acquisition workshop 2
DESCRIPTION
TRANSCRIPT
Contact
LinkedIn, Sean Triner
Skype sean.triner
www.paretofundraising.com
www.seantriner.blogspot.com
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Marie Stopes Growing Fundraising from Individuals
19 July 2011
A Plan for Fundraising Growth
A Plan for Fundraising Growth
Australian Diabetes Council
January 2011 n for Fundraising Growth
Greetings
Yooralla Fundraising Growth
Greetings
Australian Diabetes Council
January 2011
Thank you for your time
and welcome to
We all want more donors
© Pareto Fundraising 2012
About me
Our recent clients
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This is why we do what we do
About You
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ANALYTICAL -Your Growth
- Your donor
Behaviour
-Used for targeting
ENVIRONMENTAL -How much is given
- Growth
- Competition
PERSONAL -Transactions
- Legacy status
- Pet name
STRATEGIC DATA
- informs
TECHNICAL DATA
- used
© Pareto Fundraising 2008
Bequests / Legacies
Major Donors Regular Giving
Cash Donors
All Supporters
Government
Trusts & Foundations Corporate & Events
Associations & Groups
Key Sources of Funds in Australia
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Individuals
Organisations
The top fundraisers
$0
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
$300,000,000
$350,000,000
Fundraising income
€ -
€ 500,000
€ 1,000,000
€ 1,500,000
€ 2,000,000
€ 2,500,000
€ 3,000,000
€ 3,500,000
€ 4,000,000
€ 4,500,000
€ 5,000,000
Irish charity Income around (!) 2010
Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A - no acq
No acq
7345
0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A - no acq
No acq
Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A v B: No Acq v 10k per annum
W acq
No acqWrite down your guess
as to how many donors
you would have in
scenario B after 15 years 7345
42887
Charity
50,000 donors
12% annual attrition of
retained donors
Scenario A: No acquisition
Scenario B: Acquire 10k p.a.
Just to stay still, the
charity would need to
actually acquire 12,000
or more donors per
annum 7345
0
10000
20000
30000
40000
50000
60000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Scenario A v B: No Acq v 10k per annum
W acq
No acq
12,000 new donors per annum
0
10000
20000
30000
40000
50000
60000
70000
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
No Acq v 12k per annum
W acq
No acq
Must always acquire but if
we can increase retention
and 2nd gift rates….
Attrition 12%10%
2nd gift rate 50 55%
Only 9,000 donors
needed to stay flat,
12,000 grows DB to
62,700
9,000 new donors per annum needed
Recency
Value Frequency
Recency
Value Frequency
Campaign
July Donor Care 2012 + EOYR
Spring (August) 2012
Survey (late September) 2012
Christmas Wave 1 2012
Christmas Wave 2 2012
January Donor Care 2013
Autumn (late Feb/early March) 2013
Tax 2013 Wave 1 - Last week April
Tax 2013 Wave 2 - Last week May
Tax 2013 Wave 3 - Last week June TEST
PLUS
Targeted thank you
letters
• Thank you
• RG Conversion
• Additional gift
Minimum appeals cycle
?
€ -
€ 500,000
€ 1,000,000
€ 1,500,000
€ 2,000,000
€ 2,500,000
€ 3,000,000
€ 3,500,000
€ 4,000,000
€ 4,500,000
€ 5,000,000
Irish charity Income around (!) 2010
?
?
?
?
?
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Growth of Individual Giving in Australia and New Zealand
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?
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F2F Direct Mail
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F2F
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Direct Mail
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F2F Direct Mail
Premium direct mail
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Acquisition Campaign with Peter Mac
Pack Components – Case Study Pack
Pack Components – In House Pack
Pack Components – Premium Pack
Pack Components – Survey Pack
3.41%
2.53%
1.65%
6.76%
2.37%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
Case Study Pack Peter Mac Pack Premium Pack Survey Pack
Response Rate
Peter Mac Results
$53.84 $50.57
$37.24
$42.89
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Case Study Pack Peter Mac Pack Premium Pack Survey Pack
Average Gift
$41.58
Peter Mac Results
0.72
0.44
1.33
0.54
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Case Study Pack Peter Mac Pack Premium Pack Survey Pack
ROI
0.77
Peter Mac Results
Acquisition Campaign with Cerebral Palsy Alliance
The mail campaign
•4 Waves
•Rented lists
•Total mailed 206,296
•Wheelchair proposition
•Trialed new markets
•Undertook many tests...
