Premiums are vital to many direct-mail, donor-acquisition progams. But address labels alone might not do the job.

By Amy Koop

There are no rights or wrongs on premium use, but it’s a matter of defining priorities: Premiums are a valuable tool for getting donors to raise their hands to a relationship with your organization (i.e., raising response rates), but they do put a specific burden on the renewal program to retain those individuals. Key elements to monitor within the LTV equation are list source, list market and how donors are acquired onto the lists you’re using (premium vs. non-premium packages).