Constituent Relations in an E-WorldConstituent Relations in an E-World

Washington DC, USAWashington DC, USA

March 13, 2003March 13, 2003

Andrew K. TiedemannAndrew K. Tiedemann

Communications DirectorCommunications Director

Alumni Affairs and DevelopmentAlumni Affairs and Development

Harvard UniversityHarvard University

Embracing a New Era in Embracing a New Era in Alumni and Donor CommunicationsAlumni and Donor Communications

Questions to AskQuestions to Ask

• How do we define engagement?

• Can it be measured?Can it be measured?

• How much do we know about our alumni How much do we know about our alumni and their engagement levels?and their engagement levels?

Potential Engagement Potential Engagement IndicatorsIndicators

Cares about youCares about you

Reads your publications, visits the alumni website (is Reads your publications, visits the alumni website (is well informed)well informed)

Stays in touch with classmatesStays in touch with classmates

Files class notesFiles class notes

Participates in class eventsParticipates in class events

Attends local club eventsAttends local club events

Gives at levels appropriate to capacityGives at levels appropriate to capacity

Serves as a volunteer in some wayServes as a volunteer in some way

What We KnowWhat We Know

• 309,000 alumni309,000 alumni

• 260,000 postal addresses260,000 postal addresses

• 110,000 email addresses110,000 email addresses

• Harvard College Class ReportsHarvard College Class Reports

• Giving historyGiving history

16%12%

8%

56%

36%34%

28%

52%

58%

Alumni AttitudesAlumni Attitudes

% = College respondents% = College respondents

Not informedNot informed Somewhat informedSomewhat informed Very informedVery informed

““How informed are you about Harvard today?”How informed are you about Harvard today?”

19941994 19941994 1994199419971997 19971997 1997199720012001 20012001 20012001

Harvard Alumni OnlineHarvard Alumni Online

• 93% with email93% with email

• 57% visit alumni website57% visit alumni website

• Connection to classmatesConnection to classmates

• Access to intellectual contentAccess to intellectual content

• Career mentoringCareer mentoring

What Harvard Has OnlineWhat Harvard Has Online

• Harvard Monthly EmailHarvard Monthly Email

• Harvard@HomeHarvard@Home

• Post.Harvard CommunityPost.Harvard Community

• Online DirectoryOnline Directory

• Club and Class Website HostingClub and Class Website Hosting

What’s Missing?What’s Missing?

• Individual engagement levels Individual engagement levels

• Individual interestsIndividual interests

• Life stage historiesLife stage histories

• Correlation of involvement and givingCorrelation of involvement and giving

• Measurability of existing programsMeasurability of existing programs

Smart InvestmentsSmart Investments

AA&D Resource Allocation

Lifetime Engagement Index

Lifetime Giving Value

AgeAge2121

AgeAge8181

Metrics ModelMetrics ModelInstitutional ROIInstitutional ROI

Summary Data – GivingSummary Data – Giving

1.1. RaisedRaised – New Gifts and Pledges by School, Fiscal Year – New Gifts and Pledges by School, Fiscal Year

2.2. ReceivedReceived – Gift Receipts by School, Fiscal Year – Gift Receipts by School, Fiscal Year

3.3. Giving consistencyGiving consistency – University-wide by Fiscal Year – University-wide by Fiscal Year

4.4. Year end pledge balancesYear end pledge balances by School, Fiscal Year by School, Fiscal Year

5.5. Scale of giftsScale of gifts – University Wide by Fiscal Year – University Wide by Fiscal Year

6.6. Giving vehiclesGiving vehicles

7.7. Donor constituencyDonor constituency

8.8. Economic indicatorsEconomic indicators of Development Environment of Development Environment (Calendar Year)(Calendar Year)

