Bridge Conference 2013: Big Data; Big ROI Track.

1. Big Data – Big ROI
Cathy Finney
Deputy Vice President, Strategic Services
The Wilderness Society
Chuck Pruitt
Co-managing Director, AB Data
Kevin Moran
Principal, Integral
#AtTheBridge

2. #AtTheBridge
Session Objectives
1. Learn how to put together a strong case to leadership for
growth.
2. Understand how to monitor your acquisition progress.
3. Understand how different approaches impact your return on
investment.

3. #AtTheBridge
The state of the world today …

4. #AtTheBridge
2012 Fundraising Effectiveness Survey Report—done by the Association
of Fundraising Professionals and the Urban Institute—found that the “net
gain in giving” for charities in 2011 was $0.
That is, for every $100 a nonprofit gained in 2011 from new donors,
higher giving from current donors and the return of former donors, it lost
$100 through lower gifts from current donors and the loss of donors who
gave in 2010 but not in 2011.
Where we are …

5. #AtTheBridge
• For every 100 new and returning
donors added to an organization
in 2011, –107 departed
• “net gain in donors” of -7.
Why are we treading water?

6. #AtTheBridge
PRESSURE!!
1. Economic turbulence
2. Reduce – or even keep flat – your expense budget year after
year.
3. Bring in all your money online.
4. Expand beyond your core constituency (younger, other
demographics, etc.)
5. Declining acquisition results.
6. Shrinking list universe.
7. Competing priorities – (advocacy vs fundraising)
8. Increased scrutiny from watchdog groups
9. Increased competition.

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“Why don’t you just save the
money you propose investing
in new donor acquisition and
focus on the donors we have
already?”

8. #AtTheBridge
As Roger Craver put it: “At a time when the
media and watchdogs are focused on the high
costs of fundraising, particularly acquisition, we
all need to get much better at explaining the
increasingly expensive but essential acquisition
process. The alternative is to leave donors
turned off, anxious and angry.”
The Challenge …

9. #AtTheBridge

10. #AtTheBridge
The Wilderness Society
• Over the last 4 years, we’ve faced a 22% decrease in investment in
acquisition … membership has dropped 17%

11. #AtTheBridge
The Wilderness Society
To further complicate matters:
• We know that in the past, we hadn’t been breaking even on
acquisition for at least 24 months
• Over the last fiscal year, our control package has been in steep
decline.
There was a real need to begin to shift our approach from short-term gain
to long-term investment.
The solutions we sought relied both on DATA and CREATIVE.

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The Data
Developing a smart, data-driven strategy
focusing on ROI and monitoring
performance to this standard.

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The Standard Measures

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Quickly Understanding Investment Dynamics

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Are Your Investments Right?

16. #AtTheBridge
Is This Program Growing Smart?
$20.96 $21.50 $22.13 $22.42
$23.86
$26.28
$32.76
$33.17
$0
$5
$10
$15
$20
$25
$30
$35
2010 2011 2012 2013
CPD & Subsequent Value - OutsideLists
Sub Val 24
Sub Val 18
Sub Val 12
Sub Val 6
AG
CPD
As they grow, costs increased initial metrics suggested they would not be able to grow
and stay within a 12 month ROI

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What are the Right Measures of Success
Investments focused on acquiring quality as they grew and long-term metrics became
the primary investment drivers. They reduced the percentage of donors that will
never break even.

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And the program is getting stronger
Retention, Conversion, Second gift timing, value metrics etc. (whatever is
important for you). These data points provide immediate insight into forecasting
short and long term and help monitor investments

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Now Compare to Other Channels to Determine the
Value of Each
JoinSourceId AG CPD VPD6 VPD12 Act12 NPD 12
Offline Direct Response $22.17 $33.17 $32.91 $42.22 36.85% 9.05$
Offline Total $22.17 $38.74 $32.91 $42.22 36.85% 3.48$
Online Email Conversion $64.89 $8.28 $82.63 $93.24 37.64% 84.96$
Website $84.11 $0.00 $115.65 $143.22 23.25% 143.22$
Online Advertising $66.99 $131.00 $92.66 $121.36 13.48% (9.64)$
Social Media $109.45 $157.68 $146.19 $163.83 18.39% 6.15$
Acquired Email $37.17 $168.86 $53.48 $74.85 27.29% (94.01)$
Online Total $75.42 $15.02 $162.25 $177.88 24.37% $162.86
Grand Total $29.28 $35.57 $38.79 $65.92 33.88% $30.35

