Presentation from this year's Bridge Conference that covers how nonprofit marketers can make the most of their data strategy to drive donor acquisitions.

1. #BRIDGE17
LIFE IS NEVER RANDOM …
HOW TO MAKE THE MOST OF YOUR
DATA STRATEGY
DENIS MCSWEENEY: AARP- DIRECTOR, DIRECT MAIL CHANNEL
MARYANN BUONCRISTIANO: MERKLE- VP DATA SOLUTIONS
JENNIFER HONADEL: EPSILON- MANAGING DIRECTOR

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Elements of a data strategy
How to stay ahead of the changes
Key elements to success
Learning Objectives
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3. #BRIDGE17
Elements of Data Strategy
Solid Strategy will be Aligned with Marketer’s Business
Objectives and Budget
Long term value
New
donors/members Average Gift/Spend
Channel
preference
Mailing
efficiencies
Messaging
Creative/ Offer
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Key Components

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Optimizing Data Strategy
There are proven methodologies that we can
employ to help organizations improve their data
sourcing strategy to positively impact results:
• Utilizing data for multichannel people based marketing
• Leveraging analytics to drive data evaluations
• Enhancing data sourcing pre-campaign
• Improving data performance through
predictive analytics
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5. #BRIDGE17
All-Channel Planning, Activation & Measurement
Personally Identifiable Information (PII)
Direct Digital Broadcast
All-Channel Data for People-Based Marketing
Read the blogpost about the conference at merkleinc.com

6. Data Evaluation Process to Drive Performance
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Coverage
Maximize unique reach and avoid
duplication across data providers
Descriptive power
Quantify descriptive power of data sets
based on granularity of segmentation
Predictive power
Benchmark predictive power
of data in live client models
Accuracy
Identify the most accurate data
based on consensus models
and distribution analysis
Cost
Optimize cost by minimizing
duplication across data providers
Read the blogpost about the conference at merkleinc.com

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Enhancing Data Sourcing Pre-Campaign
Leverage Historic Information to:
• Reduce list sourcing costs (Typical Reduction Range = 20%-50%
reduction in list costs per campaign)
• Maintain/Improve Campaign Performance
• No impact to current campaign processing
7
AARP historical list sourcing AARP current list sourcing
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Enhancing Data Sourcing Pre-Campaign
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Response is assigned to each of the lists
on which the individual exists
Response is randomly assigned to a
single list, typically the list that got paid.
Remaining lists do not get the credit
hence resulting in incomplete attribution
Un-biased (appeared-on)
response attribution
Traditional response attribution
Response attribution analysis:
List
1
List
2
List
3
List
4
List
3
List
1
List
2
List
3
List
4
List
1
List
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List
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List
4

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• List Cost Per Piece -
reduced the overall LCPP
significantly over the last 5
years through removal of
higher cost, high overlap
rentals and ongoing price
negotiations.
• Annual LCPP is over
60%+ lower than prior to
this methodology.
$0.0256
$0.0238
$0.0161
$0.0135
$0.0120
$0.0093 $0.0098
$-
$0.0050
$0.0100
$0.0150
$0.0200
$0.0250
$0.0300
1/11-5/11 6/11-12/11 2012 2013 2014 2015 2016
LCPP
Success AARP has Achieved
Read the blogpost about the conference at merkleinc.com

10. #BRIDGE17
AARP:
Data Strategy Challenge
• Nonprofit, nonpartisan, social welfare organization
• Mission: Enhance quality of life for all as we age –
not just AARP members
• Membership: 38 million
• Target audience: age 50+
Gen X
1965-1984
(ages 50-52)
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Boomers
1946 -1964
(ages 53-71)
Silent Gen
1925 -1945
(ages 72+)

11. Data Strategy Challenge: Part 1
54 years old
Different needs,
interests,
concerns
76 years old
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Read the blogpost about the conference at merkleinc.com

12. #BRIDGE17
Data Strategy Challenge: Part 1
• Acquisition Mail’s
response rate is highest
among prospects turning
50: 'pent-up' demand’.
• The 50-59 age group is
strategically important
(and large), but does not
view AARP as relevant
to their lives.
188
81
110
117
94
3.4%
41.6%
34.5%
13.0%
7.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
0
20
40
60
80
100
120
140
160
180
200
49 50-59 60-69 70-79 80+
AARP Response Rate Index by Age Share of Mail Quantity by Age
Read the blogpost about the conference at merkleinc.com

