High Cost to Raise $1 Numbers Improved In First Year for Nonprofit
The Christian Appalachian Project is an interdenominational, nonprofit Christian organization committed to serving people in need in Appalachia by providing physical, spiritual and emotional support through a wide variety of programs and services.
What We Provided
Brokerage
Management
Alternative Media
Digital
Creative
The Brief
In 2005, Christian Appalachian Project (CAP) turned to RMI for help with list brokerage services. They were struggling with a very high cost to raise $1 in acquisition, with a small number of core continuation lists and a low test to continuation ratio.
The Solution
RMI analyzed CAPs list results and determined where we could improve response by tightening the recency and/or lowering the dollar select; and where we could improve the average gift by increasing the dollar select.
We tested deeper into files that were doing very well and reactivated dormant exchanges by finding better selects on those lists. And we concentrated on testing only highly targeted lists.
RMI increased exchanges by getting mailers back in on CAPs list and recommending better selects for improved results. We reduced list costs by negotiating better pricing and favorable net name arrangements, making it possible for them to rent lists that had only worked on exchange in the past. We also worked closely with their agency on testing new packages to improve overall results.
The Results
CAPs cost to raise $1 was reduced by 9% in the first year and an additional 7% in the second year. Over a dozen exchanges were reactivated, results were improved on over a dozen continuation lists, and the test to continuation ratio increased to 40%, resulting in 19 new continuation lists.
With the improved results and expanded list universe, CAP and RMI had better lists to choose from when building mail plans. This resulted in higher quality donors, with higher renewal rates, and higher average gifts.
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