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+92% Hit Rate in Direct Mail
Campaign and x4 ROI
Fundraising
(1-2 minute read)
Situation:
A globally recognized non-profit organization, dedicated to providing medical assistance to individuals impacted by war, natural disasters, epidemics, and other crises, sought to refine its fundraising strategy. Historically, like many NGOs, they depend on direct mail and telemarketing to garner funds. However, they grappled with identifying the most receptive audience for their campaigns to elevate donation rates. While direct mail proved effective for certain segments, its cost-intensive nature necessitated a judicious approach: maximizing outreach without inflating expenses. The challenge lay in discerning which donors were more inclined to contribute and which weren’t. Allyy.io emerged as the solution to this predicament.
Complication:
The NGO faced a dilemma: should they relinquish a method that had previously yielded success, risking the loss of invested resources and the established setup? Their traditional strategy, grounded in business logic, targeted donors based on external data like age, car brand, and geography. This approach had been fruitful for years. However, the changing landscape, characterized by the easy accessibility of information and the rise of alternative channels, necessitated a shift.
Resolution:
The organization required an efficient means to scrutinize their database, extracting insights about their donors and potential contributors. Recognizing age as a pivotal factor in the non-profit sector, they also sought a tool capable of predicting the age of potential leads, facilitating tailored outreach.
Allyy.io’s advanced machine learning algorithms offered a solution. By analyzing donation history, response patterns, demographics, and other relevant data, Allyy.io discerned patterns and insights instrumental for devising targeted campaigns.
Results:
For the Direct Mail Audience aiming to stimulate one-time donations:
– The top 10% of the audience, deemed most likely to donate, accounted for 45% of all conversions, boasting a conversion rate of 18%.
– Conversely, the bottom 40% of the audience, with the lowest predicted likelihood to donate, contributed to a mere 3% of all conversions, with a conversion rate of 0.4%.
By narrowing their campaign focus to the top 48% of the audience, the NGO managed to cut direct mail costs by approximately 50%. This strategic move not only enhanced the hit rate by 92% but also amplified the ROI by 390%.
In conclusion, leveraging data-driven insights can significantly optimize outreach strategies, ensuring NGOs connect with the right audience while maximizing resource efficiency.
