Focus on increasing station membership and net income

1. Focus on increasing station membership and net income Michal Heiplik

2. CDP participation # of stations % of audience CDP Participants: 97 Stations & 83% of audience

3. CDP – Key Concepts & Services • Reporting & Analysis • ROAR & other research • Promotion of better practices • Checklists • Enabling scale for individual stations • Project execution

4. National Reference File & ROAR • October release: 59 stations • January release: 65 stations • Current statistics • # of account records: 15 million • # of transactions: 66 million • # of active donors: 1.9 million • ROAR distribution and feedback • Metric development • Station briefs

5. CDP Checklists & Business cases • Completed: • Sustainers • Matching Gifts • Vehicle Donations • Additional Gifts • Planned: • Lapsed Gifts • Web/Email giving • Major gifts • Planned Gifts

6. Reporting & Analysis • Revenue Opportunity and Action Report (ROAR)

7. Reporting & Analysis • Station-specific practices report based on survey

8. Driving Scale • Thank You Calls • 33 participating stations • $1,950,000 in annual NET delivered to stations • Vehicle Donations • 15 participating stations • $560,000 in annual NET improvement delivered to stations • Prospecting • 230,000 prospects delivered to stations • $1,380,000 in value • Canvassing • 4 stations participating (WGBH, KAET, TPT, KVIE) • 6,383 new donors • 910 sustainers (14%) • NET cost per donor: $12.80

9. Active Projects Donor Acquisition - Canvassing

10. WARNING!!! The numbers you are about to see are extremely exciting.

11. Cost to acquire a donor & retention • Retention rates of donors from major markets • Mail – 45% avg. • Pledge – 17% avg. • Cost to acquire Direct Mail donor • $37 average ($67 max) • Investment: Cold Mail acquisition is crucial to building a sustainable membership program

12. Learning from Denver…. • Program running for 17 full months • Direct Mail acquisition mostly stopped • Current Fiscal Year:

13. How it really works? • Local station teams • Embedded within the station • Available for direct training and interaction with staff • Professional event canvassing • Personal donor interaction • Friendly staff • Extension of the station

14. Personal Donor Interaction

15. Personal Donor Interaction

16. Personal Donor Interaction

17. Personal Donor Interaction

18. Personal Donor Interaction

19. Canvassing – CDP Solution • Data • National Reference File used for analysis • Proper segmentation – ZIP identification • Proper coding for additional testing (thank-you card) • Data analysis • Establish PCI compliance for data • Enable electronic data entry at the door • Management • Vendor management & quality control • Application of standards

20. Canvassing - Update BIG UNKNOWN – RETENTION!!!

21. Canvassing - retention

22. Better targeting – Zip to Household • Current Zip targeting • Utilizing models based on RMPBS • Blend of giving and area data

23. Better Targeting – Zip to Household • New App development • Phase 1 release by the end of January • Goals • Full PCI compliance • Offline performance • Collection of new data • Complete Dispositions • Observation data • Route optimization

24. Canvassing – Next Steps for CDP • Retention • Work with RMPBS to stabilize retention efforts • Work with RMPBS on further retention analysis • Data collection • Develop 100% paperless entry process • Efficiency building - Create a fully digital solution to canvassing • Further proof of concept • Grow the test sample • Adding 2 more stations within next quarter • Continue developing the “turf” knowledge and data

25. Active Projects Improving Retention – Thank you calls

26. Data Analysis • Recent data analysis: Dec 5, 2012 • Calls made: June – Aug 2011 • Gifts made Dec 2010 • Original Houston Data:

27. Data Analysis – 4 station test

28. Findings Making highly personalized Thank-You calls is very effective. Process of making the Thank-You calls is highly inefficient and costly. National opportunity: $4.5 million per YEAR

29. CDP Project: Improving Retention • CDP enables scale for stations • Guaranteed adherence to best practices and production schedules • Modeling of most cost-effective calling groups • Continuous testing of new approaches with single focus • Participation process: • Station signs a one-page project agreement • CDP executes the calls based on National Reference File data • Station realizes a 15:1 ROI • Project status • 33 stations participating (21 in review) • Impact (Annual): $1.9 million

30. Active Projects Vehicle donations

31. CDP Project: Vehicle Donations • Current landscape • 3 major vendors (brokers) – CARS, VFC, CarTalk • No downside risk with full service offering • 30-40% of vehicles sold to recyclers • Revenue share averaging between 60-75% net • CDP Opportunity • Biggest US auction vendor • Improved processing standards & donor relationship • Complete marketing assets • Switch to flat-fee pricing without any revenue sharing • $50 per car minimum • Averaging 83% NET

32. Calculating Your Own Savings (Example) • Excluded assumptions • Higher sales prices will likely be achieved • Actual current cost is likely higher – averages • Growth based on increased marketing/awareness • Overall potential: $1.9 million

33. Vehicle donations • Marketing materials in place • Spots: http://www.youtube.com/user/CDPCommunity • Web elements • Detailed marketing guide • 15 stations participating (13 in review) • Impact (Annual): $560,000

34. Future Projects

35. CDP: Future Projects • Member Benefits • Truly national offers (50,000+ benefits) • White-label approach with station focus • Active member communication supported by “smart” data • Approx. $0.50 per member • Member Transfer • Goal: Seamless integration of moving members • Matching Gift follow up • Initial research: No solid data source for employer information • New test: reminder – mail/call & complete follow-up • IP Targeting • Supporting offline communications with online tools • 25-32% response lift (6:1 ROI)

36. Questions

37. THANK YOU! Michal Heiplik michal_heiplik@wgbh.org (617) 300 – 3217 cdpcommunity.wordpress.com