Metrics ModelMetrics ModelInstitutional ROIInstitutional ROI

Summary Data – EngagementSummary Data – Engagement

1.1. Engagement opportunitiesEngagement opportunities

2.2. Number of donors by SchoolNumber of donors by School

3.3. Reunion attendanceReunion attendance

4.4. Other alumni affairs eventsOther alumni affairs events

5.5. MembershipsMemberships

6.6. Continuing educationContinuing education

7.7. Lost alumni countsLost alumni counts

8.8. Alumni attitudesAlumni attitudes

9.9. Online activitiesOnline activities

One to OneOne to One

• Build lifetime profile for each alumnus/alumnaBuild lifetime profile for each alumnus/alumna

• Capture self-identified interestsCapture self-identified interests • Personalize all messagingPersonalize all messaging

• Record all contacts online and offRecord all contacts online and off

• Create engagement indicesCreate engagement indices

Alumni ProfileAlumni Profile

Channels of alumni communication areChannels of alumni communication aresources of information:sources of information:

• Classmates on giving committeesClassmates on giving committees

• Volunteers on numerous other committeesVolunteers on numerous other committees

• Class notesClass notes

• Class reportsClass reports

• Phonathon calls (both students and volunteers)Phonathon calls (both students and volunteers)

• SurveysSurveys

• Club associationsClub associations

• Other involvementOther involvement

Alumni ProfileAlumni Profile

Types of information to consider:Types of information to consider:

• Professional informationProfessional information

• Marital and family information Marital and family information

• Other Harvard affiliationsOther Harvard affiliations

• Salutations Salutations

• InterestsInterests

• Personal Harvard experiencesPersonal Harvard experiences

• Reasons for giving or not givingReasons for giving or not giving

• Communication preferencesCommunication preferences

• Participation/engagement with Participation/engagement with HarvardHarvard

• Volunteer activities, across the Volunteer activities, across the University, in all areas Email University, in all areas Email receivedreceived

• Print mail receivedPrint mail received

• Phone call receivedPhone call received

• Responses/lack thereofResponses/lack thereof

• MessagingMessaging

Alumni Relationship Alumni Relationship ManagementManagement

Capture all alumni communication channelsCapture all alumni communication channels

Alu

mn

i

Clubs

Events

PeerTo

Peer

Voice

Website

Email

Print

OperationalSystems

ChannelIntegration

MarketingDatabase

CampaignManagement

Systems

TriggerSystems

Analytics

ManagementReporting

Alumni Relations EngagementAlumni Relations Engagement

Alumni Board Member

150 points

Club President 100 points per year

Club Member 25 points per year

Travel Study 25 points

Club Event Attended 10 points per event

Survey Response 10 points

Postal Address 1 point per year

Email Address 1 point per year

Online Community 1 point per visit

Donor Relations EngagementDonor Relations Engagement

Endowment Donor 150 points

Executive Committee 100 points per year

Major Gift Committee 100 points per year

Class Gift Committee 100 points per year

Volunteer Solicitor 50 points per year

3-Year Annual Donor 50 points per year

1-Year Annual Donor 25 points per year

Event Attended 10 points per year

SYBUNT Donor 1 point per year

Engagement by SegmentEngagement by Segment

0-90-9

10-2410-24

25-10025-100

100+100+

0-90-9

10-2410-24

25-10025-100

100+100+

ARAR DRDR

Disengaged

Passive Engaged

Active Engaged

Leaders

20s 30s 40s 50s 60s 70s 20s 30s 40s 50s 60s 70s

XX

Engagement IndicesEngagement Indices Age GroupAge Group

XX

Source: Charlie Cardillo, Andy Tiedemann, and Jonathan Byrnes

Disengaged alumni don’t give.Disengaged alumni don’t give.

How Can We Improve Affinity?How Can We Improve Affinity?