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Data Strategy Challenge: Part 1
How can AARP be more relevant
to the 50-59 age group?
• Special messaging for prospects turning
‘the big five-0’.
• Provide the option to respond
online via a coupon code.
• Different copy (skip Medicare
supplemental insurance).
• Premiums (for joining) that skew
younger… like a Bluetooth speaker.
Read the blogpost about the conference at merkleinc.com

14. #BRIDGE17
Data Strategy Challenge: Part 1
Coupon code audience:
• Ages 50-69 with $40k+ HH income.
• Tested among a broad age range,
and then used analytics to identify
the ‘optimal’ segment.
• Optimal = Maximizing online’s share
of responses without lowering
overall response.
Read the blogpost about the conference at merkleinc.com

15. #BRIDGE17
Data Strategy Challenge: Part 2
The quest for the ‘holy grail’:
• Goal: Segment the prospect universe
based on propensity to respond
(transact) online
• Step 1: Test the use of an Epsilon
TotalSource Plus variable, Channel
Preference Ratio – Online
• Postcards vs. letter packages
• Higher vs. lower online
channel preference
• Step 2: To be decided…
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16. #BRIDGE17
Data Strategy Challenge: Part 3
Multicultural:
• Hispanic and AA/B segments are an
important part of each Acquisition Mail
campaign.
• Prospects are classified as Hispanic
or AA/B based on an internal model
(data variables, Census, zip/last
name) and/or list owner classification.
Key questions:
Are there sub-segments
that will respond better to
differentiated messaging?
Can these segments
be modeled using
variables on the
prospect database?

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Utilize analytics to
determine the optimal
list mix for each
campaign. (List rental
can get out of control:
AARP was paying
more than 2x what it
should have been!)
Utilize modeling to
rank and select names
for mailing. Update the
model annually.
Mail random samples
of names in each
campaign to enable
update of the model
and measurement of
model performance.
Target special offers
based on promotion
history and data
variables (e.g., month
of birth for
a birthday offer).
Data Strategy: Best Practices
1 2 3 4

18. #BRIDGE17
Data Strategy as Growth Engine
Data Assets
Matched to AARP
Analytics
Isolate target audience
Insights - Strategy
Understand wants,
needs concerns
Creative & Messaging
Align to audience
Technology
Ensure accuracy and
consistency
Delivery
Data-driven inputs Multi-channel decision Reach
Activation &
Performance
Reach audience in all
channels
Data and Insights Drive the Organization
Read the blogpost about the conference at merkleinc.com

19. #BRIDGE17 19
Isolate and Profile the Target Audience
Gift Size/Membership
Term
1
Lifetime Value
2
Season4
5
New Donors/Members
Channel
3
Match & profile
Survey
Machine learning
Read the blogpost about the conference at merkleinc.com

20. #BRIDGE17
Know Them Better
Predictive modeling/segmentation
Attitudinal Data
Why you join
• Relationship to cause/org
• Engagement
Demographic Data
Who you are
• Demographics and Financials
• Lifestyles and hobbies
• Digital activity
• Media consumption
Purchase Data
What you buy
• Consumer transaction data
across brands / categories
• All channels
• Charitable categories
• Size of gift
• Frequency of giving
• Ratio giving to spending
Donation/Member Data
What you give

21. #BRIDGE17
Reach in All Channels
• Direct Mail
• Email
• Online
• Social
• Mobile
• Television
Read the blogpost about the conference at merkleinc.com

22. #BRIDGE17#BRIDGE17#BRIDGE17
Its Smart to Use the Same Data Across All Channels
Suppose you need income information for online targeting
Multi-sourced
profile
data
“12 different
offline sources
agree Household
Income is $100-
120k. User has
checking
account and a
value score of
A2”
Online
behavioral data
“Visited
Forbes.com,
where average
visitor has
income of $180k”
IP/ Geographic
data
“Uses an IP
address that
corresponds to a
DMA where
average income
is $70k”
Read the blogpost about the conference at merkleinc.com

23. #BRIDGE17
Read about the conference at merkleinc.com!
Thank You
Mary Ann Buoncristiano – mbuoncristiano@merkleinc.com
Denis McSweeney – dmcsweeney@AARP.org
Jennifer Honadel – jennifer.Honadel@epsilon.com