1. Analytic Optimization Thalamus Hill SVP of Advanced Analytics, RKD Group Robert Connelly Director of Strategic Services, Integral
#DM201

2. Analytics Drives Strategy

3. LTN

4. Net Impact by Giving Level
62% of the donors acquired are under $25 and do not generate net revenue.
1st Gift
Levels
LTN
Value
% New
Donors
Break-Even
Point
<$25
($22.14)
62.4%
Not in 5 Years
$25-$99
$32.08
36.1%
9 Months
$100+
$324.39
1.5%
Immediately
$11.53
100%
Should be 3~5%
Note: national organizations should generate between $20-$25 of long-term net value

5. Low Control Gift Array
People give to what they’re being asked for; therefore, be careful ….
None of the ask array values are at or above the net generating threshold of $25.
LTN Viability

6. Geographic Footprint
In other words, follow the money
Socio-economic status and becoming a viable donor (net producer) is correlated.
Wealth Level
Market Penetration

7. LTN by Wealth Cluster
Optimized organizations acquire 40% of their donors from Wealth Cluster 1.
Reduce acquisition within WC’s 7-10 as it loses $3.06 of LTN value per donor acquired.
Wealth Clusters
High = 1
Medium = 2-4
Low = 5-10

8. LTNROI

9. Prior to LTN evaluation
LTN Value by Mail Volume
18.3 million rental names were evaluated within 181 lists – LTN to ROI viability = 0.48.
Uncovering the linear relationship between LTN and ROI has led to a 125% increase in net.
Prior to LTN evaluation

10. LTN by Age
Donors acquired between ages generate positive levels of LTN value.

11. LTN by Control Package
Donors acquired via non-premium packages are 353% better in generating net value.

12. LTN by Seasonality
For this national organization, Long-Term Net value was $12.80.
Target more donors in February, April and August – 35%, 66% and 48% higher in LTN value.

13. LTN by Multichannel Readiness
Multichannel ready donors are significantly more valuable than those who are not.
Given the intrinsic value, implement strategies to materialize this financial potential.

14. Multivariate Testing

15. Donor Journey
Use attribution logic to understand the “true” conversion pathway relative to last click insights
Originated via Paid Search
Visited Leadership Team Page via Paid Search
Came back via Paid Search
Visited a donation form but did not convert
Exposed to Display ads
Received a Direct Mail package
Exposed to Paid Social
Came back to the site (direct)
Visited What We Do page
Came back and donated $2.5K (credited to direct)
Uncover what initiates, supports and converts in order to properly create your media mix budget

16. Enterprise Segmentation
People give to their passion points
Familiarity and trust = donor value
Connecting to the different faces of an organization = loyalty
Demographics
Attitudes
Concerns
Behavior
Belief
Familiarity
Giving Heart
Engagement

17. $7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

18. Ask yourself, how should we be handling our data?
GiGo – Garbage In / Garbage Out
Ask yourself, how should we be handling our data?
Collect what you only need to.
Question how the data will be used.
Discuss how will you get the data in…and just as important, how will you get it out?
Am I being consistent with how data is being collected & stored?
Is anything missing that will render the data less useful (or useless)?
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

19. Baseline Calculations
Cash revenue in a set period of time
Gross Revenue
Reviewed by segment, campaign, program, and fiscal year
Gross revenue minus expense
Net Revenue
Expenses typically include direct costs for campaigns (less typical: overhead costs like database fees, caging, etc.)
Number of gifts divided by quantity mailed
Response Rate
1,500 gifts divided by 50,000 quantity mailed = 3% response rate
Top indicator of campaign engagement level
Gross revenue divided by number of gifts
Average Gift
$52,500 in gross revenue divided by 1,500 gifts = $35 average gift
Top indicator of campaign commitment
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

20. Gross Revenue per Thousand Mailed Net Revenue per Thousand Mailed
Calculations Con’t
Gross revenue divided by quantity mailed multiplied by 1,000.
Gross Revenue per Thousand Mailed
$52,500 revenue divided by 50,000 quantity mailed * 1,000 = $1,050 rev/m
Allows equalized revenue comparison with differing quantities. Useful for overall productivity of appeals.
Net revenue (gross revenue-overall expense) divided by quantity mailed multiplied by 1,000.
Net Revenue per Thousand Mailed
$52,500 revenue minus $15,000 expense = $37,500 net revenue. Divided by 50,000 quantity mailed * 1,000 = $750 net rev/m
Net revenue divided by donors (number of gifts)
Net Revenue Per Donor
$20,000 gross revenue - $40,000 cost = -$20,000 net revenue divided by 1000 donors = -$20 net revenue per donor.
Most useful as a measurement of acquisition productivity (often a net loss)
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

21. Measuring Retention Defining retention
Percentage of donors that return to give another gift in a specific timeframe (typically 0-12 months)
Defining retention
Measure the retention of new joins separately from multi-year members
Lifecycle has a significant impact
Considers both retained new joins and multi-year members, and influenced by the ratio of each
Overall retention
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

22. Retention by Giving First-Year Retention Multi-Year Retention
FY members from current year/new joins from previous year
Critical to understand behavior of new join cohort
Multi-Year Retention
MY members in current year/MY, FY, and reinstate in prior year
Break into consecutive years for more insight
Overall Retention
MY, FY, reinstate in current year/MY, FY, reinstate, and new in prior year
Influenced by quantity – ie overall retention could decline with large influxes of new joins
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

23. Visualizing Retention
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

24. Identifying Donor Groups
$7.6M
New: Donors who made their first ever gift within the 12 months being reviewed
Lapsed (Reinstated This Year): Donors who did not make a gift in the prior 12 months
Reinstated Last Year: Donors who were previously 12m+ Lapsed and reactivated in the prior 12 months
Consecutive Givers: Donors who have given in 2 or more consecutive 12 month periods, and are 3+ years on the file
New Last Year: Donors who were New in the prior 12 months and are in their 2nd year on file
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

25. Activation by Donor Group Detail
*OTG Donors Only
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

26. Donor Pipeline to Consecutive Donors
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

27. SUSTAINERS
$7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

28. New Monthly Donor Activation

29. How Activation Impacts Value

30. Existing Donor Average Gift Impacts Growth

31. How Performance Drives Investment

32. $7.6M
$6.6M
$8.6M
$6.9M
$24.2M
$23.8M
$21.7M
$19.4M
$15.7M

33. Thank You! #DM201 Thalamus Hill SVP of Advanced Analytics, RKD Group
Robert Connelly Director of Strategic Services, Integral
#DM201