Non-Profit Case Study 2 – Lighthouse International

This is the third blog in a series for our Non-Profit friends and this week I am writing about Lighthouse International.

For Lighthouse International, its mature fundraising program was in decline. Due to a combination of inconsistent management of the direct-mail program in previous years, huge expansion in acquisition at great cost in 2005, and then the resulting acquisition program being halted while the renewal program was cut resulted in a dramatic loss of donors. Obviously, Lighthouse International was in desperate need of re-energizing its program.

So, it undertook a strategy based on best practices to do just that.

Lighthouse International:
• Increased its number of renewal appeals from six to eight per year.
• Refined audience selections to improve cost efficiencies.
• Added a premium appeal into the renewal series.
• Tested different creative messaging — those new themes and messages generated higher response rates and annual revenue per donor.
• Added a midlevel strategy.

The midlevel strategy was designed to upgrade donors and strengthen loyalty. Thus Lighthouse International created a midlevel donor club called “Beacon Society” which helped develop a group of donors who generate more gross and net income, and offers major-giving prospects.

Once it began to strengthen its relationships with current donors, Lighthouse International reignited its acquisition program. It expanded acquisition by using long-term value analysis to ID the best lists, unearthed new dual control packages —a mission-focused appeal and an address label package — and introduced a new expanded state/national strategy. That coincided with an emphasis on new-donor retention.

As a result, both the renewal and acquisition programs are in much better condition and continue to grow.

Keep your eyes upen for further information on the Dataman Group blog for our non-profit colleagues. Also check are previous Case Study.