Making the Right Call:Effective Lapsed Donor Reactivation

Strategies using Telemarketing

Randy BrewerAGRM 99th 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• Deeply Lapsed 61+ months with no gifts• What about 13-24 month with no gifts?

Why Do Donors Lapse?• The three Ds– Death– Departure– Dissatisfaction

• Dissatisfaction is increased for three reasons:1. Not Properly Acknowledged2. Too Much Mail3. Too Aggressive With Ask Amounts

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

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

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.

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

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

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

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

Other Benefits

• Listen to your Donors– Donor Preferences– Volunteer Opportunities– GIK

• Database Hygiene

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