Today, we have many things to worry about, watch for, measure, monitor and just deal with in general. With the increased social landscape, it seems like there is just so much to think about, but how do you identify what to prioritize
Key Performance Indicators, or KPIs, should be quick, easily understood, and comprehensive. A tall order I know. There are several that should be standard like gross revenue year-to-date, year-over-year, number of donors, average giving, total number of unique contacts, and I would stick my neck out there and say, net revenue year-to-date (a tricky one for sure).
However, there are several KPIs that we all monitor and measure in our daily lives that translate well into additional KPIs that I would recommend. Do you know what portion of your revenue year-over-year is coming from each channel?
Do you know what portion of contacts come from each channel? Do you know the value, conversion rate, frequency of action or giving each of those contact groups account for?
As you can see from the chart above, 50% of the revenue to the organization is stemming from 38% of the donor base. With this knowledge, you can start to think about the next drill down to make sure that this group is doing well and its portfolio is healthy. The KPIs to monitor this group should include portion of acquisition source, retention rate, value-to-date, average gift, and frequency of giving. If we are to see that this group stems mostly from a channel that is not performing well today, it would have a higher sense of importance to fix it or provide it more focus? Understanding its value and relative importance to the bottom line of today will help us make better decisions tomorrow.
Think about what channel gives you the biggest bang for your short and long-term dollar. By highlighting these new KPIs, it is a point-of-view allowing you to manage and diversify your donor portfolio.