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What Should You Test?

November 2007 By Stephen Hitchcock
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The question we as fundraising consultants are asked most often also is the question we keep asking ourselves: What elements of a direct-mail package are most important to test?

The question is important. What makes direct mail so successful as a fundraising medium is that we can track results and learn from them.

Everyone involved in direct mail makes decisions based on anecdotal information and on personal preferences. We also depend on experience: We compare one year’s results to another year’s results, or we line up returns from one package mailed in June against returns from another package mailed in September.

But those judgment calls are at best a calculated risk. At worst, delusions.

Testing is a must

To make consistent improvement in your fundraising program, you must test. That means mailing random samples (with test and control panels of names from your own donor list or from prospect lists) at exactly the same time and then subjecting those results to the rules of statistical validity.

But the catch is that even if you’re committed to testing, you must mail a large enough quantity to achieve statistical validity: To conduct reliable tests — with some important exceptions — your house list should be 10,000 names or larger, and an acquisition effort (prospect mailing) should include at least 50,000 pieces.

Tests to try

If that’s the case, then here are three of my favorite elements to test:

1. In fundraising mail, the test that usually makes the greatest difference involves the amount you request. That’s particularly the case in acquisition mailings: Will you persuade more individuals to become members or donors by asking for an initial gift of $15, $20, $25 or $35? For some organizations, asking for a lower initial gift results in a higher response rate without a decline in the average gift.

Our firm also has tested gift levels in special appeals and renewals. Since the purpose of these mailings is to generate net income, increasing response rate can make a big difference in income.

The great advantage here — besides an increased number of new members or higher net income — is that testing gift amounts is one of the least expensive tests you can perform. It doesn’t involve expensive variations in copy or package design.

2. Postage is an other crucial element to test. In acquisition efforts, we test to learn whether we get more members by using BREs or, instead, reply envelopes where the new member places a stamp on the envelope. BRE postage is expensive and, in some cases, we’ve found through testing that results actually are higher when BRE envelopes aren’t used.
 

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Most Recent Comments:
mary davidson - Posted on November 13, 2007
You missed a couple of points: importance of testing against a control panel of comparable composition to be able to effectively evaluate results; testing levels of personalization in various components vs generic; testing premium vs. no premium offer and testing various types of premiums offered (house and prospect mailings).

On test sizes: acquisition: key factor is (1) not solely the size of the mailing in aggregate as much as the quantities of the lists comprising the test- they must be significant enough in size to be statistically significant response.
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Archived Comments:
mary davidson - Posted on November 13, 2007
You missed a couple of points: importance of testing against a control panel of comparable composition to be able to effectively evaluate results; testing levels of personalization in various components vs generic; testing premium vs. no premium offer and testing various types of premiums offered (house and prospect mailings).

On test sizes: acquisition: key factor is (1) not solely the size of the mailing in aggregate as much as the quantities of the lists comprising the test- they must be significant enough in size to be statistically significant response.