Our client, a world leader in supporting the health of moms and babies, had a massive lapsed donor file with untapped potential.
Increasing costs and declining response rates are making cold acquisition more challenging by the day which is why nonprofits must utilize every asset they have. Often one of the most important and overlooked assets is an organization's lapsed donor file. For this client, a mature organization, one of their most valuable resources was its vast database, which contained millions of long-lapsed donors. With so many of them sitting dormant on file, our challenge was to generate maximum value from these names.
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 utilized is limited.
THD has developed highly successful models (15 wins vs. just one loss in testing) that significantly increase the breadth of data variables to include those that go beyond donation history. Other touchpoints 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.
We reactivated over 107% more inactive donors. The long-term value of reactivated donors was 27% greater than newly acquired donors, so the client achieved significant long-term gains. This increase was achieved without compromising donor value and delivered a better return on investment than cold prospect acquisition.