Insight in Fundraising
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1 Insight in Fundraising Nigel Magson Tangible Data Insight Special Interest Group, IOF
2 Insight What is it? why is it essential? Insight is the strategic planning component of fundraising, the intelligence that pulls together available sources research, data analysis, digital and market level information to help direct successful fundraising.
3 Shortcut to MVI_9032.AVI.lnk My background
4 Insight Special Interest Group Free to join ( Community of over 500 Part of The Institute of Fundraising Events & Training Website
5
6 Insight Information Aggregation & Information exists within organisations at many levels. New information sources such as Social Media and networking activity have emerged. NFPs have more channels to cope with. What is needed is an environment where data & information can be caught and used to affect supporter experience and engagement Use Benefits Forms basis for better customer insight and segmentation Enhances information for dynamic targeting (copy/content) with greater empathy/understanding Makes analysis and research actionable increasing ROI on such initiatives
7
8 10 steps to insight heaven
9 No 1. The Leaky Bucket.
10 Everyone has a leaky bucket Do you know the leakage rate? Which sources provide best value? Which are best at cross selling/upgrading? Build a dashboard..
11 The Report Numbers View
12 The Report Values View
13 Automated delivery... Database Pivot Tables Text File Dropdowns Front Screen
14 No 2. So how costly is it to fill the Acquisition. bucket? But how long will they stay? What will they be worth? Will they cross sell?
15 Relative Power Committed Givers by Recruitment Channel Performance Key Good Moderate Poor Channel Recruited Supporter Value Retention Recruitment Cost Cross Sell rates Net LTV Cold Tele marketing Door Drop Door2Door DRTV Face2Face Inserts
16 No 3. So how about plugging the holes. Retention Why are there leaks? Understanding engagement & motivations (Research?) Optimising communications Understanding segments or communities First what can we learn from the base data..
17 Basic Behavioural Segmentation No Name Short name Volume 1 Active Single Cash ASC 11,494 Active supporters 2 Active Regular Cash ARC 21,236 3 Active Committed ACOG 8,170 4 Zero Income Eventer ZIE 6,754 5 Legators LEG Legacy Pledger PLEDG Exceptionally High Value EHV 120 Lapsed supporters 8 Lapsed Cash LAPCASH 104,063 9 Lapsed COG LAPCOG 12, Other OTHR 9,307 All 174,512
18 Active Regular Cash supporters: Acorn profile Almost 4 in 10 are Wealthy Achievers most affluent people in UK, living in high status areas in large detached houses live in wealthy, high status areas. Middle aged or older people dominate, with many empty nesters and wealthy retired. Also well off families with school age children they live in large detached houses with 4+ bedrooms. Most are owner occupiers, and half of those own outright. Very well educated, in professional or managerial occupations. they are well established at the top of the social ladder and enjoy all the advantages of being healthy, wealthy and confident consumers Top 4 Acorn Types 3. Villages with wealthy commuters 11. Well off managers, detached houses 33. Middle Income, older couples 4. Well off managers, larger houses
19 Penetration of Active Regular Cash Supporters by Postal Area vs UK Base Highest penetration is in the West/South West and London and the South East. In contrast to Active Single Cash not as well covered in Scotland.
20 Active Regular Cash supporters: pen portrait Size of Segment 107,223 donors (24% of base) Generate 2,595,000 income Giving Behaviour, more likely to be: Recruited via DM (76% vs 55%) Less likely to be recruited via Event (13% vs 20%) Max donation > median (66% vs 32%) High Value given > 1000 in a yr (3% vs 2%) Last donation paid by cheque (79% vs 54%) All Cash payers!!! (100% vs 39%) Regular!!! Cash donor (7 donations vs 4) First ever donation lower ( 40 vs 56) Maximum single donation of 87 On average, 81 donated in total (vs 74) Average single donation of 39 (vs 81) Donors AND Eventers (5% vs 2%) Long-standing supporters (5yrs on file vs 3yrs) Some Raffle income (6% vs 3%) Where do they live? More likely to live in South East (17%), South West (14%) and London (11%) Over represented in North West (8% vs 6%) Pen-portrait Similar geo-demographic profile to Active Single Cash supporters, although greater incidence of Settled Suburbia and lower incidence of Educated Urbanites. Low incidence of multi-ethnic neighbourhoods. Mainly female (typical of all supporters). Unlike Active Cash Singles, recruited primarily via DM to donation, so less Event participation. Typically pay by cheque, as expected. Typically are giving 2 donations (within the last 18 months), although 20% have not donated within the last year. Well-off people, living in large houses, in high status areas. Wine buyers, with healthy credit card spending, and skiing holidays. Financially savvy and secure, with Unit Trusts and investments, healthcare and private pension. May have a company car, or will have bought a higher range model. Reads Telegraph or Times (either daily or Sunday), don t read tabloids. They use the Internet to make purchases. Keen golfers and birdwatchers, likely to support emergency appeals.
