1

Online Metrics Demystified: Online Metrics Demystified: Understanding How to Understanding How to Measure Your SuccessMeasure Your Success

Steve MacLaughlin Steve MacLaughlin –– Director, Internet SolutionsDirector, Internet Solutions

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #2

Presentation Title or Product Name

� What is a metric?

� Why should I care?

� Why should I care?

� Website Metrics

� Email Metrics

� Online Fundraising Metrics

� Social Media Metrics

� Benchmarking and Beyond

The Market is NoisyAGENDA

2

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #3

Presentation Title or Product Name

�A standard unit of measure.

�A measurable element of a process or function.

�A measuring system that quantifies a trend, dynamic, or characteristic

What is a Metric?

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #4

Presentation Title or Product Name

�Help you understand what’s working and what’s not.

�Gives you insights into your constituents.

� If you can’t measure it, then you can’t manage it.

Why Do Metrics Matter?

3

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #5

Presentation Title or Product Name

What Online Metrics Tell You

How did they get here?

What did they do?

How did it work?

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #6

Presentation Title or Product Name

� Simple

– You understand it. Your boss understands it

� Measurable

– You can get accurate and complete data for it

� Actionable

– You can do something with it and measure the impact.

� Relevant

– You are measuring something that’s actually important.

� Timely

– You can get the data when you need it.

The Market is NoisyWhat is a Good Metric?

4

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #7

Presentation Title or Product Name

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #8

Presentation Title or Product Name

Unique Unique Identified Identified VisitorsVisitors

Unique Unique VisitorsVisitors

VisitsVisits

Page ViewsPage Views

HitsHits

5

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #9

Presentation Title or Product Name

�A request for a file from the web server.

�A single web page typically consists of multiple files.

�A hit is registered for the page, every image, and any other files present on that page.

Hits

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #10

Presentation Title or Product Name

�A request to load a single web page.

�A metric for the entire site or specific content.

�A useful metric over a period of time or for a specific event.

Page Views

6

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #11

Presentation Title or Product Name

�A site visit during a set period of time.

�A visit contains one or more page views.

�A visit helps understand what people do when they visit your site.

Visits

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #12

Presentation Title or Product Name

�A visit by a unique individual.

�A unique visitor is typically based on an IP address or cookie.

�A unique visitor metric helps compare new visitors to repeat visitors.

Unique Visitors

7

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #13

Presentation Title or Product Name

�A visit by a unique identified individual.

�A unique identified visitor is tracked based on information stored in a central database.

�A unique identified visitor metric is the ultimate metric for tracking website visitor behavior.

Unique Identified Visitors

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #14

Presentation Title or Product NameRoadmap Options

8

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #15

Presentation Title or Product Name

�Referrers

�Bounce Rate

�Conversion Rate

�Click Density

�Page View Duration

Other Website Metrics

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #16

Presentation Title or Product Name

9

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #17

Presentation Title or Product Name

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #18

Presentation Title or Product Name

The Metrics that Matter

� Deliverability

� Open Rate

� Click-Through Rate

� Unsubscribe Rate

� Conversion Rate

Source: ReturnPath

10

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #19

Presentation Title or Product Name

Deliverability

� Deliverability measures the % emails successfully delivered or not� This is an inexact number as not all ISPs report delivered email

Your Sender’s Reputation Impacts Deliverability

� Blackbaud:– Sender Score= 70– Accepted Rate= 99.03%– Risk= Low

Source: ReturnPath

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #20

Presentation Title or Product Name

Open Rate

� Open Rate measures the % of opened emails that were delivered

� Open Rate can only be tracked on HTML-based emails, not Text emails

� Many systems block images used to track whether an email has been opened

� Preview Panes can also provide false-positive open rates

� The average open rate for known recipients is 19%. Your results may vary

BUT…

� Just getting the message opened doesn’t mean you’re safe

� A recent Email Sender and Provider Coalition (ESPC) study showed that…

– 80% of respondents decide whether to click on the "Report Spam" or "Junk" button without opening the actual message

– 73% based that decision on the "From" name

– 69% percent based the decision on the subject line

Source: MarketingSherpa

11

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #21

Presentation Title or Product Name

Click-Through Rate

� CTR measures the % of links clicked by unique individuals in an email

� Be sure to look at both unique and per-individual CTRs in your metrics

� CTRs are highly dependant on the quality of the email segmentation, content, and design

