| What kind of response rates do your direct | | | | higheryour response rate, the more donors you |
| mailfundraising letters generate? | | | | acquire. Andthe more donors you acquire, the more |
| That's the most common question I'm asked | | | | donors youcan appeal to in coming months, leading to |
| bypotential clients. And it's a good question, | | | | higherrevenue over time. |
| sincenon-profit organizations need the highest | | | | Renewal mailings (designed to obtain giftsfrom |
| responseratesthey can get in today's competitive | | | | existing donors) typically generate higherresponse |
| environment. Directmail is an expensive way to raise | | | | rates. An acceptable response rate with arenewal |
| funds if yourresponse rates are low and your | | | | mailing is somewhere between 5 percentand 35 |
| average gift issmall. | | | | percent. Response rates for renewal mailingsare |
| So what's an acceptable response rate? Thatdepends | | | | higher than rates for acquisition mailings becausethe |
| on the kind of mailing we're talking about. | | | | recipients already know you, trust you and havegiven |
| Acquisition mailings (designed to acquirenew donors) | | | | to you before. |
| typically generate low response rates. Anacceptable | | | | Remember that your response rate does not tell |
| response rate with an acquisition mailingis somewhere | | | | youenough. It only tells you the percentage of people |
| between 0.5 percent and 2.5 percent. Aresponse rate | | | | whoresponded to your mailing. Your response rate, |
| of only half of one percent might notsound adequate | | | | even ifit's remarkably high, can't tell you if you made |
| to you, but it's acceptable if yourcosts are low or | | | | money,lost money or broke even. It can't tell you |
| your average gift is high. | | | | how muchyou spent to raise a dollar (or pound or |
| Remember that generating a high response rate in | | | | yen). It can'ttell you how much you spent per |
| anacquisition mailing is more important than receiving | | | | donation. Or yourreturn on investment. |
| ahigh average gift, since the whole point of | | | | If you'd like to boost your response rates, work on |
| anacquisition mailing is to acquire donors. The | | | | yourenvelope. |