Focus on increasing station membership and net income

Focus on increasing station membership and net income

Michal Heiplik

Proprietary & Confidential

CDP participation

CDP Participants: 97 Stations & 83% of audience

# of stations % of audience


CDP – Key Concepts & Services

• Reporting & Analysis-ROAR & other research

• Promotion of better practices-Checklists

• Enabling scale for individual stations-Project execution


National Reference File & ROAR

• October release: 59 stations• January release: 65 stations• Current statistics

-# of account records: 15 million -# of transactions: 66 million-# of active donors: 1.9 million

• ROAR distribution and feedback-Metric development-Station briefs

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CDP Checklists & Business cases

Completed:• Sustainers• Matching Gifts• Vehicle Donations• Additional Gifts

Planned:• Lapsed Gifts• Web/Email giving• Major gifts• Planned Gifts


Reporting & Analysis

• Revenue Opportunity and Action Report (ROAR)

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Reporting & Analysis

• Station-specific practices report based on survey

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Driving Scale

• Thank You Calls-33 participating stations-$1,950,000 in annual NET delivered to stations

• Vehicle Donations- 15 participating stations-$560,000 in annual NET improvement delivered to stations

• Prospecting-230,000 prospects delivered to stations-$1,380,000 in value

• Canvassing-4 stations participating (WGBH, KAET, TPT, KVIE)-6,383 new donors-910 sustainers (14%)-NET cost per donor: $12.80

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DONOR ACQUISITION - CANVASSINGActive Projects

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WARNING!!!

The numbers you are about to see are extremely exciting.

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Cost to acquire a donor & retention

• Retention rates of donors from major markets-Mail – 45% avg.-Pledge – 17% avg.

• Cost to acquire Direct Mail donor-$37 average ($67 max)

• Investment: Cold Mail acquisition is crucial to building a sustainable membership program

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Learning from Denver….

• Program running for 17 full months• Direct Mail acquisition mostly stopped

• Current Fiscal Year:

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Station

Door Knocks Completes Gifts RR Sustainer

rate Avg Gift CPM Start

Date

KRMA 462,000 171,687 15,939 9.3% 15% $57 $7.54 Aug-11

Station



Date

KRMA 148,000 55,995 5,597 10% 15% $56 $7.92 July-12


How it really works?

• Local station teams-Embedded within the station-Available for direct training and interaction with staff-Professional event canvassing

• Personal donor interaction-Friendly staff-Extension of the station

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Personal Donor Interaction

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Canvassing – CDP Solution

•Data-National Reference File used for analysis-Proper segmentation – ZIP identification-Proper coding for additional testing (thank-you card)-Data analysis-Establish PCI compliance for data -Enable electronic data entry at the door

•Management-Vendor management & quality control-Application of standards


Canvassing - Update

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Station



Date

KRMA 148,000 55,995 5,597 10% 15% $56 $7.92 Jul-12

WGBH 91,208 29,208 3,751 12.8% 15% $64 9.75 Jun-12

KAET 43,866 19,600 1,662 8.5% 18% $56 $19 Jul-12

TPT 39,078 12,857 1,448 11.3% 30% $72 $12 Aug-12

BIG UNKNOWN – RETENTION!!!


Canvassing - retention

Station % of Sustainer Revenue % of Sustaining Donors Sustainer Avg. GiftTPT 58% 29% $11.90

WGBH 35% 14% $13.00 KAET 46% 18% $11.80

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TPT WGBH KAET0%

10%

20%

30%

40%

50%

60%

58%

35%

46%

29%

14% 18%

% of Sustainer Revenue% of Sustaining Donors


Better targeting – Zip to Household

• Current Zip targeting-Utilizing models based on RMPBS-Blend of giving and area data

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Better Targeting – Zip to Household

• New App development-Phase 1 release by the end of January

• Goals-Full PCI compliance-Offline performance-Collection of new data

8 Complete Dispositions8 Observation data

-Route optimization

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Canvassing – Next Steps for CDP

• Retention-Work with RMPBS to stabilize retention efforts-Work with RMPBS on further retention analysis

• Data collection-Develop 100% paperless entry process-Efficiency building - Create a fully digital solution to canvassing

• Further proof of concept-Grow the test sample

8 Adding 2 more stations within next quarter-Continue developing the “turf” knowledge and data

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IMPROVING RETENTION – THANK YOU CALLSActive Projects

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Data Analysis

• Recent data analysis: Dec 5, 2012• Calls made: June – Aug 2011

-Gifts made Dec 2010

• Original Houston Data:

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@ 3 months @ 6 months

Lift in retention 33% 56%Increase follow-up revenue 44% 71%Additional revenue per donor $15.31 $20.64Additional revenue per donor – Y2 $5.62 $5.58


Data Analysis – 4 station test

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Findings

Making highly personalized Thank-You calls is very effective.

Process of making the Thank-You calls is highly inefficient and costly.

National opportunity: $4.5 million per YEAR

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CDP Project: Improving Retention

• CDP enables scale for stations-Guaranteed adherence to best practices and production schedules-Modeling of most cost-effective calling groups-Continuous testing of new approaches with single focus

• Participation process:-Station signs a one-page project agreement-CDP executes the calls based on National Reference File data-Station realizes a 15:1 ROI

• Project status-33 stations participating (21 in review)- Impact (Annual): $1.9 million

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VEHICLE DONATIONSActive Projects

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CDP Project: Vehicle Donations

• Current landscape-3 major vendors (brokers) – CARS, VFC, CarTalk-No downside risk with full service offering-30-40% of vehicles sold to recyclers-Revenue share averaging between 60-75% net

• CDP Opportunity-Biggest US auction vendor- Improved processing standards & donor relationship-Complete marketing assets-Switch to flat-fee pricing without any revenue sharing

8 $50 per car minimum-Averaging 83% NET

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Calculating Your Own Savings (Example)

• Excluded assumptions-Higher sales prices will likely be achieved-Actual current cost is likely higher – averages-Growth based on increased marketing/awareness

• Overall potential: $1.9 million32

Revenue from

Vehicle Donations

Cost Station Share Net Savings

Now $100,000 $30,000 $70,000 70%

CDP $100,000 $17,000 $83,000 83% $13,000


Vehicle donations

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• Marketing materials in place-Spots: http://www.youtube.com/user/CDPCommunity -Web elements-Detailed marketing guide

• 15 stations participating (13 in review)

• Impact (Annual): $560,000

http://www.youtube.com/user/CDPCommunity




Future Projects

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CDP: Future Projects

• Member Benefits -Truly national offers (50,000+ benefits)-White-label approach with station focus-Active member communication supported by “smart” data-Approx. $0.50 per member

• Member Transfer-Goal: Seamless integration of moving members

• Matching Gift follow up- Initial research: No solid data source for employer information-New test: reminder – mail/call & complete follow-up

• IP Targeting-Supporting offline communications with online tools-25-32% response lift (6:1 ROI)

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Questions

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Proprietary & Confidential 37

THANK YOU!

Michal [email protected]

(617) 300 – 3217

cdpcommunity.wordpress.com

Documents

Focus on increasing station membership and net income