BBcon 2014 Moneyball: How Analytics Improves Fundraising
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This document summarizes a presentation on how analytics can improve fundraising. It discusses using analytics to measure the potential of do-it-yourself (DIY) fundraising programs, optimize online advertising and integrated marketing campaigns, and guide mobile strategies. Key performance indicators discussed include return on ad spend, response rates, and average donations. The presentation provides examples of analyzing DIY campaign audiences and estimating fundraising potential. It also reviews using testing and control groups to measure the incremental impact of digital ads on fundraising.
BBcon 2014 Moneyball: How Analytics Improves Fundraising
- 1. Moneyball How Analytics Improves Fundraising PRESENTED BY DENNIS MCCARTHY DONNA WILKINS
- 3. What should I do?
- 4. #moneyball how to measure success
- 5. The Lean Start-up Methodology
- 6. M&M
- 7. Charity Dynamics TEMpO™ Technology Engagement MOdel Strategy for managing the pace and prioritization of online investment • Inherently come and go • Drive awareness, audience, response • Require incremental investment • Ensures ongoing engagement • Maximizes campaign investment • Converts from campaign to mission-oriented supporters • Built to last • Provides utility • Manages growing constituency • Unites disparate campaigns
- 8. CMO/CDO + CTO / CIO
- 9. Benefits of the love fest
- 10. #moneyball left and right side work together
- 11. 3 Buckets 1. Do-It-Yourself 2. Integrated Fundraising 3. Mobile
- 12. Do It Yourself
- 13. Fundraising Potential • 2014 Insights into IFE Programs • http://my.charitydynamics.com/IFEStudy.html
- 14. DIY Strategic Goals Strategic Goals Donor Engagement Revenue Wider Recruitment 40% of Donors encourage family and friends to donate 27% actively fundraise for their favorite charity * 2012 Nonprofit Donor Engagement Study • 2014 Insights into IFE Programs • http://my.charitydynamics.com/IFEStudy.html
- 15. Analytics • How do you make the case for program potential? • How do you manage the program for greatest success?
- 16. Program Potential Strategy Recruiting Campaign Audiences Analysis Coaching Campaign
- 17. DIY Program Potential DIY Campaign Audience Audience Size Recruiting Effort Registration s Fundraising (average / fundraiser) Birthdays 20-35 yr old Milestone birthdays 35- 50 yr old Memorial Memorial donors Contributed photos stories School Educators Fun events Special event attendees
- 18. DIY Program Potential DIY Campaign Audience Audience Size Recruiting Effort Registration Fundraising (average / fundraiser) Birthdays 20-35 yr old 10,000 Happy birthday msg Milestone birthdays 5,000 Happy birthday msg 35- 50 yr old 20,000 Happy birthday msg Memorial Memorial donors 25,000 Thank you Contributed photos stories 2,500 3 part msg series Social media School Educators 5,000 Education newsletter Fun events Special event attendees 10,000 Post event, quarterly newsletter
- 19. DIY Program Potential DIY Campaign Audience Audience Size Recruiting Effort Registration Fundraising (average / fundraiser) Birthdays 20-35 yr old 10,000 Happy birthday msg 100 $150 Milestone birthdays 5,000 Happy birthday msg 100 $250 35- 50 yr old 20,000 Happy birthday msg 100 $200 Memorial Memorial donors 25,000 Thank you 50 $400 Contributed photos stories 2,500 3 part msg series Social media 50 $150 School Educators 5,000 Education newsletter 50 $300 Fun events Special event attendees 10,000 Post event, quarterly newsletter 100 $150
- 20. DIY Key Performance Indicators (KPIs) • Number of fundraiser registrations • Type of DIY • Number of fundraising fundraiser registrations • Number of donors / fundraiser • Dollars raised / fundraiser • Returning fundraisers
- 21. On Line Advertising & Integrated Marketing
- 22. Advertising/Integrated Marketing Strategic Goals • Increase response and donation amounts from direct response campaigns by adding in a digital display ad component Evaluate the incremental performance using a forensic test and control methodology Calculate the return on ad dollars spent (ROAS) of the program: (incremental donation $’s / incremental costs) Results are based on aggregation of the 6 stations and statistically significant @ 99% level Donation amounts were capped at $10K
- 23. So what are the Key Performance Indicators? • Return on Ad Spend • Audience Reach • Incremental increase in Response Rate (across channels) • Incremental increase in Average Gift (across channels) • Incremental Return on Investment • Incremental Long Term Value increase
- 24. Creative Review • Multiple ad sizes and types for each station • Clear Call to Action • Brand clearly highlighted • Multiple fundraising channels! RMPBS:
- 25. Controls Explained Post Exposure Pre-Result Run the Campaign Define the Control Group Measure Performance • The Analysis worked as follows: • We used the total population of households served ads as the “Test Group,” this group is the 254,139 households that were served ads during the campaign • We compared the performance of the “Test Group” to the “Control Group to identify the incremental lift
- 26. Controls Explained Post Exposure Pre-Result Run the Campaign Define the Control Group Measure Performance • The “Control Population” was created from the population of 383,846 households that were: • Matched to a cookie, and • Received mail, and • Did not receive ad impressions • Control population was verified to “match” the Test Population using key demographics (see Appendix)
- 27. Global Campaign Results • Test response rate of 13.75%, a lift of 19.34% (lift in response rate was >99% statistically significant) Results Test Control Variance % Percent Variance Donations 34,941 29,279 5,662 19.34% Donors 28,458 25,061 3,397 13.55% Average Gift $81.06 $83.09 ($2.04) -2.45% Revenue $2,832,187 $2,432,948 $399,240 16.41% Ad Spend $63,750 Return on Ad Spend = 6.26:1
- 28. Mobile
- 29. Mobile Accessible Content Mobile Applications SMS
- 30. Analytics to Guide Strategy • Mobile web traffic % • Mobile email read % • Mobile gift % • Average mobile gift • Number of constituents with known cell phone numbers • Application users
- 31. Mobile strategies Low High Accessing Content High Low Mobile Housefile Responsive Design / Mobile Optimized SMS Msg Apps
- 32. #moneyball all about mobile content
- 33. Who are your constituents
- 36. Learn More • http://my.charitydynamics.com/donorengagement.html • http://my.charitydynamics.com/InteractiveInvestment.html • http://blog.charitydynamics.com/ • http://www.mckinsey.com/insights/business_technology/getting_the_cmo _and_cio_to_work_as_partners • http://npengage.com/nonprofit-fundraising/the-key-performance-indicators- and-the-elephant/ • http://www.imabgroup.net/ • Copy of this deck at can be found at: http://www.slideshare.net/charitydynamics
- 37. #moneyball best session ever
- 38. Q&A&A
- 39. Are you pumped up and ready to go? Don’t forget to complete a session survey! Each completed survey enters you into a drawing to win a complimentary registration to bbcon 2015 in Austin, Texas*. *Blackbaud reserves the right to change or withdraw this promotion at any time, without advance notice. Promotion has no cash value and may not be exchanged, applied to, or combined with any other offer. 39 #bbcon
Editor's Notes
- #2: Dennis
- #3: http://youtu.be/XS6ysDFTbLU dennis
- #4: donna
- #6: donna
- #7: donna
- #10: Chief marketing technologist, different cultures
- #12: dennis
- #13: donna
- #23: Set your goals, define and share your goals.
- #24: Define and describe metrics
- #29: donna
- #31: Entry point…
- #34: How do you measure your audience
- #35: dennis