Today we ll talk about preparing and mining data to inform annual giving strategy

Transcription

1 Brian Daugherty Director of Development and Alumni Relations University of San Diego School of Law Annual Giving Consultant Campbell & Company 1 Today we ll talk about preparing and mining data to inform annual giving strategy 2 1

2 in five key stages. 3 Goals shape strategy What do you want to achieve? oincrease return on investment oincrease the pipeline to major gifts odemonstrate the long term value of the annual fund 4 2

3 Why data mining, predictive modeling or predictive analytics? Alumni databases are filled with non donor/long lapsed files. 5 Why data mining, predictive modeling or predictive analytics? Historically there has been an inefficient approach to reaching out to nonresponsive audiences. 6 3

4 Why data mining, predictive modeling or predictive analytics? Budgets are tight and getting tighter and expectations/pressure on development shops is on the rise. 7 Why data mining, predictive modeling or predictive analytics? We are all looking for ways to plug leaky buckets. 8 4

5 Why data mining, predictive modeling or predictive analytics? We are all expected to maximize return and minimize our investment. This is the heart of data mining 9 25 Why does this matter? Median participation rates continue downward trend Private Public Target Analytics 2009 Index of Higher Education Fundraising Performance 10 5

6 25 Median Reactivation Rates Slide Series 1 Series 2 Series Private Public Overall Target Analytics 2009 Index of Higher Education Fundraising Performance 11 Acquisition Declines 0 2 Private Public Overall Target Analytics 2009 Index of Higher Education Fundraising Performance 12 6

7 Data mining questions and answers Why are our donors responding/not responding? 13 Data mining questions and answers What if these trends continue? 14 7

8 Data mining questions and answers What should we do based on current trends and expected behavior? 15 Data mining questions and answers What is the best case/worst case scenario of what will happen if we continue in our current direction? 16 8

9 Segmentation Strategies By donor behavior LYBUNT defined SYBUNT defined Non donor self explanatory 17 All LYBUNTS ARE NOT EQUAL Lybunt New: a donor who has made their first gift to your institution in the last fiscal year. Reactivated: a donor who had lapsed in prior years but gave to you last fiscal year. 2, 3, 4+: the number of years a donor has contributed consecutively. 18 9

10 LYBUNT Retention Rates FY08 Public 1 year: 25% 2 years: 60% 3 4 years: 71% 5+ years: 85% FY09 Private 1 year: 30% 2 years: 60% 3 4 years: 69% 5+ years: 84% 19 LYBUNT Retention Strategies Multi year donor clubs Reunion campaigns Are they receiving 6 solicitations annually? Second asks for refusals and donors 20 10

11 LYBUNT Retention Strategies Stewardship are you communicating the impact of their giving effectively? Send a hand written note after a refusal to the phone program 21 All SYBUNTS ARE NOT EQUAL SYBUNT The number represents the period of time a person has lapsed as a donor. Sybunt 1 is a donor who made a gift and then did not renew their support the following year. Sybunt 2's have been lapsed donors for 2 fiscal years and it goes up from there

12 SYBUNT Reactivation Rates FY08 Public 1 year: 27% 2 years: 14% 3 5 years: 8% FY09 Private 1 year: 29% 2 years: 17% 3 years: 10% 6+ years: 2.7% Target Analytics 23 Longer they are lapsed, the more likely they are to upgrade FY08 Public 1 year: 37% 2 years: 40% 3 5 years: 44% FY09 Private 1 year: 30% 2 years: 36% 3 5 years: 38% Target Analytics 24 12

13 SYBUNT Reactivation Strategies Focus on 1 year lapsed donors surveys, additional outreach as appropriate Goldmine mailing Pay attention to upgrade potential for longer lapsed donors Test different ask amounts on reactivation direct mail and phone scripts 25 SYBUNT Reactivation Strategies Send a handwritten note/solicitation after a lapsed donor makes a refusal to the phone program Send personalized e mails to other SYBUNTS who make refusals to the phone program (not solicitations) 26 13

14 Non donor Ways to segment non donors to maximize response 27 A Simple Score Score = home phone listed + business phone listed + e mail listed + oldest quartile of database youngest quartile of database marital single marital missing *Peter Wylie 28 14

