Insight: How to Do it…a taster from the Campaign Analysis, Testing & Targeting course

Stuart McCoy, Data Strategy Consultant, DM Insight

Insight SiG Training Courses

• Campaign Analysis, Testing & Targeting

• Pinpointing Pledgers: Making the Most of your Legacy Data

• Insight in Fundraising Essentials

• Communicating Insight AKA Truth Well Told

• Communicating Impact

• Introduction to R

• MS Excel for Data Analysis & Reporting (intermediate/advanced)

• DIY Online Market Research

• Introduction to Visual Basic for Applications within Excel

• Introduction to Statistics in Fundraising

• Advanced Questionnaire Analysis

• Introduction to Modelling

• Chaid

Campaign Analysis, Testing & Targeting

• How to set up reliable marketing tests

• Confidence levels

• Eliminating bias from your tests

• Opportunity cost of testing

• Sample size

• Welcome testing

• Prompt tests

• Key fundraising KPIs (dangers of using average gift and ROI)

• Best practice campaign reporting

• Supporter profiling

• Who is your 10 year donor?

• Data enhancements

• Supporter targeting

• Drivers of supporter engagement

• Fuzzy propensity models

Testing

Setting up Reliable Marketing Tests

• The Test and the Control groups

• Significance test of response rates

• Confidence

• T-Test of average gifts

• Longer-term supporter behaviour

• Net return of rolling out (cost/benefit analysis)

• Sunk cost fallacy

Why Test?

Significance Testing

Opportunity Cost of Testing

It’s Not Just About Response Rates

There are 4 essential components of a well executed marketing test:

1) Significance test of response rates

2) T-Test of average gifts

3) Longer-term supporter behaviour

4) Comparative net return of rolling out (cost/benefit analysis)

Supporter Journeys

Multi-Channel Welcome Testing

What combinations of early retention engagement comms result in a significant uplift in retention at various milestones?

Multi-Channel Welcome Testing

• Compare each test stream vs. the ‘do-nothing’ Control group

• Calculate the z-scores (significance test/confidence level) to understand the impact of each early retention strategy:

Engagement

Measuring Engagement

People not products! Audience centered strategy

If you don’t know who you’re talking to you’re not really communicating

Targeting

Campaign Optimisation

Segmented supporter engagement strategy vs. isolated, short-term campaigns

• Within each profitable mailing segment there are likely to be sub-cohorts of supporters who are consistently not breaking even

• Within each unprofitable mailing segment there are likely to be sub-cohorts of supporters who do break even

Campaign Optimisation• Data mining to identify the sub-cohorts by which you tighten your targeting:

Significantly improved results:

Segmentation

Segmentation

• To enable charities to realise more value from its marketing and fundraising and to recruit more supporters with maximum lifetime value

• Supporter retention becoming the key challenge

• More fickle supporters

• Baby Boomers and Gen X demand more interaction

• ‘Self Actualisation’ market place – charities are behind the curve

• Date of last will to death is shortening

• New opt-in rules

• Channel fatigue

• Growth in digital painfully slow

• Innovation and better segmentation will be key to survival

Segmentation

Vital to go beyond behaviour alone (transactions/interactions)