The power of analytics H ow to harness the power of analytics across your fundraising programs

1. The power of analyticsHow to harness the power of analytics across your fundraising programs Rebecca Gelinas, Operation Smile Kelly Pullin, Russ Reid #bridgeconf

2. Speaker Introductions • 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. • 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.

3. Operation Smile: video

4. Table of contents • What is analytics? • What’s needed for analytics? • Data and your database • Real world examples • Takeaways

5. What is analytics? • Quiz: Analytics is … • 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

6. What is analytics? • Quiz: How can I use analytics? • To create mountains of reports that intimidate and confuse. • Monitor behavior and programs and refine/create marketing strategies for maximum success. • To identify very small groups of donors with highly unusual behavior. • To add double-axis charts to every Powerpoint deck.

7. What should analytics do? • 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.

8. What’s needed? • The right data • Tools to turn that data into insights • Ability to turn insights into action

9. Robust tools to generate insight • Common tools Examples • Spreadsheet Excel • Entry level queries MS Access • Advanced queries SPSS, SAS • Business intelligence systems Business Objects • Dashboarding, visualization Tableau • Web site activity Google Analytics • Why tools are just tools

10. Getting the data right • Organizational assets • Your brand • Your data • Manage your data with the same care and intention that you manage your brand

11. Cornerstone – marketing database • 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

12. Who is the “right” person to lead your database strategy? A database administrator (DBA) needs to have a varied, unique skill set.

13. Marketing database: What characteristics make a great database? • Consistency • Clean your data • Data integrity rules • Security rights based on job needs • Document processes and procedures

14. How Operation Smile underwent an “Extreme Database Makeover” in less than a year • 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

15. Analytics in the real world • 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

16. Donor group #1 • 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

17. Donor group #1 • Quiz: Armed with insights about low-$ donors, Operation Smile decided to… • Ignore them completely – boost ROI! • Contact them as often as possible – boost retention! • Make no changes to strategy – they’re a small % of the file. • Move them to a communication stream that would maintain retention while increasing ROI.

18. Donor group #1 • The result: Low-$ donors now generate positive net income; retention rates are comparable. Positive net income!

19. Donor group #2 • Single surgery donors: largest group of donors acquired through DRTV • These donors had lower 2nd gift conversion than other donor groups.

20. Donor group #2 • Quiz: Armed with insights about single surgery donors, Operation Smile decided to… • Contact them as often as possible – boost retention! • Stop using DRTV and focus on acquiring donors through DM only. DRTV is expensive! • Try to convert them all to monthly giving. • Customize a communication stream and ask strategy for them in order to boost 2nd gift conversion.

21. Donor group #2 • The result: Multiple channels of communication, coupled with a tailored ask array, boosted 2nd gift conversion. 10% increase in one year!

22. Donor group #3 • Operation Smile identified groups of donors with consistently large gifts ($500+), and donors with the potential for larger gifts.

23. Donor group #3 • Quiz: Based on our learnings about middle/upper-end donors, we decided to… • 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.

24. Donor group #3 • 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.

25. Maximizing ROI • 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

26. 3 key takeaways • 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

27. Thank you!Rebecca Gelinas rgelinas@operationsmile.comKelly Pullin kpullin@russreid.com Don’t forget to visit the Solutions Showcase! Many of the ideas discussed today are on display at the Solutions Showcase! #bridgeconf