BIG’s Blog: So Acquired, So Retained

Last week, Target Analytics released its 2011 Benchmark study of Internet and Multi-channel giving.

The sample of organizations (28) used in the study were major national nonprofit organizations and covered a range of sectors including animal welfare, the environment, health, human services, international relief and societal benefit.

A major qualifying statement to the study was, “These organizations receive the majority of their direct marketing revenue from direct mail.”

With that one major caveat to the study in mind, let me summarize the findings.

• The majority of the gifts received are still received through direct mail.

• Online-acquired donors give almost double the donation amount of direct mail acquired donors.

• A large percentage of online-acquired donors switch from online to direct mail, but, give less than when they were giving online.

• A significant percentage of online-acquired donors quit giving.

Let’s dissect these findings.

First of all, if the vast majority of their direct marketing fund raising is direct mail, is it surprising that the vast amount of gifts received are direct mail?

Pretty logical – right?

But, then we learn that the online-acquired donors give almost double what the direct mail donors give. And when we drill into the data, we also learn that the online-acquired donors are younger and wealthier than the average direct mail donor. So, at this point, we know for certain that they give more and they like to give online.

That’s good news – right?

Then the last two findings seem to be saying different things, but, upon closer examination, it turns out these findings are merely two-sides of the same coin.

A large percentage of online-acquired donors suddenly switch to direct mail and another significant percentage quit giving. What’s going on here?

Well, if the major fund raising channel is direct mail, then here is what is going on. All 28 organizations are making no distinction between online-acquired and direct mail-acquired donors. And I will bet that your organization doesn’t either. To make a distinction would imply that you and they are really doing integrated direct marketing. And transforming your organization from direct mail centered to integrated direct marketing takes planning and work. Instead, they (and probably you) take the easy route with acquired donors--both direct mail-acquired and online-acquired--and throw them into your direct mail appeal stream.

And, what happens? Some of the online-acquired donors, in deference and respect for the mission of the organization, continue to give through the only channel offered them: direct mail, but not as much. The rest of the online-acquired donors don’t respond to the direct mail because, well, they don’t respond to direct mail.

If you want to KEEP online donors and their nearly double size gifts, communicate with them the way they want to be communicated with.

Pretty logical – right?

The answer is to move from single-channel direct marketing to multi-channel integrated marketing. But, this means you need to transform your organization into an integrated direct marketing organization.

If you want to keep those online higher dollar donors, remember, “So acquired, so retained.”

-Mike

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