Direct Marketing 201 Acquisition Katie Valvo Associate Director, Acquisition The Nature Conservancy

Direct Marketing 201 Audience Balance  Balance High Value Audience Growth  List Tiering  Cooperative Data Creative  Multivariate Testing  Package to Audience  High Value

Direct Marketing 201 Mail Volume increased by 10% from FY07 to FY10

Direct Marketing 201 Average Gift Falls Year-over-Year

Direct Marketing 201 Recession begins in September 2008 (FY09) – average gift had already fallen against FY08 Average Gift

Direct Marketing 201 Response falls then bounces back

Direct Marketing 201 With the increase of QTY in FY08, response dropped by 10% and the Av Gift drops over $1 less than FY07

Direct Marketing 201 Package Trends Did a change in the mix of packages used or a decline in performance in one package negatively impact FY09? Program has been very reactionary from heavy testing, economic conditions and package- driven performance months.

Direct Marketing 201 Lists – Performance by Tiers Lists used in the previous fiscal year were ranked by net/donor, excluding the calendar mailing. For the following fiscal year: Lists in the top 25% of net/donor are labeled Tier 1. Lists in the next 35% of net/donor are labeled Tier 2. Lists in the final 40% of net/donor are labeled Tier 3.

Direct Marketing 201 There is a significant drop in the use of Tier 2 lists. We need to be diligent on list universe make-up.

Direct Marketing 201 Another View: Tier 1 increases Yr Over Year, With Tier 2 Shrinking & Tier 3 increases – FY10 Appears to be on a Good Start

Direct Marketing % of universe on Test & Tier 3 Lists & highest Cost/Donor – directly affect the bottom-line

Direct Marketing 201 Average Gift Softened Most with Tier 1 Lists

Direct Marketing 201 Environmental Lists Impact All Tiers

Direct Marketing 201 Impact FY11 - Present

Direct Marketing 201 Creative

Direct Marketing 201 Multivariate Test Design

Direct Marketing 201

Five significant effects: A-: Control envelope is better (by 20.8%) with a cost of $29.85 / 1k for the new OE O-: With the drop in response, the upgraded asks have a negative impact on net revenue (hurt 15.0%) F-: Larger letter format hurts net revenue by 9.5% at a cost of $1.80 / 1k B-: Bubble-padded OE hurts net revenue 7.1% at a cost of $9.80 / 1k P+: Highlighting one ask increases revenue 6.2%

Direct Marketing 201 Optimal Package

Direct Marketing 201 Package to Audience Mix and High- Value

Direct Marketing 201 Audience Balance Balance High Value Audience Growth List Tiering Cooperative Data Creative Multivariate Testing Package to Audience High Value THANK YOU!