Analytics April 20, 2016

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1 Analytics April 20, 2016 Julie Wilson Director of Strategic Planning

2 A Trip Down Memory Lane What we learned in 101; a quick recap!

3 B Where we ll focus within Your organization the process Marketing activity & results Data-driven marketing! Marketing Database Analytics & Insights

4 With any marketing database, the goals are the same Build Constituencies or Relationships Improve Loyalty Increase Revenue Reduce Costs 4

5 Orgs Manage What They Measure Define what productivity means to you and your organization (or your clients) Make sure the metrics are thought out and action oriented Capture KPIs and set sustainable goals Ensure there are processes in place to get the data you need 5

6 Analytics! Imagine that your organization effectively used all relevant information to make smarter decisions for sustained growth.

7 Reframe how we use data Identify business decision Act and measure Determine relevant data Focus on what will drive value Source: EY 2014

8 File Health trends Post Join Value Program Metrics for: Monthly Giving Digital What We ll Cover Consistent theme: We want to understand what is driving value.

9 File Health What is the health of my donor file?

10 So many metrics Key Performance Indicators (KPIs)

11 File Health - Lifecycle Are you strengthening your file? Values YOY Variance % Variance Total Donors 149, , , ,780 16, % Total Gifts 204, , , ,735 22, % Total Revenue $10,582,695 $10,555,594 $11,452,565 $12,610,289 $1,157, % Total Average Gift $51.69 $58.74 $65.30 $63.77 ($1.53) -2.3% Total Rev/Donor $70.62 $81.16 $87.96 $85.91 ($2.05) -2.3% Total Frequency % Total % Giving 2nd Gift 23.1% 23.9% 22.2% 22.1% -0.1% -0.6% This organization has experienced great growth in donor count and revenue. What next?

12 File Health Understanding Donor Segments YOY Variance % Variance New 40,888 30,099 31,752 48,432 16, % New Last Year 13,691 8,556 7,023 8,173 1, % Consecutive Givers 53,171 52,804 49,816 47,645-2, % Reinstated Last Year 14,616 10,537 11,024 11, % Lapsed 27,490 28,063 30,585 30, % TOTAL DONORS 149, , , ,780 16, % YOY Variance % Variance New $1,307,023 $1,300,591 $1,602,299 $2,091,039 $488, % New Last Year $748,601 $544,739 $533,903 $787,094 $253, % Consecutive Givers $5,670,453 $5,945,995 $6,272,326 $6,394,808 $122, % Reinstated Last Year $1,152,254 $944,819 $993,728 $1,121,231 $127, % Lapsed $1,704,364 $1,819,450 $2,050,308 $2,216,117 $165, % TOTAL REVENUE $10,582,695 $10,555,594 $11,452,565 $12,610,289 $1,157, % Digging deeper, we can see that growth is being fueled by New donor growth, while their most valuable segment has seen a decline in donor counts. What next?

13 File Health Understanding Donor Segments Eligible Universe Donors DonorGroup DonorSubGroup New Last Year New Last Year 54,429 41,023 30,536 32,362 13,691 8,556 7,023 8,173 New Last Year Total 54,429 41,023 30,536 32,362 13,691 8,556 7,023 8,173 Consecutive Givers Consecutive 2 Years 23,192 28,243 19,150 18,295 11,454 13,618 9,989 9,778 Consecutive 3 Years 14,018 11,457 13,688 10,093 8,368 6,809 8,472 6,243 Consecutive 4+ Years 43,101 42,047 39,609 40,326 33,349 32,377 31,355 31,624 Consecutive Givers Total 80,311 81,747 72,447 68,714 53,171 52,804 49,816 47,645 Reinstated Last Year Reinstated from Mos Lapsed 17,085 11,970 12,842 13,151 7,469 5,670 6,205 6,248 Reinstated from 25+ Mos Lapsed 21,715 15,352 15,145 17,379 7,147 4,867 4,819 5,537 Reinstated Last Year Total 38,800 27,322 27,987 30,530 14,616 10,537 11,024 11,785 Grand Total 173, , , ,606 81,478 71,897 67,863 67,603 Retention Rate DonorGroup DonorSubGroup New Last Year New Last Year 25.2% 20.9% 23.0% 25.3% New Last Year Total 25.2% 20.9% 23.0% 25.3% Consecutive Givers Consecutive 2 Years 49.4% 48.2% 52.2% 53.4% Consecutive 3 Years 59.7% 59.4% 61.9% 61.9% Consecutive 4+ Years 77.4% 77.0% 79.2% 78.4% Consecutive Givers Total 66.2% 64.6% 68.8% 69.3% Reinstated Last Year Reinstated from Mos Lapsed 43.7% 47.4% 48.3% 47.5% Reinstated from 25+ Mos Lapsed 32.9% 31.7% 31.8% 31.9% Reinstated Last Year Total 37.7% 38.6% 39.4% 38.6% Grand Total 47.0% 47.9% 51.8% 51.4% Digging even deeper, we see that retention is acceptable, (Good!) but that their pipeline of core donors shrank. Understanding why is key.