21 No 4. How about optimising Communications? Have conversations with your supporters Don t just send them 6 mailings a year. Allow them to respond Triggered Communications.. Range of Analysis RFV Response Models Propensity & Next Best Action
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24 No. 5 Supporter Profitability Pareto s 80:20 rule At what level do you calculate profitability? Campaign Segment Donor Types of Measures LTVs, ROIs etc What do you do with cost/effort of organisation according to this understanding?
25 General Gift Pattern Analysis: Top 30 gift patterns by mean LTV Very low numbers per pattern Top 6 patterns by general LTV all involve supporters who are still active >5yrs post joining However, their average gift value is some way below 10 Nos. 3 7 involve a gap between 1 st and 2 nd gift, but after that gifts are quarterly From no. 10 down, those who remain active in Q20 post recruitment all have significantly higher than average gift value Note also far less frequent giving patterns for these supporters ALL patterns show 2 nd gift within 2yrs post recruitment General Gift Pattern No. supporters No. supporter supporter value q0 q1 q2 q3 q4 q5 q6 q7 q8 q9 q10 q11 q12 q13 q14 q15 q16 q17 q18 q19 q20 Mean total general cash value per Mean no. general cash gifts per Mean general cash gift Two types of gift patterns lead to high LTV: very frequent (quarterly) low value vs. less frequent (yearly) higher value suggests 2 different comms strategies Highest LTV generated if 2 nd gift is made within first 2yrs post recruitment 2
26 No 6. The Power of Communities grows stronger.. Local Communities get bigger Event Fundraising In Memoriam Social Networking sites
27 But communities bite back too.
28 Segments as communities All charities have giver, volunteer, raffles...data within their organisation embrace it all Use it to identify communities Appreciate that you need to monitor and evaluate the segmentation solution as market conditions change, in particular online engagement Use to support strategic decisions not only tactical communications
29 No. 7 Using Research Why? To understand motivations of supporters To remove risk from communications To beat a banker pack To identify new audiences To supplement data on database To build attitudinal based segmentations To set appropriate ask levels To increase response
30 What charities do you give to? Source: CCB Fastmap
31 Source: CCB Fastmap Asthma UK
32 No 8. Why isn t web working for charities? Understanding how to communicate online Building up contacts Why do you visit a charity website? Why would you revisit? Building social media activity But also, integrate info
33 Websites are not just a channel, they are a data source of volunteered and non volunteered information Web Analytics is not just about site performance, visitor stats but about providing an integral data stream that can be combined with offline data and content to respond to the consumer in real time.
34 No 9. Are there universal insights? Benchmarking opps Market Level studies Prospect pools/swops IOF Think tank on Research Personal view that this is at sub sector level why?
35 Sector Level Differentiation Correspondence Mapping 3 rd Word & Overseas Humanity Environment Disability Wildlife Nature Health Cancer & Medical Research Animal Welfare Looks at charities supported Strong relationships by sector Shows that profile of people by types of charity are quite similar, and that differentiation needed.
36 No 10. Legacies Getting the last gift Developing a legacy programme using data Legacy lifestages enquirers, considerers, pledgers, legators Understand profiles, & motivations at each stage Mine data for those that fit Develop a communications plan to engage
37 Finally..Don t Create Woolly Briefs
38 Thank You Nigel Magson Tel
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