Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Anatomy of a Breakthrough Acquisition Control

236 views

Published on

Published in: Marketing
  • Be the first to comment

  • Be the first to like this

Anatomy of a Breakthrough Acquisition Control

  1. 1. Anatomy of a Acquisition Control Jennifer Vanderveld VP Development and Marketing | Marine Corps Heritage Foundation Betsy Wason, CFRE VP of Development | Physicians Committee for Responsible Medicine Lisa Maska, CFRE - Moderator Partner | Lautman Maska Neill & Company
  2. 2. New Donor Acquisition 101 • The goal is to acquire new donors – but not just any new donors … • You want donors who will stay with you over the years, and upgrade over time • And you want to acquire them at the lowest investment
  3. 3. Goals of Acquisition Testing • • • • • Increase Response Rate Increase Average Gift Lower Package Cost Lower Cost to Acquire a Donor Sometimes … Open Up New Markets
  4. 4. Elements of a Strong Acquisition Letter • • • • • • • • • • Include a strong case for support Illustrate how you provide a solution to a problem Show how you are uniquely able to provide this solution Establish credibility Tell stories Be emotional! Show how the donor can make an impact Ask Ask again Be a little bit repetitive!
  5. 5. Other Package Elements • • • • • Reply form - Set the initial ask at the right amount Carrier envelope – Use a teaser if you need it Reply envelope – Pre-pay postage if you can Inserts – Use additional components judiciously Premiums – Approach with caution
  6. 6. Get to Know Your Market • Look at lists by category • Study the control packages of your best lists – that is what the donors you are going after are responding to!
  7. 7. Monitor Performance • Track donor retention rates – A lower response rate may be okay if you know you are keeping more of the donors you acquire • Keep tabs on donor value – You can afford to invest more when you know donor value is high
  8. 8. Case Study #1
  9. 9. Founded in 1985, the PCRM is a nonprofit organization that: • promotes preventive medicine • conducts clinical research • and encourages higher standards for ethics and effectiveness in research
  10. 10. PCRM Development Program • 125,000 active donors • Multi-channel campaign includes: – direct mail – online marketing – telemarketing – events, personal solicitation and planned giving • Program raises $10 million annually
  11. 11. PCRM Acquisition Campaign • Mailed acquisition gets 1% response with $20 average gift • Animal welfare market fickle – lots of competition • PCRM donors give to 20+ charities! • Historically, PCRM control packages work for 18-24 months • Constant package testing needed!
  12. 12. Current Control
  13. 13. What We Were Up Against…
  14. 14. Our Strategy for New Package • Many packages were unattractive and included coins as incentive to give • Needed to differentiate PCRM from competitors • PCRM donors have historically been averse to premiums • “No Nickel” strategy played up how PCRM is different: Some groups will glue a nickel to their letters to get your attention. At PCRM, we’d rather USE that nickel to save a dog like Queenie…
  15. 15. “No Coin” Test
  16. 16. The Results? • 1.64% response – 60% higher than the control! • 73% increase in gross revenue!
  17. 17. But That’s Not The End of The Story… • As anticipated, response began to wane after 12 months • Constant, aggressive testing is needed in this market – Tweak tests to improve performance – New package tests
  18. 18. Take-away tools • Check out your competition • Make sure your package stands apart
  19. 19. Case Study #2
  20. 20. The Marine Corps Heritage Foundation preserves and promotes the history, traditions and culture of the United States Marine Corps, notably through the National Museum of the Marine Corps, which opened in Quantico VA in 2006.
  21. 21. MCHF Development Program • Campaign to build the National Museum of the Marine Corps was launched in 2000 • 70,000 active donors • Multi-channel campaign includes: – direct mail – online marketing – telemarketing – events, personal solicitation and planned giving
  22. 22. MCHF Acquisition • Acquisition launched in 2000 at net profit • By Museum Opening in 2006, acquisition was at break-even • Today, acquisition gets .8% response with $32 gift – at 50% cost recovery • Post-opening, case for support shifted to maintaining Museum – a tougher sell • Starting in 2012, message shifted to expanding the Museum to tell the story of today’s Marines • Goal is to complete the Museum by 2017
  23. 23. MCHF Acquisition • MCHF label control package has been hard to beat • Tweak tests have evolved package over time – adding elements to maintain strong response • Difficult to make non-premium package work in this market • Markets include: military, history, subscription and catalog • MCHF has access to a few lists of Marine organizations not on commercial market
  24. 24. First Test Package (2000) No premium in first package!
  25. 25. TEST: Initial Ask – $35 vs $50 • The $35 ask lifted the response rate 36% • The gift was $53 - lower than with the $50 ask line ($67), but still quite high • Many more new donors with the $35 ask line Winner: $35
  26. 26. TEST: Adding a “Semper Fi” Decal • • • • Decal boosted response 58% Gift dropped just 6% Significantly more new donors Boost in response more than offsets additional cost of decal Winner: Decal
  27. 27. TEST: Adding Name and Address Labels • Labels boosted response 51% • Gift dropped 25% • Still, significantly more new donors • And still at a positive net per new donor ($8.55 with labels vs $10.31 with control) Winner: Labels
  28. 28. TEST: Adding a USMC Image on OE • Screened Marine Corps image on OE boosts response • Revenue up 13% Winner: Marine Image on OE
  29. 29. TEST: Discount Membership Rate ($25 v $35) • • • • Post-opening, needed extra incentive for donors to join Discount offer increased response 28% Gift only declined 14% Discount lowered the cost to acquire by 35% Winner: Discount
  30. 30. TEST: Adding Photo Cards • Photo cards lifted response 18% • Reduced CTA by 9% • Helps illustrate need to expand Museum! Winner: Photo cards
  31. 31. TEST: Adding New Images to Labels • Lifted response 12% • Lifted gift 22% • Reduced CTA 58%
  32. 32. It’s not like we aren’t TRYING to beat the labels…
  33. 33. TEST: Poster Package • • • • • Response rate declined 35% Average gift soared 103% Thanks to additional revenue, CTA was comparable RETEST – the gift was still higher, but not as dramatic a lift WINNER: Labels, because they brought in many more donors Poster: LOST!
  34. 34. TEST: Notecard Package • • • • • Response rate declined 30% Average gift increased by 50% Costs for notecard package were higher Despite additional revenue, CTA was 81% higher with notecards WINNER: Labels Notecards: LOST!
  35. 35. TEST: Member Card Package • • • • Response rate declined 59% without labels Average gift increased by 57% CTA was comparable, but many fewer donors acquired WINNER: Labels Member Card: LOST!
  36. 36. Summary • Monitor performance over time – If you are retaining new donors well and seeing donor value increase, you can afford to invest more • Map out your testing agenda for the year – Craft your plan based on concrete goals: increasing response, gift, retention – Plan should be adjusted throughout the year • Never stop testing – even when results are great!
  37. 37. Jennifer Vanderveld MCHF Vanderveld@marineheritage.org Betsy Wason, CFRE PCRM bwason@pcrmfoundation.org Lisa Maska, CFRE Lautman Maska Neill & Company lmaska@lautmandc.com

×