Saturday, August 7, 2010

Base Your Decisions on the Facts

Check out a thoughtful post by my fellow colleague at TrueSense Marketing, Jeff Brooks: Donor's opinion can lead you astray of the facts.

I'll add to that by highlighting a small study on thanking donors. It illustrates Jeff's main point: the importance of basing decisions on the facts, rather than opinion or hunch. It also adds texture to his point about thanking donors: It also matters how we thank donors.

The organization used to mail its thank yous to upper donors with first class postage on the carrier envelope. Then as a cost-cutting measure, they switched the postage to bulk. You'd think a small difference like that would be hardly noticeable to a donor. Keep in mind, however, that postage will affect both speed and rate of delivery. Here's what happened to response rate:

First, notice that these donors responded in the 10% range to thank you letters. That's better than most appeal letters.

Second, look at the change in response rate. It's a 20% decrease! This shows why it's important to test before making changes. Get the facts. Can you afford to lose 20% of your income from thank yous?

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