Making Sense of Metrics

Transcription

1 Making Sense of Metrics CCS 3 1

2 Learning Objectives Understand the basic definitions of key fundraisingrelated metrics Investigate why metrics matter Share advice and best practices in the use of metrics Discuss how we can all use metrics to drive activity, inform and improve our work, raise more money, and better engage institutional leadership What are Metrics? Metrics are data measurements that allow organizations to: Set Goals Monitor Progress Measure Performance Build Accountability Better Understand our Donors and Prospects Help Us Identify New Opportunities Determine Which Techniques Work Best Drive Good Decision Making for the Future Encourage Activity More Asks! Audiences for Metrics Metrics are for several different audiences: Personal Fundraising Staff Administrative Staff Executive Staff Board Members Volunteers 2

3 Sample Metrics Total Raised Return on Investment (ROI) Cost to Raise a Dollar Total Number of Donors Dollars Raised per FTE or Frontline FTE Donor Retention Donor Acquisition Donor Upgrades Sample Metrics Average Gift # Volunteers Engaged in Cultivation/Asks Moves Entered into Database Actual Cash Raised Not Just Pledges Gifts by Source Gifts by Purpose Board Giving Board Engagement Cost to Raise a Dollar (CTR$) 3

4 Cost of Fundraising and ROI Return on Investment (ROI) = (Gross Revenue Expense of Investment) * 100 Expense of Investment Example: Total Gifts Received: $1,000,000 Fundraising Expenses: $200,000 ROI 400% = ($1,000,000 $200,000) * 100 $200,000 Sample Metrics MGOs Number/Amount of Prospects by Readiness/Stage Number of Prospects Identified/Qualified/Rated Total Portfolio Capacity Number of Contacts by Type Moves Face to Face Moves Number/Amount of Solicitations Sample Metrics MGOs Number/Amount of Gifts Closed Affinity Rating Average Time in Each Solicitation Stage Solicitation Yield (Average Gift/ Average Request) Conversion Rate (# of Asks/ # of Gifts) Percent of Portfolio Visited 4

5 Portfolio and Activity Benchmarks Benchmark Low High Target* Portfolio Size % in Discovery/ Qualification 10% 30% 20% # of New Prospects per MGO/ Year % in Solicitation / Negotiation 20% 30% 20% # of Solicitations per Year % of Solicitations Closing 33% 66% 40% # of Solicitations Closing per Year Length of Time in Cultivation 12 months 18 months 12 months Time from First Contact to Gift 18 months 24 months 18 months *Target activity benchmarks are for consideration Individual Goals Solicitations FY Goal Current Qtr Goal Current Qtr Complete Quarter % Achieved MGO % MGO % MGO % MGO % MGO % MGO % Total % Team Goals Solicitations Goal Planned Actual Q Q Q Q FY12 Total

6 Sample Metrics Advancement Services Number of lost addresses found Prospect research profiles completed Data analytics reports generated Number of new prospects identified Number of visit briefing memos prepared Number of proposals written Sample Metrics Annual Fund Manager Total annual giving donors RFM (recency, frequency, monetary value) = propensity Donor loyalty consecutive years of giving Retention rates / Acquisition rates Gift upgrades Conversion rates non donors to donors % giving by alumni, boards, faculty, staff Ready to Begin Using Metrics? Is what we are measuring designed to produce outcomes? Do we have a way to track data consistently? Do we have a way to extract data? Do we have the ability to interpret the data? What will we do with all the information? How do we stay up to date? Are we prepared to live with this system for 3+ years? To whom do we report our progress and how? 6

7 Don t Forget to Keep it simple Embrace the data Use it regularly analyze it annually Focus on the future Ensure consistent use Encourage and support self tracking Engage the whole team Think of this as a journey not a destination Metrics as a Management Tool Clarifies and focuses thinking; sets expectations Establishes a framework for predictive planning and action Becomes the basis for performance evaluation Provides content for effective dialogue Empowers gift officers Provides process control which enables outcome control Provides a way for staff to evaluate resources and prioritize activity Metrics as a Management Tool Helps to engage leadership (CEO, CFO, Board) Provides information they want to know (accomplishments, forecasts) Challenges leaders to accept their own metrics (visits per month, total solicitations, board recruitment, etc.) 7

8 We have all these data points. What do we do now? Use Analytics to Increase Effectiveness Select a metric to evaluate Identify performance targets Develop a testing theory Collect performance data Analyze the information Develop and implement solutions (as required) Analytics Example #1 THEORY: We are identifying enough prospects. Gift Officer Portfolio Size % in Discovery # Needed # Acquired W. Miley % B. McCarthy % J. Collmenter % B. Arroyo 75 20% Total % RESULT: The data confirms our theory No action required 8

9 Analytics Example #2 THEORY: Face to face visits result in larger gifts. FY2011 Visited in Person Not Visited in Person Gift Officer # of Gifts Total $ # of Gifts Total $ # of Gifts Total $ W. Miley 46 $ 2,800, $1,950, $ 850,000 B. McCarthy 28 $ 1,250, $ 800, $ 450,000 J. Collmenter 32 $ 1,400, $ 925, $ 475,000 B. Arroyo 18 $ 675,000 9 $ 450,000 9 $ 225,000 Total 124 $ 6,125, $4,125, $2,000,000 RESULT: The data confirms our theory Investigate ways to increase face to face visits Implementing Metrics Keys to Success Carefully select and prioritize which metrics will be measured as this will influence the work performed by staff Begin tracking the metrics that can be measured easily (moves, face to face moves, and solicitations) Add other metrics (contacts, percent of portfolio visited, close rate, length of time in each solicitation stage, etc.) over time Develop business rules around what qualifies as an action Ensure system wide data entry Implementing Metrics Keys to Success Provide training as needed Create realistic goals using projections based on historical performance; consider individualized goals Establish interim benchmarks (e.g. quarterly, monthly, etc.) to make the objectives achievable and monitor progress on a regular basis Give joint credit to all members of the prospect team actively involved in cultivating, soliciting and closing a gift Phase in metrics over time (12 to 24 months+) acknowledging that changes in process/culture take time 9

10 Speaker Information Chris Looney, Principal & Managing Director Claudia Looney, Senior Consultant Jim Looney, Senior Consultant CCS 300 Spectrum Center Drive, Ste Irvine, CA (877)