Brain Science, Industry Data Bolster Direct Mail Fundraising

As digital, mobile and social media expand their donor influence, some nonprofit marketers prepping for the all-important fourth-quarter may wonder about direct mail’s role as a fundraising workhorse. To underscore why it’s essential to keep direct mail in harness, AccuList can not only cite years of success as a direct mail list broker and data services provider to fundraising clients, but also the latest brain science and marketing industry data.

Science Shows Donor Brains Respond to Direct Mail

Marketing channels and technology may be changing rapidly, but the human brain hasn’t changed in size and basic construction for about 500,000+ years, and mail marketers have a brain advantage, notes a recent NonProfit PRO article by Christopher Foster, vice president of business development at Modern Postcard. Neuroscience has shown that direct mail taps two basic parts of the brain: the cerebral cortex and the amygdala-hippocampus pairing. The cerebral cortex
is where we process information, think about messaging and language, and weigh the pros and cons of decisions. Unlike the truncated messaging of digital, e-mail and social, direct mail can engage this part of the brain by describing benefits and citing the objective reasons that a nonprofit is the best choice for donor dollars. Plus, research consistently shows that people trust print/direct mail information more than digital channel info. Of course, recall and emotional engagement are key drivers, and the amygdala and hippocampus, combining long-term memory with emotional response, favor direct mail over digital, too. In fact, research shows that direct mail is 35% stronger than social media and 49% stronger than e-mail when it comes to long-term memory encoding, and 33% stronger than e-mail and social media in the engagement that drives memory encoding. Overall, direct mail’s motivation response is 20% higher than digital media, per Canada Post research.

Mail Spurs Donor Response and Retention in Omnichannel Efforts

While the volume of direct mail has decreased by about 2% each year since 2015, this has actually helped boost direct mail effectiveness by helping it stand out in the messaging blitz of the digital era. In fact, the Data & Marketing Association (DMA) 2018 direct mail response rates were 9% for a house list and 5% for a prospect list, way higher than any other channels (such as e-mail, social media and paid search at 1%). As a result, mail’s median ROI is also higher than most digital channels. Direct mail, of course, works even better integrated into an omnichannel campaign, where it actually spurs digital results; for example, studies show donors are three times more likely to give online in response to a direct mail appeal than to an e-appeal. Plus, direct mail drives donor retention; for example, 70% of donors have restarted a relationship because of direct mail, per DMA data. And direct mail is efficient at retention; the Association of Fundraising Professionals reports direct mail costs $0.25 for every $1 from recurring donors.

The Right Fundraising Tactics Capitalize on Mail’s Strengths

However, direct mail’s fundraising success is certainly not a given. A recent NonProfit PRO article by Jen Linck, chief marketing officer for Corporate Giving Connection, cites some important strategies, beginning with list segmentation and targeting to avoid wasting time and resources sending costly direct mail to bad leads. We would note here that, for effective segmentation, data quality is key, which requires prospect lists from reputable sources and good hygiene of house lists (note that 20% of addresses in donor databases are out-of-date, per research). Then get creative to capture attention and drive envelope opens via tactics such as dimensional mail and a large or unconventional sized envelope, urges Linck. And make sure the direct mail pieces add value to the audience’s lives by including a special offer or a promotional gift of branded materials for everyday use, such as a notepad. But remember that content needs to tap both logical persuasion and emotional connections in donor’s brains! Because 63% of donors want to know how their donation will be used, use specific donation amounts to tell donors how they help and quantify how previous amounts donated have been used, but also inject emotional examples into the dollar results. Finally, remember that direct mail works best when it is integrated into an omnichannel campaign, so be sure to incorporate digital technology by including QR codes, short links or text keywords for use across all channels. Plus, links should direct donors to a branded, campaign-specific landing page, since 38% more donations happen when landing pages are branded and campaign-specific, and 66% of those same donors are more likely to come back and donate again. For more tips on integrating direct mail with digital fundraising, see this MobileCause infographic.

Most Nonprofits Upbeat on 2019 Fundraising Growth

The most recent survey of nonprofits and donors by the Nonprofit Research Collaborative (NRC), a coalition of professional fundraising associations, finds that 60% of respondents expect to raise more money this year than they did in 2018! That’s encouraging news for AccuList’s many fundraising clients as they head into their key year-end giving campaigns.

