The Loyalty Letter

Before you purge, write off, or otherwise ignore the lapsed and long-lapsed names on your database, consider what happened to two of my clients in 2013...

“I’m not dead,” says the raggedy man draped over the shoulders of another. “I’m getting better."

“No, you’re not,” replies Raggedy Man's transportation. ”You’ll be stone dead in a moment.”

Raggedy Man objects, “I don’t want to go on the cart.”

So proceeds Bring Out Your Dead, one of my all-time favorite scenes from Monty Python and the Holy Grail.

At many nonprofits, lapsed and long-lapsed donors must feel a lot like this.

In their minds, they may be just "taking a break" -- maybe they've lost their jobs or times are tight or you've simply fallen off their radar screen, but they still feel a connection to your cause.

So why then, are they excluded from every mailing, relegated to the database dustbin, or ignored for months on end? (FYI: it costs 5-7 times more to acquire a new donor than it does to keep an existing one.)

What if, with a bit of stewardship and a good appeal, you could see something like this instead?

At client #1 this year, they saw:

• Response rates of between 6 and 11 percent from their lapsed file, with an average gift of nearly $100;
• Long-lapsed donors gave, on average, $45 to $50+, with response rates of 2 to 4 percent;
• All in all, mailed to around 2,000 names, they raised an additional $18,000.

At another:

• A holiday mailing yielded an 11% response rate from lapsed donors;
• Average gift of more than $100;
• Total additional gross revenue of over $30,000.

Instead of purging or ignoring, here are some things to test with your lapsed and long-lapsed files, especially multiple or long-time lapsed givers, instead:

1. If you are a membership based organization that sends renewals, try a “forgiveness” appeal similar to Audubon Society of RI’s approach, featured on SOFII here. (A fifty percent renewal rate, for the record -- and for the donor gratitude win.)
   
   
2. Follow the advice in these fabulous shared slide decks from Bonnie Catena’s (@catenaconnects) DMA presentation here, and I quote Bonnie directly:
   “ - Test mailing 2+ year lapsed who have given 2+ or 3+ gifts
   - Test “super dupes” - run lapsed files against other prospect lists in your acq. merge/purge to identify which lapsed donors are still active dm donors to other organizations...they may be willing to give to you again”
   
   
3. See Pam Grow’s superb write-up of Ontario Nature’s approach, in Loving Lapsed Donors Back Into the Fold.
   

You can also test sending lapsed donors a thank you/update, a modified version of your cold/prospect mailing, or even an unmodified version, as a test to long-lapsed. (Part of what Bonnie is talking about, above.)

I’m testing a couple of these ideas and more right now, and I encourage you to do the same.

Because just like our raggedy man from the Monty Python movie, lapsed donors don't think they’re “dead” in any way, shape or form -- based on the results we saw from 2013 mailings, they still have a lot left to give.

They might just need a little love... and a chance to prove it.

Want to tell great stories in your fundraising appeals and donor newsletters? Start with great questions...

In my masterclass with Denisa Casement (her brilliant blog here) at #finfc2014 I stressed the importance of asking the right kind of questions when you conduct interviews with patients, clients, etc. for your fundraising appeals and donor newsletters.

I offer advice and examples in these 3 links, free for you to use:

1. Advanced Interviewing Secrets for Better Storytelling and Stewardship

2. 65 Open-Ended Questions, Free PDF

3. 25 More Interview Questions

Happy interviewing!

And lastly, if ever you have a question on donor communications,
send it along to The Loyalty Letter. All you have to do is:

Email me.

Or call: +001 (860) 881-7009.