it to the foundation.

He then said that he was 86 years old and that

“there will be more for you in the future, but don’t give your hopes

up as we live to a really old age!”

Data = People

And people are good.

The Pareto Group exists to make the world a better place, by expanding the not-for-profit

sector's capacity worldwide to ensure as many beneficiaries are helped as possible.

jonathon.grapsas@paretofundraising.com

www.jonathongrapsas.blogspot.com

twitter: jonathongrapsas

www.paretofundraising.com

Afp Congress Pres 2009 Jg Final

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