15 Alumni Score # of events attended (1 2 = 1,,3 or more =3) Graduate in the oldest quartile of class Lives within 50 miles of campus E mail address Good phone home Good address home Good phone business 29 Alumni Score Business address business Business title listed Executive title + 2 Married to an alum Dual degree holder +2 Has a contact (even refusal for the phone program) 30 15

16 Experiment and Test What variables matter for you? Consider: # of events attended, legacy, business phone listed, e mail address, oldest quartile of data base, For donors one time gift of $250+, attended reunion, has given more than 5 gifts, etc 31 By Constituency Students Graduating class gift Others Recent graduate Within the first year (develop special communication plan to build on SCG that often has a giving % that far exceeds the AF average ) 32 16

17 Parents Freshman parent Graduating parent Past parent By Constituency 33 Parents Data Mining Preferred zip code 10 points Preferred job title (director or higher) Father 5 points Mother 5 points Parent an existing donor to SDSU Father 5 points Mother 5 points Parent is an SDSU Alum Father 3 points Mother 3 points Parent has another child at SDSU Father 3 points Mother 3 points Parent is an SDSU faculty/staff member Father 3 points Mother 3 points 34 17

18 Manual Ranking: Parents Data Mining (con d) Child attended private school 3 points Special admit 3 points Works for a matching gift company Father 3 points Mother 3 points Parent is a volunteer to SDSU Father 3 points Mother 3 points Child participated in SDSU activities» Overnight Orientation 1 point» Convocation 1 point» Reception 1 point 35 Solicitation strategies: Focus on retention with a particular emphasis on retaining first time donors (segment this pool separately and avoid asking for an increased commitment) 36 18

19 Solicitation strategies: How leaky is your bucket? Do you know your retention, reactivation and acquisition numbers? Are you segmenting by detailed LYBUNT/SYBUNT breakdowns? Are you effectively using your resources in reaching out to non donors. 37 Solicitation strategies: Solid command of these numbers is essential in planning for your programs future growth. Utilize comparative reports to understand how your program is running against previous years. Analyze them early and often to look for signs of trouble early enough to allow for mid course corrections

20 Importance of Analysis What reports do you use to analyze your program? How often are you conducting analysis? How do you use analysis to adjust/develop strategy? Overall Retention Rate Revenue Retention Rate First Year Retention Rate Multi Year Retention Rate Donor Retention by Donor Type 40 20

21 1 st time donors what to do now? Is this a strength or weakness? Do you have specific stewardship for first time donors? Do you have a new donor welcome kit? Do you tailor your ask amounts when renewing first time donors? 41 If you don t have the information, go get it Clarify assumptions Provide tangible data to support strategy Key educational opportunity for external and internal constituencies 42 21

22 Survey Questions 1. What % of Daugherty U s budget do you feel is provided by the state? 2. Why did you make your last gift to Daugherty U? 3. On a scale of 1 10, how would you rate your experience at Daugherty U? 4. When was the last time you visited the website? 43 Survey Questions 5. Do you know the name of the president of the university? 6. If you could make a gift to fund only one of the following priorities, which would it be? 7. What do you feel is most important for the future of Daugherty U? 44 22

23 Survey Questions 8. Which of the following is most important to you when considering future gifts to Daugherty U? 9. Are you most interested in hearing about 10.Can we have your e mail address?

24 If you could make a gift to fund only one of the following priorities, which area would it be? New programs for Students 7% Resources for Faculty 5% New programs for Students Resources for Faculty Scholarships for Students The University or Department's greatest need 54% Scholarships for Students 34% The University or Department's greatest need 47 What do you feel is most important for the future of SDSU? Other 18% Improved sports program Increasing Acadmic reputation 62% Increased impact of research activity 14% 6% Improved sports program Increased impact of research activity Increasing Acadmic reputation Other 48 24

25 Are you most interested in hearing about Your Department 22% SDSU as a whole SDSU Athletics Your College 11% SDSU Athletics 6% SDSU as a whole 62% Your College Your Department 49 What s Next? Collecting information is easy, it s what comes next that matters Educate internal audiences who should know these results Use the knowledge you gained for your next data mining exercise or survey 50 25

26 Gather Information Rinse and Repeat Analyze Assess Adjust 51 Final Questions? 52 26

27 Thank You! Brian Daugherty Director of Development and Alumni Relations University of San Diego School of Law (619)