Full-Service Direct Marketing for Membership Program Request for Proposals Deadline for Submission: Friday, April 27, 2018 Summary Mission Statement: As the Zoo s non-profit advocate and partner, the Greater Los Angeles Zoo Association commits to provide financial and mission support to the Zoo and its programs; raise public awareness about the Zoo; enhance the visitor experience; and steward the investments of visitors, members and donors. The Greater Los Angeles Zoo Association ( GLAZA ) is seeking a full-service direct marketing agency to strategically develop and grow GLAZA s membership program. This includes acquiring, retaining and upgrading members through a multi-channel approach utilizing mail and digital formats. GLAZA is seeking a creative approach in building and managing the membership program. We will look carefully at each proposal to ascertain the responding firm(s) that most clearly understand our unique requests. Our objective is to achieve and sustain best-in-class quality for Direct Marketing Services in the most cost-effective manner possible. We are seeking your expertise to help us ensure we achieve this goal. Background The Los Angeles Zoo and Botanical Gardens ( Zoo ) opened to the public in 1966 in its current location, following the closure of the original Griffith Park Zoo. Open 364 days each year (closed on Christmas Day), the Zoo is owned and operated by the City of Los Angeles. The Zoo exhibits approximately 1,100 animals on 113 acres and is dedicated to creating a unique environment for conservation, recreation and discovery. The Zoo is accredited by the Association of Zoos and Aquariums ( AZA ) and the American Association of Museums ( AAM ). The Greater Los Angeles Zoo Association was created in 1963 as the support partner of the Los Angeles Zoo in its mission to nurture wildlife and enrich the human experience. Today, GLAZA operates and manages seven essential departments at the Zoo, including fundraising, membership, publications, volunteers, special
events, concessions, and marketing and public relations through and Operating Agreement, A Concessions Agreement and various Memoranda of Understanding (MOUs) with the City of Los Angeles and the Department of the Zoo. The last two decades have been a time of tremendous change in the Los Angeles Zoo and Botanical Gardens. In the 90s, the Zoo adopted a $173 million Master Plan Phase I. Since then, through the combined efforts of the Los Angeles Zoo and GLAZA, 11 major capital projects have been completed. We now have new homes for chimpanzees, orangutans and gorillas, as well as elephants, seals, domestic animals and the varied taxa living in the LAIR. We also have a state-of-the-art animal health center, education facilities and a new welcoming entrance. We completed the Master Plan Phase I as of June 2015 and plans are underway to formulate a new Master Plan that will take the Zoo forward into the next decades. At present, more than 1.78 million individuals visit the LA Zoo each year, including nearly 500,000 school-aged children. With access for all a top priority, the Zoo's demographics mirror those of Los Angeles and our membership and visitorship reflects this diversity - in age, socioeconomic status and ethnicity. Market research has shown our visitors to be 45% Hispanic; 42% White/Other; 6% African American; 7% Asian (Morey Group, 2013). Membership closely resembles these percentages with at least 40% of members being Hispanic. Membership Overview GLAZA has managed a growing membership program for the Los Angeles Zoo for nearly 50 years and raises approximately $5.8-$6.2 million a year. Over the last two decades, membership has grown from 30,000 member households to a high in FY12 of over 72,000 member households. Since then, membership held steady at 60,000-65,000 households, however, in the last three fiscal years (July-June), membership is seeing a decline. With that, GLAZA saw a decline to 55,723 member households at the end of FY17. Overall member attendance dropped from 626,085 in FY 16 to 553,029 in FY 17 and the number of visits a member makes to the Zoo dropped as well from an average of 2.32 to 2.19. 2
