How simple analysis opened up a new source of income

Lee Gisbourne – Database Marketing Manager

Agenda

• Background

• Database Marketing

• The Challenge

• The Analysis

• The Campaign

• Results

• Questions

1 Background (a)

• Charity founded in 1824• (National Institution for the

Preservation of Life from Shipwreck …)

• Royal National Lifeboat Institution 1854

• First co-ordinated rescues with helicopters 1957

• Inland waters and beach lifeguards 2001

• Hovercraft and lifeboats on the Thames 2002

• Training college & survival centre 2004

Key dates

1 Background (b)

• Saving lives at sea • 235 stations• 330 lifeboats• 4,600 crew 3,000 shoreline

helpers• 163 beaches• 20 boats, 11 RWC• 900 lifeguards / 120 volunteers• 1,000+ fundraising branches

and guilds • 35,000 volunteer fundraisers • 97% volunteers

Key facts

1 Background (c)

• £64.2M rescue • £49.6M operational service• £4M prevention• £23M fundraising• No UK Government funding

The cost …

1 Background (d)

• 8,713 launches in 2010• 309 lives saved• 8,313 rescues (23 a day)• Beach Lifeguards called to

16,664 incidents in 2010• Assisted 18,779 people• 107 lives saved• Since 1824 more than 139,000

lives saved

… and the benefit

2 Database marketing

Key responsibilities

• Mailing selection & extraction – 100+ campaigns

• Data management - 2M supporter records

• Campaign results analysis

• Ad-hoc reporting

• KPI reporting

• Insight delivery

…delivery of data driven marketing

3 The challenge (a)

RNLI challenge

• Find a ‘significant’ new income stream

…from existing supporters

• Believed we have an affluent supporter base

• £25 average gift

• Full calendar of appeals and asks

• Within the constraints of current internal systems

3 The challenge (b)

Marketing challenge and aims

• Recognise ‘higher value’ supporters

• Provide a personalised supporter experience

• Introduce a tangible ask - £1214 to train a crew member

• Short term - 1 year commitment to training

• Allow the supporter to donate in the way that suited them

• Bridge the gap between ‘high level donors’ and ‘higher value’ supporters

4 Analysis (a)

Understanding the supporter base

• Past behaviour

• Transaction history

• Personal data

• Purchased demographics

Acorn classificationsWealth intelligenceAcxiom variables

4 Analysis (b)

• Do the RNLI have an affluent base?

• Is this just the charity supporting population?

Acorn classifications - wealthy achievers

4 Analysis (c)

• Acxiom waited attribute including;~ Household Income~ Type of Property~ Council Tax Banding of property~ Home ownership Status~ Number of earners in household~ Dependent children in household~ Investment Activity~ Credit Cards in household~ Technology in household

Household affluence

4 Analysis (d)

• Data audit• Wealth bands• Geographic region• Age bands• Social and corporate attitudes• Charity segments

Wealth intelligenceWealth band Total

£50m+ 250

£25m - £50m 250

£10m - £25m 700

£5m - £10m 3,500

£1m - £5m 18,500

Unknown 2,500

Grand Total 25,700

4 Analysis (e)

• 1/3 this year - active• 1/3 1 to 4 years• 1/3 5 years and over

Year of last donation

4 Analysis (f)

• 30% - under £25• 60% - £25 - £100• 3% - £200 - £5000

Total value of gifts over the last 12 months

Total value over 12 months Supporters

£1 - <£25 148,000

£25 - <£100 296,000

£100 - <£200 52,000

£200 - <£500 12,000

£500 - <£5000 3,000

£5000 or over 250

5 The Campaign (a)

The target market

• Analysis showed an affluent supporter base

• Decided to adapt a classic RFV

• Had given between £200 & £5,000 per year

• Had to have given it for the last 2 consecutive years

• Been supporting for over 5 years

• Personalised letter – giving history and years supporting

• A case for support document – highlighting what training crew go through

• Donation form and reply envelope

• Personal welcome call

• Several update mailings themed around training

The ‘pack’

5 The Campaign (b)

5 The Campaign (c)

3 Test segments

• High value committed givers - 370

• High value cash supporters - 410

• High value supporters choosing multiple payment methods - 370

Targets• Learn • 1% response rate

• Committed – 4% RR• Cash – 11% RR• Multi – 12% RR• 87 gave the full amount• Pack cost £5.16• Extra costs to manage

elements externally• Gift Aid Income £23K

• 12 months before £44,000• 12 months following £117,000 • 166% increase in income

   

  KPI Results  

  Volume targeted 1175  

  Cash responses 67  

  Direct Debit response 37  

  Response Rate 9%  

  Income exc GA £106K  

  Expenditure £19K  

  ROI exc GA £5.60  

       

       

6 Results (a)

Campaign results

6 Results (b)

Next Steps• Monitor the responders for the next 12 months - what do they do when they aren’t asked?

• 23 supporters have decide to continue

• Roll out to a large audience in 2012

• Tackle internal processing issues

6 Results (c)

Key Learning's and Advice• People will analyse your date for free … let them • You have a database full of data … you know your data better than anyone• Recency, Frequency, Value is always a good place to start

• Supporters will give high value gifts … but you do have to ask

• Do not let internal systems stop you testing something new … if you wait for systems to be perfect it will never happen