FIT Sponsorship
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  Finance, General, Research

Don’t Dump Direct Marketing – Study


Thursday, 9th June 2011 at 3:25 pm
Staff Reporter
New US research finds that integrated Direct Marketing is essential for maximising the long-term value of online-acquired donors.

Thursday, 9th June 2011
at 3:25 pm
Staff Reporter


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
Don’t Dump Direct Marketing – Study
Thursday, 9th June 2011 at 3:25 pm

New US research finds that integrated Direct Marketing is essential for maximising the long-term value of online-acquired donors.

Global software provider Blackbaud has published its 2011 donorCentrics Internet and Multichannel Giving Benchmarking Report, which features research on Not for Profit online giving in the context of an integrated direct marketing program.

The Report finds that although multichannel giving has become a popular objective of Not for Profits as a way to build donor support, it is not widely practiced.

The report founds that the large majority of donors give through only one channel and use only direct mail as their vehicle for donations.

According to the Report, the only donors who do significant multichannel giving are new donors acquired online. Large numbers of these donors switch to direct mail giving in subsequent years.

Blackbaud says this is the group of donors for which multichannel giving is crucial for garnering repeat gifts and realising true long-term giving potential.

Rob Harris, a co-author of the study, says the Internet is becoming an increasingly important acquisition channel but has not proven to be as effective for retention.

Harris says it is the ability of online-acquired donors to use another channel – that is, to start giving through direct mail – that significantly boosts the long-term value of this group of donors.

He says the most successful organisations have integrated online and offline marketing teams and CRM systems to develop effective multichannel communication strategies that can maximise donor value.

The research also finds that for donors already on file, evidence of past multichannel giving is not a predictive factor for future retention or long-term value. Traditional direct marketing segmentation variables such as recency, frequency, and gift amount are far more predictive.

Other key findings about online donors include:

  • The majority of gifts are still received through direct mail, although it has become increasingly common for new donors to give their first gift online.
  • Online-acquired donors are significantly younger and tend to have higher household incomes than mail-acquired donors.
  • Online-acquired donors tend to give much larger gifts but have slightly lower retention rates than mail-acquired donors.
  • In aggregate, online-acquired donors have much higher cumulative value over the long term than traditional mail-acquired donors. However, long-term value varies depending on the donor’s origin gift level, and the substantially higher gift amounts given by online-acquired donors can mask issues with retention.

View the full Report at www.blackbaud.com/multichannel



FEATURED SUPPLIERS


NGO Recruitment is Australia’s not-for-profit sector recru...

NGO Recruitment

Brennan IT helps not-for-profit (NFP) organisations drive gr...

Brennan IT

HLB Mann Judd is a specialist Accounting and Advisory firm t...

HLB Mann Judd

Yes we’re lawyers, but we do a lot more....

Moores

More Suppliers

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Giving Through PayPal Breaks $1B Threshold

Wendy Williams

Tuesday, 16th January 2018 at 4:47 pm

Three Fundamental Practices to Restore Trust and Attract Donation Income

Ushi Ghoorah

Thursday, 21st December 2017 at 11:55 am

FIA Set for Brand Refresh in 2018

Luke Michael

Wednesday, 20th December 2017 at 11:57 am

Face to Face Fundraising Ramps Up Disclosure

Wendy Williams

Thursday, 14th December 2017 at 8:19 am

POPULAR

$110M Package Tackles Anxiety and Depression Among Young Australians

Wendy Williams

Tuesday, 9th January 2018 at 8:46 am

Privatisation Poses New Challenges for NFPs Managing Their Workforce

Luke Michael

Tuesday, 9th January 2018 at 4:36 pm

Social Enterprise Announces $500,000 Funding for Social and Affordable Housing

Luke Michael

Monday, 15th January 2018 at 11:26 am

White Ribbon Australia CEO Announces Retirement

Wendy Williams

Wednesday, 10th January 2018 at 5:15 pm

Write a Reply or Comment

Your email address will not be published. Required fields are marked *


FIT Sponsorship
pba inverse logo
Subscribe Twitter Facebook

Get the social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!