1/31/2000 thru 7/31/2017 In a survey of members in February, 2017 (Arts Consulting Group), the profile of a typical Zoo membership household is a two-parent family with two children between 2-12 years old; the average age of adults is between 25-44 years with a majority having a household income of $75,000+ a year. Zoo members are primarily homeowners and 65+% have completed college or graduate school. Most don t support GLAZA financially beyond their membership dues, and are primarily value driven, especially in the first three years of membership. While they strongly see their membership as giving them the opportunity to spend time with family, they don t pay attention to the opportunities to further connect to mission. Currently, the levels of membership are as follows: Member benefits for all: FREE daytime admission to the L.A. Zoo, including FREE interactive shows Animals & You and the all-new Angela Collier World of Birds Theater Free or Discounted admission to more than 170 zoos and aquariums including 15 in California Exclusive Members-only previews of new exhibits Four exclusive Member Appreciation Mornings Members Express Entrance no ticket lines! Discounts at Zoo gift shops and restaurants Zoo View magazine and digital Zooscape newsletter 3
Discounts on camps, classes and birthday parties Discounts on Roaring Nights, Brew at the Zoo and L.A. Zoo Lights tickets FREE themed docent-led Members Walking Tours FREE events including Big Bunny s Spring Fling and Boo at the Zoo Individual $ 55.00 1 adult named on card Individual Plus $ 84.00 1 adult named on card, plus 1 additional person Family $ 146.00 2 adults named on card Your own children or grandchildren (ages 2-17) *restrictions apply 4 FREE Safari Shuttle Tickets Family Deluxe $ 186.00 3 adults names on card Your own children or grandchildren (ages 2-17) *restrictions apply 2 one-time guest passes worth $42 6 FREE Safari Shuttle tickets EXCLUSIVE early access to Big Bunny s Spring Fling and Boo at the Zoo Contributing Circle $ 300.00 3 adults named on card Plus 1 additional guest per visit Your own children or grandchildren (ages 2-17) *restrictions apply Exclusive invitation to Twilight at the Zoo EXCLUSIVE early access to Big Bunny s Spring Fling and Boo at the Zoo Exclusive early access to events starring kids favorite characters 4 one-time guest passes worth $84 8 FREE Safari Shuttle tickets 3 membership cards Wildlife Circle $ 500.00 FREE daytime admission for 3 adults named on card Plus 2 additional guest per visit Your own children or grandchildren (ages 2-17) Free invitation to Twilight at the Zoo EXCLUSIVE early access to Big Bunny s Spring Fling and Boo at the Zoo Exclusive early access to events starring kids favorite characters Free ADOPT an Animal kit ($35 value) for the recipient of your choice Free endangered species plush animal Exclusive invitation to Breakfast with the Keeper 4 one-time guest passes worth $84 8 FREE Safari Shuttle tickets 3 membership cards 4
Conservation Circle $1,000.00 3 adults named on card Plus 3 additional guest per visit Your own children or grandchildren (ages 2-17) *restrictions apply Private docent-led cart tour of Zoo for up to six guests (once annually) Free Family membership as a gift for the recipient of your choice Exclusive invitation to Twilight at the Zoo EXCLUSIVE early access to Big Bunny s Spring Fling and Boo at the Zoo Exclusive early access to events starring kids favorite characters Free ADOPT an Animal kit ($35 value) for the recipient of your choice Exclusive Invitation to Cocktails with the Curator Exclusive invitation to Breakfast with the Keeper Free endangered species plush animal 4 one-time guest passes worth $84 8 FREE Safari Shuttle tickets 3 membership cards Membership solicitation efforts include two acquisition campaigns, fall and spring, and a monthly renewal program. Generally, the acquisition campaigns consist of an approximately 300,000 piece mailing in the fall, and a 550,000 piece mailing in the spring. The monthly renewal program consists of 5 direct mail solicitations, two telemarketing calls and anywhere from one to four email reminders. We utilize a discount strategy for both acquisition and renewals. Organizational Challenges From 2008-2013, membership pricing was not aligned with Zoo admissions prices. The City of Los Angeles asked that a Family membership be priced at a multiple recoup rate of 2.0 or higher. We settled on a recoup rate of 1.9, and in FY17 we went to a 2.0 multiple. This aligned with the Zoo s admissions strategy which increased yearly by one dollar for each adult and child. This current FY represents nine back-to-back increases in membership prices, particularly in the Family and Family Deluxe levels. We believe that the drop in acquisition this past year is in direct response to too many yearly price increases. We have simply hit the ceiling on what our demographic is willing to pay. We will not be increasing membership pricing for FY19. But this presents a challenge in that there will be pressure from the City of Los Angeles to continue to raise prices in concert with admissions pricing which is set to increase again in FY19. We believe that the decrease in member households, as well as the decrease in revenues (Family Deluxe level members are downgrading to the Family level or even the Individual Plus), is in direct relation to price. The Los Angeles Zoo also resides in a community where there is abundant noise from other cultural organizations such as Universal Studios, Disneyland and Six Flags Magic Mountain. The Zoo is in a period of stasis as we finished one master plan and will not be beginning a new one for at least three 5
