case study: DIRECT MAIL (ACQUISITION)
Net Income Per Donor
Increase in Over $100 Donors
Decrease in Under $20 Donors
The Challenge
In Fiscal Year 2020, we helped a Salvation Army Western Territory Division turnaround unacceptable and rapidly declining acquisition results from their previous vendor. We were able to increase large value donors, minimize this Division’s investment in lower value supporting donors and do so with a lower net investment and stronger return on investment.
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 client received a $32.9 net increase in total revenue from 5.6% fewer donors. Additionally, the number of minnows — $20 donors — decreased by 69.3%, and the number of whales — over $100 donors — increased by 99.4%. The overall average gift increase by 40.8%, from $44 to $61. This client raised more revenue from fewer donors and spent less on acquisition and cultivation.
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