In 2008, we launched our first controlled experiment, with an agency boasting a strong 10-year track record. Over the next two years, we more than doubled the net profit of the 40 organizations raising money with that agency.
In summary, our predictive models increased the bottom-line per piece mailed by 70%, leading to greater volumes of more highly-targeted direct mail appeals, resulting in an overall net increase of over 100%.
Our laser focus on the best possible prospective donors decreased the Cost Per Donor Acquired, increased the Lifetime Value of each donor, improved retention, and enhanced the bottom line. By improving results on Acquisition mailings by 20%, we were able to drive CPDA to a remarkable feat of break-even on just the initial results. Furthermore, because those donors were targeted based on a Lifetime Value model (vs. simply response), subsequent Donor Cultivation mailings also yielded superior results.
These results were achieved using our first generation model – our most recent models have improved more than 150%. The chart below illustrates the continuous improvement achieved through tireless commitment to research and development on our models.
The power of segmentation and targeting continues to increase as we compile more and more data and refine the modeling techniques and computer learning algorithms even further.
Four years later, we are able to identify patterns for most, if not all, potential donors: what types of organizations they support, what times of year they are most likely to write a check, their likelihood to become loyal donors, etc. As a result, our clients have been able to realize supercharged development performance.
DonorBureau, Inc. 1550 W McEwen Dr Suite 300 Franklin, TN 37067 650.906.6708 firstname.lastname@example.org