years. With no new exhibits, there are limited opportunities to drive member attendance and sales. Additionally, with the advent of purchasing Zoo admission tickets on-line or on mobile devices, there are fewer opportunities to make sales at the gate when there are long lines and people anxious to get into the park. Further, there has long been a debate about having too many members in relation to paid admissions, and talk about members cannibalizing the gate, the parking, etc. has led the Zoo to ask for a reallocation in the ratio of members to paid guests. With the current rate of attrition, there is now a concern that we will not be able to recoup fast enough, which results in fewer members coming to the Zoo, and overall yearly attendance being lower than expected as the gap is not filled by more paid admissions. At the same time, there is an expectation of sustained high revenues in membership. Additionally, while many zoos allow for pop-ups on their websites advertising membership, currently the Zoo is not open to allowing membership to promote itself in this way and lost opportunities abound. Because the Zoo is owned and operated by the City, GLAZA is not privy to any admissions information thereby diminishing our ability to market membership to ticket purchasers. Lastly, there are complications with parking at the Zoo. Since its existence, parking has been free at the Zoo. Due to the loss of general fund subsidy support from the City of Los Angeles ($11 million in 2008 to $0 just a few years later), the Zoo had to find other revenue streams. This included creating paid parking areas in the parking lot on weekends, holidays and other occasions. For the past two years this has caused many members to complain and even not renew their memberships. There are still areas of free parking, however, on busy weekends, sometimes the only option for parking is to pay. Members resent this. Project Description This scope of services represents the needs for fiscal years 2019-21, which run from July 1 -June 30. We are looking for a full-service firm that will deliver the following services: Your inspired recommendations on a strategic acquisition and renewal program, including segmentation, upgrade initiatives, and email campaign strategies Estimated responses and revenue for the acquisition and renewal initiatives, with the goal of improving overall response rates Expected annual expenses, including agency costs, creative and production Creative recommendations, copywriting and design services for all components of acquisition, renewal and special campaigns. For consistency, GLAZA would like the look and feel of the packages to be representative of other marketing media produced by GLAZA for the Zoo (print/billboards/etc.) Recommendations for best practices and strategy in utilizing digital channels to promote membership Deliver post-campaign reports in a timely manner with results and recommendations for future campaigns. Please detail all elements of analysis to be covered in your reports List management, including rentals, list exchanges and in-house files Telemarketing: while managed by GLAZA, the telemarketing program is a part of the renewal campaign, and should be included in the data analysis of said campaigns 6
Strategy with market/geographic breakouts, estimate number of lists by market, etc. Provide a comprehensive list of all services covered in your merge-purge process Management of all related mailhouse services including: o Manage and oversee printing services print shop with proven quality control procedures. Please detail your print shop policies/standards and selection process o Please detail your print quality control procedures o Manage mail house and lettershop operations and fulfill postage requirements. Please detail your lettershop quality control procedures o Please detail your plan for postal implementation Fulfillment: create and design membership cards and fulfillment packages and update annually Collateral: create and design on-site applications, flyers and brochures and update annually Weekly calls to keep all campaigns on track as well as adjusting strategies if needed Quarterly in-person meetings All campaigns should strive to improve member visitation Proposal Requirements Proposals must provide in sufficient detail, the responding firm's method and ability to deliver the services requested in the Project Description. To this end, proposals must contain the following: The