14 Post Join Strategies How do my various acquisition programs generate different types of donors?

15 Post Join Strategies Drive Value After donors are acquired, value is created through second gift, retention and upgrading strategies Prospecting Channel List source Join Level 2 nd Gift and retention 1x Gifts Sustainers Upgrading Within Lo$ Mid-Level Major Gifts

16 Post Join Value Varies Across Channel Within a channel, the post join value varies by initial join amount, time of year acquired, vendor, and more understanding that is key to productive investments.

17 Acquisition Campaign Reporting Managing multiple metrics Campaign Qty Mailed Returns RR AG Income TotalCost Value 12m Activation 12m %$25+ Donors CPD NPD ROII ROII12 Campaign A 1,318,537 15, % $22.23 $339,527 $513,474 $ % 22.6% $33.62 ($11.39) -34% 12.5% Campaign B 1,115,685 8, % $31.31 $277,958 $301,859 $ % 33.7% $34.01 ($2.69) -8% 53.6% Campaign C 6,199,485 34, % $27.06 $925,962 $1,753,605 $ % 32.2% $51.26 ($24.19) -47% -14.8% Campaign D 5,419,458 25, % $25.25 $656,757 $1,507,393 $ % 29.5% $57.99 ($32.72) -56% -29.4% Campaign E 3,437,549 14, % $24.22 $358,426 $966,467 $ % 29.1% $65.35 ($41.12) -63% -43.3% Going beyond Response Rate, Average Gift, and initial Net revenue is critical for understanding investments!

18 Monthly Giving - Sustainers Consistent predictable revenue stream

19 Key Analytics for Monthly Giving Programs Conversion % Retention % Declines Attrition Initial & Subsequent Values Investment Levels How has this changed over time? Forecasting Within all of these analyses, we drill into Channel DM TM Online Face-to-Face / Canvass Peer to Peer Event Also New versus Rejoins

20 Sustainer Retention Client example

21 Sustainer Value Because of their retention, a sustainer is often worth more than twice as much as a nonsustainer. Client example What does the donor value look like for your organization (or your clients )?

22 Sustainer Value by Channel Value is a function of initial gift and retention. We also look by Year Month Vendor Client example

23 Sustainer Activation We also look by Year Month Vendor

24 Predictability allows for accurate forecasting 24

25 Digital Digital marketing offers both greater rewards in terms of higher engagement and ROI and greater risk - due to the execution complexity and the need for behavioral changes across the organization. Defining your donors digital experience is key.

26 26 YOU HAVE TO UNDERSTAND THE TRENDS

27 PARTICULARLY IF GROWTH IS COMING FROM WITHIN OR IS NEW FiscalYear A: New this Year B: Converted this Year C: Existing Online Donor Grand Total % 17% 63% 100% % 14% 71% 100% % 14% 71% 100% % 12% 70% 100% 08/29/14 to 08/28/15 14% 13% 73% 100% 27

28 Conversions Organic Lead Investment Key Digital Metrics Qualified Visitor Traffic and Valuation File Valuation Online Advertising Metrics Digital Footprint

29 NEW DONOR LTV Objective: Monitor Return on Investment by Join Source and establish benchmarks for each source. FY13 Program LTV FY14 JoinSource Program LTV AG CPD VPD6 VPD12 Offline Direct Response $20.64 $38.74 $31.59 $39.78 Offline Total $20.64 $38.74 $31.59 $39.78 Online Conversion $41.39 $4.59 $ $ Website $76.60 $0.00 $ $ Online Advertising $93.67 $72.19 $ $ Social Media $29.17 $ $41.67 $78.17 Acquired $26.51 $ $44.14 $52.43 Online Total $60.89 $45.56 $89.10 $ Grand Total $22.51 $36.28 $34.27 $42.82

30 LTV of both Donors and Leads 12 Month LTV of All Donors by Publishers/Sites NEW+EXISTING DONORS Source Donors Initial Value 12 Mo. Value 12 Mo. Rate of of Increase Return AOL 20 $26 $ % BBC 226 $42 $ % Casale 28 $51 $ % emiles 2,140 $32 $94 292% Goodreads 18 $27 $ % Google 2,060 $176 $ % Greater Good 388 $35 $ % MyPoints 172 $29 $ % Netmining 22 $38 $ % Quantcast 14 $61 $ % RadiumOne 135 $6 $26 405% TrialPay 1,628 $11 $54 501% Yahoo 53 $101 $ % *Timeframe: Jan Sep Each publisher has its own measure of success for value and investing, for example as long as we re not paying over $201 to get a donor from MyPoints, we re fine.

31 Segmentation Who, when, and why?

32 Segmentation Overview Segmentation allows for a more customized marketing strategy through directing marketing investment to the areas where it will yield the strongest results. Which channel will be most effective? Who is most likely to convert to a sustaining donor? Which donors should I try to reactivate? Which low-dollar donors are capable of making larger gifts? 32

33 Demographic Segmentation Overview Utilize statistical techniques to identify clusters of donors using the external data points that correlate with key program goal metrics Behavioral Analyzes historic campaign performance and creates Tiers/Recommendations based on a donor s projected net campaign revenue 33

34 34 Demographic Segmentation Overview

35 Julie Wilson Director of Strategic Planning Integral, LLC