First-Time Direct Mail Donors: How To W-I-N Them Over As Repeat
Givers.
Don't ask me how I know, but in Alcoholics Anonymous meetings
you'll sometimes hear a member mention "The Elephant in the
Living Room." In AA circles, a family member's drinking problem
is the elephant in the living room that everyone sees, that
everyone feels uncomfortable about, but that no one wants to
confront. In direct mail fundraising circles, the elephant in
the living room is abysmal conversion rates.
According to Stephen Hitchcock, President of Mal Warwick and
Associates, Inc., only 35 percent of new donors ever make a
second gift. Which is to say, putting it the other way, a
whopping 65 percent of donors acquired by direct mail give once
and never give again. Confronting this sobering statistic takes
courage but is worth the effort. Here's why:
* donors acquired through direct mail usually generate net
income only after making a second donation, because acquisition
mailings usually lose money (you must lose money to gain a
donor)
* re-soliciting existing donors is likely to perform five to
eight times more profitably than acquiring the same number of
equally generous first-time donors
* today's new donor is tomorrow's major donor and legacy gift
prospect
What all of this means is that the most important gift in direct
mail fundraising isn't the first gift but the second one. What's
most important isn't the first mailing that acquires the donor,
although that's vital, obviously, but the second mailing (or
third or fourth) that keeps the donor. So the place to
concentrate your scarce financial resources is not more and more
donor acquisition but better donor conversion.
Donor conversion is the process of turning a first-time donor
into a repeat donor. Some people call it donor renewal, which is
also the act of persuading donors and members to renew their
support year after year.
Before asking again, W-I-N them
You have work to do between receiving a donor's first gift and
asking for a second one. First-time donors need a reason to
repeat their generosity. I recommend you W-I-N over your new
donors, as follows.
Give them a Welcome--Mail a welcome kit or new member
package within a week of receiving the first gift. Your goal is
to inform and inspire your new donors, helping them see that
they made the right decision in mailing you a gift, and that
your organization deserves their continued support.
Get them Involved--In 1993, according to fundraiser Kent
Dove, the average gift among households with volunteers was 55
percent higher than among households with no volunteers. So
invite your first-time donors to sign a petition, answer a
survey, volunteer or drop by for a tour. Involvement leads to
commitment--and that second gift.
Give them News--First-time donors have attended one game
but they aren't fans yet. To transform them into long-term,
loyal supporters, you need to educate them with newsletters,
updates and progress reports. To attract that vital second gift,
the most important thing to tell your new donor is what you did
with his first gift. Donors want to see proof that you have
used, or are using, their last gift as the donor intended.