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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 = 25-36 months with no gift Lapsed 2 = 37-48 months with no gift Lapsed 3 = 49-60 months with no gift

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Making the Right Call: Effective Lapsed Donor Reactivation Strategies using Telemarketing

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

  2. Who are Lapsed Donors? • Lapsed 1 = 25-36 months with no gift • Lapsed 2 = 37-48 months with no gift • Lapsed 3 = 49-60 months with no gift • Deeply Lapsed 61+ months with no gifts • What about 13-24 month with no gifts?

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

  4. 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

  5. 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

  6. 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.

  7. 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

  8. 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

  9. 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

  10. 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

  11. Other Benefits • Listen to your Donors • Donor Preferences • Volunteer Opportunities • GIK • Database Hygiene

  12. 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

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