proposal must include a program plan that illustrates how GLAZA can achieve each of the goals specified above. A necessary component of the program plan must include a detailed budget. It should also contain projected revenue anticipated from each campaign sent offline or online in the first year. All supporting documentation must be completed and accompany the proposal. The responding firm should also discuss the competitive landscape, accounting for the effect of efforts by other non-profit, for-profit, and government organizations that may affect GLAZA s direct mail and online fundraising activities. The discussion should cover how GLAZA s program plans should take the activities of these other entities into account. There should also be a discussion of how new technologies, fundraising tools, and organizations may affect GLAZA s fundraising. Three or more case studies or examples from similar non-profits with which the responding firm has consulted. Additional samples may be requested. Contact information for at least four professional references from similar non-profits. Background information on your firm and account team, including how much time will be devoted to our account. Supporting Documentation All supporting materials and documentation submitted with the proposal will become the property of GLAZA. 7
Preparation Cost All costs incurred in the preparation and presentation of the proposal will be the responsibility of the responding firm. Information Sharing GLAZA reserves the right to share all or part of the contents of the proposal responses at its sole discretion with any of its employees and/or other individuals. Firm Qualifications Responding firms should provide: Contact: name of firm, address, contact name, title, phone and email Statement of qualifications A representative listing of current and past (no more than 1-2 years old) non-profit organizations served, with a description of direct mail and online services provided by the firm and the dates of service Contact names and telephone numbers of relevant non-profit organizations for client references Samples of direct mail and online campaigns that demonstrate the competency of the organization Evidence supporting the firm's ability to deliver projects on schedule Biographies and position descriptions of staff members who would be assigned to GLAZA s program, with the number of years they have worked with the firm A brief history and description of the firm including: number of employees and core services provided, core in-house capabilities, recent industry awards/recognition, and location of offices Responding firm s financial statements for the most recent three years Three professional references List of sub-contractors Minority women-owned (MWBE) certifications preferred Proof of insurance, as listed on Attachment A Intent to Bid Vendor responding firms are required to advise GLAZA of their intent to submit proposals. Notice of intent to bid should be returned to (via mail or email): Genie Vasels, Vice President Institutional Advancement Greater Los Angeles Zoo Association 5333 Zoo Drive Los Angeles, CA 90027-1498 RFP-membership@lazoo.org 8
Intent to bid should be received by GLAZA by 5:00 p.m. on Wednesday, March 14, 2018. Submission Procedures All responses are due no later than 4:00 p.m. on April 27, 2018. Responses received after that time will not be considered. Please include five (5) hard copies. Proposals will not be returned. Proposals may be delivered in person, by the U.S. Postal Service, or by commercial carrier to the following address: Greater Los Angeles Zoo Association PROPOSAL: Membership Program 5333 Zoo Drive Los Angeles, CA 90027-1498 Electronic proposals should be submitted to RFP-membership@lazoo.org. The envelope must be boldly marked: PROPOSAL: Membership Program Key Dates and Deadlines RFP Distributed February 23, 2018 Intent to Submit Proposal Deadline for RFP Responses March 14, 2018 by 5:00 p.m. April 27, 2018 at 4:00 p.m. Internal Review of RFP Responses May 3 May 18, 2018 Notification of Finalists May 21, 2018 Finalists In-Person Presentations to GLAZA Leadership May 28 June 8, 2018 Firm Selected and Notified June 11, 2018 Effective Contract Date July 1, 2018 Pre-Proposal Submission Questions Once vendors have received the RFP, there will be a five day period for questions. All questions must be submitted in writing via email to RFP-membership@lazoo.org and the answers will be posted on the Business Opportunities page of the Zoo s website: http://www.lazoo.org/about/businessopportunities/ 9
