“Building an Effective Direct Mail Renewal Program”

Year after year, renewal programs have proved the most reliable source of income an organization can depend on, with annual renewal of members and donors being the most cost effective form of direct mail fundraising. With this in mind, a national nonprofit organization felt that they could dramatically increase their renewal performance with a punchy new look and a consistent branding image.

Despite that renewals had performed better than the rest of their direct mail program, it was felt there was definitely room for improvement. Prior to the creation of the new series and mail plan, donors were renewing at a rate of 60% - 62% with an average gift of $19.00. This client recognized that, even with several talented fundraising professionals on staff, they should call in outside expert assistance to create a plan for persuading members to both make subsequent gifts and renew their support annually.

After a thorough review of their current renewal program, it was recommended that this client:

• Create a consistent branding image for all renewal packages and member / donor relationship pieces, for immediate member recognition;
• Acknowledge new members immediately with a letter thanking them for their contribution, as part of a new membership kit containing their membership card and a newly created stewardship piece;
• Develop a more extensive multi-part renewal series, expanding their series of five annual mailings to eight. These included variations of personalization, ask strings, and to upgrade current giving levels;
• Mail one downgraded mailing, offering members who had not renewed to do so at a special rate, after completion of the above mailing series;
• Test telemarketing to lapsed donors who were non-mail responsive;
• Test personalization on mailings to donors between $50 - $ 100;
• Include multiple credit card donation options on all mailings; and
• Incorporate the client’s web address on all mailings, to drive donors to the site to donate, and for information on current issues and programs.

This client understood that by creating a branding image, members and donors would immediately recognize mailings from the organization. An envelope was created that “jumped out” at the reader, and did not look like “junk mail”. This same look was incorporated into collateral relationship building pieces, including a new member kit, newsletters, and magazines.

When a new member sends in their first contribution, they are immediately sent an acknowledgement letter, their membership card and a membership kit. This prompt action assures the member that their contribution has been received, and recognizes their generosity, while the membership kit fosters greater interest in the organization and involvement in its various programs.

Nine months after new members join, they were placed into the next renewal mailing series three months prior to their annual renewal date. The first of this series includes a “letter to members” along with their annual membership card and a memo updating members on the organization’s current programs and their progress to date. The memo is updated quarterly to share victories and progress of programs. A final component of this package is the offer of a backend premium for a specific donation amount with their annual renewal contribution.

The remainder of the series varies somewhat, but with the overall objective of sharing with members why their support is vitally important to the continued growth of the organization. Renewal packages are mailed every six weeks, until the complete series had been mailed or the member renews, but does not include the membership card, memo or backend premium offer. If a member receives the entire series of eight renewal mailings without renewing their membership, a downgrade mailing is sent.

This downgrade mailing features the same branding image as all previous mailings, but offeres membership renewal at a specially reduced rate. This is the last attempt to get members to renew their membership via mail, prior to moving them to the client’s semi-annual telemarketing reinstatement campaign. Telemarketing may be the only way to reach a donor who is not mail responsive, but it is not as cost effective. This follows the old direct mail adage – “mail frequently and ask often for a renewal of support!”

It is important to understand how this renewal series fits in with the remainder of the organization’s direct mail plan and its relationship building pieces. This client mails eight or nine appeals annually on their various programs and advocacy issues. They also have a house magazine and newsletter, each of which is mailed quarterly and includes an additional opportunity for members to donate by incorporating a reply envelope. This mail plan assures that donors receive, on average, one organizational mailing every three weeks. This client also assures that, no matter which mailing secures a donation, the member immediately receives an acknowledgement. Again, this emphasizes the importance of thanking the member for their gift and providing immediate donor recognition.

This comprehensive program now has an average rate of membership renewal between 75% - 77%, with an average gift of $32.00. With this higher retention rate of members, the client can redirect more funds to other programs. This renewal program is cost effective, simple and straight-forward, with each mailing containing three basic elements:

1- Reminding donors that it is time to renew;

2 - Asking donors to renew; and

3- Asking donors to send their membership gift today