List Research from the Trenches
DO THE NUMBERS
Dig out the list history and past campaign returns. Immerse yourself in the data. Make sure you know what the average gift has been over time, as well as the response rate by list, the cost in the mail and, most importantly, the net revenue per donor.
Without this number, you don’t have a clue what your investment is, so if your predecessor has left you without this key piece of data, do the calculation. What is the acceptable investment in a new donor? What is the lifetime value of a donor? (That is the sum of donations, responses to special appeals and list revenue over the life of a donor -- calculated with an average renewal percent over a number of years.) What is your renewal rate? Will you be responsible for replacing donors lost by attrition (check out the universe of the housefile) or does your new board of directors hope for growth? What are they willing to invest?