Unsubscribe Rate

� Unsubscribe Rate measures % of opt-outs from the email

� Remember…to be CAN-SPAM compliant you must allow for opt-outs

� Allow people to remove themselves from certain email lists as well as all communication

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #22

Presentation Title or Product Name

Conversion Rate

� Conversion Rate measures % of clickthroughs that resulted in an action

� Actions could be making a donation, registering for an event, taking a survey, renewing a membership, or some other trackable action

� Conversion Rate is the ultimate measure of the success of an email campaign

Deliverability Rate

Open Rate

Click-ThroughRate Conversion

Rate Unsubscribe Rate

12

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #23

Presentation Title or Product Name

The Metrics that Matter

� Deliverability =

� Open Rate =

� Click-Through Rate =

� Unsubscribe Rate =

� Conversion Rate = or

# Unsubscribes

(Sent – Bounced)

# Unique Clicks

(Sent – Bounced)

# Unique Opens

(Sent – Bounced)

(# Sent – Bounced)

# Sent

# Actions Completed

(Sent – Bounced)

# Actions Completed

Unique Responders (Clicks)

Source: Email Marketing by the NUM8ERS

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #24

Presentation Title or Product Name

How Long Does it Take to Measure Results?

� 50% of people will open an email in the first 9 hours

� 75% of people will open an email in the first 28 hours

� The remaining 25% may take several days

� The average email campaign has its peak open rate in 14 days

What is the Best Day of the Week to Send Email?

� There is no magic formula…so test, test, and oh yes, TEST!

� But…the most popular days are Tuesday through Thursday

� Saturday is the lowest volume email day of the week

Source: MarketingSherpa

13

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #25

Presentation Title or Product Name

� # Email Addresses

� Valid Addresses

� Average Open Rate

� Average Conversion Rate

� Revenue Per Email Appeal

� Gifts Per Email Appeal

Even More Email Metrics

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #26

Presentation Title or Product Name

Email Tracking

Open Rate Click-Through Rate Page Completion Rate Response Rate

Email #1 15.5% 1.7% 19% 0.12%

Email #2 14.8% 1.1% 16.5% 0.13%

Email #3 6.3% 0.8% 9.2% 0.09%

Email #4 27.3% 2.2% 11.2% 0.47%

Email #5 17.3% 1.2% 17.2% 0.17%

Source: 2008/ 2009 eNonprofit Benchmarks Study

Email Metrics Samples

14

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #27

Presentation Title or Product Name

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #28

Presentation Title or Product Name

2008 Total Fundraising (US)

$292.23 Billion Offline

$15.42 Billion Online

Source: Giving USA / Blackbaud

15

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #29

Presentation Title or Product Name

US Fundraising Trends

$0

$50,000,000,000

$100,000,000,000

$150,000,000,000

$200,000,000,000

$250,000,000,000

$300,000,000,000

2001 2002 2003 2004 2005 2006 2007 2008

$246B $245B $243B $245B $283B $295B $314B $307B

Source: Giving USA

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #30

Presentation Title or Product Name

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

16,000,000,000

120%

Growth

100%

Growth

73%

Growth

38%

Growth

72%

Growth

53%

Growth

56%

Growth

2001 2002 2003 2004 2005 2006 2007 2008

$550M $1.1B $1.9B $2.62B $4.5B $6.87B $10.7B $15.42B

44%

Growth

Source: ePhilanthropy Foundation, Blackbaud

US Online Fundraising Trends

16

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #31

Presentation Title or Product Name

Turning Data into Information

� Total Constituents

� Total Donors

– Online

– Offline

– Online and Offline

� Total Gifts

– Online

– Offline

� Total Revenue

– Online

– Offline

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #32

Presentation Title or Product Name

Online Fundraising Metrics Sample

17

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #33

Presentation Title or Product Name

More Fundraising Metrics

� # Retained Donors

– Retained Donor Revenue

– Revenue Per Retained Donor

– All Donor Retention Rate

– Multi-Year Donor Retention

� # New Donors

– New Donor Revenue

– Revenue Per New Donor

– Retained New Donors

– New Donor Retention

� # Reactivated Donors

– Reactivated Donor Revenue

– Revenue Per Reactivated Donor

– Donor Reactivation Rate

– Reactivated Donor Retention

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #34

Presentation Title or Product Name

How much should you be raising online?

