case study: DONOR ACQUISITION 3-YEAR ANALYSIS
Net Income Per Donor
More Whales
Fewer Minnows
More Net Income Over Three-Years
The Challenge
Due to donor attrition, The Salvation Army needed to acquire new donors to replenish funding for its programs and services. Annually, they were making a significant financial investment and not seeing a positive return on their investment. The client decided to engage us for their acquisition efforts.
The Solution
We implemented our Summit Sonar™ strategy to acquire the right donors, defined as supporters who give an initial donation greater than $20. Our strategy provided us the ability to find donors who had the means to give and upgrade their gifts and demonstrated the propensities for loyalty and higher lifetime value (LTV) through time.
The Results
The Salvation Army benefited from a higher initial return on investment using our Summit Sonar™ strategy. Our new donors’ net income per acquired donor was $174 compared to $82 – a 112% increase! Additionally, they raised more dollars from fewer donors and spent less on acquisition and cultivation. The enhanced donor mix yielded 3.45x more high-end donors, ie: whales, and 63% fewer under $20 donors – minnows.
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