Todays Agenda Information vs Insight FY20 Public Media Performance - - PowerPoint PPT Presentation

Today’s Agenda

• Information vs Insight
• FY20 Public Media Performance Benchmarks

Information vs. Insight

• Information:
• “Just the facts”- often without context
• Answers simple questions - and creates new ones
• Insights:
• Explain patterns
• Find problems
• Identify opportunities

Donor 5-Year Value – Which is doing better?

Overall Donor Retention – Which is better?

Lifecycle Mix

2nd Year Retention – Crisis? Yes or No?

FYTD15 FYTD16 FYTD17 FYTD18 FYTD19 Multi-Year 61% 62% 60% 62% 62% 2nd-Year 34% 34% 32% 28% 24% Reactivated 30% 34% 30% 32% 32%

0% 10% 20% 30% 40% 50% 60% 70%

Channel Mix

Conclusion

No slide or metric exists in a vacuum. Each one informs the others if you know where to look and can ask the right questions.

FY20 Public Media Performance Benchmarks & how you can use this information

Revenue Index (Gifts under $5,000)

UNDER $5K INDEX

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 100% 109% 119% 121% 133% 0% 20% 40% 60% 80% 100% 120% 140%

AFG Benchmark

FY20 revenue up 33% from donors giving < $5k compared to FY16. Has your station been experiencing similar growth?

Revenue Index (Gifts of $5,000+)

$5K+ INDEX

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 100% 147% 167% 192% 338% 0% 50% 100% 150% 200% 250% 300% 350% 400%

AFG Benchmark

Revenue from $5,000+ donors tripled in the last 4 years. Do you have a thoughtful plan for moving donors up the giving ladder?

Revenue by Week: January - June 2020

Insights

Key Finding: COVID 19 has neither increased nor decreased giving to Public Media Stations. Recommendations:

Don’t be concerned about “donor burnout.” Donor cultivation should continue as usual. Organizations that continued to fundraise during the early months of the pandemic raised as much – if not more – than the same time period in the prior year. Do re-evaluate control packages for tone & messaging. Some urgent messaging that worked well last year may sound “tone deaf” today. Be mindful of what the situation is in your community but keep fundraising.

Expected Outcome: Continued support of donors without declines in donor retention or revenue.

Revenue Index (Gifts under $5,000) Sustainers vs Single-Gift Program

Sustainer revenue has nearly doubled since FY16, while revenue from Single-Gift programs has improved 13%.

UNDER $5K INDEX

FY16 FY17 FY18 FY19 FY20 Sustainers 100% 127% 152% 167% 192% Single-GIft 100% 104% 107% 104% 113% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%

Share of Revenue (Gifts under $5,000) Sustainers vs Single-Gift Program

During the analysis period, revenue from Sustainers has increased from 27% to 39% of total revenue. At the same time, the share of revenue from Single-Gift donors has declined from 73% to 61%.

PERCENT OF REVENUE

FY16 FY17 FY18 FY19 FY20 Sustainers 27% 31% 34% 37% 39% Single-GIft 73% 69% 66% 63% 61% 0% 30% 60% 90%

Active Donor Index

ACTIVE DONOR INDEX

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 100% 113% 122% 123% 134% 0% 20% 40% 60% 80% 100% 120% 140%

AFG Benchmark

Active donor counts are up 34% since FY16. Are you utilizing all channels to drive donor acquisition – including digital lead generation?

Active Donor Index Sustainers vs Single-Gift Program

The number of Active Sustainer Donors has doubled over the analysis period, while Active Donors from Single-Gift programs have remained steady, gaining 7% since FY16.

ACTIVE DONOR INDEX

FY16 FY17 FY18 FY19 FY20 Sustainers 100% 131% 155% 176% 208% Single-GIft 100% 107% 108% 103% 107% 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% 220%

Consider the following

Do you have a multi-channel approach for converting single-gift givers to Sustainers? Are you utilizing digital lead generation to convert warm prospects to Sustainers? Have you tested a Sustainer-first ask in direct mail? Is your donation page set to recurring giving as the default?

Revenue per Active Donor

Revenue per Active Donor has remained consistent throughout the analysis period, at $146 in FY20.

REVENUE PER DONOR

FY16 FY17 FY18 FY19 FY20 AFG Benchmark $138 $137 $142 $142 $146 $0 $40 $80 $120 $160 $200

AFG Benchmark

Revenue per Active Donor Sustainers vs Single-Gift Program

On an annual basis, Single- Gift donors are of a similar value to Sustainers.