Online Fundraising as Percentage of Total ContributionsTotal Contributions $1,000,000 $10,000,000 $15,000,000 $25,000,000 $50,000,000 $75,000,000 $100,000,000

1% Raised Online $10,000 $100,000 $150,000 $250,000 $500,000 $750,000 $1,000,000

3% Raised Online $30,000 $300,000 $450,000 $750,000 $1,500,000 $2,250,000 $3,000,000

5% Raised Online $50,000 $500,000 $750,000 $1,250,000 $2,500,000 $3,750,000 $5,000,000

7% Raised Online $70,000 $700,000 $1,050,000 $1,750,000 $3,500,000 $5,250,000 $7,000,000

10% Raised Online $100,000 $1,000,000 $1,500,000 $2,500,000 $5,000,000 $7,500,000 $10,000,000

12% Raised Online $120,000 $1,200,000 $1,800,000 $3,000,000 $6,000,000 $9,000,000 $12,000,000

15% Raised Online $150,000 $1,500,000 $2,250,000 $3,750,000 $7,500,000 $11,250,000 $15,000,000

20% Raised Online $200,000 $2,000,000 $3,000,000 $5,000,000 $10,000,000 $15,000,000 $20,000,000

� In 2008, approximately 5% of all fundraising was done online.

� In 2008, approximately 11% of revenue came from the Internet for Nonprofits in the 2008 donorCentrics™ Internet Giving Collaborative Benchmarking Analysis

18

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #35

Presentation Title or Product Name

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #36

Presentation Title or Product Name

� Friends / Followers / Diggs / Tweets / ReTweets

� Click-Throughs

� Conversions

Social Media Metrics

19

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #37

Presentation Title or Product Name

Social Media Funnel

Online Action | Offline Action

Social Networks

Social Media

Email

Website

RSS

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #38

Presentation Title or Product Name

20

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #39

Presentation Title or Product Name

Average Online Gift Benchmarks

Average Online Donation

£34

Average Blackbaud Online Donation

£67

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #40

Presentation Title or Product Name

Online Fundraising Growth Trends

2007 2008 2009

21

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #41

Presentation Title or Product Name

Source: 2008/ 2009 eNonprofit Benchmarks Study

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #42

Presentation Title or Product Name

Email List Churn

79%

5% 16%

2006 List Churn

Retained

Unsubscribed

Other Churn

81%

6% 13%

2007 List Churn

Retained

Unsubscribed

Other Churn

Source: 2008 / 2009 eNonprofit Benchmarks Study

22

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #43

Presentation Title or Product Name

Email List Churn

81%

6% 13%

2007 List Churn

Retained

Unsubscribed

Other Churn

81%

6% 13%

2008 List Churn

Retained

Unsubscribed

Other Churn

Source: 2008 / 2009 eNonprofit Benchmarks Study

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #44

Presentation Title or Product NameOnline Fundraising Benchmarks

Open Rate Click-Through Rate Page Completion Rate Response Rate

2008 14.0% 0.6% 19% 0.12%

2007 14.8% 1.1% 16.5% 0.13%

2006 17.3% 1.2% 17.2% 0.17%

eNewsletters Benchmarks

Open Rate Click-Through Rate

2008 15.0% 2.1%

2007 17.6% 3.6%

2006 21.8% 4.3%

Source: 2008/ 2009 eNonprofit Benchmarks Study

Online Advocacy Benchmarks

Open Rate Click-Through Rate Page Completion Rate Response Rate

2007 16.0% 5.5% 88.0% 4.5%

2006 18.9% 10.2% 85.3% 8.6%

2006 23.8% 8.6% 88.5% 7.5%

23

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #45

Presentation Title or Product Name

�Metrics help you understand what’s working and what’s not.

�Metrics give you insights into your constituents.

� If you can’t measure it, then you can’t manage it.

� Start measuring!

What to Remember

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #46

Presentation Title or Product Name

� My Blog

– www.blackbaud.com/connections

� Blackbaud Internet Resources

– www.blackbaud.com/internetresources

� TechSoup

– www.techsoup.org

� NTEN

– www.nten.org

The Market is NoisyWant to learn more? Be sure to check out….

24

Blackbaud’s Conference for Not-For-Profits — London | Steve MacLaughlin | Page #47

Presentation Title or Product Name

Questions? Answers?

steve.maclaughlin@blackbaud.com

www.blackbaud.com/connections