Focus On: Premiums: Here Donor, Donor
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).
Although we’d all love to have prospects beating down our doors to donate, for the foreseeable future it’s likely that we will continue to need premiums as a foot in the door so that we can tell our organization’s story. The key is doing it appropriately and cost effectively, being well-informed about the acquisition landscape, and being fanatical about tracking the long-term value of donors acquired by any package/source.
Amy Koop is an account director at ParadyszMatera, a New York-based media brokerage services company specializing in direct mail, Internet marketing, and alternative and print media. She can be reached at firstname.lastname@example.org.