Tax Law Impact Not As Averse As Expected

Many fundraisers feared the new tax law would undercut giving, but the survey found that only a 17% minority reported a negative impact from the tax changes, and only 16% of donors said they would change the amount or method of their gift this year because of changes to the tax law. It is true that certain continuing tax trends prove challenging for fundraisers, such as bundling or bunching, in which donors provide multiyear support but give a large donation for an itemized filing in just one tax year and then skip contributions in the following year or years. Since most nonprofits rely heavily on year-end gifts from loyal donors, the bunching is problematic. Still, only 30% of nonprofit respondents reported that some donors were bundling.

Feared Donation Drop Doesn’t Materialize

Based on various reports of reduced giving, many nonprofits were concerned about fundraising growth, yet the NRC online survey of individual donors in March of this year found 56% said they gave the same amount in 2018 as in 2017, 33% gave more, and only 11% gave less. As a result, 63% of fundraisers said their charities did raise more money in 2018 than the previous year. Overall, 73% said they met their 2018 fundraising goals. It’s no wonder most fundraisers (60%) are confident they will raise even more in 2019. Not all charities participated equally in 2018 growth, of course. Charities with budgets of $3 million to $49 million reported the most fundraising increases in 2018 over 2017 levels. And environmental and animal charities in particular were most likely to meet 2018 fundraising goals.

Multi-Channel, Multi-Contact Strategy Remains Key

Melissa Brown, author of the report and manager of the NRC, stresses that the upbeat forecast for fundraising needs to be undergirded by targeted, relevant, engaging direct mail and e-mail contacts. While most channels remained essentially flat in 2018 in terms of dollars raised compared with prior years, direct mail fundraising growth dipped slightly, with 41% of charity respondents saying they saw growth in fundraising through direct mail compared with 50% in 2017. Overall, the survey supports both the need for a multi-channel fundraising strategy and frequent contacts with donors. On average, after the first gift, organizations send about 3 more appeals by mail, an average of 4 appeals by e-mail, and invitations to events, including stewardship/recognition activities. However, both direct mail and digital communications are most effective when they go beyond dollar demands to provide meaningful connections with the mission and explanation of the impact of a gift, per the survey “One of the biggest reasons people stop giving is they feel like they’re becoming ATMs instead of being partners,” Brown warns. See the full survey 

Targeted E-mail Expands Museums’ Direct Marketing Options

While previous AccuList posts focused on direct mail strategies for our museum marketing clients, e-mail marketing is also an area where our expertise can help museums reach new members, event participants, or donors, as well as improve the performance of existing e-mail databases.

Study Museum E-mail Benchmarks and Success Stories

Evidence that e-mail can be a successful player in museums’ multi-channel campaigns comes from Constant Contact’s March 2019 e-mail statistics for house databases in the arts, culture and entertainment vertical (including museums and galleries), which show overall e-mail open rates averaging 17.54%, and click-through rates averaging 6.81% for the vertical. Those results are better than the all-industries averages of 16.74% open rate and 7.43% click-through rate, plus ahead of all but 13 of the 34 verticals tracked, and far ahead of some verticals, such as technology (e.g. web developers), automotive services, salons, retail and consulting. Marketers can also use e-mail to prospect for new members, donors and event participants. For example, marketers report success with event audience building via a series of e-mails that start with a promotion linked to ticket purchase, RSVP and/or social-sharing request, then follow up with reminders prior to the event, and finish with a post-event thanks e-mail that includes a request for an online review. Other successful e-mail series reward loyalty or re-engage dormant supporters by offering special perks (such as discounts). E-mail automation can make contact strategy even easier with programmed triggers, such as a re-engagement e-mail automatically sent six months after a last visit. For some creative inspiration, check out this nonprofit e-mail gallery and Pinterest grouping of museum e-mails.

Invest in Clean, Targeted E-mail Lists

Earning response to a house database or prospect list requires a few e-mail basics: 1) personalized, targeted messaging; 2) a brief subject line that inspires opens and engaging CAN SPAM-compliant creative content that inspires click-throughs; 3) mobile optimization of the e-mail with a clear call-to-action linked to a mobile-optimized digital landing page; and 4) an updated, clean opt-in e-mail list to avoid spam filters. As data experts, AccuList’s services especially focus on the last point. For responsive, targeted prospects, AccuList’s proprietary research has identified the top choices among opt-in e-mail rental lists (plus telemarketing and direct mail lists), including lists of museum members/donors, lists of museum mail-order buyers, and lists by type of museum and collection (download our free compilation of top list datacards). For clean, targeted house lists, AccuList points marketers toward database enhancement and hygiene, including identification of recent e-mail address changes through Electronic Change of Address (ECOA) lists, enhanced targeting by adding demographics from outside lists, and expanded e-mail reach by appending opt-in e-mails to postal records.

