Mercy Ships & Alzheimer s Association: Case Studies in Charting a Path for Organizational Growth

Transcription

1 Mercy Ships & Alzheimer s Association: Case Studies in Charting a Path for Organizational Growth Kerry Peterson Mercy Ships Kim Postulart Alzheimer s Association Chris Hubbard - THD Catherine Hallmark Russ Reid

2 Mercy Ships

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4 Background & Situation Mercy Ships needed operating revenue to launch a new ship in 17/ 18 Major donor/capital efforts already committed to build the ship Need to raise the $$$ to operate additional ship on an ongoing basis Need to build an individual donor acquisition to feed the funnel We ve gotta build an individual donor program, FAST! What were Mercy Ships strengths & capabilities at the time? What did we need a partner to help us with?

5 What s the BHAG? (Big Hairy Audacious Goal) $6.2 Million in (additional) annual net revenue by 2017!

6 Russ Reid s internal conversation: BHAG = ITKNBICSIOMFOSAF

7 How are we gonna get there? Growth Acceleration Lower Gift Sizes Higher Volume Long-term revenue Higher Cost/Value Lower Volume Positive ROI Larger Gift Sizes Lower Volume

8 And then the BHAG changed To $7.06 Million in (additional) Net Revenue by 2017

9 What were major events/decision points? Direct Mail is performing exceptionally well expand it! DRTV high dollar ask will drive immediate ROI launch in 2Q 2014 Digital media & website optimization are imperative start now

10 (After October, we had budget/revenue concerns canceled February DM drop) DRTV might better serve us at $19/month - postpone until September 2014 DM acquisition & cultivation actualized results look good carry on

11 DRTV didn t come out of the gate at anticipated metrics slow down expansion

12 Adjusted all KPIs to create a clear picture of program performance Revised projections based on DRTV performance DM is still stellar substantially increase DM performance offset DRTV decreases Digital performance still providing positive ROI

13 DRTV reset dramatically reduce spend, re-optimize, and re-grow

14 English Short-Form DRTV launches with modest success continue test DRTV LTDV higher than planned increase cost-per-response & grow Digital performance is strong consider growing this area DM remains strong continue at higher levels

15 English Short-Form DRTV struggles at re-launch cancel program Spanish DRTV launched with great success continue through May

16 DM results reflect lower response, but higher value what does this mean? Cadence re-analyzed to deliver best value continue with monthly DM long term value/revenue still meets/exceeds previous goals continue Digital performance & value not yet tapped how much more can we grow budget? DRTV is on track to meet revenue goals (and driving digital revenue?) continue investing

17 Spanish & English DRTV perform differently what s the right mix? What s the proportion of Spanish & English DRTV for 2017? When do we need to put the breaks on channel growth and still hit 2017 Net Revenue?

18 Changes in Net Revenue Goal $7,500,000 $7,000,000 20% increase in Net Revenue goal from start $6,500,000 $6,000,000 $5,500,000 $5,000,000 Mid-2013 October 2013 March 2014 October 2015

19 Changes in channel budgets ( spend) Direct Mail DRTV Digital 2013 Planned 2013 Actual 2014 Planned 2014 Actual 2015 Planned 2015 Actual 2016 Planned 2016 Budgeted

20 File size 140, , ,000 80,000 60,000 mid-2013 mid ,000 20,000 - Single Gift Sustainers

21 And we re still on target To deliver required net revenue

22 Takeaway: Test. Evaluate. Adapt.

23 Alzheimer s Association: Building Momentum Kim Postulart and Chris Hubbard

24 About Alzheimer s Association Making our vision of a world without Alzheimer s a reality Founded in Chapters Mission To eliminate Alzheimer s disease through the advancement of research; to provide and enhance care for all affected; and to reduce the risk of dementia through the promotion of brain health.

