What’s the Big Deal About Big Data?How Insights & Analysis Will Drive Your Fundraising Future

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Session Concepts

• Overview

• What is Big Data?

• Who is using Big Data and how

• Big Data in the non profit market

• Creatively using data, big and small

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My Background• Not a data scientist, statistician

or technology guru but …

• a 25+ year database marketer with specific focus on turning data insights into actionable program strategies.

• Agency background serving broad range of non profit clients including size, niche, regional and national programs.

• All engagements have been grounded in data-driven decision making and a donor-centric approach.

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Circa 80s Circa 90s - 2007 Current

A personal retrospective on data sources and tools

Forecasting the future of information – 2020 Vision

• 1991 book co-authored by Stan Davis and Bill Davidson

• Companies should ‘informationalize’ their business• create products and services on basis of information

• use ‘information exhaust’ to grow offerings

• 20+ years ago stock market, airlines leading the way

• Today, online companies including Amazon, Google, Facebook leading the way in giving customers information, making decisions easier.

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SOURCE: Thomas H. Davenport Analytics 3.0 Harvard Business Review December 2013

What is Big Data?

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Big Data is …

vast volumes of unstructured fast moving data from many resources.

- Thomas H. Davenport Analytics 3.0 Harvard Business Review December 2013

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What is structured and unstructured data?

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Structured data resides in fixed fields within a record or file. SQL databases and spreadsheets, other tools contain structured data.

Unstructured data has no identifiable structure, can be many types of information like images, text, objects, emails.

Where is Big Data coming from?

Many places!•Web browsing data trails

• Social network communications

• Sensor and surveillance data, etc.

Per IBM, 90% of the world’s data has been created in the past two years

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SOURCE: Rob Petersen 6 case studies show Big Data is helping decision making Biznology December 2012

What type of data is being gathered?

All kinds of things!• Traditional personal identification information like name, address, e-address, phone numbers

• Secured information like social security, driver’s license, credit cards

• Using smart code logic, detailed promotions and transactions

• Demographic information (age, income, presence of ____), etc.

• Customer survey, satisfaction feedback

• Interests, opinions, preferences

• Friends, family, relationships

• Images

• Actions, inactions

• There’s even data about data (metadata)

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Where and how is Big Data being gathered and analyzed?• Structured and unstructured data is being collected from

disparate systems and consolidated into• Data warehouses, NoSQL databases, Hadoop clusters

• In today’s environment multiples of the above

• On analytics and data insights front•Machine-learning, embedded analytics integrating data into day-to-day decision making

•More emphasis on prescriptive analytics v. descriptive, predictive

• New processes, organizational structures and functions including data scientists, chief analytics officers

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How Big Data is being used

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ORION- on road integrated optimization and navigation

• 107 year-old company, delivers 16.3m packages per day, manages 39.5m tracking requests daily

• 1980s began tracking package movement, transactions

• Today have telematics sensors on 46,000 trucks monitoring• Speed, braking, direction, vehicle performance

• Incoming data monitors performance, informs route redesigns• Uses online map data and algorithms

• 2011 cut 85 million miles out of drivers’ routes, saved 8.4 million in fuel

• Moving forward, UPS will use ORION to effect ‘real-time’ reconfigurations

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SOURCE: Thomas H. Davenport Analytics 3.0 Harvard Business Review December 2013

Big Data & Analytics

• IBM youtube clip AD http://www.youtube.com/watch?v=xJfP_o_fANA

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SOURCE: IBM.com/big data

Big Data in the non profit world

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Most non profits on the Big Data and analytics continuum

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Mid 1950s, early analytics

SOURCE: Thomas H. Davenport Analytics 3.0 Harvard Business Review December 2013

Why only 1.0 in the non profit market?

• We are behind on technology• Even our technology is behind on technology

• Online constituents and revenues still lag far behind commercial marketplace • Per Charity Navigator, $2.1 billion donated in 2012

• Per Inquisitr website, $39 billion in holiday sales alone in 2012

• Operationally, financially and from a marketing perspective our industry is not fully integrated

• Budget limitations, technology and change is not cheap

• In many ways and for many reasons, still not fully focused on our donors and constituents’ experience

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What we can, should and/or are doing in this phase

• Clean up our data base(s)• Set, adhere to business rules regarding data storage, maintenance

• Ensure smart source coding structure

• Consolidate marketing data into an accessible, flexible system• Carry over impactful donor and marketing information

• Collect/append more donor-centric information like interests, affinity, demographics to help build comprehensive donor profiles, better understand potential value to you• Set treatment and messaging plan, investment levels

• Become not only data savvy, but data creative

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Data warehouse systems & reporting tools

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Future Big Data Landing Zone

Essential ReportsDashboard-based reporting will enable varying constituents to view meaningful results in a timely fashion. Consolidated, accessible, ‘clean’ data translates to insightful analysis and in turn solid business decisions, innovative and winning strategies.

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How data (even ‘smaller’ data) can be leveraged to drive relevant communications and program growth

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Relevance driven by donor behavior and relationships

Relationships

Behaviors

Engaging younger constituentsAge 45-54 - Top Channels

Channel Donors Gifts Revenue Value/MemberDirect Marketing

58,390

98,054

$7,021,583 $ 120.25

Special Trips 77 99 $320,577 $ 4,163.34

Planned Gifts 14 14 $1,442,472 $ 103,033.72

Special Events 316 575 $383,560 $ 1,213.80

Major Donors 129 171 $6,127,802 $ 47,502.34

Gatherings 46 63 $14,647 $ 318.41

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Background: Chapter-based environmental organization that wants to attract and engage younger membership.Using age overlay information, we identified that the most valuable group on a per member basis and the most active across engagement/giving opportunities were 45-54 year olds.Opportunity to target awareness-raising messaging to further engage ‘younger’ members in a variety of ways in the cause.

Creating more multi-channel, multi-activity donors

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Background: Large national health-based, signature events generate more than half of total donors and revenue.Internal tension to protect donors and revenue by channelDonors naturally migrate – 50% of revenue generated by event sourced donors came from another channel.Opportunity to proactively, strategically migrate, upgrade donors from one engagement/giving opportunity to another.

Optimizing known and inferred relationships

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Background: Regional health organization, markets nationally with premiums, mission-based offers.Converted warm prospects from services, outreach prove more valuable than those with unknown affinityNewsletter responders, a proxy for mission affinity highest overall valueLeverage for messaging, offer development, contact cadence.

Long-term value by channel acquired & donor profilesDIAMONDS

TO GO Direct Mail Zip Walk FSI SS Co-Op Other RR Web

Donors 44,464 7,396 1,969 1,493 515 288 2,352

% of File76.04% 12.65% 3.37% 2.55% 0.88% 0.49% 4.02%

Avg. Age58 55 61 60 56 58 51

First Gift $32.25 $36.00 $32.85 $31.51 $43.41 $53.52 $117.89

Life Value Per Donor $286.76 $380.03 $338.31 $457.53 $993.13 $614.30 $423.65

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Background: Diamonds to Go Missions overlay cluster with both highest number of donors and value per donor. Utilize information to determine investment by channelIn cultivations, test modified more aggressive gift arrayThough average gift may be lower than mid level, major donor consider investing in higher touch treatment

Finally, ‘Big Data is a key basis of competition and growth’

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Data equity will take its place next to brand equity, financial equity and human capital as a key business asset. - McKinsey Global Institute ‘Big Data’, June 2011

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Questions? Thank you!