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Strategies for Enhancing High-Value Audience Acquisition in Nonprofit Organizations

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This document outlines key strategies for improving audience acquisition at The Nature Conservancy. It discusses the balance between high-value audience growth and effective list tiering, leveraging cooperative data, and employing creative multivariate testing. Analysis shows a 10% increase in high-value mail volume from FY07 to FY10, despite challenges such as an economic recession beginning in September 2008. The findings emphasize the significance of audience mix, package optimization, and rigorous list performance evaluation to bolster net revenue and average gift metrics.

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Strategies for Enhancing High-Value Audience Acquisition in Nonprofit Organizations

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  1. Acquisition Katie Valvo Associate Director, Acquisition The Nature Conservancy kvalvo@tnc.org

  2. Audience Balance • Balance High Value Audience Growth • List Tiering • Cooperative Data • Creative • Multivariate Testing • Package to Audience • High Value

  3. Mail Volume increased by 10% from FY07 to FY10

  4. Average Gift Falls Year-over-Year

  5. Recession begins in September 2008 (FY09) – average gift had already fallen against FY08 Average Gift

  6. Response falls then bounces back

  7. With the increase of QTY in FY08, response dropped by 10% and the Av Gift drops over $1 less than FY07

  8. Package Trends Did a change in the mix of packages used or a decline in performance in one package negatively impact FY09? Program has been very reactionary from heavy testing, economic conditions and package-driven performance months.

  9. Lists – Performance by Tiers Lists used in the previous fiscal year were ranked by net/donor, excluding the calendar mailing. For the following fiscal year: • Lists in the top 25% of net/donor are labeled Tier 1. • Lists in the next 35% of net/donor are labeled Tier 2. • Lists in the final 40% of net/donor are labeled Tier 3.

  10. There is a significant drop in the use of Tier 2 lists. We need to be diligent on list universe make-up.

  11. Another View: Tier 1 increases Yr Over Year, With Tier 2 Shrinking & Tier 3 increases – FY10 Appears to be on a Good Start

  12. 60% of universe on Test & Tier 3 Lists & highest Cost/Donor – directly affect the bottom-line

  13. Average Gift Softened Most with Tier 1 Lists

  14. Environmental Lists Impact All Tiers

  15. Impact FY11 - Present

  16. Creative

  17. Multivariate Test Design

  18. Five significant effects: A-: Control envelope is better (by 20.8%) with a cost of $29.85 / 1k for the new OE O-: With the drop in response, the upgraded asks have a negative impact on net revenue (hurt 15.0%) F-: Larger letter format hurts net revenue by 9.5% at a cost of $1.80 / 1k B-: Bubble-padded OE hurts net revenue 7.1% at a cost of $9.80 / 1k P+: Highlighting one ask increases revenue 6.2%

  19. Optimal Package

  20. Package to Audience Mix and High- Value

  21. Audience Balance • Balance High Value Audience Growth • List Tiering • Cooperative Data • Creative • Multivariate Testing • Package to Audience • High Value • THANK YOU!

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