Making the Right Call: Effective Lapsed Donor Reactivation Strategies using Telemarketing Making the Right Call: Effective Lapsed Donor Reactivation Strategies using Telemarketing Randy Brewer AGRM 99 th Annual Convention

Who are Lapsed Donors? Lapsed 1 = months with no gift Lapsed 2 = months with no gift Lapsed 3 = months with no gift Deeply Lapsed 61+ months with no gifts What about month with no gifts?

Why Do Donors Lapse? The three Ds – Death – Departure – Dissatisfaction Dissatisfaction is increased for three reasons: 1.Not Properly Acknowledged 2.Too Much Mail 3.Too Aggressive With Ask Amounts

Stopping Lapsed Donors! Implement a New Donor Renewal Strategy – Thank them fast! Welcome them. Call them. Utilize proper donor file segmentation (RFM) Run your quarterly NCOA process Consider pre-lapsed strategies

Best Practices for Reactivating Lapsed Donors: Direct Mail – Put Lapsed Donor into Your Fall Acquisition – Utilize a Truly Handwritten Mailer 2011 and 2012 Test Results – Consider mailing a Postcard… Remember postcards don’t offer a response mechanism so you will need to integrate an 800 # or web response option

Best Practices for Reactivating Lapsed Donors: Internet – Mailing a postcard and providing a URL for immediately responding could be worth testing. Maybe even a QR Code on the postcard. However, you may need to add a matching gift incentive to encourage response.

Best Practices for Reactivating Lapsed Donors: Telephone – Calling Lapsed Donors is a cost-effective – Telemarketing doesn’t net the best ROI but it reaches folks where mail doesn’t – Use a company that understands – Test seasons/offers – Listen to the donors

Integration not Saturation Qualify your Lapsed Donors – You don’t have to call them all – RFM – Phone Append Pick the Best Season/Offer – Fall, Cold Weather, Easter, Summer Slump, Urgent Cold Weather Test Results in Two Markets Mail, Call, Follow-up, Mail

And the Results Please… Integration (6 Missions) – 10.32% Response – $35.28 Average Gift – $1.86 ROI Mail Only (6 Different Missions) – 2.30% Response – $31.07 Average Gift – $1.68 ROI

The Fine Print Integration (Telemarketing Only - 6 Missions) – 5.97% Response – $37.37 Average Gift – $1.83 ROI Non-Integration (Mail Only – Same 6 Missions) – 2.37% Response – $33.90 Average Gift – $1.89 ROI

Other Benefits Listen to your Donors – Donor Preferences – Volunteer Opportunities – GIK Database Hygiene

One Year Later Lapsed Donors who Reactivate – Retained at 58% New Donors who Renew – Retained at 44% Donor Giving Quality – New Donors edge out Lapsed Donors due to increased number of gifts and average gift size