REVENUE PER DONOR

FY16 FY17 FY18 FY19 FY20 Sustainers $137 $134 $137 $136 $133 Single-GIft $135 $136 $142 $141 $145 $0 $20 $40 $60 $80 $100 $120 $140 $160

Insights

Key Finding: Revenue per Active Donor has remained remarkably stable during the analysis period while the file composition has changed a great deal. Both programs yield similar revenue per active donor metrics. Recommendation: You can’t ignore Single-Gift donors. You need an “And” strategy – one that focuses on both parts of your program. Expected Outcome: Optimizing each program will yield higher revenue for the station.

Percent of Donors Giving to Both Programs

Over the analysis period, between 3.2% and 4.0% of donors give to both the Sustainer and Single-Gift Programs.

PERCENT OF FILE GIVING TO BOTH PROGRAMS

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 3.4% 3.5% 3.4% 3.2% 4.0% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5%

AFG Benchmark

Insights

Key Finding: Only between 3% - 4% of active donors give to both a Sustainer and Single-Gift in any one year – or less than one-in-twenty. Recommendation:

Look for multiple opportunities throughout the year to send Sustainers an Add Gift appeal. Be deliberate about converting donors to both programs FY21.

Expected Outcome: Doubling the percent of donors giving to both programs could increase annual revenue by 4%.

New Donor Index

In FY20, donor counts for Public Media are up 38% compared to FY16, and very close to the high-water mark of FY17.

ACQUISITION INDEX

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 100% 139% 130% 109% 138% 0% 30% 60% 90% 120% 150%

AFG Benchmark

New Donor Index Sustainers vs Single-Gift Program

More emphasis has been placed on acquiring Sustainers during the analysis period. The Single-Gift program, while dipping in FY19, rebounded in the latest FY.

ACQUISITION INDEX

FY16 FY17 FY18 FY19 FY20 Sustainers 100% 152% 144% 132% 185% Single-GIft 100% 125% 115% 96% 109% 0% 30% 60% 90% 120% 150% 180% 210%

Average Gift Size

As expected, as more Public Media stations have transitioned to monthly giving programs, the Average Gift has declined over the analysis period, from $42 in FY16 to $30 in FY20.

AVERAGE GIFT

FY16 FY17 FY18 FY19 FY20 AFG Benchmark $42 $37 $33 $31 $30 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45

AFG Benchmark

Average Gift Size Sustainers vs Single-Gift Program

The Average Gift Size in the Single-Gift Program has been in the $80 range for the entirety of the analysis period, compared to the $16-19 range for Sustainer Donors.

AVERAGE GIFT

FY16 FY17 FY18 FY19 FY20 Sustainers $19 $18 $16 $16 $16 Single-GIft $83 $80 $80 $83 $86 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90

Average Gift Size – New Donors

New Donor average gift size has declined over the analysis period, again, because of the increased emphasis on monthly giving in acquisition.

NEW AVERAGE GIFT SIZE

FY16 FY17 FY18 FY19 AFG Benchmark $49 $34 $33 $34 $0 $20 $40 $60 $80 $100

AFG Benchmark

Average Gift Size – New Donors Sustainers vs Single-Gift Program

The Average Gift from New Donors in the Single-Gift Program has been in the $80 range for the analysis period, compared to the $13-17 range for Sustainer Donors. What size Sustainer gifts are you soliciting? If you’re asking for $5

• r $10, consider testing a higher

entry amount – especially online where you can adjust quickly.

NEW AVERAGE GIFT

FY16 FY17 FY18 FY19 FY20 Sustainers $17.51 $14.91 $13.65 $13.98 $13.11 Single-GIft $89.29 $73.11 $74.50 $75.82 $73.54 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100

Average Gift Size – Reactivated Donors

The average gift size of Reactivated Donors has also declined, but to a lesser degree.

REACTIVATED AVERAGE GIFT SIZE

FY16 FY17 FY18 FY19 AFG Benchmark $73 $67 $65 $65 $0 $20 $40 $60 $80 $100

AFG Benchmark

Average Gift Size – Reactivated Donors Sustainers vs Single-Gift Program

The Average Reactivated Gift Size in the Single-Gift Program has been in the $100 range for the analysis period, compared to the $20-$30 range for Sustainer donors.

REACTIVATED AVERAGE GIFT

FY16 FY17 FY18 FY19 FY20 Sustainers $27.82 $22.88 $25.00 $23.09 $34.57 Single-GIft $94.79 $89.77 $93.98 $94.90 $99.53 $0 $20 $40 $60 $80 $100 $120

Average Gift Frequency

The transition to monthly giving has improved overall Gift Frequency -- at 5.02 gifts per donor in FY20, the high-point of the analysis period.

GIFT FREQUENCY

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 3.34 3.78 4.47 4.77 5.02 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 5.50 6.00

AFG Benchmark

Average Gift Frequency Sustainers vs Single-Gift Program

The Gift Frequency for Sustainer donors is nearly 9 gifts/year, compared to Single-Gift donors, who are at 1.52 gifts. Offer Single-Gift donors more reasons to give by introducing Newsletters into the mix as well as packages with new/varied themes.

