How segmentation can improve response, retention and reputation. Steve Thomas from Purple Vision shares case studies in building segmentation to support fundraising activities. Delivered 29 April 2016 at Deutsche Fundraising Kongress, Berlin.

2. Date
How segmentation can improve
response, retention and reputation
Steve Thomas
Managing Director
Purple Vision
@stevethomas393
steve.thomas@purple-vision.com
29th April 2016

3. • Technology – CRM, digital, web, data
• Digital – strategy, skills, tech, training
• CRM – Salesforce CRM Service Cloud, Marketing Cloud
• Database – Integra, Care, Raiser’s Edge, ThankQ,
• Data & Analytics – reporting, data, stakeholder journeys
About Purple Vision

4. Nonprofits of all sizes & focus InternationalProfessional,
Membership &
Regulatory

5. Our partners

7. Today’s agenda
• Introduction – what is
segmentation anyway?
• Engaging supporters
beyond money
• Smarter decisions for
more effective ROI
• Complexity and multiple
channels in a digital
world

9. One size doesn’t fit all

10. Why Segment?
Appreciation of motivations
• Communication
• Tone of voice
Facilitates different marketing strategies
• Product
• Media
• Right ‘ask’
Make the appropriate level of investment

11. Look-a-like logic

12. RFV Analysis
Categorisation of behaviour into 3
dimensions:
1. Recency
2. Frequency
3. Value

13. How to segment?
Frequency
Recency
Value

14. Frequency
Recency
Value
Creating segments

15. 9
Creating segments
8
4
13
6
7
2
Frequency
Recency
Value

17. Part 2: Scripture Union and
understanding more than money

18. How to segment?
Frequency
Recency
Value

19. More than money
Give
Act
Pray

20. About Scripture Union
• A Christian charity with a publishing
arm
• Use the Bible to inspire children,
young people and adults to know
God
• Income £7m, 85 staff, 3,000
volunteers
• Schools & churches
• Holidays
• Publishing – print and digital
• Part of international movement of
120 organisations

21. Project aims
• Identify patterns of support so that we
can devise a supporter development
strategy to
– boost supporter satisfaction
– maximise retention
– increase income
• Make routine using ProgressCRM
database

22. Supporter Journeys
First Gift
Became
committed
giver
Joined
membership
Became
committed
giver
Volunteered
Volunteered
Legacy
Pledge

23. Supporters in obvious groups
• Donors
• Product buyers
• Teachers
• On-line resources
• Prayer groups
• Volunteers
• Church reps

24. First steps
• Installed the Supporter Journey module
• Tracked what were felt to be the important
milestones in support – e.g.
– Made their first purchase; first donation; became a
recurring / committed donor; pledged a legacy
• Identified the common patterns…

26. First engagement: purchase

27. Initial findings
• Most common first engagement is buying
something. Of those, 81% do nothing else.
• Legacy pledges
– No obvious route
– Less than 1% pledge anyway
– Of those that do, three-quarters started as cash donor
• Most committed givers don’t buy resources or
subscribe
• Best lifetime value start as Committed Giver (4x)

28. The challenge
• With only a minority donating, traditional RFV
measures inappropriate
• A more holistic view of relationships with supporters:
– Understand behaviours
– Respect supporters’ motivations
– Develop ‘journeys’ to enhance relationships
• Analytical approach:
– Identify and develop appropriate data to collect
– Pragmatic - first and useful pass to put into action
– Learn for further work

29. Feedback & Results
Workshop Report
Data Analysis
Segmentation Propensity model
Segmentation & Engagement Workshop
Touchpoints Triggers
The process

30. The solution - beyond RFV
Categorisation of behaviour
into 3 new enhanced
dimensions:
1. Recency
2. Responsivity
3. Involvement/Value
1. Recency
2. Frequency
3. Value

31. Creating segments
Responsivity
Recency
Involvement/ Value

32. Tracking the new segments

34. Part 3: Making the most of fundraising
resources by smart prioritisation

35. Broederlijk Delen donor trends
• Long term donor decline
– Halted but how could it recover?
• A few very generous donors but most are giving
small gifts, infrequently

36. Initial findings & recommendations
• Good donor recording on Progress CRM database
• Segment active supporters
• For BD, focussed on Recency, Frequency and Value.
But,
– Integrate non-financial support in future?
– Motivations?
• Processes:
– Load donor Journey module
– Data-informed
– Admin-light routine
– Donor-driven

37. Communication Cycle v Donor-driven
Communication Cycle Donor-driven Journey
Driven by Charity needs Donor timescales
Campaign decisions Database rules
Frequenc
y
Campaigns and appeals
sent to most
Triggered ‘drip’ communications –
typically weekly/ monthly
Content Newsletters, appeals, e-
comms
Thanking, reassuring, asking,
upgrading
Nature Designed and written for
each campaign
Standard pack.
Digital personalisation.
Priority communication

