Direct Mail- Acquisition
The Salvation Army needed to acquire new donors due to donor attrition, 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 Summit in a split market test with a competitor, each group targeting half of the zip codes in an even/odd zip code split.
Summit Marketing implemented our Acquisition Sonar™ strategy to focus on acquiring the right donors, defined as supporters who give an initial donation greater than $20. Our strategy provided us the ability to find donors who not only had the means to give and upgrade their gifts but who also demonstrated the propensities for loyalty and higher lifetime value (LTV) over time.
The Salvation Army benefited from a higher initial return on investment using our Acquisition Sonar™ strategy. The revenue per acquired donor for Summit new donors was $73 compared to $49 – a 49% difference! The Summit new donors broke even within the first 12 months compared to over 24 months for the competitor. Additionally, the Summit new donors have been retained longer and have given 25%. more in total donations after their initial acquisition gifts compared to their prior strategy with the competitor.
Targeting the right donors means lower up-front costs and results in higher net income for our clients.