Challenge: Cost-Effectively Recapture Long-Lapsed Donors
To meet the many challenges of acquiring new direct mail donors in today’s challenging marketplace, nonprofits must utilize every asset they’ve got. For a mature voluntary health organization, one of its most important assets was its huge database, which contained millions of long-lapsed donors. But how could the organization generate the maximum value from these names?
Approach: Utilize Sophisticated Predictive Modeling
For years, predictive modeling has been used to help fundraisers rank those donors most likely to respond to a particular mailing or offer. In most cases, however, the data being utilized is limited.
THD has developed models that significantly increase the breadth of data variables to include those that go beyond donation history. Other touch points in THD’s predictive model include advocacy, events, volunteering and others. As a result, predictive power is enhanced and so are results.
In this campaign, we were able to work with approximately 3 million names, targeting long-lapsed donors who had not made a gift for 37 months or more. Using THD’s predictive model, we were able to identify individuals most likely to respond to a reactivation offer and renew their commitment to our client’s organization. Rebuilding the model and rescoring donors for each campaign has ensured the strongest model performance and reactivation results on an ongoing basis.
Results: Reactivated Double the Number of Donors
- Reactivated over 107% more inactive donors
- The long-term value of reactivated donors is 27% greater than newly acquired donors, so the client achieved significant long-term gains
- Increase was achieved without compromising donor value
- Better return on investment than cold prospect acquisition