Converting List Members into Donors Target User Forum

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Converting List Members into DonorsTarget User
ForumBoston, April 2008
Defenders of Wildlife Defenders of Wildlife
Action Fund
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Agenda

• A little bit about Defenders
• Background Why convert online
  activists/e-supporters to donors
• How to convert
• Case study
• Measuring ROI

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Defenders and Online Objectives

• Defenders of Wildlife - founded 1947
• 160 total staff
• 9 Online Marketing and Communications Dept.
  staffwebsites and email
• Over 620,000 e-supporters
• 3.2MM raised last FY
• Defenders of Wildlife Action Fund 501(c)4
  sister organization
• Objectives of Online Dept.
• Fundraising
• Advocacy / Offline Activism
• Education
• List Growth
• Influence elections (501c4, only)

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Why convert online activists to donors?
Penetrate younger, more affluent audience
Often more satisfied and engaged supporters, too!
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Background Online activists can become valuable
donors

• Value from least to most
• Offline donors without email
• Offline donors with email
• Online donors same as offline donors with
  email
• Online/offline donors
• Online donors younger (average age 49 vs. 62)
  higher avg income

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Online gifts larger than offline multi-channel
donors are best
Online avg gift size growing offline almost
constant
Source Defenders of WildlifeJul06-Jun07
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Acquisition source also a value-driver Better
to acquire online despite slightly lower
retention rates
Data based on Defenders of Wildlife Jul04-Jun05
donors by source
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Defenders donors are migrating from online to
offline, but not visa versa

• First-year donorsmade only offline donations in
  2006 (who gave in 2007)
• 97.7 gave offline only in 2007
• 2.3 gave online (and in some cases offline) in
  2007
• ?Problem Often no email addresses for offline
  only donors
• First-year donorsmade online donation in 2006
  (who gave in 2007)
• 47 gave offline only in 2007
• 53 gave online (and in some cases offline) in
  2007
• ?Online donors converting to offline
• ?Direct mail (DM)/telemarketing (TM) critical for
  retaining online-acquired donors

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Question So is it best to convert activists to
donors online?

• Short answer Probably yes because
• Lower costs to converting online
• Larger gifts online
• Online-acquired donors more valuable
• Easier to make multi-channel if online donation
  first
• Longer answer We dont actually know
• Anyone compared value of online activist whose
  initial donation is online vs. offline?
• Anyone compared value of a) online activist
  turned donor vs. b) origin offline donor vs. c)
  origin online donor? DOW done a bit
• Conclusion Most important to convert and
  multi-channel is most powerful so try to convert
  quickly online/TM/DM

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How to convert activists to donors

• Solicit
• Online
• TM
• DM
• Other channels? -)
• Insufficient testing for firm conclusions, but
  general guidelines
• Solicit promptlyStrike while iron is hot!
• Coordinate online/TM/DM
• Solicit on activist origin issue and/or recent
  issue took action on

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Time to first donation notes

• Dont give up too soon (online)
• EOY great time to convert
• Maybe give up pretty quickly offline
• More rapid diminishing return on activist names
  offline than other NPO donor lists
• DM/TM revenue should come in sooner
• Defenders integration improving so more
  front-loaded offline revenue
• DM/TM increasingly important over time (e.g.,
  renewal)

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Activists to offline donors Segment activists
for DM/TM effortsand test packages DM below
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Defenders segments activists on

• of actions
• Recency
• Interest areas
• Also considering segmenting on
• Time on file (shorter for given of actions is
  better)
• Age
• Giving to other NPOs
• Email statusvalid-emailable, hard-bounced,
  unsubscribed, etc.
• Also test
• Different packages
• One-time vs. sustainer
• Etc.
• ?Find best criteria to segment, best packages for
  you

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Defenders experience

• Some activist segments?Top value donors
• 31 of new major donors originate thru online
  Join/Renew forms, 10 thru online issues
• Other activist segments are turkeys
• Measure each online acquisition source separately
• Per above, online activist lists may tire quickly
  in DM/TM
• And DM/TM activist response rates down -(

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Measuring ROI for online activists

• is fraught with pitfalls
• so a few things to consider

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Basics

• Include costs of acquiring ALL online activists
  from a given source (and use proxy if acquiring
  through website)
• Include acquisition costs from ALL sources
• Hypothetical example for 10k activists after 3
  months
• Costs
• Online Source XYZ _at_ 2.50/name 25k
• 2 DM packages 10k
• TM for targeted activists 6/call x 500 3k
• Premium/fulfllment costs
• Total cost 38k
• Revenue
• Online 2 converted _at_ 40 8k
• DM 3 converted _at_ 20 6k
• TM (10 monthly x .05) (23 one-time x .03)
  750 345 1.1k
• Total revs 15.5k
• 3 month return
• 5.4 (540) converted to donors including 30
  sustainers
• ROI negative 59 ROI

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AdvancedThings to consider

• If already have name in online file and pay for
  name (again), need to include in acquisition cost
• If already on offline file and adding email,
  perhaps only add value of online donations,
  thereafter
• Potential equation for ROI
• Costs Costs for ALL names including
• Acquisition for all channels
• Ongoing DM, TM, premium and fulfillment costs.
  Proxy for eCRM costs?
• Revenues
• All revs for unique new names that not previously
  on online/offline DBs
• PLUS online (only) revs for records that had DM
  address but no email
• NO revs for records with DM address and email
  even if email different

Revs All revs (new to file) Online revs
(email added to offline record)
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Discussion and final thoughts

• Build a great teamProbably 1 key to effective
  cross-channel fundraising and cultivation
• Contact info jregen_at_defenders.org