Pair Mobile-Optimized E-mail and Landing Pages

Every e-mail—regardless of target audience—needs a clear call-to-action linked to an online page that makes that action easy to accomplish. For fundraising e-mails, check out these best practices suggested by online fundraising software provider DonorBox: 1) include a prominent Donate Now button in the e-mail with a link to an online landing page, either one page for general donations or a page per specific project; 2) include suggested donation amounts on the landing page and tie those amounts to outcomes that show how they will improve the museum and visitors’ experiences; 3) optimize the e-mail and landing page for desktop computers, mobile phones and tablets; 4) include recurring giving options on the online page for higher donor retention; 5) if appropriate include a donation “thermometer” or other graphic of progress on the donation page to encourage more donations; 6) allow for multiple secure payment gateways, such as Apple Pay, Google Pay and PayPal in addition to credit cards; 7) and, finally, make sure the donation form and its processes are as simple, clear and quick as possible.

Combine Social Media Engagement With E-mail Targeting

E-mail can be a natural complement to social media campaigns, which is why social media networks themselves use e-mail marketing for customer retention. Museums can pair social media’s ability to engage and build brand, community and web traffic with e-mail’s advantage in delivering highly targeted and personalized messages, enhancing the power of both channels. Social media apps and forms can be used to capture new e-mail opt-in subscribers, for example. With platforms like Facebook, house e-mail data can be matched with the huge social audience to deliver demographics- and interest-targeted ads and promoted posts to existing names and lookalikes. Social media also is good at soliciting user-generated content (reviews, images, videos and posts), which can be used (with permission) in e-mails to boost response. And both social media and e-mail targets can be matched with direct mail for multi-channel power. Check out AccuList’s social media user lists, Facebook match and target options, and Digital2Direct programs combining direct mail with Facebook or e-mail lists.


Tech & Data Trends Spur 2019 Fundraising Opportunities

Despite 2019’s many challenges for nonprofit marketers, including competing for attention with political fundraising noise, trends in data analytics and technology offer good news for AccuList’s fundraising clients.

Fundraising Can Leverage Digital Innovations

Consider trends highlighted in this spring’s Nonprofit Technology Conference in Oregon. For example, nonprofit tech pros reported success using Digital Wallets, such as Apple Pay, Paypal and Google Pay, to make donating easier for donors and to increase conversions. AI and chatbots are another boon cited by tech experts, not just because they free up staff from time-consuming interfaces but because they can be used to segment audiences and tailor communications to boost donor acquisition, value and retention. Meanwhile mobile text messaging and mobile giving not only continue to grow in use, but nonprofits are learning to leverage SMS to trigger response, scale donor relationships and engage and motivate communities more fully. Online giving continues its growth path, but there are now more online giving services and their offerings are expanding. For example, Give Lively has free online fundraising tools for text-to-give, peer-to-peer, events, and integration with social media platforms such as Facebook. Finally, virtual-assistant voice services have entered the fundraising arena; for example, Amazon’s Alexa now can help donors verbally contribute up to $10,000.

It All Comes Back to Targeted Data

But for tech innovations to be effective, quality data and data analytics are essential. For example, fundraising efforts can use data to identify and segment those groups of current or inactive donors more likely to increase their donation dollars or flag donors to tap as future legacy donors. And data analytics can combine with real-time marketing automation, triggered e-mail series and variable data printing of personalized direct mail for improved donor acquisition. While the task of data collection and analysis can seem overwhelming, nonprofits don’t need to vacuum up every bit of big data for better results. The key is to collect and track the information in the donor database, or to select the key response factors to target in prospect lists, which are most likely to lead to success. Beyond the basics of name, address/contact, gender, age and date and amount of last donation, data targeting can be enhanced with parameters indicating donor capacity (the ability to give) and donor affinity (the willingness to give). Indicators of donor capacity include personal income/wealth measures, real estate ownership, business title, stock ownership, etc., while donor affinity parameters include the RFM (recency, frequency, monetary) of the donor or prospect giving history, past relationship/interest in a specific cause or affiliated appeal, and political affiliation and giving. Check out this article on donor data from Candid’s Philantopic blog for data management tips.

