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A Scientist in your Communications Department: Segmenting MessagesCustomizing ContentDelivering Results

<#11NTCsegmt>Jeff ShuckPresident/CEO

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Why Am I Here?

OBJECTIVE:Strengthen your effectiveness in your fundraising communications

OUTCOME:A few good ideas to test when you get back to the officeA business case for data-driven communications

AGENDA:How to segment with descriptive analysisHow to target with predictive analysisHow to analyze the impact of your segmentation & targeting strategy

DOES THIS WORK?

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Situation

Problem: How do I use online communications effectively to increase fundraising?

Hypothesis: Personalizing communications through segmentation will generate results.

Procedure: Identify groups with unique characteristics and talk to them based on what motivates them.

Results: More meaningful connections with your constituents and donors and more money raised for your mission.

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How do I utilize online communications to generate real fundraising results?

PROBLEM:

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The first rule of fundraising is to ASK.

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The key is to ask in a personal way.

Directly affected by your cause, city-dweller.

New volunteer with your organization, parent.

“Likes” you on Facebook because a friend

participated in an event, lives abroad.

Participated in a different event with siblings, lives with parents at home.

Long-time major donor, milestone birthday approaching.

Board Member, married, no kids.

Team captain for top fundraising team,

thinking about retirement.

Lapsed participant, but consistent donor.

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Personalizing communications strategies and tactics through segmentation will increase your fundraising results.

HYPOTHESIS:

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What is segmentation?

Understand what makes your constituents tick.oGroup them together

based on similar characteristics.

o Identify your highest potential groups.

o Forecast future behavior based on information.

Speak to each group differently.

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What happens if I don’t segment?

Oversaturate people with information.

Hit or miss on your messaging = no constituent action.

Lose the opportunity to build a meaningful connection.

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What happens if I do segment?

Right message to the right person at the right time.

Create a connection and generate a response.

Deepen relationships with people who care about your mission.

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Identify groups with unique characteristics and talk to them based on what motivates them.

PROCEDURE:

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Step 1: Collecting Data

Often we don’t know the most important data. Start with why. What’s your connection to the cause? Why did you choose to donate?

Use the donor information you already have: Address information Gift history (how much, how many, to what projects) Gender, birthdate (age)

Group based on basic information, identify trends and adjust communications based on trends.

Work towards standardizing your process, your questions, and your data entry to make measurement and evaluation easier.

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Case Study:Komen Global Race for the Cure, Year One

Existing database was inconsistent.

Added a question to registration form: “What is your connection to the cause?”

Focused on building our understanding of who was actually coming and why, instead of deciding we already knew.

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Step 2: Descriptive Analysis

Focus on donor characteristics.

Evaluate past behavior.

Segment based on characteristics and past activity.

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Went beyond the standard split of fundraisers versus non-fundraisers.

Discovered clustering of fundraising around specific levels.o Allowed for tiered segmentation.o Tailored communication to each of these segments.

Combined cause connection information with the amount actually raised to create blended messages that spoke to more specific situations.

Don’t forget donors! Created targeted asks based on the previous year’s average donation

(social norms) to encourage donors to give more.

Case Study: Komen Global Race for the Cure

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Final Segmentation

Segment Number Total Contributed

Approach

Attendees 31,902 $0 Education and contact

Beginning fundraisers 11,268 $793,000 Intense encouragement

High performers 2,393 $1,380,000 Affirmation and thanks

Ultra performers 82 $393,000 High personal touch

Team captains 2,000 “Every walker a fundraiser.”

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Online Communication

75 unique messages:

17 recruitment messages

46 fundraising messages

10 general updates

2 donor messages

Yielded over 850,000 e-mail impressions.

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Step 3: Predictive Analysis

Use your constituent knowledge and information about past activities as indicators of potential future activity.

Identify a predisposition towards a specific action, give them messaging and tools to get there faster.

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Registration time increases the likelihood of being a Pacesetter significantly.

