Smart Acquisition List Selection

Smart Acquisition List Selection

Oct. 18, 2005

By Dottie Simmons Parham

Whether you're a small regional mailer, a first-time-in-the-mail political candidate or a large international nonprofit organization, how you target your prospective donors helps define your short- and long-term fundraising success and potential.

In no particular order, here are 15 key steps toward smart list selection:

1) Set your annual and campaign goals. How many donors do you want to acquire? At what cost per donor? How much are you willing to invest?

2) If you're a first-time mailer, construct test mailings that allow you to analyze and eventually capitalize on your potential. Build your test with lists that are most likely to succeed -- groups whose missions are most like your own. Once you have tested enough to identify these core "Tier 1" lists, you can then begin to test into the secondary and tertiary tiers.

3) If you have a mature program, look beyond the first gift. Analyze subsequent giving to help you evaluate -- on a list-by-list basis -- how long it takes to recoup your initial investment and your two-, three- and four (plus)-year lifetime value.

4) Rank lists according to your goals -- typically, some combination of lowest cost per donor, highest response rate, income per thousand pieces mailed, average gift or lifetime value.

5) Analyze your results by market and type. Group lists into like market categories (environmental, advocacy, health charities, political, etc.) and by type (donors, subscribers, buyers, compiled, models). This will help you understand the composite of your donor file, build smarter acquisition plans and evaluate your potential for growth within each of these categories.

6) Consider list-rental income as a means to help offset your acquisition subsidy and maximize your exchange potential with lists that work well for you.

7) Plan ahead. Clear lists early to book the dates and quantities you want.

8) Plan further ahead. Set longer-term (three- to five-year) goals for potential file growth.

9) Mail top performers to full universe capacity. Likewise, as feasible, "rest" smaller universe lists.

10) Use selections (recency, frequency, amount, gender, geographic, etc.) to enhance borderline performers.

11) Evaluate list-to-package efficiencies. There might be some lists that work better with one offer/one package than another.

12) Evaluate seasonality. It might be that certain packages or lists can only be mailed successfully at year end or other specific times.

13) Test and retest. While core, top tier lists should typically fill 80 percent to 85 percent of your mail plan quantity, fill the balance with retest and test lists -- lists are updated, fundraising climates shift and, of course, creative strategies change.

14) Remember to treat your mail acquisition program as an integral piece of your overall marketing and fundraising program. Test subscriber lists of publications where you're placing ads or donor lists that complement work you're doing in the field. Make sure your online and other media strategies are in synch with your mail strategies.

15) Finally, involve your list broker/manager in creative and strategy sessions. A collaborative relationship will let you take advantage of a whole new talent pool and can only improve your acquisition results.

Dottie Simmons Parham is vice president of Carol Enters List Co. and can be reached via www.carolenterslists.com.