Beware Assumptions About Donor Data

A good database policy also includes regular hygiene and updating as well as an ongoing check for knowledge/data gaps. Classy, the online fundraising software provider, suggests challenging assumptions of donor knowledge by making sure analytics can deliver on these questions:

  • When are donors most likely to donate?
  • What is the average donation amount?
  • What is the average donation amount?
  • Are there different types of donors?
  • What is the reason for donation?
  • How does the donor liked to be thanked?
  • What is the donor’s communication channel preference?
  • What value does the donor get from donating?

See the rest of Classy’s suggestions on using data for fundraising.

Arts Fundraising Study: Invest to Reap More

Any of AccuList’s performing arts marketing and museum and zoo marketing clients that fret over investing in fundraising efforts in 2019 should take a look at the recently released “DataArts Fundraising Report” from Southern Methodist University. Basically, the report concludes, arts and cultural organizations that make smart investments in fundraising reap more dollars, with individual donors a “vital source” of contributions.

Mixed ROI by Sector, Higher Individual Donor Dollars

Looking at fundraising by 2,421 organizations across 11 different arts and cultural sectors between 2014 and 2017, the study found good news for many marketers even though the overall ROI on every dollar spent on fundraising declined from $8.80 in 2014 to $8.56 in 2017. This reflected issues in select sectors. Seven sectors—including performing arts companies, orchestras and operas—actually saw an increase in return on fundraising over the period. The biggest ROI gain, adjusting for inflation, was a 28.8% bump for community-based organizations. But gaining sectors were offset by ROI declines for art museums, dance companies and theaters. Another encouraging sign was an increase in the average individual donor contribution over the four-year period. The report attributed some of the improved donor generosity to a shift toward investment in donor relationship building, with the average organization allocating 62.4% of fundraising expenses to staff in 2017, up from 54.4% in 2014, and thus allowing for more donor development.

Size and Location Make a Difference

For arts and cultural fundraising, size matters, but in an inverse fashion, the report found. Small- and medium-sized organizations increased the returns on their investments in fundraising over the four years, while larger organizations had steadily declining ROI. Individual donors are important for success, per the report, especially outside of the big metro areas where government support, foundations and corporate donors help foot expenses. But locations vary widely in terms of revenue successfully tapped. For example, New York organizations had the highest average number of corporate donors at 12 and also had the highest percentage of expenses covered by government support (9%). Compare that Big Apple haul to the lowest metro-area average of four corporate donors in Los Angeles and Chicago’s low of 2% expenses covered by government funds. On the other hand, Chicago reaped the most from foundations, with 7% of expenses picked up by foundation support, way ahead of New York organizations which, though they had more foundation grants than any other market, only saw those grants cover 3% of expenses.

For details, go to the SMU DataArts Fundraising Report.

Fundraising Challenges Include Gen Z, E-mail, AI

For AccuList USA’s nonprofit fundraising clients and fundraising consultants, 2019 will be another challenging year. Successful direct marketers will need to adapt to changes in demographics, technology and donor targeting, to name just a few trends recently cited by the Donorbox Nonprofit Blog.

Move Over Millennials; Here Comes Gen Z

Donorbox is sounding the alert ahead of the next demographic wave. While the Millennial generation is still the biggest cohort in the workforce, Gen Z is arriving. Born after 1996, they now make up an estimated 27% of the population and will account for 40% of all consumers by 2020. How are they different? The “2017 Global Trends in Giving Report” found that Gen Z members are interested in giving to many different causes, especially those involving youth, animals and human services. But to win the attention of these digital natives, messaging must be concise and engaging, offering an immediate experience that cuts through the marketing noise they routinely filter out. Gen Z is also the first mobile-only generation, so website, e-mail and donation forms must all be optimized for mobile. Plus, Gen Z likes visual-based platforms, so fundraising creative should use photos, videos and infographics to tell stories that grab attention.

Donors Expect Hyperpersonalized, Targeted Messaging

Accustomed to sophisticated digital technology that tailors messaging a la Amazon and Netflix, today’s donors expect a personalized, targeted approach that takes into account demographics, giving history and even psychographics. A generic appeal will fall flat. That means segmenting donor and prospect lists and using variable data printing to specialize messaging to account for generational differences and other demographics. It means tailoring the “ask” to the prospective donor’s income and giving history. It means refining giving/donation pages to highlight projects and wording that will resonate with the target donor group.

