Building an Integrated Multi-channel Winback Program

Transcription

1 Building an Integrated Multi-channel Winback Program Anne Golightly, AARP Joe Harr, AARP Agenda 1. Preliminaries 2. Combined Promotable Universe 3. Yield Management 4. Winback 5. Facebook for Winback Winback Reinstatement Recapture Reactivation Cost per Order (CPO) Cost to Reinstate (CTR) Cost per Recapture Cost to Reactivate #Bridge16 1

2 Who we are AARP is a nonprofit, nonpartisan, social welfare organization that helps people turn their goals and dreams into real possibilities, strengthens communities and fights for the issues that matter most to families such as health care, employment and income security, and protection from financial abuse. #Bridge16 We are big 38 million members membership is open to anyone in the U.S., but focuses on those age state offices membership acquistion and renewal is managed from our national office average 2 million pieces of Winback mail each month (Winback is our smallest channel) 2

3 Our membership lifecycle Renewals 6 months prior to expiration 7 months past expiration Winback 7 months past expiration 25 months past expiration Acquisition 25+ months past expiration Combined Promotable Universe Combined Promotable Universe concept: treating lapsed members and prospects as a single pool of promotable names will yield higher overall responses background: regularly mailed exactly 2 million pieces of Winback mail every month for many years both Winback mail and Acquisition mail are modeled using the same model Winback and Acquisition mail each have their own budget 3

4 Combined Promotable Universe strategy: combine both pools of promotable names into a single universe scored by the model at the same time model selects the best group of names, with no constraints on quantity for either program Combined Promotable Universe - Results small lift in combined response rates now mail between 2.1 million and 2.5 million Winback names each month mail the best overall names in each campaign, whether expired member or prospect educated managers in reading combined response rates, forecast comparisons How much Winback to mail least aggressive mail until the cost to reactivate a member/donor the cost to renew a member/donor mail all of the lapsed names that generate a net profit mail until the winback program is at breakeven mail until the cost to reactive the cost to acquire a new member/donor most aggressive 4

5 Yield Management Yield Management concept: offering a discounted membership price to attract more members lead to greater overall long-term value background: business analysis team determined that offering targeted discounts could increase orders while also increasing overall lifetime value began offering discounted pricing in selected Renewal efforts expanded discounted pricing to selected Winback efforts Yield Management standard membership pricing: 1 year - $16 3 years - $43 5 years - $63 yield management pricing: 1 year - $15 3 years - $36 5 years - $49 5

6 Yield Management - Results response rate increased 34% average term increased 27% lifetime value increased 22% Yield Management a few words of caution long-term strategy initial revenue will be lower need to measure long-term results may only work for membership organizations Winback 6

7 Winback concept: adding monthly efforts to expires with GOI addresses will increase overall reactivation rates background: About 10% of our lapsed members have given us an address and GOI Used contacts in Renewals, but stopped sending membership once expired members reach Winback stage Winback strategy: send a monthly effort to expired members with address and GOI time effort to arrive in-home shortly after mail effort arrives inhome Winback 7

8 Winback - Results -6.7% test treatment added monthly contacts in the 6 th through 11 th month after expire. test lifted the overall Winback rate by +11.0% during the 6 month test period. Overall lift is statistically significant. Facebook for Winback Facebook for Winback concept: present display ads to expired members on Facebook to increase reactivation background: already use Facebook display ads for targeted acquisition decided to test matching our expired members against the Facebook user universe 8

9 Facebook for Winback strategy: match our expired member file against Facebook users target Facebook display ads with Winback offers to expired members #Bridge16 Facebook for Winback Facebook for Winback - Results CPM about $20 270,000 impressions $3,750 CPC about $2.50 CPO similar to Winback mail 90% of orders incremental 9

10 Thank you Anne Golightly Joe Harr Don t forget to visit the Solutions Showcase! Many of the ideas discussed today are on display at the Solutions Showcase! 10