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A Deep Dive Into Paid Acquisition ROI: Analysis and Case Studies #13NTCROI Vanessa Kritzer – League of Conservation Voters Kate Thomas – Change.org Michael Ward – M+R Strategic Services
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Agenda Why Should You Track ROI? Identifying Your Goals What Are the Options? League of Conservation Voters Findings Planning and Preparing for your ROI Analysis How do you use the ROI Analysis? Keys To Success Q&A
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Why Should You Track ROI? $ in vs. $ out Help allocate ALL resources more effectively. ROI can be good or bad. We want the good one, so we must start measuring.
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Articulate Your Goals Know your goals before you start Make sure what you’re measuring is reflective of your goals. There are a lot of things you could measure, but you can’t measure it all. Depending on your goals, one acquisition channel may be more effective than another.
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Sources of acquisition Paid online acquisition of petition signers (non-donors): Change.org, Care2, etc. Paid List Chaperone: MotherJones, Democrats.com, Alternet, etc. Non-Paid List Chaperone (Cross-Promotion): Working with partner org. Paid offline acquisition (non-donor): Canvassing Organic non-donor acquisition (events, organic signups, advocacy, Facebook) Paid direct donor acquisition (online, offline): E-Miles, Telefundraising
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ROI by Source: 2006 Joins
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ROI by Source: 2007 Joins
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ROI by Source: 2008 Joins
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ROI by Source: 2010 Joins
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Cross Promotions: Total Revenue by year
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$ Raised per subscriber: Paid ads vs. Cross Promotions
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ROI by Source: Canvassing Recruits
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Planning your ROI Every 6-12 months (prior to major planning meetings?) Allow 3 weeks or longer the first time Planning the analysis – Determine data to be included – what sources and what revenue – Determine protocol for analysis Download and review source code data to identify problems – no or incorrect source codes
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Way before starting analysis Track source of every recruit – Source/origin code by far the best mechanism Distinct lists and using upload files requires a lot of data work – Know origin for every record (from both paid and unpaid sources) – Include time period for sources that are ongoing and update tracking mechanism For example, 2012-JanJun-HomePage, for home page recruits Ensure your system is tracking key data in usable and extractable way Submit suppression files for paid and earned recruitment whenever possible
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Investment How much did you spend to acquire email address? Cost per acquisition / direct vendor costs Creative development costs Cost of staff time – most groups don’t include
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Returns Total revenue is key statistic Other factors to consider: – List churn – number of people lost Only looking at revenue since this is a fundraising seminar, but activism or volunteerism are other “returns” that can be evaluated Offline revenue – Can easily be 1/3 of total revenue for online source – Hardest part of ROI can be matching offline donations to online donors
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Analysis Data clean-up is the most time consuming part of process Our rules: – Do not count email subscribers as part of an ad buy if they existed online prior to their paid acquisition – Do not count offline gifts toward their ROI for donors who gave offline prior to paid acquisition – Do not count cost of offline mailings and telemarketing if offline revenue included. This is up for debate, but we treat as a constant for simplicity.
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Analysis – Our Central Analysis Dollar raised / Dollar spent ($1 breakeven)
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Using the Data Is any of the data impacted by timing? High profile campaigns, e.g., end of year? Time is a key factor. We shoot for 1-2 year pay- off. Short term analysis is harder to do, but we are establishing some benchmarks Explore increasing scalable sources first
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Keys to Success 2-3 messages on-boarding series before putting into more regular communications stream, unless you have something really timely to send them. Communicate with new recruits within 7 days Do not overstate what they signed up for, e.g., avoid “thanks for joining our movement” language Do not be afraid to ask!
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Next Steps Plan your ROI Analysis Q&A Contact Us to Chat! – Kate – Kate@Change.org – Vanessa - Vanessa_Kritzer@lcv.org – Michael – MWard@mrss.com
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Evaluate This Session! Enter for a chance to win an NTEN engraved mini iPad! Or, search by session title at www.nten.org/ntc/eval
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