Friday, October 2, 2009

Can the Resident List Work for Non-Profits?

Conventional direct marketing wisdom would say “No, the resident list will not work for non-profits.” Conventional direct marketing wisdom dictates that when mailing to acquire new donors one would rent a list(s) of names of individuals who are known donors and often donors to a similar non-profit cause.

However, I have seen a number of significant non-profit organizations use the resident list very successfully to generate new donors. Their acquisition mailings were holiday appeals and the mailing package was very simple and low cost. They used the resident plus list that contains names on approximately 80% of the records so there is an element of personalization on the majority of the pieces. In addition, the resident list was selected using an income demographic so that the appeal mailing was directed only to higher income carrier routes. Potential donors in high income routes logically have more discretionary income available to donate to a non-profit.

I think their secret to success is a combination of factors that converge to create a very low cost in the mail. First, the resident list is a very low cost list relative to a named known donor list—probably 1/10 the cost. Second, using the resident list allows for the lowest postage rate possible, ECR WSS. Finally, the package mailed is simple and low cost. When the appeal is over and the donations are all in, the $ donated per $ spent ratio is high enough to make the campaign successful based on the usual non-profit financial ratios that benchmark success.

Consider using the resident plus list for your next appeal mailing.

Take a look at resident list counts by zip code and carrier route by downloading free count reports.

Sign up for a free e-newsletter that provides mailing list tidbits.

No comments: