How Cutting Edge Data Analytics Can Revolutionize Your Membership Program

Transcription

1 How Cutting Edge Data Analytics Can Revolutionize Your Membership Program Laura Zylstra, League of Women Voters of the U.S. Myles King, The John F. Kennedy Center for the Performing Arts Allison Porter, Avalon Consulting Group 1 Here with you today Laura Zylstra Senior Director of Development League of Women Voters of the U.S. Myles King Manager, Annual & Digital Fundraising The John F. Kennedy Center for the Performing Arts Allison Porter President & Co Founder Avalon Consulting Group In today s session Learn critical ways to view your donor and member data to inform your marketing strategy. Learn to recognize how underlying trends have changed over time, and how they vary by organization and strategy. Identify key metrics and performance indicators that are relevant for comparison, and what those comparisons tell you about the health of your file. 1

2 What are key performance trends? Comparing key metrics & analysis will give a deeper view into the health, future performance, and potential of your donor file Retention List return on investment File composition File trajectory and impact of acquisition Member value Cross channel analysis Major donor pipeline Metrics should be compared over time, and to other organizations, when evaluating their significance. How do you do this for your program? Quarterly & annual oversight of key metrics through dashboards & full file analysis. Identification of changing performance trends. Continuous goal evaluation, resetting, & forecasting. Education & reporting to leadership. REPEAT. 2

3 Case Studies League of Women Voters of the U.S. LWV background The League was founded in The League s mission is to ensure that all eligible voters particularly those from traditionally underrepresented or underserved communities have the opportunity and the information they need to exercise their right to vote. Foster civic engagement and enhance voting access, register voters, educate voters about election processes, issues and candidates, and improve all aspects of elections. Current Donors & Member/Donors: 85,000. 3

4 Key Finding #1: LWV has experienced relatively steady growth over a long period of time Income by Join Year and Fiscal Year Donors continue to give over a long period of time. As some donors drop off the file, those remaining upgrade their giving. Key Finding #2: With some years netting revenue, LWV did not need a significant investment to grow the file LWV s cost to acquire a new donor is very low, with FY12 & F13 netting revenue. Acquisition response is well over 1%, with solid average gift. MAXI winning package is straightforward, cost effective, and the control for 5 years. Voter Protection Survey resonates with target advocacy audience. Constantly trying to beat the control. Key Finding #3: Retention needs to be a key focus FY15 Retention 0 12 Month Overall 42.1% Overall w/reinstates 66.2% Multi year 50.6% First year 24.9% Key retention strategies: New CRM system Increased stewardship Expanded acknowledgements And, since retention begins with acquisition, always a laser focus on acquisition strategy! 4

5 Key Finding #4: Analysis & Long Range Forecasting has helped define what LWV needs to do for continued growth Key Finding #5: There is also opportunity for more multi channel growth Direct mail is the dominant channel. Opportunity for more crosschannel integration, diversity, and growth. Key Finding #6: Donors who give in all four channels have higher income/donor and retention NOTE: Only donors with four or more gifts were included in this analysis. 5

6 Deeper levels of analytics have also provided strategic direction for key areas to grow revenue Sustainer Program File Composition Upgrading Continued focus on growing the sustainer program Sustainer Income # Sustainers Moving file composition in the right direction File Composition Based on First Gift Distribution of Direct Mail Higher dollar initial gifts bode well for future donor value. 6

7 Continue to leverage lower dollar program as a pipeline for mid level and major gifts First Gift Distribution of $1,000+ Multi Gift Donors 50% of $1000+ multiple gift donors joined the file with a gift of under $100. This is healthy and in the middle of the range (40 60%). Moving forward: LWV will continue to build on the current progress and opportunities presented by deeper levels of analysis. As the program grows, regular reviews of key metrics like retention and donor value to maintain file health. Continue to explore options to increase multi channel giving, monthly giving, and upgrading. Keep steady growth, optimizing acquisition especially in non election years and when key issues fade. The John F. Kennedy Center for the Performing Arts 7

8 The Kennedy Center background The Kennedy Center opened in Currently has a membership base of over 26,000 households, primarily in the DC Metro Area. Membership can be designated to the National Symphony Orchestra, Washington National Opera, or all Kennedy Center programs (including the NSO & WNO). The Challenge! Overall membership and revenue have been on a steady upward trajectory over the long term. There are dramatic spikes and falls related to the popularity of the performance schedule. The Challenge: How do you continue to grow members and revenue without dependency on blockbuster shows? Initial analysis showed large influxes of members from popular shows: Wicked & Book of Mormon Members by Join Year and Fiscal Year (0 12 months) Join Year 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Wicked Book of Mormon Wicked While 2015 had no blockbuster show, member counts still reached blockbuster levels, which was a turning point for the program. 8