AffinityAffinity

Expressed by Giving:Transactions

Expressed by Engagement:Attendance and Leadership

Use Data to:

•Better understand the nature of affinity expressed by one’s gift giving

•Better understand the evolution of affinity over time

44%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

Perc

ent P

artic

ipat

ion

Annual Participation Cumulative Participation

Harvard Undergraduate Degrees

Annual & Accumulated Participation

Opportunity Gap:31 Points

Excludes Senior Year Gifts and Radcliffe Alumnae prior to 1976

Donor Relationship Metric: Donor Relationship Metric: Annual and Accumulated ParticipationAnnual and Accumulated Participation

Fully 75% of the Undergraduate Alumni base contributed to Harvard Fully 75% of the Undergraduate Alumni base contributed to Harvard over the period while 44% contributed in ‘00over the period while 44% contributed in ‘00

Challenge: How to increase frequency of giving?Challenge: How to increase frequency of giving?

Source: Connie Cervilla, Core Group

In ’02, Alumni In ’02, Alumni donors giving more donors giving more frequently had frequently had higher retention higher retention rates than less rates than less frequent donors.frequent donors.

Retention of Undergraduate Alumni Donors to the Annual Fund FY'02 by Years of Consecutive Giving

35.4%

66.5%

75.0%

87.3%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

New Donors 2 Year Donors 3-4 Year Donors 5 Year + Donors

Years of Consecutive Giving

Pe

rce

nt

of

Do

no

rs R

eta

ine

d

Recent Retention Recent Retention of Alumni Donorsof Alumni Donors

Reactivation of Undergraduate Alumni Donors to the Harvard College Fund by Years Lapsed

43.3%

22.3%

14.6%

4.1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

1 Year Lapsed 2 Year Lapsed 3-5 Year Lapsed 6 Year + Lapsed

Years Lapsed - Since Last Gift

Pe

rce

nt

of

Re

ac

tiv

ate

d D

on

ors

In ’02, Alumni In ’02, Alumni donors who gave in donors who gave in recent years were recent years were “reactivated” at “reactivated” at much higher rates much higher rates than those dormant than those dormant for more years.for more years.

Finding: Frequency correlates to retention over Finding: Frequency correlates to retention over the short term.the short term.

Recent Reactivation Recent Reactivation of Alumni Donorsof Alumni Donors

* Challenges: Younger classes & recent donor growth* Challenges: Younger classes & recent donor growth

* Challenges: Encourage frequent giving & tailor the * Challenges: Encourage frequent giving & tailor the message to the sequence of giftmessage to the sequence of gift

*Challenges: Encourage frequent giving & convert first time *Challenges: Encourage frequent giving & convert first time donors to a second gift donors to a second gift

Components of Components of Alumni Donor ValueAlumni Donor Value

• Size of the Alumni donor base & its growth – Size of the Alumni donor base & its growth – ParticipationParticipation

• Size of the gift – Size of the gift – Gift size & its evolution over timeGift size & its evolution over time

• Retention of the Alumni donors – Retention of the Alumni donors – Reactivation & AttritionReactivation & Attrition

Alumni AssociationAlumni AssociationObjectivesObjectives

• Measure effectiveness

• Gauge resource productivity

• Target segments with programs

• Create market-oriented support systems

Project OverviewProject Overview

1.1. Establish a baseline by program and SchoolEstablish a baseline by program and School

• CostCost

• SegmentsSegments

• EngagementEngagement

2. Map onto ladder of engagement and analyze2. Map onto ladder of engagement and analyze

3. Design – implement supporting systems

• Analytical system

• Operational system

4. Refine Association activities using the new information

• marketing/outreach

• portfolio of programs

• program operations

The Ladder The Ladder of Engagementof Engagement

Alumni overall

Class notes

Reunions Clubs Travel study

SpeakerPrograms

Web Magazine SIG Others

Very Active

Active

Passive

Unengaged• Which programs affect which segments?

• Which programs move alumns up the ladder (at each level)?

• Which programs are most productive for which segments?