25 Post-Lunch/ Mid-Session Poll

26 Organizational Context What s different about a larger, more established non-profit? Strategic changes may take longer to yield benefits Growth is often measured in low single digits Often more stakeholders (and yes silos) Many resources available; many parties vying What s the same a sincere investment in fulfilling the mission

27 Organizational Context An appropriate analogy

28 Background/Situation Three stages over past ten years Donors: +30% Revenue: +37% FY06-FY08: Steep Donor and Revenue Growth Volume and program expansion based Premium and non-premium mail program Peer to Peer program introduced Burgeoning digital program Significant acquisition and ongoing investment required

29 Background/Situation FY09-FY12: Market Crash and Stabilization Same universe challenges as other fundraisers Prior investment growth levels in DM not sustainable Growing event program provided alternative revenue sources 4 years to regain FY08 revenue total; but with smaller file Maintaining investment in core program helped minimize declines And.strategic shifts adopted during this time laid groundwork for future growth

30 Objectives and Goals Direct marketing priorities Focus on Value Measurable growth in donor value to offset donor decline Must understand value of each constituent source Invest in higher LTV programs; strategically sunset those with less Maximize investment across programs/departments through greater collaboration

31 Putting Strategy into Action Focus on acquiring higher value/better retaining donors Better retention starts with acquisition! Ramp up of digital program investment; ramp down peer to peer program Ensure all internal constituency groups were yielding full value Fully leverage analytics to assist in driving growth

32 Higher Value Prospects Mail Origin Long Term Value Metrics by Inception Gift 60% $1,600 50% $1,400 $1,200 40% $1,000 30% $800 20% $600 $400 10% $200 0% $ $4.99 $ $9.99 $ $14.99 $ $19.99 $ $24.99 $ $49.99 $ $74.99 $ $99.99 $100 - $ $250 - $ $500 - $ $- 1st Year Ret % Lifetime Ret 36 Mo Rev/Donor

33 Higher Value Prospects Maximizing non-premium recruitment Heavy coop usage and ongoing refinements Gift optimization modeling Marrying gift ask strategies with prospects at the individual level New control asks for High and Mid ranked prospects

34 Premium vs. Non-Premium What is the right mix? Continue to use both tactics; but prioritize non-premium Renewal offer modeling Premium, non-premium and crossover tracks in place Identifies most efficient package for crossover segment

35 Premium vs. Non-Premium Renewal Offer Modeling Testing Results for Cross Track Audience (48% of audience shifted to non-premium package) 1% 10% 9% 20% 30% Gifts Revenue Avg. Gift Expense Net Revenue

36 Digital Investment Focus Opportunity to improve overall efficiency More aggressive and strategic approach to program E-Acquisition efforts (donor and lead) Legacy.com and other tribute opportunities Web revenue benefits from surround sound marketing

37 Event Names in Direct Response Analysis predicted benefits from additional efforts Vs. Cold: -55% Improved retention and Vs. Lapsed DM: -40% engagement Incremental revenue through DM touchpoints Continued expansion with large audience available and strong ROI Models used to identify best prospects

38 What has happened in recent years with this confluence of strategies in place?

39 Stage Three: Accelerating Growth The last few years have been strong growth years for ALZ File size is stabilized Annual gains in overall and DM donor value drive huge revenue growth Digital program growth is hastening With strong underpinnings, feel confident about continued growth in coming years

40 Overall: +39% New Donors: + 57% New Mail Donors: +45%

41 Gifts: + 65% Revenue: +86%

42 Revenue: +27% Donor File: At sustainable level

43 And We re Doing it More Efficiently! Overall expense has remained level, efficiency has improved dramatically, and we continue to evaluate and refine strategies 20% Improvement

44 Mercy Ships and Alzheimer s Association: Case Studies in Charting a Path for Organizational Growth Kim Postulart Director, Direct Marketing and Intermediate Giving Alzheimer s Association kpostulart@alz.org

45 Mercy Ships and Alzheimer s Association: Case Studies in Charting a Path for Organizational Growth Chris Hubbard Vice President, Account Services THD, Inc chubbard@thdinc.com

46 Mercy Ships & Alzheimer s Association: Case Studies in Charting a Path for Organizational Growth Kerry Peterson Vice President of Marketing Mercy Ships Kerry.Peterson@MercyShips.org

47 Mercy Ships & Alzheimer s Association: Case Studies in Charting a Path for Organizational Growth Catherine Hallmark Vice President, Client Services Russ Reid challmark@russreid.com