Tests Undertaken
•Premiums
•Letter length and approach
•Ask
•Lists
1) ‘Pareto 4 page’ versus ‘Simple 1 page’
Winner = Pareto 4 page
Response Ave Gift ROI
Pareto 4 page 3.2 % $ 43 0.71
Simple 1 page 3.0 % $ 38 0.63
Key Test Results
2) Key Chain (premium) versus Address Labels (more standard lift mech)
Winner = Key Chain
Response Ave Gift ROI
Key Chain 4.0 % $ 41 0.85
Labels 2.2 % $ 39 0.47
Key Test Results
3) ‘$25 Ask’ versus ‘$35 Ask’
Winner = $25 Ask
Response Ave Gift ROI
$25 Ask 3.5 % $ 39 0.68
$35 Ask 2.9 % $ 45 0.66
Key Test Results
The Future
“Our best pack for next acquisition will be …
•Key Chain premium pack
•4 Page Pareto style letter
•Ask value of $25
•Best time to mail is when TV is playing, Xmas or Tax
•We know which lists to mail; out of the 15 we tested we’ll
drop 4
•Plus we’ll add a few more tests for further refinement.”
Acquisition Campaign with Assistance Dogs Australia
Results
UPDATE
FEB PREMIUM ACQUISITION 2012 RESULTS
FEB PREMIUM ACQUISITION 2012
•Background
• Objectives
• Strategy
• The Pack
• Campaign results
• Observations, Learnings & Recommendations
FEB PREMIUM ACQUISITION 2012
The Objectives
• To recruit 5,250 new donors from a mailing volume of 150,000
• Raise $170,635 (gross income)
• Test two different premiums to see which is the most successful (measured against response rate, average gift and ROI)
FEB PREMIUM ACQUISITION 2012
OBJECTIVES
Volume 150,000
Response Rate 3.5%
Average Gift $60.00
Gross Income $170,625
FEB PREMIUM ACQUISITION 2012
PACK TYPE Qty
Mailed Target
PACK A; Notepad 59,780
PACK B; Totebag 59,781
Total 119,561 150,000
Actual Mailed
FEB PREMIUM ACQUISITION 2012
Strategy
Timing
•Lodgment 9 February 2012
Channel
•Direct Mail
Message
• Will you please send an urgent gift < of Ask1> and help children like Mia Francesca beat a diagnosis of cancer by funding more life-saving cancer research projects in 2012.
FEB PREMIUM ACQUISITION 2012
Ask Strategy
Ask1 Ask2 Ask3
All Donors 25 50 100
FEB PREMIUM ACQUISITION 2012
The Pack
PACK B: TOTEBAG PACK A: NOTEPAD
CAMPAIGN RESULTS OVERVIEW Pack Mailed Responses Gross Income RR% Avg Gift
Pack A: Notepad
59,780 2,975 $86,389.50 5.0% $29.04
Pack B: Totebag
59,781 3,292 $95,878.00 5.5% $29.12
Unknown 0 25 $660.00 0 $26.40
TOTAL 119,561
(target 150k) 6,292
(target 5,250)
$182,927.50 (target
$170,625)
5.3% (target 3.5%)
$29.07
Comments
New donor target exceeded objective even
with lower mailing qty
Income exceeded target
thanks to a strong response
rate
There is a significant
different in RR between the
two test packs
Premium does not effect
average gift
FEB PREMIUM ACQUISITION 2012
Response Rate (Notepad vs Totebag)
5.0% 5.5%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Pack A - Notepad Pack B - Totebag
Response Rate
Pack A - Notepad
Pack B - Totebag
FEB PREMIUM ACQUISITION 2012
Average Cash Gift (Notepad vs Totebag)
$29.04 $29.12
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Pack A - Notepad Pack B - Totebag
Average Gift
Pack A - Notepad
Pack B - Totebag
FEB PREMIUM ACQUISITION 2012
ROI (Notepad vs Totebag)
0.76
0.63
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
Pack A - Notepad Pack B - Totebag
ROI
Pack A - Notepad
Pack B - Totebag
FEB PREMIUM ACQUISITION 2012
5.3%
POST acquisition
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Email me your contact details & LinkIn
Would direct mail work for you?
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Thank you!