Donors Embrace E-mail Fundraising If Done Well

E-mail has gotten a bad rap recently because of crowded mailboxes, spam filtering and low response rates, but there is a lot to be said for revisiting e-mail strategy in 2019. For one, research shows that donors willing to donate through e-mail rose from just 6% in 2012 to 28% in 2018. Second, low-cost e-mail has an ROI of 122%, much higher than direct mail, social media and paid search. Finally, a backlash against social media abuses, including among the mobile-first generation, is improving e-mail’s digital appeal. But e-mail needs to be done well to deliver donors. Personalization and targeted messaging is expected, so, again, segment the audience by demographics, desired communication frequency, giving status, etc. Make sure there is a clear call to action, a compelling subject line, simple attractive visual design, and, most of all, impactful storytelling.

AI Can Help Turn Data Into Dollars

Artificial Intelligence (AI) is on its way to becoming ubiquitous in our society, and that will include fundraising. AI broadly refers to programs, computers and machines that perform “intelligent” tasks such as planning, learning, problem-solving, communication and more. AI can help nonprofits gather more data and use it better to advance missions and marketing. For example, one of the simplest uses of AI is a chatbot that interacts via messaging services like Facebook Messenger, Slack, Telegram, etc. A nonprofit can create a chatbot to handle donations, register members and distribute information about programs and services. AI also can be used to personalize donor journeys with tailored, personal messages based on real-time donor behavior and timed to encourage contributions. Finally, AI can weaponize data for more cost-effective donor development and marketing. For example, a donor’s giving and volunteering history, event attendance, affiliations, relationships, and data from wealth screening tools can all be analyzed to predict a potential donor’s likelihood to give a major gift.

See the complete list of eight fundraising trends identified by Donorbox.



fundraising trends for success

Honoring Channel Preference Delivers Fundraising Wins

Donor control of communications channels is important for efficient fundraising contends DonorVoice’s The Agitator in a recent blog post worth passing along to AccuList USA’s fundraiser and fundraising consultant clients.

Cutting Costs and Boosting Deliverability

Fundraisers fret over opt-out rates in their efforts to grow donor files. Yet failing to learn and honor channel preference not only leads to higher opt-out rates but to wasteful marketing as well. People who opt out of telemarketing or e-mail channels are unlikely to give through that channel, so the resulting file reduction is actually a savings, cutting spending that annoys rather than produces. Plus sending e-mails to people who routinely don’t open them lowers overall e-mail deliverability, reducing e-mails that might get through to those who do want them, for another real but hidden cost.

Increasing Opt-ins and Donor Value

Giving channel control to donors can produce more quality file growth. DonorVoice has done two different tests of what causes people to opt in, and both show that donor communications control is the single biggest factor in whether someone will want to learn more from a nonprofit. Plus, another recent study by DonorVoice and the DMA Nonprofit Federation found that allowing donors control of their communications makes them more likely to donate, and that donors who provide and receive a communications preference tend to be more valuable donors. For example, the National Committee to Preserve Social Security and Medicare coded people who requested less mail and sent them half as many appeals as those who stated no preference.  Those donors who requested and received half as many contacts actually gave more than the group that didn’t express a preference, per the DonorVoice article.  Catholic Relief Services also found that donors who requested a specific mail preference gave 6 to 8 times more per year, notes the same blog post. By asking for communications preference and honoring it, fundraisers identify more quality donors and make them more likely to stay.

Direct Mail Channel Still Leads With Donors

Despite the growth of online giving, channel preferences continue to favor direct mail, which is one reason it is still alive and kicking as a fundraising tool.  In fact, 73% of consumers say they prefer mail for brand communications, and that includes nonprofits, and 62% like checking the mail, per Epsilon research. Plus, mail gives nonprofits an edge in getting their message across since “brain science” research shows that printed appeals leave a deeper impression and stimulate more emotional processing. Plus, direct mail donors have higher retention rates; 31% of first-time offline donors are retained compared with 25% of new online donors, according to Blackbaud. For more on the case for fundraising direct mail, see this DonorVoice blog post.

Direct Mail Still Powers Fundraising, Especially Planned Giving

At AccuList USA, nonprofit interest in our direct mailing lists and services for fundraising remains strong despite the growing share of donor dollars collected via online giving. Some of the reasons that fundraising pros remain committed to mail power are cited in a recent article for The NonProfit Times by Mark Hrywna.

