Transcript Positive net income!

Rebecca Gelinas, Operation Smile
Kelly Pullin, Russ Reid
#bridgeconf
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Rebecca Gelinas
◦ Director, Global Database Strategy
◦ Operation Smile: an international children’s medical charity with a
presence in more than 60 countries, dedicated to helping improve the
health and lives of children. Since its founding in 1982, Operation Smile
has conducted over 200,000 free surgeries for children and young adults
born with cleft lips, cleft palates and other facial deformities, as well as
patients suffering from burns.
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Kelly Pullin
◦ Supervisor, Analytics
◦ Russ Reid: North America’s largest direct response firm serving nonprofit
organizations. Russ Reid is part of Omnicom Group, Inc. and offers
integrated direct response services and government relations to help
nonprofits grow.
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What is analytics?
What’s needed for analytics?
Data and your database
Real world examples
Takeaways
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Quiz: Analytics is …
a)
b)
c)
d)
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A person who generates reports
Handled by data folks, like the people in IT
Something the agency does for us
Something my organization can do, right now, using
simple tools we have on hand
Analytics is an organizational practice, a
strategic discipline, and not a department
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Quiz: How can I use analytics?
a) To create mountains of reports that intimidate and
confuse.
b) Monitor behavior and programs and refine/create
marketing strategies for maximum success.
c) To identify very small groups of donors with highly
unusual behavior.
d) To add double-axis charts to every Powerpoint deck.
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The ultimate role of analytics is to uncover
knowledge and insights about constituents.
The application of these insights to marketing
strategy should help you achieve your goals.
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The right data
Tools to turn that data into insights
Ability to turn insights into action
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Common tools
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Spreadsheet
Entry level queries
Advanced queries
Business intelligence systems
Dashboarding, visualization
Web site activity
Why tools are just tools
Examples
Excel
MS Access
SPSS, SAS
Business Objects
Tableau
Google Analytics
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Organizational assets
◦ Your brand
◦ Your data
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Manage your data with the same care and
intention that you manage your brand
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Donor database: not just a repository but a vital
part of the marketing program
How is your database viewed within your
organization?
Technology is not the hard part; lots of systems
available
The hardest part: the right people and processes
A database administrator (DBA) needs to have a varied,
unique skill set.
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Consistency
Clean your data
Data integrity rules
Security rights based on job needs
Document processes and procedures
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Moved the oversight of the database from the IT department to the
Direct Response department
Brought in an outside consultant to do an audit
Hired two additional data entry staff
Interviewed staff from different departments to find out their needs
and concerns
Created a whole new coding structure and documented it
Invested in training
Created QC processes to ensure data integrity
“Database PR” week to re-introduce the DB to the org
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Maximizing ROI through donor behavior
◦ Identified three distinct donor groups based on
behavior
◦ Used analytic methods to help us identify the
groups
 Donor file analysis
 Campaign Reports
 Ad hoc queries and analysis
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During annual donor file analysis, we found
that OS had a growing group of donors with
lower giving amounts (<$15).
As the donor file matured, this group became
large enough to warrant additional attention.
We found that these donors:
◦ Had acceptable annual $ per donor
◦ Served as a prospect pool for planned giving
◦ Generated a net loss at the campaign level
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Quiz: Armed with insights about low-$
donors, Operation Smile decided to…
a) Ignore them completely – boost ROI!
b) Contact them as often as possible – boost retention!
c) Make no changes to strategy – they’re a small % of the
file.
d) Move them to a communication stream that would
maintain retention while increasing ROI.
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The result: Low-$ donors now generate
positive net income; retention rates are
comparable.
Positive net
income!
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Single surgery donors: largest group of
donors acquired through DRTV
These donors had lower 2nd gift conversion
than other donor groups.
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Quiz: Armed with insights about single
surgery donors, Operation Smile decided to…
a) Contact them as often as possible – boost retention!
b) Stop using DRTV and focus on acquiring donors through
DM only. DRTV is expensive!
c) Try to convert them all to monthly giving.
d) Customize a communication stream and ask strategy for
them in order to boost 2nd gift conversion.
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The result: Multiple channels of
communication, coupled with a tailored ask
array, boosted 2nd gift conversion.
10%
increase in
one year!
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Operation Smile identified groups of donors
with consistently large gifts ($500+), and
donors with the potential for larger gifts.
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Quiz: Based on our learnings about
middle/upper-end donors, we decided to…
a)
b)
c)
d)
Keep the current communication calendar – it ain’t broke!
Send each donor a big box of candy to say “thank you.”
Call each donor and ask them to give again.
Test out a communication stream intended to engage
these high-value donors and promote retention.
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Multi-layered communication stream that
included special offers and tailored asks
resulted in higher response.
Next step: Refining the audience to a more
limited group resulted in optimal ROI.
Final result: 2 streams - the remainder of the
audience receives a hybrid treatment that
boosts retention at an acceptable cost.
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Analysis of behavior helped us gain insight
◦ Tailor communication streams
 Offers, messaging, channels, contact frequency
◦ Results:
 Low $: improvement in net income
 Single surgery: 10% increase in 2nd gift conversion
 Middle/high-end: increases in retention
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It ALL goes back to your data!
A few focused questions and some basic
tools can get you started
Analytics is a discipline and not a person
Don’t forget to visit the Solutions Showcase!
Many of the ideas discussed today are on display at the Solutions
Showcase!
#bridgeconf