Donor Index

Data insights to improve fundraising efficiencies & performance

August 2017

MLD-GDE-024 V1.3 MLD - Open

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Who we are

MyLife Digital (MLD) and Wood for Trees (WfT) help make things

happen through data analytics, insight and systems. We

collaborate with some of the world's best-known charities and

not-for-profit organisations to improve fundraising efficiency

and performance.

Donor Index introduction

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Donor Index

Donor Index has been created using Wood for Trees unique perspectiveon fundraising data and their experience delivering data insight solutionsfor some of the UK’s best known charities.

Donor Index provides a ranking of a donor’s expected value; this can beapplied to data to improve fundraising efficiencies and performance.

Donor Index enables you to focus your fundraising budget and effort onthe right supporters with the right product; enabling a sympathetic,tailored marketing programme to be implemented.

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• MyLife Digital provides the power of ‘Big Data’ analytics and Machine Learning, for charities, via Donor Index

• Donor Index brings best practice from other sectors (retail/financial services) and applies it for the benefit of charities

• The Donor Index algorithm ranks donors, and prospects, based on their expected value to the charity for up to a maximum of 5 years

• It enables fundraisers to make informed decisions on their communications strategies; by providing donors expected value through different lenses:

- Characteristics of the supporters (age, gender, first payment method etc.) - Geographical location

• Fundraisers can use the insights to focus budget and effort to maximise returns across acquisition, retention and reactivation communications

• You don’t need to be an analytical expert to understand the output. Donor Index provides an easily interpretable value score from 1 to 100 and up to an expected 5 year value per donor.

What is Donor Index?

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Donor Index Algorithm

Identify patterns in your donors behaviours

Enrich each of these patterns with 3rd party data from WfT’sUK Intelligence File

Calculate the expected value of each donor based on demographic and donation history

Rank Donors according to their expected value

Product

Channel

Method

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Simple Example

10 existing donors:- live in property valued between

£200k and £250k- are between 40 and 45 years old - on average give £150 each over 5

years.

Now imagine this example extended to cover over 100 attributes such as: products, channel, payment method, social profile, and average income. Donor Index takes all these attributes into account when calculating a score.

5 new donors sign up: - live in property valued between

£200k and £250k- are between 40 and 45 years old - We can say, on average, you can

expect £150 from each of these donors over the next 5 years

- Some will stop giving after a few months and others will give more by responding to cash appeals.

- Donor Index takes all this information into account.

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Donor Index consists of two models

• The existing model is tuned to understand life-time value. This can be refined if other objectives are a specific priority.

Behavioural

✔ Based on transactional activity

✔ The behavioural model is typically best when dealing with longer term supporters as there is usually more behavioural data.

Profile

✔ Based on census demographics

✔ The profile model is typically best for new or low frequency donor data

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Donor Index can help identify supporters beyond RFV

High current engagement

but longer term

prospects are not so high

Current engagement

low but potentially high value

High

High Med

Med

Low

LowRF

VDonor Index Rank

• For many donors, the Recency, Frequency and Value (RFV) and Donor Index models will have the same categorisations

• Donor Index has the advantage of considering elements of a donors profile or behaviour, relative to other donors, to identify hidden value or a variance on longer term prospects

How can it be used to drive a fundraising strategy?

Acquisition

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Acquisition - Areas to focus on Donor Index’s Regional Thematic report provides a list of post codes alongside several metrics with forecasts of what to expect from a region, to help gain a view of potential growth opportunities in that area.

Distribution of Donors

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Profile of High Value Area• Healthy areas as reported by NHS• High levels of non-EU immigration• Wealthy areas as a measure by number of 4 car households,

education levels and types of jobs• High numbers of families with children at home• High number of retired couples• Low levels of students • Low numbers of single occupant homes

Reports

Initial insights report

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Initial Insights report To help you gain insight from the Donor Index tool you will be supported with an ‘Initial Insights Report’.

Insights include:- Recruitment by type and channel- Recruitment history- Crossover in giving type- Change in active donors

Some report examples are included on the next slides

How can it be used to drive a fundraising strategy?

Retention

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SuperDonor index (90-100)

HighDonor index (60-89)

Donor Category being investigated e.g. Active Cash Donors who have given more than 2 donations

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6.5

Next step recommendations based on data.

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5.6

8

4.5

5

3.9

AverageLTV

Average number of gifts

to date

Recommendation

Average tenure

Annual Value (2016) TBC TBC TBC TBC

Number of donors in each Donor Index grouping

Explanation of report format

MediumDonor index (30-59)

LowDonor index (0-29)

£923 £210 £84 £49

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Retention – Active Cash Donors

Super High Medium Low

Active Cash Donors who have given more than 2 donations

2,752 5,231 4,934 1,368

Very high value and loyalty.

Deepen engagement through more personal

approaches.

Retain and engageGood tenure but low

average value.Retain and upgrade *

Similar to Medium group but very low

average value.Reduce investment.

AverageLTV

Average number of gifts

to date

Recommendation

Average tenure

Annual Value (2016) TBC TBC TBC TBC

45

6.5

12

5.6

8

4.5

5

3.9

£923 £210 £84 £49

Behavioural model

How can it be used to drive a fundraising strategy?

Reactivation

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Reactivation – Lapsed Cash Donors

Super High Medium Low

Lapsed Cash Donors

203 1,187 5,698 4,356

£1,647

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3.6

Immediate action to re-engage through

personalised approach

£261

7

2.5

Attempt to reactivate at high value

£52

3

1.6

Attempt to reengage at low value

£22

2

1.2

Withdraw investment

AverageLTV

Average number of gifts to date

Recommendation

Average tenure

Annual Value (2016) NA NA NA NA

Behavioural model

Reports

Online access to interactive report

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Mini-audit

• Summary view of your data upload

• Key trends

• Summary of donation categories

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Base Report• Summary of donors by

behavioural score

• Major donor summary

• Ability to download donor scores

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Donor Deep Dive Report• Interactive report, make selection

on the pie and bar charts to filter table

• Donor’s who have made a donation in the last 5 years, deeply lapsed donors are excluded!

• Switch between Behavioural and Profile models

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Regional Report• Interactive report, select

regions and value bands to up date table

• Switch between Behavioural and Profile models

• Donor’s who have made a donation in the last 5 years, deeply lapsed donors are excluded!

• Select metric of interest to display on map

Distribution of Donors

How do we start?

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How does it work?

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Upload a list of donors, and any donations they

have made, to the secure WfT SFTP

site. This is then

loaded into the WfT Master Data

Repository.

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• The data file is reviewed and a WfT consultant will discuss the summary output with you.

• WfT UK Intelligence file is appended to your donor file to build their profile.

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Each donor, their profile and

donation history is scored by the

Donor Index algorithm.

The algorithm has been built using

WfT unique perspective of the

UK fundraising sector.

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You will be provided with an

initial insights report.

Access to the Donor Index tool will be given so the reports can be viewed and Donor Index

score downloaded.

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Donor Index PricingStandard

✔ Data ingestion to Donor index model

✔ Access to interactive reports including:

- Mini audit report

- Base data

- Deep Dive

- Regional

✔ Download of Donor Index score

✔ Insights report

✔ Data refresh available for an additional charge

Pricing

Number of Donors Annual Subscription

up to 50k £5,000

50k - 100k £6,000

100k - 200k £8,000

200k - 300k £10,000

300k - 500k £14,000

500k+ POA

• Up to five user logins included in the annual subscription

• A data refresh is available during the year for an additional 20% of the annual subscription

• All data input files will need to conform to the standard data specification supplied by MyLife Digital