Summit SONAR® -Strategy Comparison
The Challenge
An Area Command within The Salvation Army was partnered with a different fundraising agency. In their final fiscal year with that agency, their acquisition strategy brought on 1,330 new donors. However, after three years, these new donors only brought in nearly $28,000 in net income for the Command. The Command needed a more effective approach to secure sustainable funding for their vital programs and services.
The Solution
Recognizing the need for a more impactful strategy, the Command partnered with Summit Marketing. We implemented our innovative Summit SONAR acquisition strategy, which segments prospects to create a smarter donor mix that drives positive net income and optimal lifetime value. During the holiday season, SONAR helped acquire 814 new donors. Over the next three years, these donors generated an impressive net income of over $115,000 for the Area Command.
The Results The results of the Summit SONAR strategy were transformative:
- Over 310% Increase in Net Income: Despite acquiring fewer donors, the strategic focus on high-value donors resulted in net income skyrocketing to over $115,000, compared to nearly $28,000 from the previous agency’s approach.
- Higher Value Donors: The Command secured 19 “whales”—new donors who each gave a first gift of $500 or more (compared to only six from the previous strategy).
- Reduction in Low-Value Donors: The other agency’s strategy attracted nearly 500 “minnows” (new donors with a first gift of under $20). These low-value donors are costly to acquire and have poor retention rates, diminishing net income.
- Optimal Donor Mix: By prioritizing higher-value donors, SONAR significantly improved the donor mix, enhancing overall net income and retention rates.
- Sustainable Fundraising: The substantial increase in net income and subsequent gifts enabled this Area Command to better fund their programs and services, ensuring long-term sustainability and impact.
The Summit SONAR strategy dramatically outperformed the previous approach, demonstrating the power of targeted donor acquisition. By focusing on high-value donors, the Command achieved a remarkable increase in net income, proving a strategic shift in donor acquisition can lead to more sustainable and impactful outcomes.