Increase Revenue With Personalization
Personalization is a critical tool in engaging your donors and increasing your revenue.
Personalization, also known as one-to-one marketing, optimizes the experience and message individuals receive in your communications with them. It allows you to develop a personal connection with your donors.
There are several benefits to personalization in your touch pieces:
1) You immediately have the attention of the donor. You are more likely to open something addressed to you directly as opposed to generic "Friend" or "Neighbor."
2) You will increase your response rate. Multiple studies have found that personalization can lead to a 5-15% increase in revenue.
3) It allows for better targeting. You're able to address friends, alumni, patients, donors, non-donors in language that directly correlates to their relationship with your organization.
How can you incorporate personalization into your appeals?
The best strategy for your organization depends on several factors, including your database, your budget, and the capabilities of your print shop.
Your carrier/outer envelope should be as personalized as possible - this is the first thing the donor will see. But what about the letter? How are you addressing your donor? Are you greeting "Dear James Smith", "Dear Mr. Smith" or "Dear James?" Do you know how the donor wants to be addressed? Is that a field in your database? You don't want to send an appeal to "Dear James Smith" if the donor has an established relationship with your organization, shows up at events, and you know firsthand that he prefers to be addressed as "Jim."
Add personalization into the body of the letter. Instead of saying, "Today I am asking you to consider a gift to provide shelter and clothing to those in need," consider "Jim, as someone who has shown support for our organization in the past, I'm asking you again..." In one sentence, you've called them by their preferred name and addressed their past giving history.
One of the best and most common types of personalization is the ask string on the reply form and in many cases in the appeal letter. You have the information. You know what their past giving was. Don't ask a $1,000 donor for $75, and vice versa. I'll argue that this is the most personal part of the solicitation with which the donor will interact.
These changes can dramatically increase donor gifts, retention, and reactivation. However, personalization is only as good as your data! One of our clients received a five-figure gift from a lapsed donor who had not contributed for more than 25 years. Her gift was accompanied by a handwritten note that said, “You finally got my name right!” The point here is that for personalization to be effective, it is important to have excellent data hygiene.
Personalization is a critical tool in engaging your donors and increasing your revenue.
If you're ready to take your fundraising to the next level and could use some guidance, we'd love to help! Send me an email at john.payne@meyerpartners.com.