38. Second gift. [First gift + other source code]
Annual campaign
Advertising, PR and community activity. Website and leaflets.
Belgium/ o’seas
challenge.
Supporter
explanation.
New
challenge
participant
Repeat
challenge/ event
participant
New donor
4+ donations to
Committed Giving
Calling programme
E-mail thanks
& update.
New
sponsor
Newsletters
Personalised
cover letter
Appeal
feedback
4 gifts =
Call
Challenge
registration.
On-line.
40Euro+ Tax
Reduction
appeal
Newsletter
cycle.
Appeals
cycle
End year appeal
Pledgers
Annual thanks
and update
Challenge
preparation
e-mails
On line
giving
Repeat invite
& feedback
On line
entry
fee
New event
participant
Non Fiscal
Gift contact
Volunteer
Committed
Givers
Lapse
communication
Legacy
pledgers
Business Processes

39. Overall giving since 2011, frequency:
• One time donors: 40% of volume but only
14% of value.
• 3 – 10 gifts: 32% volume and 51% of
value
• 10+ gifts: 10% volume and 21% of value.
Dominated by committed giving

40. One conclusion:
• Process to routinely convert one time
donors to a second gift
– Reassure that first made a difference
– Pre-packed second gift pack
– Different prompts and copy based on first gift
– Event sponsors have different motives
– Standard packs sent routinely

41. Annual thanks
and update
Second gift. [First gift + other source code]
Annual campaign
Advertising, PR and community activity. Website and leaflets.
Belgium/ o’seas
challenge.
Supporter
explanation.
New
challenge
participant
Repeat
challenge/ event
participant
2nd Giving
pack. Hi v
Low value?
Campaign thank
you. Preferred
media request
New donor
4+ donations to
Committed Giving
Calling programme
E-mail thanks
& update.
New
sponsor
Newsletters
Personalised
cover letter
Appeal
feedback
Jan appeal
reminder &
progress
4 gifts =
Call
Challenge
registration.
On-line.
Hi/ Med
value 2nd mail
(and chase)
Reassurance
letter. Once
only
40Euro+ Tax
Reduction
appeal
Newsletter
cycle.
End year appeal
Personalised
cover letter
Pledgers
Challenge
preparation
e-mails
On line
giving
Repeat invite
& feedback
On line
entry
fee
New event
participant
Non Fiscal
Gift contact
Volunteer
6 wks
6 wks
Committed
Givers
Lapse
communication
Legacy
pledgers
Appeals
cycle
40+Euro & pa
annual thanking
Ad hoc multi-
media notices
re. campaign
news

42. Overall giving since 2011, value:
Excluding all NF Gifts
• Really 18 ‘true’ individuals at €10k+
• 35% of value is with 900 donors (2% of volume)
• Medium Value is €250 – 999. 13% volume, 30%
value
Donors Donor % Giving %
Donors €10k + 30 0.1 11.7
Donors €1k-10k 880 2.2 23.3
Donors €101-1k 18285 46.0 53.2
Donors €0-100 20577 51.7 11.8
Total 39772 100.0 100.0

43. A bespoke journey for each segment
Segment Donors 1 year average value Journey plan
VHVDs 4 €10k+ Special internal recognition
HVDs 138 €1k – 10k; 2+ gifts
Legacy pledgers
Personalised access, contact &
preferences
3* Newsletter & HVD communication
Investment programme option
MVDs 6,400 • €100 -€1k
[of which 640 €500 -€1k]
• Single donation €1k +
• 5+ source codes
3* Newsletter & HVD communication
€500 -€1k various hand-raising
programmes
Donors 12,100 €40 - €99 Communication cycle inc 3*
Newsletters & Tax Reduction mail
Distinct Committed Giving product
Medium
level
donor
8,300 €20 - €39 Communication cycle inc 2*
Newsletter Survey validation & active
lapsing
Low level
donor
15,700 <€20 Second-giving cycle. Opt-in Newsletter

44. Implications
• Introducing a regular Donor Cycle to integrate with
the BD Communications Cycle
• Utilise database and suppliers for routine ‘drip’
communication triggered by donor actions
• Progressive lapsing to make sure that we do not
spend all of the donation on newsletters and
appeals
• All supporters continue to be treated courteously …
• … but some will repay more investment and
engagement than others

46. Finances - Before
• Before:
– Individual donors represent c.36% of fundraising
– Target fundraising ratio of 12%
• Over investing by approx. €40k in low value donors – at the expense of
HVDs
Current fundraising
mix
VHVD HVD MVD Donors Low value Total
Donors (3 yr.) 18 780 5,100 13,000 20,500 39,400
Annual value €163,000 €536,000 €728,000 €628,000 €309,000 €2,364,000
Av. Donor value p.a. €9,056 €687 €143 €48 € 15 €60
Var. cost of comms €20 €4 €4 €4 €4 €4
Share of overhead €585 €44 €9 €3 €1 €4
Est. fundraising ratio 7% 7% 9% 15% 33% 13%

