Looking for strategies to retain donors, offset attrition, and increase revenue, the client came to us searching for cost-effective ways to re-engage lapsed donors and more effectively target active donors likely to make major gifts.
By deep-diving into their data, we discovered they had been experiencing a significant decrease in lapsed-donor reengagement, due primarily to a large reduction in volume and spending for the segment. Rather than ramp up to previous levels to revive the lapsed donor program, we took a strategic approach, using highly targeted, data-driven, and predictive-growth models, we determined which lapsed donors were most likely to respond and donate at a higher level. Using this data, we deployed three targeted mailings in FY20 and are planning to increase volume by 50% in the coming year.
We further targeted donors who were likely to make major gifts by examining wealth capacity scores and major gift likelihood scores (i.e. propensity to give). While data showed these donors had the capacity and propensity to give large gifts, their giving history was much lower than their potential — similar to levels of their other donors. To fully maximize this segment, we separated this audience from the rest of the file and created mailers that used higher-end formats and postage treatments. We also added more personalization, utilized different versions of letter copy, and employed more aggressive ask arrays.
Early results indicate that the FY20 lapsed donor mailings will finish at a lower donor reactivation cost than the client’s prior lapsed donor program and will likely yield more than 10,500 recaptured lapsed donors.
The program to target major gift donors has generated a 241% lift in net revenue per donor from this audience.