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by Griet Verhaert, Development and Strategic Manager, Direct Social Communications, Belgium
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Database Marketing in Fundraising
Griet VerhaertDirect Social Communications
• Fundraising Agency• °1985 • 21 partners• Turnover: 10 million euro• Team: 16 people + outsourcing• No cure no pay• Member of • Pooled database (DSC is co-owner)• Full service
Direct Social Communications NV
Fundraising• Most effective channel?• Direct Mail at DSC:– 400 campaigns– 11 million letters– 23 million euro
Measurable?
Campaign Success Rate
Revenue per solicitation
Response1/0
Giftsize€
e.g. N=10000
1000 10%
€30
Total: €30000Per mail: €3
Donor Lifecycle
Prospect(Acquisition)
Active(Retention)
Lapsed(Reactivation)
How to optimize direct-mail?• Content (inside & outside)• TargetMeasuring, analyzing, testing &
evaluating (long term & costs!)Learning optimizing
Direct Mail: Testing MAMAS
?Shopping bag
Agenda
Handkerchiefs
Recruiting MAMAS incentive!
Shopping bag: 4.67%
Agenda: 2.18%
Handkerchiefs: 1.69%
Multichannel• Direct mail• Telemarketing • Face-to-face • Online • Email• Mobile (Emergency)
Difficult to measureConsistent messaging! Integration database : follow 1 individual across multiple channels
4 topics related to database marketing
• Integrated Data Management Platform• Donor Cloning• Hyperpersonalisation• Eye-tracking
Integrated Data Management Platform
• Channel integration• Extended donor dashboard
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Integrated Data Management Platform• Channel integration• Extended donor dashboard • CRM: one-to-one contacts• Selection tool• Sepa direct debit payments• Document Management tool• Reporting tool• Maps
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16
17
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Donor Cloning
• Donor Acquisition: List optimization• Geomarketing (+- 20.000 NIS9-zones)• Predictive models, similarity models
Roadmap to Cloning1 Define interesting donors
= donors ‘to be cloned’ ( actives)
Calculate Targets= historic conversion rate per area (# donors/# households)
Calculate Predictors= objective socio-demographic criteria per area (+-700; housing, residents, neighborhood)
Predict future conversion= Select & combine best predictors
Validate predictions= Compare predicted vs real response, and profile
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3
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Project Approach
Number of Households
Age 55-60y
270 10%
100 30%
65 70%
…
CloningModel
Predicted Conversion
0.01%
0.02%
0.15%
…
Area Number
Historic Conversion
1 0%
2 0.05%
3 0.20%
… …
2 3 4
Heatmap (predicted conversion)
• Example: Region of Bruges
Bruges
Age > 55y Cloning Top 100.000
Cloning Top 10.000
1.98%2.29%
2.71%
Response
Age > 55y Cloning Top 100.000
Cloning Top 10.000
21.6 €25.5 €
28.6 €
Average Gift
improvement of 37% in response rate
improvement of 32% in donation amount
Real-life Prospection Campaign
Age > 55y Cloning Top 100.000
Cloning Top 10.000
0.43 €0.58 €
0.78 €
Break(revenue per letter sent)
improvement of 82% in revenue per letter sent
Current and Future Usage
Real-life Prospection Campaign
Hyperpersonalisation: transactional data
• Ask• Thank you• Miss You
Hyperpersonalisation: transactional data
Hyperpersonalisation: survey (Sean Triner – Pareto Fundraising)
• Survey Lost Dogs’ Home• Your pet names:
Appeal letterDear Griet
Thank you for continued support of the Lost Dogs’ Home and especially for completing our recent survey.
As winter approaches it saddens me to think of the thousands of puppies that unlike Max will need rescuing from the streets by our trained staff…
© Pareto Fundraising August 2012
Personalization Proximity (Sargeant)• Before: "Hello. Thank you so much for supporting public
radio. How much would you like to give today?“• After: "Hello. Thank you so much for supporting public
radio. Someone from your town just called a few minutes ago and gave $150. How much would you like to give today?"
Personalizing Muco
Personalizing Muco
Muco: Results
Prospect(Acquisition)
Active(Retention)
Lapsed(Reactivation)
25% Response (ROI: 1135%)
7% Response (ROI:34%)
10% Response (ROI:144%)
Eye-tracking• MMA-project (Ghent University)• Pictures / logo• Qualitative • Quantify through testing
Before/After
Difference in viewing time
Before After0
1
2
3
4
5
6
7
87.087
3.099
Frame Normal Blur
Difference in viewing time
Blur Normal Frame0
5
10
15
20
25
30
35
20.312
30.901
27.449
Eye-tracking: conclusions• Need, poverty, urgency, quite shocking• Eye contact• Close up• Western children: be careful• Logo charity test to quantify!
