helping watsi find their growth engine
TRANSCRIPT
March 4, 2015 But I’m not here to talk about Mode. I’m here to talk about Watsi, and how we can help what they’re doing. When I spoke to Watsi a couple months ago, they said they were focused on growth. They want more donors. They want more donations.
March 4, 2015 And I found this. If you’re looking for an engine, a spike like this is a pretty good place to start. What caused this spike?
March 4, 2015 It came from this post. But all of us know that the sites like Hacker News and Tech Crunch and drive tons of traffic.
Hacker News is not an engine
March 4, 2015 But Hacker News is not an engine. It spikes, and disappears.
Is the tech community an engine?March 4, 2015 Still, we’ve learned something. The tech community responded well to Watsi. That might be a place we can focus.
March 4, 2015 But we haven’t really learned a lot. Let’s go back to this. That increase after the spike is pretty good too. So what might that be?
March 4, 2015 A big part of this came from gift cards. In addition to launching gift cards, several other companies partnered with Watsi to promote them.
March 4, 2015 But Segment’s promotion, which was to give away $20 to 1,000 people, struck me as particularly interesting.
March 4, 2015 Paypal famously gave everyone $10 when they signed up. Why? They knew that they’d pay it back to PayPal eventually. People signed up like crazy.
What happens after spending Segment’s
gift cards?March 4, 2015 To answer this, we need to know what people do next.
March 4, 2015 People can do two things. First, they could give money to other patients. Like Carlos.
295 people gave $6,013
March 4, 2015 Well, 295 people claimed and spent their Segment gift cards, and they donated $6,013.
But, what about the UF?
March 4, 2015 But what about the Universal Fund? People can also give to the Universal Fund, a recurring, monthly donation.
10
March 4, 2015 To know how much it actually is, we need to know how many of the original 10 donors from January…
10x
donated in 1 year
March 4, 2015 That means that over a year, the 10 donors will donate 10x the initial contribution.
$261
$4,437March 4, 2015 So, let’s go back to the original number. $261. Segment donors created $261 worth of UF contributions.
More people
Convert more often
Give more
money
March 4, 2015 There are three stages where we can improve.
Won’t they be less likely to convert?
March 4, 2015 After all, lower donations might lead to lower conversion rates.
March 4, 2015 As it turns out, they don’t. For non-Segment gift cards, there’s little relationship between the conversion rate to the Universal Fund and the gift card amount.
Won’t they donate less?March 4, 2015 But even if they donate at the same rate, people getting smaller gift cards might contribute less.
March 4, 2015 That’s not the case either. For modest sized gift cards, people getting smaller gift cards actually give more.
More people
Convert more often
Give more
money
March 4, 2015 What about the second stage? Convert more often?
March 4, 2015 We put together something at Mode that can help. It’s called Mode Playbook. It’s a collection of reports to answer common questions around retention, churn, and other metrics important to many businesses.
March 4, 2015 One report looks at what drives retention. It asks which actions correlate most closely with users retaining.
March 4, 2015 It’s like a famous study done by Facebook. Facebook found that getting 7 friends in 10 days makes you a Facebook user for life. This report finds your 7 friends metric. For Watsi, let’s see what actions make people give to the Universal Fund.
Show the
Universal Fund
March 4, 2015 We learn two things. First, we should show people the Universal Fund when they redeem a gift card. Show them they can continue to contribute.
Send more email
March 4, 2015 But that’s not the only thing we can do. There are other ways to increase the number of conversions. Remember, email works. So get people’s email. Re-engage them. Send them emails about the universal fund. Send them emails about patients.
March 4, 2015 This shows the Universal Fund conversion rate, split by the type of gift card people are redeeming.
2xMarch 4, 2015 The conversion rate for people using the Segment gift card is 2x higher than other gift cards.
Segment’s gift cards required
workMarch 4, 2015 Segment’s gift cards are claimed. The people have to go to the Watsi site to get them. So relative to people who were just given a gift card, they are more likely to be passionate about Watsi. And more likely to keep donating.
The right people, not the first people
March 4, 2015 The lesson here is important. The goal is not to give gift cards away as quickly as possible, but to give them to the people who are most likely to keep giving.
March 4, 2015 This is analogous to the upcoming final Grateful Dead show. How did they ensure the most passionate fans go to the show? They make fans draw elaborate art on the envelope to get tickets. The best envelopes - the most dedicated fans - got tickets.
Make gift cards hard to claim
March 4, 2015 So what can Watsi do? Make gift cards harder to claim. Make people enter personal info, or even credit card info. It’s somewhat counter intuitive. But to get more return on donation, weed out the people you don’t think you can upsell. The people unwilling to give you that info.
March 4, 2015 You might even be able to make that better. Right now, there’s no suggestion for this donation.
148% on top of the $6,000 spent
March 4, 2015 Could double, to nearly 150% on top of what was already donated.
More people
Convert more often
Give more
money
March 4, 2015 If we increase conversion rates by a few percentage points and get them to give more money, we can add another 40-50% return.
200%? on top of the $6,000 spent
March 4, 2015 Meaning Watsi could collect up to an additional 200% on top of the original contribution.
March 4, 2015 One of the great things about Watsi is this 100% guarantee. 100% of donations go directly to health care.
Watsi community
March 4, 2015 Combined with the generosity of the Watsi community, who can turn those corporate donations into regular Universal Fund contributions
Watsi platform
March 4, 2015 Combined with the Watsi platform to connect corporate donors to the community to healthcare providers and patients
300%
March 4, 2015 Into a 300% guarantee. 100% of corporate donations don’t go to fund life changing health care - 300% does.