• What is the best portfolio of programs to maximize engagement?Source: Charlie Cardillo

Program EvaluationProgram Evaluation

B. DATABASEB. DATABASE

Program/Activity Sources

• University-Wide• College• Graduate School• Clubs• Classes• Vendors

A. Data FeedsA. Data Feeds C. PlanningC. Planning

Analysis/Targeting

• Engagement Metrics• Profiling/Modeling• Resource Productivity• Gap Analysis• Program Portfolio• Prioritization• Cost/Benefit – Budgets• Program Activity

Production

• Class Reports• Travel Study• Reunions• Regional Events• Club Activities

Source: Charlie Cardillo

Value to AlumniValue to Alumni

• Access to shared interest groupsAccess to shared interest groups

• Relevant message/contentRelevant message/content

• Peer-to-peer communicationPeer-to-peer communication

• Life stage programmingLife stage programming

• Involvement opportunitiesInvolvement opportunities

• Fun, lifelong friendshipsFun, lifelong friendships

Value to the UniversityValue to the University

• Develop segment-appropriate engagementDevelop segment-appropriate engagement programs programs• Measure program effectivenessMeasure program effectiveness• Integrate online and real-time Integrate online and real-time activitiesactivities• Increase engagementIncrease engagement• Identify leadersIdentify leaders• Ability to survey opinions by numerousAbility to survey opinions by numerous segmentations segmentations• Resource-allocation indicatorsResource-allocation indicators

Engagement Process OverviewEngagement Process Overview

Specify System

Obtain HAA Commitment

Obtain Stakeholder Participation

Obtain Data

Set up Ongoing

DataCollection

Perform Analysis

Improve Practice

Done Done In Process In Process In Process In Process Beginning

Obtain Data – Obtain Data – Clubs On-line ParticipationClubs On-line Participation

2003 –20 Clubs

2004 –40 Clubs

2005 –All Clubs

• HC – DCHC – DC

• HC – DenverHC – Denver

• HC – MarylandHC – Maryland

• HC – San FranciscoHC – San Francisco

• HC – Silicon ValleyHC – Silicon Valley

• HC – So. CaliforniaHC – So. California

• HC – UKHC – UK

• 11 more HC11 more HC

• 2 HBS Clubs (Toronto, Dallas)2 HBS Clubs (Toronto, Dallas)

• HC – BostonHC – Boston

• HC – New YorkHC – New York

Harvard Club of ChicagoHarvard Club of Chicago

• Alumni within a 40 mile radius

• Member = 1,397 in 2002

• 16.8% “market share”

• 30% of members have College degree

• 76.6% renewal: why did 24% leave?

• 10+ years from graduation = 17.4%

• 10<years from graduation = 13%

Club Membership Club Membership NowNow

Participation: (acquisition, retention, and reactivation)

• Do not capture club membership history

• Track self-reported data on membership composition and club practices per annual survey of club presidents

• Provide updated regional contact lists for snail mail

• Produce clubs directory and give out to College seniors when the pick up Commencement Tickets

• Provide website hosting (template) and online listing of club websites

Transition: (Moving Club Members)

• Nothing

Club Membership Club Membership In a Knowledge In a Knowledge Managed EnvironmentManaged EnvironmentParticipation: (acquisition, retention, and reactivation)

• Individual Harvard Club (potentially HBS and HLS clubs) membership history data captured through online membership registration

• Identify members and profile them by tenure, activity, interests

• Establish baseline membership and event programming standards

• Customize membership appeals based on program participation and interest data for members and non-members

• Help clubs establish membership appeal frequency strategy based on member loyalty profiles

• Share membership data with other schools to inform their regional programming

• Inform the development prospect profiles to enhance research efforts and predictive modeling

• Push online membership registration to graduating students before they leave campus

• Create loyalty recognition program

• Provide data to clubs on alumni who move to their area who were club members in the city they leftTransition: (Moving Club Members)

• Provide data to clubs on alumni who move to their area who were club members in the city they left

Club ProgrammingClub ProgrammingNowNow

• Support Clubs’ Annual Dinner programs through Speakers Bureau Program

• Facilitate Harvard-Yale Telecast

• Work with club leadership to promote University-wide membership

• Broadcast advertising

• Most Club events not open to non-members

Club ProgrammingClub ProgrammingIn a Knowledge In a Knowledge Managed EnvironmentManaged Environment