Direct Mail Is Vital in a Multi-Channel Mix

It’s true that nonprofit organizations are beginning to see a growing share of donations attributed to online giving, but as Steve MacLaughlin, vice president of data and analytics at fundraising tech firm Blackbaud, stresses in the article, online giving is still less than 10% of all charitable giving. Fundraisers need to avoid confusing the channel of engagement with the channel of transaction, he advises. Direct mail response certainly is no longer limited to mailed donations as many direct mail recipients go online to give; similarly, a mobile-device outreach or e-mail appeal can generate offline gifts. Even in an increasingly digital world, a good multi-channel mix will include direct mail.

Direct Mail Keeps Proving Its Power

Hrywna cites Make-a-Wish Foundation as an example of continued direct mail investment. When Chief Financial Officer Paul Mehlhorn started with Make-A-Wish Foundation in 2009, he recalls that he was told direct mail was a dinosaur that would be gone in five or six years.  Yet last year the national office exceeded 2009 direct mail revenue by several million dollars, going from $13.9 million to $15.3 million. “It looks to me like a program that can stay very strong for the next 10 to 15 years,” Mehlhorn asserts to Hrywna. In fact, Mehlhorn says he may expand on that direct mail success: “We continue to increase our investment in online giving. However, we are reconsidering our approach to direct mail and may increase our investment for direct mail in future years. As you get past the low-hanging fruit, [online] becomes almost as costly as direct mail. Unless you enlarge your donor pool, you’re going to be spending about the same.”

Direct Mail Has a Key Role in Planned Giving

Plus, while the revenue ratio of direct mail to online giving has gone from 3:1 to even at Make-a-Wish, there are some areas where direct mail retains an edge, such as planned giving. Make-A-Wish Foundation has seen revenue from planned gifts just about triple during the past four years, growing from about $2 million to $6 million, and Mehlhorn credits part of that success to actively promoting planned giving in direct mail as well as online campaigns. “A lot of the folks now making end-of-life plans are still in that generation that likes getting mail,” he points out.

For more, see The NonProfit Times article.

 

 

 

 

 

How Can Performing Arts Marketing Find the Best Targets?

Since AccuList USA has successfully worked with performing arts and cultural organizations in audience development, supplying data and data services to help them acquire new patrons, ticket buyers and supporters, we were happy to see a recent npENGAGE.com post underscoring the key role of quality data targeting in performing arts marketing success.

Identify & Understand the Best Audience

Basically, performing arts marketers must acquire prospects with the potential to become long-term, high-value patrons; retain them; and maximize their dollar contributions. That challenge is not easy when studies show 72% of single-ticket buyers do not return, points out npENGAGE article author Chuck Turner, a senior analytics specialist at the Target Analytics agency for arts and cultural clients.  So a cost-effective marketing strategy will rely on data analytics both to target those with the highest relationship potential and to personalize messaging and offers for boosted ROI and loyalty.

Target to Increase Revenue & Donations

Analysis should look at the value of patrons in terms of the average of all revenue earned, including things such as gift shop and concession sales and tuition for classes offered, as well as ticket sales and subscriptions, Turner urges. That means targeting likely high-revenue prospects, plus, since it’s easier to increase revenue from existing patrons than to acquire new ones, targeting the right members of the audience pool for offers of add-ons and upgrades. For both groups, Turner suggests selecting those with higher average income, and thus higher capacity to spend. According to the Bureau of Labor Statistics, the average high-income person spends over $8,200 on entertainment each year, so if average program revenue per attendee is $34.33 (the average performing arts program revenue per attendee in 2013), there’s room to grab a bigger share! When it comes to increasing donations, external list data on both discretionary spending ability and nonprofit donation history can be used to target significant nonprofit donor prospects for acquisition, and that data can be appended to the existing audience database to better target for add-ons and upgrades. Turner points to Target Analytics findings that, on average, up to 40% of nonprofit audiences can be top prospects for significant contributory giving–if you communicate to prospects with a message that resonates with their mission-based interest.

Segment to Maximize Lifetime Value

With limited resources, performing arts marketers need to be more strategic and proactive in focusing on the most valuable segments. This means tracking lifetime value, defined as the net profit attributed to the entire future relationship discounted to its current value. Again, quality data can help target the right people–those with high lifetime value–with the right message. For both audience database and prospecting mailing lists, Turner stresses selecting targets based on charitable giving and income/discretionary spending ability. Conversely, knowing those unlikely to donate or spend helps minimize investment in unprofitable segments. For more, see https://npengage.com/nonprofit-fundraising/arts-fundraising-and-analytics/