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Breaking Out of the Status Quo

What to Do When Cost-to-Acquire Lies to You

I’ve argued cost-to-acquire (CTA) and lifetime value were the two metrics that mattered most.  The idea is that if lifetime value is going to be higher than the cost of acquiring, acquire that donor.  If not, you need lower acquisition costs or higher lifetime value. That makes great sense as far as it goes.  The […]

Learn More May 2, 2018

What Your Board Should Learn from Starbucks

There’s no question in my mind that a great deal of the furor over the ‘high cost of fundraising’ on the part boards, CEOs, watchdog groups, the press, regulators and many fundraisers themselves stems mostly from ignorance. Ignorance about what “acquisition” is, how it should be measured, and when or whether its costs should be […]

Learn More May 1, 2018

What You Need to Know from the 2018 Fundraising Effectiveness Project: Implications

The 2018 FEP report has both silver lining and cloud. Now what?  I’d love to hear your thoughts in the comments; here are a few of mine. We must rebuild our base.  Increasing retention post-first gift is a major part of this and we should pat ourselves on the back (not too hard) for this. […]

Learn More April 27, 2018

What Ask String Works Best?

The life of a direct response fundraiser is filled with so many questions – far more questions than answers. Take the question, “How much should we ask for?” Usually the question is answered with the conventional application of a formula based on previous giving.  For example, 1.0X, 1.5X, 2.0X highest previous gift –or some variation […]

Learn More March 13, 2018

Donors Are Ticked Off by Excess, Unrequested Solicitation – Who Knew?

Why do results decline as volume goes up? At a basic level, each new communication cannibalizes results from those communications around it.  Looking at one study here, researchers found that each additional mailing generated 1.81 Euro in revenues, but that 1.21 Euros of that was cannibalized from future mailings.  Thus, only 37% of the revenues […]

Learn More February 1, 2018

Volume Has Been Tested. The Results Are In

Yesterday, I vented my spleen about the argument that volume leads to retention and that the volume of contact should be viewed as the lever to do so. Now, I’d like to put my case studies where my mouth is. Most of these are specific to mail.  Why?  Because that’s where the testing has been […]

Learn More January 31, 2018

How Not to Test Communication Volume

I’m a fan of M+R.  Their free nonprofit tool shed is great for quick calculations for those who, like me, can’t do chi-square or t-tests, in their heads.  Their yearly benchmarks are a must read every year.  (And they are adding retention to it, which is a great addition.)  They are also more open about […]

Learn More January 30, 2018

Demographics: The Second-Best Way to Segment Your File

Yes, demographics are the second-best way to segment. The best way, however, is literally almost any other way. Take, for example, the experience of Todd Yellin, Netflix’s VP of Product Innovation.   Netflix has one of the great treasure troves of data out there.  What does he use?  Quote: “There’s a mountain of data that […]

Learn More January 25, 2018

RFM Segmentation: First Refuge of the Scoundrel

“Wait!”, I hear you cry.  “You rail against segmentations that aren’t predictive.  But transactional RFM segmentation is not a bad predictor.” And I will stipulate that: A person will tend to give the amounts that they have given in the past. A current donor is more likely to give than a lapsed donor. A donor […]

Learn More January 24, 2018

Explaining Abstract Numerical Concepts–Like “Eleven”– To Your Boss

Any discussion of metrics in The Agitator must include a nod to “The Curse of Fundraising Innumeracy” about an Agitator reader who tried to keep a straight face when someone said they had a 95% retention rate.  And clearly there is a problem when otherwise smart people with big budgets don’t “do” numbers. But I’d like […]

Learn More January 22, 2018

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Ask A Behavioral Scientist

    Behavioral Science Q & A

    Q: As a designer who works with non-profits on fundraising strategy, I see the language like the following: “Our supporters help empower every girl, ensuring she has the resources she needs.” I do not think the word “help” is useful–I think “Our supporters empower every girl, ensuring she has the resources she needs. ” is much more engaging. Thoughts?

    Whether “help” is more engaging or not really depends on the framing and context. The word help can sometimes weaken the perceived agency of the supporter, making their role feel secondary rather than central (your point). On the other hand, help can also signal collaboration rather than implying full ownership of the outcome, which might […]

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    Q: We started offering a donor cover option last april 1. The data to date suggests this may be dampening giving.eg. those who say yes to donor cover have a lower average gift (based on analysis of 6000+ gifts). I’m wondering if those who give lower gifts feel more guilt and therefore say yes to donor cover or if the presence of donor cover is making people adjust (lower) their gift size to accommodate the extra 3%. Would love any insights you have.

    Great question! Here’s how behavioral science can help unpack what might be happening: Pain of Paying: Even a small extra charge can make giving feel more transactional than emotional, potentially reducing generosity. Fairness Concerns: Some donors might perceive donor cover as a surcharge rather than a contribution to the cause. If they feel the charity […]

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    Q: When writing an appeal, I waffle back and forth between writing “Your gift CAN…” or “Your gift WILL…” Any studies of which of these two words is best for an appeal?

    The choice between “Your gift CAN…” and “Your gift WILL…” taps into the psychological framing of certainty vs. possibility. Currently, there is no academic research directly comparing these two framings in charitable appeals. However, I suspect no framing is universally better—the outcome likely depends on your target audience and the campaign’s goal. Here are some thoughts: Certainty Framing – […]

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    Q: Do you have any insight on whether integrating an individual giving appeal with other comms from the charity in both appearance and messaging can uplift results? Or does the actual appeal become ‘lost’ for lack of stand-out?

    Integrating an individual giving appeal with other communications from a charity can have both positive and negative effects, and the outcome largely depends on how it’s executed. Advantages of Integration Brand Consistency: Maintaining a consistent appearance and messaging across all communications can reinforce the org’s brand identity and strengthen brand recognition and trust among your […]

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    Q: Is there any research on response rate impact in direct mail when referring to a sustainer gift as ongoing or recurring (catching all frequencies) v. monthly or annual?

    I’m not aware of any in-market tests specifically comparing recurring vs. gift frequency language. I suspect the answer might not be the same with all gift frequencies, nor with all people. It sounds like a great opportunity for you to test and find out what works for your audience. Based on the literature, here’s a couple […]

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    Q: A major conservation nonprofit sends me lots of mail, many of which have on the envelope “time to renew” or “2nd notice.” I find this practice deceptive, especially as I haven’t given to said organization since 1997. It must be effective or they wouldn’t do it. But is it ethical?

    Based on what we know from existing data, those renewal notices can actually be pretty effective in getting people to donate. They tap into our psychology – creating a sense of urgency, reminding us of past support, and using personalization to make the message hit home. They’re playing on our natural tendencies to feel obligated […]

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