20. #AtTheBridge
Build Your Media Investment Map
Media Investment Map
Direct Marketing Module
1-Time
Acquisition
Major Gifts
Planned
Gifts
Web
Online Ads
New
Initiatives
Monthly
Conversion
Online Ads
Web
Increased Investments
Online
ads
DRTV
Direct
Mail
Face to face
Web

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Where to Begin
1.“Begin with end in mind”
2.What are your measures of success?
3.Lagging, Current, Leading, Strategic
4.Don’t Chase Metrics – Shape Them
5.What Drives Value for YOU
6.Forget Big Data – Think Smart Data
7.Compare Channels
8.Communicate, Communicate, Communicate
9.Embrace Inefficiency – but move fast

22. #AtTheBridge
Building the Investment Map
Step 1
• Begin with End in
Mind
• Understand the
your value driving
metrics.
• Identify your
lagging, current,
leading, strategic.
• Incorporate these
into today’s
strategies.
Step 2
• Shape your Metrics
don’t chase them
• Compare the
channels.
• Paint your media
investment map.
• Embrace the
inefficiencies, but
move fast.
Step 3
• Communicate
• Communicate to the
Senior Management
• Communicate to
your partners
• Communicate to
your team.
• Monitor your
measurements
against multiple
growth scenarios.

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Creative Approaches to Improve
Acquisition Performance and ROI

24. #AtTheBridge
The Creative:
Different creative approaches – both in
messaging and production – and the kind of new
donor acquisition you engage in – both by
channel and message – will significantly affect
your return on investment.

25. #AtTheBridge
Keeping Your Promise to the Bosses
• Understand ROI
• Smart, Data-Driven Investment Strategy that is:
 Transparent
 Carefully and Continually Monitored
 Constantly Adjusted

26. #AtTheBridge
Creative Approaches to Improve Acquisition
Performance and ROI
• Strategies to Shorten ROI
• Strategies to Reduce Initial Investment

27. Big Data / Big ROI: A Case Study
It’s More Than a Body Count:
Changing the Mix to Improve ROI
#AtTheBridge

28. Big Data / Big ROI: A Case Study
$36.47 $38.37
$45.58
FY10 FY11 FY12
$111.04
$113.01
$126.85
FY10 FY11 FY12
Value Per Acquisition Joins in their 1st Year Value Per Member of the Overall Donor File
#AtTheBridge

29. #AtTheBridge
Big Data / Big ROI: A Case Study
Obama for America
Big Data and Big ROI on Steroids…
• State-of-the-Art Micro-Targeting for Potential Donors
• Multi-Channel Integration to Improve ROI
• Cutting-Edge Donor File Segmentation
• Creative Strategies to Reduce Initial Investment

30. Authentic Voices
#AtTheBridge

31. The Internet is Change the Direct Mail Experience: Multi-
Channel Marketing
#AtTheBridge

32. Breaking Your Bond with #10 Envelope
#AtTheBridge

33. #AtTheBridge
The Wilderness Society
Old Strategy
• Focus was on short-term metrics
• Key goal was quantity not quality
New Strategy
• Balance short and long term metrics – ROI, retention
• Quality then quantity
• ROI is the primary measure of success
• More donors joining over $20
• Testing new creative approaches
• Moving toward a balance of non-premium and premium offers
• Trying to provide some channel balance
Additional half-million investment in acquisition has been
approved for FY14.

34. Thank you
Don’t forget to visit the
Solutions Showcase!
Many of the ideas discussed today are on display at
the Solutions Showcase!
#AtTheBridge
Cathy Finney – Deputy Vice President, Strategic Services
cathy_finney@tws.org
Chuck Pruitt – Co-Managing Director of the A.B. Data Group
Chuck_pruitt@abdata.com.
Kevin Moran – Principal, Integral, LLC
Kevin@integral-dc.com