9 Deeper analysis showed a sharp decline in retention in the years after blockbuster shows went on sale 0 12 Month Retention After-effect After-effect FY12 shows a decline in retention following the strong FY11 Wicked on sale. The same holds true in FY14 following the Book of Mormon spike. Industry Ranges Multi Year: 50 70% First Year: 20 40% Overall: 45 65% Web joins especially increase for blockbuster shows New Joins by Channel Wicked Book of Mormon Members who joined primarily for blockbuster show access joined online, leading to a surge in web joins. There is also an increase in blockbuster years for DM joins although it is less dramatic. Web joins have significantly lower retention rates, indicating that these members are more transactional in nature Average Cumulative Retention of New Joins by Channel over 5 Years The spike in web joins is offset by low retention rates. The surge in new joins in blockbuster years becomes problematic to sustain, leading to drops in file size in the next year. 9

10 Since 2009, KC has been able to achieve steady growth to reach a current high point for the program How? Through deeper levels of analysis that allow: Acquisition ROI Modeling Strategic adjustments to maximize retention rates Long range forecasting These tools have led to improvements, allowing the Membership File to become less dependent on blockbuster show ticket sales. List ROI metrics are used to bring back lists that had marginal upfront performance but strong ROI All the World's a Stage O'Malley for Governor Town & Country NOZA Colonial Williamsburg Foundation Bloomingdale's By Mail Virginia's Wealthiest Conservatives Children's National Medical Center Holocaust Museum Whitman Walker Clinic American Diabetes Assn National Geographic Experian New Homeowners Database Wine Enthusiast Home Decor Chesapeake Bay Foundation $100+ Fine Arts Contributors NSO STB 13 24mo Smithsonian Mag Target Model New Movers Herrington's Shubert Organization KC STB 13 24mo Horchow AAUW National Museum of AA History & Culture Target Model Hi Value Smithsonian KC STB 0 12mo Washington National Cathedral $100+ NSO STB 0 12mo KC Subs Big Hearted Benefactors Acquisition list plans utilize a combination of upfront performance, ROI, and testing to make the most strategic investment. 200% 100% 0% 100% 200% 300% 400% 500% 600% Data modeling identifies the best ticket buyers and lapsed members, improving the performance of these groups June 2015 Lapsed in ACQ - Validation Seg# Quantity Gifts Income RR Avg Gift $/M CPM NET/M NPD Total Cost Net 1 3, $2, % $64.39 $727 $390 $337 $30 $1,417 $1, , $1, % $56.09 $390 $390 $0 $0 $1,291 -$1 3 6, $1, % $70.00 $229 $390 -$161 -$49 $2,388 -$ ,207 3 $ % $50.00 $68 $390 -$322 -$237 $861 -$ ,292 4 $ % $50.00 $60 $390 -$330 -$275 $1,284 -$1, ,137 5 $ % $45.00 $45 $390 -$345 -$345 $2,004 -$1,772 Total 23, $5, % $61.49 $249 $390 -$141 -$35 $9,244 -$3,335 10

11 KC makes strategic adjustments to help retain members that might otherwise drop off the file First-Year Cultivation Postcard Special First-Year Introductions in Renewal Copy Long range forecasting has helped to predict future trends around blockbuster shows Baseline with Flat Acquisition Costs Anticipate the spike Mitigate the risk Retain as many members as possible Continue trajectory of long term growth Moving forward: Continue to use analytical tools (modeling, List ROIs) to advance the Kennedy Center s acquisition program and keep it on a growth track. Utilize message and package techniques to encourage first year members and blockbuster joins to renew their Membership. Update Long Range Forecast after the next blockbuster show goes on sale to determine the impact on the overall program and anticipated five year plan. 11

12 Wrap Up Questions? Laura Zylstra Senior Director of Development League of Women Voters of the U.S THANK YOU! Myles King Manager, Annual & Digital Fundraising The John F. Kennedy Center for the Performing Arts Allison Porter President & Co-Founder Avalon Consulting Group Don t forget to visit the Solutions Showcase! Many of the ideas discussed today are on display at the Solutions Showcase! 36 12