key performance trends found only in donor file analysis data - bridge 2014

Key Performance Trends Found Only

in Donor File Analysis Data

Laura Connors, Deputy Vice President for Membership, National Parks Conservation AssociationAmelia Koch, Director of Membership, Chesapeake Bay FoundationTJ Hillinger, Vice President, Avalon Consulting Group

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What are Key Performance Trends?

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What metrics and views are relevant?

Comparing key metrics will give you a deeper view into the health, future performance, and potential of your donor file.

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Income per member

Gifts per member

Donor value/ Long-term

value

Retention – First, Multi,

Overall

Rate of Upgrading

File composition

Metrics should be compared over time, and to other organizations, when evaluating their significance.

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5 Case Studies

Critical views into donor-level data…

1.File Composition & Retention2.Long-Term Value3.Pipeline to Major Giving4.Multi-Channel Relationships5.Impact of Acquisition Investment

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Case Study #1 – File Composition and Retention

Background: The Chesapeake Bay Foundation’s (CBF) program was flat in income and declining in members.

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Analysis of new joins by channel illustrated the large percentage from CBF’s canvass program.

40%!

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File composition analysis unveiled dramatic changes and underlying issues.

Under $25 joins had increased dramatically = low retention.

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Key Performance Trend:

Retention analysis pinpoints both the canvass program and large universe of under $25 joins as a key source of overall retention issues.

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Actions taken…

CBF made significant changes to the program to improve retention, long-term value, and net revenue.

File composition is moving in the right direction with $25+ joins increased to 34% after a low point of 28% in 2011.

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The results: CBF’s historically low first-year retention is now on the rise as file composition shifts.

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First-year retention

Overall

retention

Multi-year

retentionMulti-year and overall retention have increased, along with many of CBF’s core metrics.

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Case Study #2 – Long-Term Value

Background: The National Parks Conservation Association uses a premium in their acquisition program to drive new joins at the $15 level. The long-term value of premium donors was in question. Additionally, donor-level analysis showed a clear break at new joins above $25.

Five year “donor value” jumps by

93% for new joins at the $25 first

gift.

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First, NPCA tested a $25 ask against the $15 control to measure upfront results against ROI.

Year 1 Return on Investment favored the $25 ask over the $15 ask.

Net revenue was in favor of the $25 ask after one year, and retained members were 98% of those who had joined on the $15 ask (very similar!).

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ROI after 1 year

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Then, NPCA performed a six month test of their $15 premium control against no premium.

As expected, the upfront performance indicated a decline in new joins. Long-term value analysis would be the true measure of results.

Average gift still slightly favored the premium package.

Net revenue was virtually tied with the cost of the premium included.

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Key Performance Trend:

Evaluating the new joins from each group at 2 years out unveiled more interesting findings about the test.

With a premium

at $15.

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Despite far fewer joins, the No Premium group produced similar net revenue after one year, and individual donors had a better long-term value.

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NPCA will continue to analyze these two groups to see if findings change with another year of data.

The significant difference in new joins (30%) could indicate missed opportunities in terms of monthly gifts, upgraded members, planned gifts, etc.

Next Steps:

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Case Study #3 – Pipeline to Major GivingBackground: A direct marketing program often provides high value beyond revenue within the program. To justify both acquisition investment and the program in general, CBF examined donor level trends relating to the pipeline to major and planned gifts.

Some organizations see over 50% of their $1000+ gifts coming from low dollar joins!

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Key Performance Trend:

For CBF, 33% of their $1,000+ major donors come from the under $100 pool. This information:A)Justifies investment in the acquisition program.B)Identifies room for improvement compared to other organizations.

Additionally, the average time to upgrade was 8.3 years.

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57% of bequests came from under $100 joins.

These large gifts add significant value to the members generated from the acquisition program.

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To continue moving members up the pipeline…

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CBF continues to monitor trends on an annual basis.

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Case Study #4 – Multi-Channel AnalysisBackground: NPCA has prioritized multi-channel and online growth. The past five years have illustrated a gradual increase. Yet, the channels all work closely together and it is important to understand the sources of growth when evaluating the program.

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Key Performance Trend:

Analysis of web giving by join channel shows a large percentage of revenue from direct mail joins.

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Analysis of the subsequent revenue for online joins shows strong integration in all channels.

While direct mail joins still give primarily to direct mail, that trend is gradually changing.

Email Joins

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Assessing retention and income per member shows the clear correlation between giving through multiple

channels and higher value members.

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Showing the close tie between all channels further justifies continued investment in the mail, as well as

online.

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NPCA’s progress confirms the need to

provide multi-channel opportunities.

Analysis shows continued room for improvement with

additional integration strategies.

Background:Acquisition was reduced and then completely eliminated in 2010. Income has been impacted dramatically and can take years to rebound.

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Case Study #5 – Impact of Acquisition Investment

Acquisition cut

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Key Performance Trend:

Acquisition reduced

This view shows the long-term impact of acquisition on overall revenue. Members from the earliest years are still giving and revenue is compounded year after year.

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Results: The file is slowly rebounding, but will take time to return to past highs.

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Quarterly and annual

oversight of key metrics

through dashboards and full file

analysis.

Identification of changing

performance trends.

Continuous goal

evaluation, resetting, and forecasting.

Education and

reporting to leadership.

REPEAT.

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So, how do you really use this information?

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Questions?

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Thank you!

Don’t forget to visit the Solutions Showcase!

Many of the ideas discussed today are on display at the Solutions Showcase!

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