• Programming targeted toward member interests

• Programming targeted toward non-member interests

• Personalized communications

• Online event registration

• Program benchmarking across clubs

• Tie club programming with Harvard sports in their club region

Club AdministrationClub AdministrationNowNow

• Provide Clubs manual to encourage standard practices

• Online membership and Event Registration Prototype launched to gather data

• Most Club administration done at the local level either by a paid administrator or by volunteers

Club AdministrationClub AdministrationIn a Knowledge In a Knowledge Managed EnvironmentManaged Environment

• Club administrator tools provided by HAA to facilitate membership and event registration, communication and list segmentation; integrated with central database.

MIT Alumni AssociationMIT Alumni Association

• Total alumni population: 110,000Total alumni population: 110,000

• Student population: 10,000 graduate & Student population: 10,000 graduate & undergraduateundergraduate

• Approximately 100 alumni clubs worldwideApproximately 100 alumni clubs worldwide

• 6,000 alumni volunteer each year6,000 alumni volunteer each year

• 33% participate in Alumni Fund33% participate in Alumni Fund

• Infinite Connection: Used by 46% of all alums, Infinite Connection: Used by 46% of all alums, features include alumni directory, email lists, career features include alumni directory, email lists, career

servicesservices

MIT’s TechnologyMIT’s Technology

• Central alumni databaseCentral alumni database

• Clubs/association depts. also used Filemaker and Clubs/association depts. also used Filemaker and Excel Excel

• Alumni website launched in 1995Alumni website launched in 1995

• Web limited to number of registrants, email addresses Web limited to number of registrants, email addresses on fileon file

• MarketingMarketing

Five years ago, MIT’s Alumni Association used technology the same way everyone else uses it now:

MIT’s New MetricsMIT’s New Metrics

• Clubs, Alumni Association staff and alumni now enter Clubs, Alumni Association staff and alumni now enter all data into a central resource all data into a central resource

• Event and marketing activity is also recorded, not Event and marketing activity is also recorded, not only by number but also by typeonly by number but also by type

• All program activities and events are assigned an All program activities and events are assigned an activity code activity code

• All marketing pieces – print and email – are also All marketing pieces – print and email – are also assigned codes assigned codes

• The result: Any activity can be measured against any The result: Any activity can be measured against any other activity, demographic group or marketing piece.other activity, demographic group or marketing piece.

Goals of MIT Goals of MIT Alumni MetricsAlumni Metrics

• Measure effectiveness of programs Measure effectiveness of programs

• Measure effectiveness of email and print marketingMeasure effectiveness of email and print marketing

• Examples: Costa Rica trip, graduate alumni Examples: Costa Rica trip, graduate alumni marketing, marketing, alumni leadership conferencealumni leadership conference

• Measure ROI of programs and marketing, better Measure ROI of programs and marketing, better allocate resources: MIT on the Road allocate resources: MIT on the Road

• Correlate alumni activities with givingCorrelate alumni activities with giving

MIT’s Best PracticesMIT’s Best Practices

• Start with a smallStart with a small team team

• Build up support for the projectBuild up support for the project – clubs and – clubs and departments will benefit greatly from advanced departments will benefit greatly from advanced metricsmetrics

• Recognize primary issues – databasesRecognize primary issues – databases

• Determine why you want to work with advanced Determine why you want to work with advanced metricsmetrics

• Launch a pilot project Launch a pilot project

• Designate translatorsDesignate translators

• Make sure all groups use the same standards to Make sure all groups use the same standards to report and interpret their metricsreport and interpret their metrics

• Don’t go overboard with releasing dataDon’t go overboard with releasing data

Questions?Questions?

Contact:Contact:

Andrew K. TiedemannAndrew K. Tiedemann

Communications DirectorCommunications Director

Alumni Affairs and DevelopmentAlumni Affairs and Development

Harvard UniversityHarvard University

Email: andrew_tiedemann@harvard.eduEmail: andrew_tiedemann@harvard.edu

Phone: 617-495-5945Phone: 617-495-5945