CRC - Database Marketing Plan

CRC – DATABASE MARKETING PLAN

Loredana Matarazzo

Luis Alberto Farray

Nadeem Sutar

Nikita Kuskov

Samrat Ghosh

Vinod Narayanan

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Table of Contents• Situation Analysis (3 – 8)• How To Increase Donations (9)• Marketing Objective (10)• Strategy (11)• Segmentation (12 – 16)• Tactics (17 – 19)• Database Requirements (20)• Expected Result (21)• Conclusion (22)

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Situation Analysis

Organization Overview

CRC (Christian Resource Centre) is a non-profit organization, which started operations in 1964 and got incorporated in 1965, located at 40 Oaks, Regent Park, Toronto. The objective of the organisation is to help communities to meet basic needs like food, shelter and clothing

The philosophy:

“To help people to help themselves”

Mission:

Building Lives. Creating Community. TOGETHER

Vision:

CRC is a welcoming place where people work sincerely and effectively to meet their basic needs, achieve personal growth and help create an inclusive ,cohesive and better community

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Situation Analysis Pro-bono programs undertaken by CRC

• Community MealsThe organization‘s endeavor is to provide fresh, nutritious and warm food. Currently people are served food with warmth and care five days a week.

• Deeply Affordable Housing The most difficult challenge is to provide deeply affordable housing to the homeless, CRC worked day in and day out to build 87 housing units at 40 Oaks, Regent Park

• Clothing Showers LaundryIndividuals are provided access to gently used clothing, a chance to clean their own cloths and an opportunity to shower

• Community EngagementCRC encourages people to have a voice through workshops and campaigns and listen to problems of community members and works with them to reduce poverty

• Community GardeningPeople are encouraged to grow and harvest fresh fruits and vegetables

• WorshipIndividual and groups of all faiths are encouraged to use new worship space at 40 Oaks

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Situation Analysis SWOT Analysis

Strengths

CRC began operating in 1964 and has been at the forefront of development and revitalization of Regent Park Neighborhood

A wonderful community building with 87 units of deeply affordable housing at 40 Oaks

Strong support and collaboration with the existing donors

Successful events: the opening gala had been attended by 500 people and CRC received $8000 as donation amount

Implications

The trust and respect the CRC has built provide a could platform to increase donations and the impact of people’s lives.

Extensive donor network may be a way to reach new donors

Extent to which lives have been impacted may provide a more compelling to potential donors than simply the number of participants served

Opportunity to evolve events from large gatherings to ones that become significant sources of donation dollars

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Weaknesses

No social media strategy:

CRC is presented on Facebook, YouTube and Twitter, but goals and metrics are unclear and managed on an inconsistent basis due to lack of resources

Database is used as a mailing list rather than for database marketing

Data is not maintained to ensure data quality. Data that is captured, is also limited in scope

Virtually no “test and learn” approach to improving direct marketing activities

Sustainability of donations based solely on donors

Implications

Understand the role that social media play and resource if appropriate

Greater understanding of donors would improve message relevancy and frequency that should increase retention and contributions

Improving extent and quality of data capture would provide a platform for more targeted, relevant, and compelling communication

Establishing a “test and learn” approach to marketing efforts would help ensure continuous improvement in market efforts

Needs strong capabilities to survive and grow

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Opportunities Attract new donors through

marketing channels

Take advantage of an increasing youth and working professionals social awareness and involvement

Pressure on government funding at all levels

Implications

More funds can be collected by CRC and heavy dependence on existing donors will be reduced

New media should be used for encouraging these segments, it is advisable to reduce the minimum donation amount, especially for students

CRC’s brand will enhance if a consortium can be created at its behest for community service in Toronto

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Threats:

Funding from the Government have been reduced

Relevant competition

Implications:

Collect and provide proof of impacts on society for securing funding

Focus on current existing donors and retention

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How to increase donationsMaximize donation amount and number of donors by implementing a

strategic marketing plan

Become less dependent on the few high value donors

Exploit database potential by cleaning, maintaining and updating it on regular basis

Attract working professionals ( age group: 28-50 ), especially high earning professionals or business owners

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Marketing Objective

To increase the donation amount by 15% from $739,995.49 to $850,995 by 15th November 2014

(Note: The period from November 15th, 2012 to November 15th, 2013 was considered as the base period for marketing objective.

