The Leukemia & Lymphoma Society's mission is to cure leukemia, lymphoma, Hodgkin's disease and myeloma, and improve the quality of life of patients and their families.
LLS is the largest nonprofit dedicated to creating a world without blood cancers. Since 1949, they have invested nearly $1.3 billion into research, advancing breakthroughs in immunotherapy, genomics, and personalized medicine. And many of the pivotal discoveries that originated from LLS-funded blood cancer research are now being tested in clinical trials for treating other cancers and diseases.
Direct mail costs continue to increase, and response rates continue to decrease, but mail is still a significant and predictable revenue driver.
LLS's direct mail program was heavily premium dependant, particularly in acquisition. Renewal package segmentation was based on donor recency, regardless of giving level or responsiveness to different types of packages. As response rates declined and costs increased, efficiency suffered. These trends were compounded by the fact that response rate declines were even more pronounced for the most costly premium packages. With the knowledge that mission-based donors give at a higher level and retain better without the need for costly premiums, we set out to find a more efficient, sustainable path forward.
THD began testing some mission-based, non-premium acquisition packages; and for renewal, THD used prior giving history to identify and flag donors who were responsive only to premiums vs. donors who responded to mission-based packages - a distinction that often proved to be more predictive of performance than RFA. By combining this premium-responsiveness flag with RFA, THD was able to improve package-to-audience segmentation, file selections, and performance.
Since FY17, the ratio of premium vs. mission-based mail in renewal has remained steady, but the improved targeting has increased net revenue by 10%, including a 25% lift for the mission-based audiences.
Struggling to find balance in your direct mail program? Contact us.