Cause motivation raises the likelihood significantly.

Age raises the likelihood significantly.

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At registration asked: “Do you plan on fundraising?” “Are you interested in incentives?”

Received different messaging based on what they expected themselves to do, versus what they had already done.

Case Study:Komen Global Race for the Cure, Year Two

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Step 4: Building Strong Messaging

Build a clear case for your event.

NEED: What problem are you trying to solve?

IMPACT: What difference will you be making?

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Step 4: Lessons on Messaging

Make a specific ask. Be simple and concise.

o Mission always front and center.o Demonstrate impact.

In peer-to-peer event fundraising:o Relationship with the participant is the

donation driver.o Strong case for your mission at time of

donation may increase the donation amount.o Donation levels can be influenced.

Say thank you.

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Case Study: Susan G. Komen 3-Day for the Cure

Acknowledgement ofpast participation.

Specific, realistic ask that is tied to event.

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More meaningful connections with your event participants and more money raised for your mission.

RESULTS:

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How do you measure results?

Evaluate click-through and open rates.o Compare to number of gifts and actions taken (e.g. event registration).

After your event or campaign is complete, review the median gift size.o If the asks are more powerful through segmentation, there will be a

rise in the median gift size.o Begin with measuring against year-ago to ensure change.

Results provide important data for you to make adjustments and changes for campaigns in following years. o Make note of trends and adjust your strategies accordingly.

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Case Study: Komen Global Race for the Cure

Interest in fundraising rewards was a key indicator.

Affirmative answer to “are you interested in earning rewards” second largest indicator of fundraising potential.

In some cases, the group who answered “yes” was twice as likely to fundraise as those who answer “no.”

10%

21%

69%

yesmaybeno

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Messages about incentives were the most engaging.

Tested messages using incentives, stats, stories and tools as motivators.

Case Study: Komen Global Race for the Cure

Open Rate Click Through

Rate

Forward Rate

0%

10%

20%

30%

40%

50%IncentivesStatsStoriesTools

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Goal Performance

2008 2009 2010

Suggested Goal $250 $125 $125

Participants Raising $125 10% 12% 13%

Participants Raising $250 6.2% 6.4% 7.1%

Structure minimums and goals so that they are

attainable and motivational.

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Impact on Fundraising

2008 2009 2010 $-

$50

$100

$150

$200

$250

$300

$350

Per ParticipantPer Fundraiser

Median amount raised per fundraiser increased 20%,

from $100 to $120.

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2008 2009 2010$0

$10

$20

$30

$40

$50

$60

$70

AverageMedian

Impact on Gift Size

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Overall Impact

2007 2008 2009 2010$2,000,000

$2,250,000

$2,500,000

$2,750,000

$3,000,000

$3,250,000

$3,500,000

30,000

33,000

36,000

39,000

42,000

45,000

48,000

FundraisingParticipants

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Now what? The cheat sheet to take home.

Ask WHY people are supporting your organization’s mission.

GROUP people based on their interests.

PERSONALIZE your messages based on what you know about people’s motivations.

Build your CASE: Illustrate your NEED and the IMPACT a donation will make.

TEST and MEASURE the response to different messages.

THANK your donors.

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Directly affected by your cause, city-dweller.

New volunteer with your organization, parent.

“Likes” you on Facebook because a friend

participated in an event, lives abroad.

Participated in a different event with siblings, lives with parents at home.

Long-time major donor, milestone birthday approaching.

Board Member, married, no kids.

Team captain for top fundraising team,

thinking about retirement.

Lapsed participant, but consistent donor.

CONCLUSION: You have a diverse group of constituents.

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CONCLUSION: Using your data to segment your messages will bring them together to raise more money for your cause.

WE CARE ABOUT YOUR

CAUSE.

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Q&A YOUR TURN:

$365

$1500

$20,000

$20,000+

Living

Privileged

Aware

YOUR PART MATTERS

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