Acquisition: Its Costs And ROI – Part 2

The Agitator

That’s why so many fundraisers and their consultants persist in using the meaningless, if not idiotic, measures of ‘cost of fundraising’ and ‘ROI’ rather than develop strategies and steer their programs based on the key metric of Lifetime Value.

Magic Fundraising Machine Boosts ROI

The Agitator

And response-reducing. You can imagine my joy to learn that this new process, based on neuroscience, rather than my curmudgeonly grudges, is capable of spicing up and reordering digital typography to make it more readable and more response-prone by the customers, prospects and donors. It’s called ReadSmart , and it offers a way to increase response rates without changing copy, mailing universe, postage treatment or package format. Response rate increased: 9.67%.

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Direct Mail Hanging In

The Agitator

The Direct Marketing Association notes in its recently released 2012 Response Rate Report that direct mail response rates have dropped nearly 25% over the past nine years. Even so, direct mail pulls a better overall response than digital channels.

Pairing metrics for fun and (non)profit

The Agitator

Response rate vs. average gift: This one is the most obvious. If you measured only response rate, someone could reduce the ask string and lower the heck out of the amount of the ask in order to spike response rates.

Explaining Abstract Numerical Concepts–Like “Eleven”– To Your Boss

The Agitator

Any discussion of metrics in The Agitator must include a nod to “ The Curse of Fundraising Innumeracy ” about an Agitator reader who tried to keep a straight face when someone said they had a 95% retention rate. Isn’t that a bad ROI? Would you say “that’s not a very good ROI?”

12 Key Digital Engagement Trends from the 2018 M+R Benchmarks Report

EveryAction

Having a reporting system that can track these sources is vital in determining which channel produces the greatest ROI. Open rates, fundraising click-through rates and page completion rates for both fundraising and advocacy all went down. More importantly, nonprofits have integrated social media more tightly with their other digital and direct response channels. Some of the reasons for a high spam rate include: Making unsubscribing difficult.

Small Nonprofits Outperform Larger Organizations Online

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Organizations with small list size (under 100,000) had DOUBLE the email response rate for fundraising compared to other groups. Small groups also had higher click-through rates and open rates on their emails (20% open rates compared to 14% across all groups, DOUBLE click-through rates compared to other organizations). The study authors urged nonprofits to work to improve your click-through rates.

Don’t Be Part of the Noise – Make Your Email Messages Stand Out

Ann Green

Improve the ROI of Your Nonprofit Email with a Great Subject Line. 11 Fundraising Email Best Practices To Drive High Response Rates. Email is usually the primary mode of communication for nonprofits and there’s a reason for that.

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What we learned about multichannel fundraising from raising money at year-end

DonorDigital

It will take a bit longer to see the full results of the direct mail efforts, but we know that this channel will continue to provide a lion’s share of overall direct response revenue – and will for many years to come. Targeted email messages to individuals receiving direct mail appeals reaped high response rates and average gifts. Even when these groups were small, response rates were often triple the average email response rate and revenue per email sent was very high.

WE Rules! Make Your Messages Matter Now

Getting Attention

Double-digit response rates to newsletters. Sixty-five percent retention rates. If in-network healthcare is being moved from your area at an alarming rate, leaving the lives of good people hanging in the balance, say so.

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Why Chuck Longfield Is Worried

The Agitator

For purposes of this post, he’s a first-rate innovator who is more intimately familiar with direct response fundraising trends than anyone I know. During the same period, first-year retention rates have significantly declined to the point where, on average, nearly 3 out of 4 newly-acquired donors leave by the end of the first year. FOCUS ON LIFE-TIME VALUE, NOT RESPONSE RATES. There are some great charts on acquisition and retention rates by sector. .

Three Cheers for Survey Monkey!

Marketing for Nonprofits

analyze responses in real-time 9. achieve a 12 percent response rate to date! I don't know about you, but in my book, this is some pretty good ROI ! I NEVER plug vendors. but I feel compelled to evangelize for a moment about my recent, GREAT experience with Survey Monkey. For a mere $20, I was able to: 1. create an online survey 2. BEAUTIFY it 3. upload over 800 emails 4. create custom messaging 5. segment appeals based on who did/did not respond 6. test the appeals 7.

What is the real value of social media for nonprofits?

DonorDigital

He offers some sage advice about not diving in too fast to staff up in this area without first understanding the return on investment (ROI) of this activity. David Matthew of Software Advice has authored a good blog post about how to get the most out of social media.

Meet Donordigital: Matt Burghdoff, Senior Account Executive

DonorDigital

Put your resources into cultivating those 20,000 emails into a strong program, which will deliver a much better ROI, then use that ROI to cultivate the next most-important channel to your supporters. Matt Burghdoff is Donordigital’s newest Senior Account Executive.

Are You OK With 1 Percent?

The Agitator

He’s talking about the fact that, on average, online fundaising appeals get less than a 1% response rate … indeed, the average is less than 0.2%. Arguing why online response should be better than mail, Steve says: "Email communication has more robust segmentation and personalization capabilities. It has faster response cycles, is more cost effective to test, and combined with higher average gifts it can have better ROI than traditional channels.

Dig Into Your Donor Database

Nonprofit Marketing Blog

That’s the median donor retention rate that the Fundraising Effectiveness Project (FEP) calculated from the 2012–13 fundraising results of its survey respondents. Inefficient: It has a very low ROI ($1).*. 25), and these donors offer the highest ROI ($4).*.

The Future Of Fundraising

The Agitator

Immediate measure of ‘success’ (response rates, immediate ROI, giving totals for the year) doom us. With retention rates in the dumper too few nonprofits really understand that a 10% improvement in retention results in a 200% improvement in lifetime value. Tackle high turnover rates in the fundraising profession. Send this to your CEO and every member of your board. Right now!

eBenchmark Study results - good news if you’re a small nonprofit

Nonprofit Marketing Blog

Organizations with small list size (under 100,000) had DOUBLE the email response rate for fundraising compared to other groups. Small groups also had higher click-through rates and open rates on their emails (20% open rates compared to 14% across all groups, DOUBLE click-through rates compared to other organizations). The study authors urged nonprofits to work to improve your click-through rates.

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