Focus on increasing station membership and net income Michal Heiplik

Proprietary & Confidential CDP participation CDP Participants: 97 Stations & 83% of audience # of stations% of audience

Proprietary & Confidential CDP – Key Concepts & Services Reporting & Analysis -ROAR & other research Promotion of better practices -Checklists Enabling scale for individual stations -Project execution

Proprietary & Confidential National Reference File & ROAR October release: 59 stations January release: 65 stations Current statistics -# of account records: 15 million -# of transactions: 66 million -# of active donors: 1.9 million ROAR distribution and feedback -Metric development -Station briefs 4

Proprietary & Confidential CDP Checklists & Business cases Completed: Sustainers Matching Gifts Vehicle Donations Additional Gifts Planned: Lapsed Gifts Web/ giving Major gifts Planned Gifts

Proprietary & Confidential Reporting & Analysis Revenue Opportunity and Action Report (ROAR) 6

Proprietary & Confidential Reporting & Analysis Station-specific practices report based on survey 7

Proprietary & Confidential Driving Scale Thank You Calls -33 participating stations -$1,950,000 in annual NET delivered to stations Vehicle Donations - 15 participating stations -$560,000 in annual NET improvement delivered to stations Prospecting -230,000 prospects delivered to stations -$1,380,000 in value Canvassing -4 stations participating (WGBH, KAET, TPT, KVIE) -6,383 new donors -910 sustainers (14%) -NET cost per donor: $

Proprietary & Confidential DONOR ACQUISITION - CANVASSING Active Projects 9

Proprietary & Confidential WARNING!!! The numbers you are about to see are extremely exciting. 10

Proprietary & Confidential Cost to acquire a donor & retention Retention rates of donors from major markets -Mail – 45% avg. -Pledge – 17% avg. Cost to acquire Direct Mail donor -$37 average ($67 max) Investment: Cold Mail acquisition is crucial to building a sustainable membership program 11

Proprietary & Confidential Learning from Denver…. Program running for 17 full months Direct Mail acquisition mostly stopped Current Fiscal Year: 12 Station Door Knocks Completes GiftsRR Sustainer rate Avg Gift CPM Start Date KRMA462,000171,68715,9399.3%15%$57$7.54Aug-11 Station Door Knocks Completes GiftsRR Sustainer rate Avg Gift CPM Start Date KRMA148,00055,9955,59710%15%$56$7.92July-12

Proprietary & Confidential How it really works? Local station teams -Embedded within the station -Available for direct training and interaction with staff -Professional event canvassing Personal donor interaction -Friendly staff -Extension of the station 13

Proprietary & Confidential Personal Donor Interaction 14

Proprietary & Confidential Personal Donor Interaction 15

Proprietary & Confidential Personal Donor Interaction 16

Proprietary & Confidential Personal Donor Interaction 17

Proprietary & Confidential Personal Donor Interaction 18

Proprietary & Confidential Canvassing – CDP Solution Data -National Reference File used for analysis -Proper segmentation – ZIP identification -Proper coding for additional testing (thank-you card) -Data analysis -Establish PCI compliance for data -Enable electronic data entry at the door Management -Vendor management & quality control -Application of standards

Proprietary & Confidential Canvassing - Update 20 Station Door Knocks Completes GiftsRR Sustainer rate Avg Gift CPM Start Date KRMA148,00055,9955,59710%15%$56$7.92Jul-12 WGBH91,20829,2083, %15%$649.75Jun-12 KAET43,86619,6001,6628.5%18%$56$19Jul-12 TPT39,07812,8571, %30%$72$12Aug-12 BIG UNKNOWN – RETENTION!!!

Proprietary & Confidential Canvassing - retention Station% of Sustainer Revenue% of Sustaining DonorsSustainer Avg. Gift TPT58%29% $11.90 WGBH35%14% $13.00 KAET46%18% $

Proprietary & Confidential Better targeting – Zip to Household Current Zip targeting -Utilizing models based on RMPBS -Blend of giving and area data 22

Proprietary & Confidential Better Targeting – Zip to Household New App development -Phase 1 release by the end of January Goals -Full PCI compliance -Offline performance -Collection of new data  Complete Dispositions  Observation data -Route optimization 23

Proprietary & Confidential Canvassing – Next Steps for CDP Retention -Work with RMPBS to stabilize retention efforts -Work with RMPBS on further retention analysis Data collection -Develop 100% paperless entry process -Efficiency building - Create a fully digital solution to canvassing Further proof of concept -Grow the test sample  Adding 2 more stations within next quarter -Continue developing the “turf” knowledge and data 24

Proprietary & Confidential IMPROVING RETENTION – THANK YOU CALLS Active Projects 25

Proprietary & Confidential Data Analysis Recent data analysis: Dec 5, 2012 Calls made: June – Aug Gifts made Dec 2010 Original Houston Data: 3 6 months Lift in retention33%56% Increase follow-up revenue44%71% Additional revenue per donor$15.31$20.64 Additional revenue per donor – Y2$5.62$5.58

Proprietary & Confidential Data Analysis – 4 station test 27

Proprietary & Confidential Findings Making highly personalized Thank-You calls is very effective. Process of making the Thank-You calls is highly inefficient and costly. National opportunity: $4.5 million per YEAR 28

Proprietary & Confidential CDP Project: Improving Retention CDP enables scale for stations -Guaranteed adherence to best practices and production schedules -Modeling of most cost-effective calling groups -Continuous testing of new approaches with single focus Participation process: -Station signs a one-page project agreement -CDP executes the calls based on National Reference File data -Station realizes a 15:1 ROI Project status -33 stations participating (21 in review) -Impact (Annual): $1.9 million 29

Proprietary & Confidential VEHICLE DONATIONS Active Projects 30

Proprietary & Confidential CDP Project: Vehicle Donations Current landscape -3 major vendors (brokers) – CARS, VFC, CarTalk -No downside risk with full service offering % of vehicles sold to recyclers -Revenue share averaging between 60-75% net CDP Opportunity -Biggest US auction vendor -Improved processing standards & donor relationship -Complete marketing assets -Switch to flat-fee pricing without any revenue sharing  $50 per car minimum -Averaging 83% NET 31

Proprietary & Confidential Calculating Your Own Savings (Example) Excluded assumptions -Higher sales prices will likely be achieved -Actual current cost is likely higher – averages -Growth based on increased marketing/awareness Overall potential: $1.9 million 32 Revenue from Vehicle Donations CostStation ShareNetSavings Now$100,000 $30,000 $70,00070% CDP $100,000 $17,000 $83,00083% $13,000

Proprietary & Confidential Vehicle donations 33 Marketing materials in place -Spots: -Web elements -Detailed marketing guide 15 stations participating (13 in review) Impact (Annual): $560,000

Proprietary & Confidential Future Projects 34

Proprietary & Confidential CDP: Future Projects Member Benefits -Truly national offers (50,000+ benefits) -White-label approach with station focus -Active member communication supported by “smart” data -Approx. $0.50 per member Member Transfer -Goal: Seamless integration of moving members Matching Gift follow up -Initial research: No solid data source for employer information -New test: reminder – mail/call & complete follow-up IP Targeting -Supporting offline communications with online tools % response lift (6:1 ROI) 35

Proprietary & Confidential Questions 36

Proprietary & Confidential 37 THANK YOU! Michal Heiplik (617) 300 – 3217 cdpcommunity.wordpress.com