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Acquisition

Acquisition. Katie Valvo Associate Director, Acquisition The Nature Conservancy kvalvo@tnc.org. Audience Balance Balance High Value Audience Growth List Tiering Cooperative Data Creative Multivariate Testing Package to Audience High Value.

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Acquisition

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  1. Acquisition Katie Valvo Associate Director, Acquisition The Nature Conservancy kvalvo@tnc.org

  2. Audience Balance • Balance High Value Audience Growth • List Tiering • Cooperative Data • Creative • Multivariate Testing • Package to Audience • High Value

  3. Mail Volume increased by 10% from FY07 to FY10

  4. Average Gift Falls Year-over-Year

  5. Recession begins in September 2008 (FY09) – average gift had already fallen against FY08 Average Gift

  6. Response falls then bounces back

  7. With the increase of QTY in FY08, response dropped by 10% and the Av Gift drops over $1 less than FY07

  8. Package Trends Did a change in the mix of packages used or a decline in performance in one package negatively impact FY09? Program has been very reactionary from heavy testing, economic conditions and package-driven performance months.

  9. Lists – Performance by Tiers Lists used in the previous fiscal year were ranked by net/donor, excluding the calendar mailing. For the following fiscal year: • Lists in the top 25% of net/donor are labeled Tier 1. • Lists in the next 35% of net/donor are labeled Tier 2. • Lists in the final 40% of net/donor are labeled Tier 3.

  10. There is a significant drop in the use of Tier 2 lists. We need to be diligent on list universe make-up.

  11. Another View: Tier 1 increases Yr Over Year, With Tier 2 Shrinking & Tier 3 increases – FY10 Appears to be on a Good Start

  12. 60% of universe on Test & Tier 3 Lists & highest Cost/Donor – directly affect the bottom-line

  13. Average Gift Softened Most with Tier 1 Lists

  14. Environmental Lists Impact All Tiers

  15. Impact FY11 - Present

  16. Creative

  17. Multivariate Test Design

  18. Five significant effects: A-: Control envelope is better (by 20.8%) with a cost of $29.85 / 1k for the new OE O-: With the drop in response, the upgraded asks have a negative impact on net revenue (hurt 15.0%) F-: Larger letter format hurts net revenue by 9.5% at a cost of $1.80 / 1k B-: Bubble-padded OE hurts net revenue 7.1% at a cost of $9.80 / 1k P+: Highlighting one ask increases revenue 6.2%

  19. Optimal Package

  20. Package to Audience Mix and High- Value

  21. Audience Balance • Balance High Value Audience Growth • List Tiering • Cooperative Data • Creative • Multivariate Testing • Package to Audience • High Value • THANK YOU!

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