Total donation received in this period is $739,995.49 )

Strategy

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3.

Tailor relevant and personalized communications to the identified segments

2.Clustering them in different groups based on specific

attributes

1. Focusing on existing donors

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Segmentation

The Database will be segmented on the basis of following attributes

Number of DonationsAmount of DonationLast Date of Donation

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Segmentation: Lifetime DonationsIndividuals vs. Organizations

All Donors

Donor Type # of Donors $ Donated Avg. Donation

Individuals 1255 1605612 1279

Organizations 225 13899164 61774

Total 1481 15504877 10469 Individuals Organizations0

2000000

4000000

6000000

8000000

10000000

12000000

14000000

16000000

Total Donations ($)

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Individual donors –Two major Segments 1 – Individuals who donated more than $550 (High Value Donors)2 – Individuals who donated less than $550 (High Potential Donors)

The difference is $ 5748

So our suggestion is to retain High Value donors and get more donations from high Potential Donors

Segmentation

Frequency Of Donation

Recency of Donation

<6 mos. ago6 mos.. - 2 yrs. ago

> 2yrs. ago

High Value- Total donation

more than $550

1 to 3 times

More than 4 times

High Potential-Total Donation less than $550

1 to 3 times

More than 3 times

12 segments based on:• Donation Amount• Frequency of Donation• Last Donation Date

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SegmentationFrequency of donation

Individuals(1250)

High Value(245)

1 to 3 times(78)

High Potentials(1005)

+4 times(167)

1 to 3 times(938)

+4 times(67)

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Tactics - Messages

1. Thank you mail

2. Event Invitation

3. Preauthorized Payment Suggestion

4. Phone Call

5. Referral Message

6. Gift Announcement

7. Information about Activities

8. More Detailed Information (Numbers + Activities)

9. Thank you Hand Written Letter

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TacticsHigh Value( $550 Plus ): Targeting and Messaging

Frequency Of Donation Recency of Donation Approach Methods

1 to 3 times Within Last 6 Months1. Event Invitation2. Encourage for Referrals3. Thank you hand written letter

More than 4 times Between 6 Months & 2 years

1. Thank you mail2. Event Invitation3. Encourage for Referrals4. Inform about activities going on

Doesn’t matter More than Two years ago

1. Thank you mail2. Event Invitation3. Announcement about gifts4. More Detailed Information (Numbers + Activities) 5. Pre Authorized payment recommendation

Pre Authorized Payments Pre Authorized Payments1. Thank you mail2. Event Invitation3. Encourage for Referral

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TacticsHigh Potential( $550 Less): Targeting and Messaging

Frequency Of Donation Recency of Donation Approach Methods

1 to 3 times Within Last 6 Months

1. Thank you mail2. Encourage for Pre Authorized Payments3. Inform about CRC activities going on4. Encourage for Referrals

More than 4 times Between 6 Months & 2 years

1. Thank you mail2. Encourage for Pre Authorized Payments3. Inform about CRC activities going on

Doesn’t Matter More than 2 years ago1. Thank you mail2. Inform details about CRC activities with numbers

Pre Authorized Payments Pre Authorized Payments1. Thank you mail2. Inform about activities going on3. Encourage for Referrals

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Database Requirements • Communication tracker (providing data about the dates

and methods of communications)Preauthorized payment start and end date.Data about, how many times the donor was contacted,

what was the response. Tracking donors behavior can help to make better

decisions in future.Updated database can prove very helpful in making

communications strategies.

(A fulltime coop student can be hired from different colleges and universities to maintain & update the database)

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Expected Result• A total donation amount of $850,995 from individuals by

November 15th, 2014.

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Conclusion• The Database Marketing project analyzed the existing

donor database and identified areas of improvements to increase the donations.

• We segmented the donors as high value and high potential based on the recency, frequency and monetary values of the donations.

• Target the donors with tailor made approach methods.

• If the strategies and tactics are followed, a 15% increase in total donations can be achieved by November 15th, 2014