GIFT FREQUENCY

FY16 FY17 FY18 FY19 FY20 Sustainers 7.52 7.83 8.66 8.88 8.74 Single-GIft 1.50 1.61 1.73 1.57 1.52 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00

Average Donor Retention

Overall Donor Retention has improved over the analysis period -- at 76% in FY20.

OVERALL RETENTION

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 70% 72% 73% 74% 76% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

AFG Benchmark

Average Donor Retention Sustainers vs Single-Gift Program

The Average Donor Retention for Sustainers has been in the 80+% range. For the Single-Gift Program Donors, Retention is in the mid 60s%.

OVERALL RETENTION

FY16 FY17 FY18 FY19 FY20 Sustainers 81% 81% 83% 84% 84% Single-GIft 63% 65% 64% 64% 66% 0% 30% 60% 90%

Average Second Year Donor Retention

Second Year Donor Retention improved over the analysis period -- reaching 56% in FY20.

2ND YEAR RETENTION

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 46% 50% 55% 54% 56% 0% 10% 20% 30% 40% 50% 60% 70%

AFG Benchmark

Average Second Year Donor Retention Sustainers vs Single-Gift Program

The Average Second Year Donor Retention for Sustainer Donors has also been in the 80% range. For the Single-Gift Program Donors, Second Year Retention is about half that.

2ND YEAR RETENTION

FY16 FY17 FY18 FY19 FY20 Sustainers 81% 82% 83% 82% 82% Single-GIft 36% 37% 38% 36% 40% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Second Year Donor Retention By First Gift Channel

Direct Mail acquired donors had the highest retention rates in the second year, at 60%. Online acquired donors were below 50%.

SECOND YEAR RETENTION BY FIRST GIFT CHANNEL

60% 48% 42% FY20 Second Year Retention - Direct Mail FY20 Second Year Retention - Online FY20 Second Year Retention - Other

Average Multi-Year Donor Retention

Multi-Year Donor Retention has remained consistently high throughout the analysis period, at 83% in FY20.

MULTI YEAR DONOR RETENTION

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 80% 81% 82% 82% 83% 0% 25% 50% 75% 100%

AFG Benchmark

Average Multi-Year Donor Retention Sustainers vs Single-Gift Program

The Average Multi-Year Donor Retention for Sustainer Donors, again, in the 85% range. For the Single-Gift Program Donors, Multi- Year Retention is in the low to upper 70s%.

MULTI YEAR DONOR RETENTION

FY16 FY17 FY18 FY19 FY20 Sustainers 81% 81% 82% 85% 85% Single-GIft 74% 76% 77% 76% 77% 0% 25% 50% 75% 100%

Average 13-24 Lapsed Donor Reactivation

Reactivation Rates for donors who missed a year

• f giving have remained

consistently in the low 20%s. Review your direct mail and E-Renewal programs

• regularly. Consider a

Renewal Program Audit to help shore up any weaknesses.

LAPSED DONOR REACTIVATION

FY16 FY17 FY18 FY19 FY20 AFG Benchmark 23% 24% 23% 22% 23% 0% 10% 20% 30% 40%

AFG Benchmark

Average 13-24 Lapsed Donor Reactivation Sustainers vs Single-Gift Program

Single-Gift program donors are more than twice as likely to reactivate if they miss a year

• f giving.

Review your process for recapturing Sustainer “rejects.” Time is your enemy here. Are Lapsed Sustainers being put back into the Single-Gift program for reactivation?

LAPSED DONOR REACTIVATION

FY16 FY17 FY18 FY19 FY20 Sustainers 12% 11% 10% 9% 10% Single-GIft 21% 22% 21% 21% 23% 0% 10% 20% 30%

Five Year Donor Value Sustainers vs Single-Gift Program

The Five-Year Value of a Sustainer Donor is 1.8 times as valuable as the Five-Year Value of a Single-Gift Donor.

LONG TERM VALUE

$458 $247 Sustainers Single-GIft

Three Year Donor Value By First Gift Channel

Direct Mail & Online acquired donors have virtually identical 3- Year values. Donors acquired via other methods (pledge) had higher values.

THREE YEAR VALUE BY FIRST GIFT CHANNEL

$155 $155 $222 3-Year LTV - First Gift Direct Mail 3-Year LTV - First Gift Online 3-Year LTV - First Gift Other

How can I get this data for my own station?

• The data in this presentation was gleaned from Strategic

Growth Analyses (SGA) performed for our clients. If you would like to learn more about the SGA and how we can analyze your donor data email: dmerlino@allegiancefundraising.com

Thank you