Fundamentals of New Donor Acquisition: Basic Steps to Creating a Strong Direct Mail Program Kim Walker Director of Direct Mail Memorial Sloan-Kettering Cancer Center

POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS 90%

POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS 90% TRANSACTIONS 10% DOLLAR TOTAL

The evolution of a donor $999$25K$1M Direct Mail Annual Giving Major Gifts Principal Gifts POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

Plan your approach $999$25K$1M Direct Mail Annual Giving Major Gifts Principal Gifts POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Planned Gifts may happen at any time, from any segment.

Planned Giving and Direct Mail 93% of MSKCC bequest Donors were acquired through DM 8 Year average length on file before bequest 6

Even though new donors are expensive, not recruiting donors to replace those we lose would cost our organizations much more. POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS — Ken Burnett, 2012

If you stop Acquisition for just one year it could take five years for your file to regain the number of lost donors. If you have a 60% retention rate, you lose 40% of your donors each year. POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

What Happens Without New Donors? American Cancer Society 9

WHERE TO START? POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Direct Mail Acquisition

You could mail an empty envelope to the right person and you will get a gift. You could send the perfect package to the wrong person and not get a gift. It is a combination of package and list that makes a great Direct Mail Program 11

Choosing an Direct Mail Agency Most important part of the team You should consider them a true partner Must have analytic as well as creative abilities 12

Full Service Agency Consultant Print Production House Plus and minus for each Types of Agencies

Choosing a List Broker Knowledge of Non-profit Industry Broker vs. Broker/List Manager Price Negotiation 14

And Merge/Purge Vendor Customer Service List Hygiene NCOA Deceasing Flexibility 15

POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Cleanliness IS NEXT TO Godliness! Most Important Part of Merge Process! Bring all changes back into your database!

Three types of new donors POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

Three areas of new donors POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Regular Direct Mail High-Value, Likely to Upgrade Potential Planned Giving

Three areas of new donors POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Regular Direct Mail High-Value, Likely to Upgrade Potential Planned Giving

Three areas of new donors POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Regular Direct Mail High-Value, Likely to Upgrade Potential Planned Giving

Additional Populations Patients Deeply Lapsed Donors Thrift Shop Donors Alumnae Notified Parties 21

Upgrade Conversions POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Direct-Mail ACQUISITION HANDLED USING ANALYTIC TOOLS

Models vs. Modeling 23

Models Use your house file to segment outside lists to find donors most like the donors on your file Abacus – Wyland - IBehavior 24

Modeling Use demographic information on your file to find the best existing donors on your file. Perfect tool for Lapsed Recapture 25

TESTING NEW POPULATIONS POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

Multi Channel Marketing 27 TypeResp RateAvg Gift Both -- & Mail6.37%$ Only2.13%$83.20 Mail Only4.01%$29.26

Care2 POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS Appends

The Package TEST THEN TEST AGAIN!

1993 Control

2000 Control

2006 Control

33 Packages Today POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

34 Different people, Different packages POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

35 POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

36 POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS

Engagement tools are a must › Thank You/Welcome packages › Label Acknowledgement › Telemarketing › Personalized Thank You Cards Over $100 – First Time Gift & Lapsed

Hand Outs TMT Analytics American Cancer Article Tips 38

ANY QUESTIONS? POPULATION OUTSIDE LISTS PACKAGES MODELS TOOLS