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Improving Campaign Success Rate by Tailoring Donation Requests along the Donor Lifecycle

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  • Verhaert, Griet Alice
  • Van den Poel, Dirk

Abstract

Since charitable fundraising relies heavily on direct mail, this paper studies how tailoring donation requests along the donor lifecycle could improve campaign success rate. Our field study provides a unique combination of three parameters whose combined interaction has not been studied to this date: donor segment, suggested personalized donation amount and social comparison, resulting in a 3×3×2 between-subjects design. Taking into account the donor's zone of acceptable prices, we show that for acquiring and reactivating donors the use of a recently suggested donation amount is most effective, whereas for retaining donors, it is preferred to use an average amount. Our results also demonstrate that social comparison is an excellent acquisition strategy, but that it could be harmful when reactivating lapsed donors. Social comparison was not found to have an effect on the donation behavior of current donors.

Suggested Citation

  • Verhaert, Griet Alice & Van den Poel, Dirk, 2011. "Improving Campaign Success Rate by Tailoring Donation Requests along the Donor Lifecycle," Journal of Interactive Marketing, Elsevier, vol. 25(1), pages 51-63.
    • Handle: RePEc:eee:joinma:v:25:y:2011:i:1:p:51-63
    DOI: 10.1016/j.intmar.2010.09.001
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    2. Ballings, Michel & Van den Poel, Dirk, 2015. "CRM in social media: Predicting increases in Facebook usage frequency," European Journal of Operational Research, Elsevier, vol. 244(1), pages 248-260.
    3. Bataoui, Soffien & Boch, Emmanuelle, 2023. "The role of socially rich photos in generating favorable donation behavior on charity websites," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    4. Moon, Sangkil & Azizi, Kathryn, 2013. "Finding Donors by Relationship Fundraising," Journal of Interactive Marketing, Elsevier, vol. 27(2), pages 112-129.
    5. Li, Jing, 2023. "I’m feeling lucky: How randomly drawn suggested donations affect donation choice," Economics Letters, Elsevier, vol. 223(C).
    6. De Bruyn, Arnaud & Prokopec, Sonja, 2017. "Assimilation-contrast theory in action: Operationalization and managerial impact in a fundraising context," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 367-381.

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