Confidentiality During this process you and/or your employees may acquire confidential or proprietary information relating to the business of the Zoo and GLAZA, this project, our affiliates, members, and guests, and/or the City of Los Angeles. By submitting a proposal in response to this RFP you agree to keep this information strictly confidential at all times, both during and after completion of the project. You acknowledge your awareness that you may be required to execute a non-disclosure agreement at any time during this process. Modification or Cancellation of RFP GLAZA reserves the right to modify or cancel this RFP at any time without prior notice. Any modifications or additional notices regarding this RFP will be posted at: http://www.lazoo.org/about/businessopportunities/ Evaluation Criteria Proposals will be evaluated using the following factors: Strong creative and demonstrated visionary thinking; Demonstrated quality performance in the delivery of direct marketing consulting services; Perceived effectiveness of the responding firm s proposed acquisition and renewal campaigns and its potential success in achieving specified goals; Demonstrated ability to help organizations achieve desired outcomes in their direct marketing programs; Demonstrated strong writing abilities, with the capability of capturing both mission and value in an engaging manner Demonstrated expertise in integrating and delivering direct mail and online membership fundraising programs; The capabilities and experience of agency staff; Cost effectiveness to deliver the services requested in Project Description; Experience in providing similar services as requested to other non-profit organizations; Demonstrated ability of responding firm to provide attendant services or the ability to coordinate contracted services as indicated in services requested; Familiarity working with organizations that utilize an advocacy program to advance organizational priorities. Selection Process Proposals will be reviewed by the GLAZA leadership and Membership staff using the criteria noted above. In the selection of a firm, GLAZA reserves the right to reject any and all proposals if it is in the interest of GLAZA to do so, or request additional clarifying information to be provided after the 10
deadline for submitting proposals. GLAZA will initially review all proposals to determine compliance with the RFP. After this initial determination is made, interviews with responding firms may be requested. See schedule for relevant dates. 11
ATTACHMENT A Insurance Requirements The Greater Los Angeles Zoo Association requires that our vendors and contractors, at their own expense, maintain the following minimum insurance coverages: Commercial General Liability: Such insurance shall be on an occurrence basis providing single limit coverage in an amount of not less than $1,000,000 per occurrence and shall include coverage for, but not limited to, premises/operations, products/completed operations, contractual, independent contractors, broad form property damage, personal injury and fire legal liability. Umbrella/Excess Liability: Limits of liability of at least $4,000,000 per occurrence for a total limit of not less than $5,000,000, including primary commercial general liability. Workers Compensati on: Workers Compensation and Employer s Liability with a limit of liability for Coverage B of at least $1,000,000 each occurrence, covering all personnel employed either directly or by way of contract from any payroll service provider. All statutory limits must be provided. Automobile Liability: Automobile liability covering all owned, operated and hired vehicles in an amount not less than $1,000,000 combined single limit per occurrence for bodily injury and property damage. Additional Insureds The Greater Los Angeles Zoo Association requires that our vendors and contractors provide us with certificates of insurance to cover the term of the event or agreement. The certificates of insurance shall include the name and dates of the event or the term of the agreement and name the following entities as additional insureds pursuant to written contract: GLAZA, the City of Los Angeles, the City of Los Angeles Department of the Zoo, and Volume Services America and their respective concessionaires, agents, trustees, officers, affiliates and employees The policies must be maintained with insurance carriers rated by A.M. Best as A- or better. Contractor must notify GLAZA thirty (30) days prior to any material change in policy coverage. All policies, with the exception of workers compensation, shall be endorsed to add the above parties as additional insureds pursuant to written contract on a primary and non-contributory basis. All policies must be endorsed to provide a waiver of subrogation by the insurance carrier in favor of GLAZA. 5 3 3 3 Z o o D r i v e, L o s A n g e l e s, C A 9 0 0 2 7-1 4 9 8 T e l : ( 3 2 3 ) 6 4 4-4 2 0 0 F a x : ( 3 2 3 ) 6 4 4-4 7 1 0 12