47. Finances – Re-balance
• Re-balance the investment:
– Increase expenditure on HVDs and MVDs
– Reduce spend on low value base
Current fundraising
mix
VHVD HVD MVD Donors Low value Total
Donors (3 yr.) 18 780 5,100 13,000 20,500 39,400
Annual value €163,000 €536,000 €728,000 €628,000 €309,000 €2,364,000
Av. Donor value p.a. €9,056 €687 €143 €48 € 15 €60
Var. cost of comms €230 €31 €8 €4 €2 €4
Share of overhead €585 €44 €9 €3 €1 €4
Est. fundraising ratio 9% 11% 12% 15% 20% 13%

48. Finances - Outcome
• Assuming that incomes stay the same. If respond in proportion to spend
increase:
– HVD and MVD growth but decline in low level donors
– Major Donors taking more overhead from reduced value donor cells
• Re-distribution of spend creates new €0.5 million (+19% growth) in overall
income
• Overall fundraising ratio improves from 13% to 11%
Current fundraising
mix
VHVD HVD MVD Donors Low value Total
Donors (3 yr.) 18 780 5,100 13,000 20,500 39,400
Annual value €219,532 €837,069 €943,032 €626,220 €187,280 € 2,813,132
Av. Donor value p.a. € 12,196 € 1,073 € 185 € 48 € 9 € 71
Var. cost of comms €230 €31 €8 €4 €2 €4
Share of overhead € 662 €58 €10 €3 €0 € 4
Est. fundraising ratio 7% 8% 10% 14% 28% 11%

49. Second gift. [First gift + other source code]
Annual campaign
Advertising, PR and community activity. Website and leaflets.
Belgium/ o’seas
challenge.
Supporter
explanation.
New
challenge
participant
Repeat
challenge/ event
participant
New donor
4+ donations to
Committed Giving
Calling programme
E-mail thanks
& update.
New
sponsor
Newsletters
Personalised
cover letter
Appeal
feedback
4 gifts =
Call
Challenge
registration.
On-line.
40Euro+ Tax
Reduction
appeal
Newsletter
cycle.
Appeals
cycle
End year appeal
Pledgers
Annual thanks
and update
Challenge
preparation
e-mails
On line
giving
Repeat invite
& feedback
On line
entry
fee
New event
participant
Non Fiscal
Gift contact
Volunteer
Committed
Givers
Lapse
communication
Legacy
pledgers

50. Second gift. [First gift + other source code]
Annual campaign
Advertising, PR and community activity. Website and leaflets.
Belgium/ o’seas
challenge.
Supporter
explanation.
New
challenge
participant
Repeat
challenge/ event
participant
2nd Giving
pack. Hi v
Low value?
Campaign thank
you. Preferred
media request
New donor
4+ donations to
Committed Giving
Calling programme
E-mail thanks
& update.
New
sponsor
Newsletters
Personalised
cover letter
Appeal
feedback
Phone/ response
request
Jan appeal
reminder &
progress
4 gifts =
Call
Challenge
registration.
On-line.
Food test pack/
lobbying/ survey
Hi/ Med
value 2nd mail
(and chase)
Ad hoc multi-
media notices
re. campaign
news
Reassurance
letter. Once
only
40Euro+ Tax
Reduction
appeal
Newsletter
cycle.
Appeals
cycle
End year appeal
2 source
codes
MVD
programme
Personalised
cover letterFriends
Lapsing
newsletter
8 = Mail
12 = Final
Call
Chase Call
Pledgers
Annual/
biannual
upgrade Call Reminder
mail
Ad hoc
comeback
e-mail/
mail
Committed
Giving offer
HVD/ Legacy events
Challenge
preparation
e-mails
On line
giving
Repeat invite
& feedback
On line
entry
fee
New event
participant
Non Fiscal
Gift contact
Volunteer
Legacy
pledgers
Communications
preference
survey/ update
6 wks
6 wks
Committed
Givers
40+Euro & pa
annual thanking
3+ source
codes
Additional
action e-mail
HVD
programme
Introduction
evening
No add. Activity
15mths
18 mths
21 mths
24 mths
Lapse
communication
Welcome
back
letter
Annual thanks
and update

51. Part 4: Complexity and multiple
channels in a digital world

52. “… scheduling, segmentation and
tracking of campaigns. The use of
automation makes processes that
would otherwise have been
performed manually much more
efficient and makes new processes
possible”
Marketing Automation
definition

53. Page 53Page 53
Automation can be basic or complex
Basic Complex
• Newsletter sign
up responders
• Emails triggered
by a date (eg
birthday)
• Sending
reminders
• Triggering
content based
on an action
Developing
• Customer
journeys
• Applying rules -
If this, then that

54. • Fully automated customer journeys – based on triggers
and interactions (or non interaction).
• Uses insight and logic rules so we can plan based on
behaviour and interaction – if this, then that.
• Craft different journeys based on language, location or
translation version downloaded.
• Adapt journeys based on results and experience
Tool – Journey Builder

56. Date
Questions?
Steve Thomas
Managing Director
Purple Vision
@stevethomas393
steve.thomas@purple-vision.com
29th April 2016