Understanding the Power & Potential of Big Data, donor engagement & Driving Nonprofit Success

1. Big Data
&
Donor Engagement
UNDERSTANDING THE
POWER & POTENTIAL OF BIG
DATA, DONOR ENGAGEMENT &
DRIVING NONPROFIT SUCCESS
CxO DC

2. Fundraising Success
Nichole Stella
President
Fundraising Success
nstella@napco.com
215-238-5305
CxO DC

3. Marketing for
Members
The casting a
wide net
approach
While this approach is
excellent in building
brand recognition and
publicity. Since dips in
donor engagement have
been noted since the
Great Recession of
2008 – a more
strategic methodology
is in order.
What have Non-Profits been doing
to attract members and donors?
CxO DC

4. Time to
change the
approach…
The Wall Street Journal
of corporate financial
reports finds that
cumulative sales,
profits and employment
last year among
members of the
Standard & Poor's 500-
stock index exceeded
the totals of 2007,
before the recession
and financial crisis.
Total giving to charitable
organizations was $335.17 billion in
2013 (about 2% of GDP). This is an
increase of 4.4% from 2012.
Although this is the fourth straight
year that giving has increased, it is
still not at the pre-recession level of
$349.5 billion seen in 2007.
 Data from obtained from Charity Navigator
CxO DC

5. BUT HOW?
The answer has been right under
your nose all along
• UNDERSTANDING DATA
METRICS & DONOR
ENGAGEMENT
• NO SHAME – EVEN $500
MILLION DOLLAR FOR
PROFIT COMPANIES ARE
JUST GETTING STARTED
• YOU PROBABLY HAVE
GREAT DATA TO START & IF
Y O U D O N ’ T Y O U C A N G E T I T
CxO DC

6. First - what is Big
Data?
Big data is new
and “ginormous”
and scary –very,
very scary. No,
wait. Big data is
just another
name for the
same old data
marketers have
always used, and
it’s not all
that big, and it’s
something we
should be
embracing…
Lisa Arthur
Contributor, Forbes
CxO DC

7. What are we really
talking about…
From our friends @
Google
Big Data is…
Extremely large data
sets that may be
analyzed
computationally to
reveal patterns,
trends, and
associations,
especially relating to
human behavior and
interactions.
CxO DC

8. You Have “Big Data” – recognize it
and don’t let it fluster you.
Every day non-profit
and for profit
companies alike are
gathering data –
through various
means… and all this
“stuff” we are collecting
is very valuable.
 Newsletters
 Event Attendees
 Website
Analytics
 Webinars
 White Paper
Downloads
CxO DC

9. How to
Collect the
right data
Knowing who your prospective donor
member before launching new campaigns is
paramount
 Gender
 Age
 Income
 Level of Education
 Race / Ethnicity
 Political Affiliation
 Religious Affiliation
 Online Engagement
• Social media, website clicks,
newsletters
 Past Donor Behavior –
• Repeat, Annual, Lapsed?
 Past Event Attendance
 Relevant Contact information
• Email, Phone, Address, etc
This information will enable you to predict future engagement
into the future
CxO DC

10. From the Data collected,
Predictive Models can be built & Donor
Engagement can be Measured
Most times
donors “stop
by” once and
then never
come
back…Why?
We must find out
what engages donors
and reengage them
with similar
opportunities
CxO DC

11. What to look
for…
 Never perform
data analysis on
your Master Data
– set up new
spreadsheets
 Know the
questions your
asking of the data
 Keep your eyes
open for patterns
 Have a 30,000
foot view – don’t
get caught up in
minor details
 Always ask why?
The Data Is In – Now What?
It’s Time to Analyze
CxO DC

12. Once you have the data, it can be used then to create
predictive models of your audience segments.
Predictive modeling is the process of creating
statistical models to determine the likelihood of
future behaviors.
Predictive models take into account a number of
factors that are likely to indicate how an
individual will respond or react. Some examples
of predictive-modeling factors include gender, age,
income and giving history.
CxO DC

13. The 4 Different Predictive Models
Current donor: Predictive models can help you get more
value from your existing donors. You can create models to
identify donor populations ideal for major upgrades or to
help you target the right donors for specific asks or appeals.
Donor acquisition: Acquisition is an area where data
modeling can have a big impact. Your nonprofit can create
models to identify non-donors that most closely resemble
your current donors. These models help you better target
your acquisition efforts to maximize your marketing spend.
CxO DC

14. The 4 Different Predictive Models
Monthly sustainer: Monthly giving provides a reliable,
low-cost income stream for nonprofits. It also enhances the
loyalty and value of donors. By developing a predictive
model, you can target individuals most apt to become
monthly donors based on demographic and psychographic
attributes.
Lapsed-donor reactivation: When targeted properly,
many lapsed donors renew their support and even become
high-value donors. Predictive modeling helps you identify
the lapsed donors with the greatest propensity to return to
your organization and assess their potential lifetime value.
CxO DC

15. What to Track When Measuring Engagement
KNOW YOUR WHO, WHAT, WHEN, WHERE & HOW
 Financial
Know exactly how your donations are coming in. Annual campaign, direct
mail, online, mobile.
However, don’t be penny wise and dollar foolish – donor engagement goes
far beyond dollar donations.
Event Attendance & Volunteer Efforts
Events & Volunteer can drive PR, engagement and build brand awareness.
There is nothing more engaging and member building than a successful
event. There is great marketing opportunity to pair events with
Social Media that can things viral.
CxO DC

16. What to Track When Measuring Engagement
KNOW YOUR WHO, WHAT, WHEN, WHERE & HOW
 Social Media / Blogging
 Um…Heard of the ALS Ice Bucket Challenge? Track what kind of posts are
getting the most hits, shares, follows. Post & Blog often to increase your
“Googleability”
 Mobile /Text
Email Newsletters/Campaign Blasts
 Track what gets open, successful subject lines, successful stories, videos,
etc…what day, what time of day.
Website – Via Google Analytics
 What is getting clicked on – is it “feature stories or Video? Where is your
traffic coming from Google Search, Inbound Links, Newsletters?
CxO DC

17. Rinse & Repeat
Using data to measure and increase
donor engagement should be an ever
evolving cycle. Stagnation in data and
outreach will lead to stagnation in donor
engagement and giving.
CxO DC

18. Know Your Audience & Deliver the
Message/Experience the Way They
Want to Receive it
Once you know your
audience and what their
engagement preferences
are – you can split them
into appropriate
segments and tailor the
message to that specific
group.
Social Media – X Gen
Donors
Direct Mail /Telephone
Campaign to Baby
Boomers
Corporate Events /
sponsorships
Monthly Email
Newsletter
Video News
CxO DC

19. An increase in engagement =
increase in success of the mission =
increase in donors / memberships
There is a
Direct
Correlation
CxO DC

20. The End Game
[Engagement is] an attitude.
The organization that does this well has made a
conscious decision to mobilize their donors to
accomplish their mission – not through fundraising,
but through other actions that involve the donor. And
it just also happens, that a donor who is more involved
is more personally invested in the success of the
organization, and that kind of involved donor is more
likely to give more money.”
What is Donor Engagement, Anyway? 3 Ideas to Make it Real
Leslie Allen
Front Range Source
CxO DC