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Thanks to higher first-gift amounts and an increased likelihood of converting to recurring relationships, online-acquired donors continue to have better long-term value. Add to that the fact that they are often younger, more cost-effective to cultivate, and become recurring donors sooner, and it's no wonder there is a continued focus on acquiring more of them.
Masterworks has shifted clients from traditional direct mail acquisition campaigns to more diverse digital acquisition methods. Over the last five years, we have replaced direct mail acquisition as the major acquisition source for our clients.
In 2018, online donors comprised less than 20% of our national clients’ new donor base. Today, that number has more than doubled to over 40%, surpassing mail acquisition in total new donor volume. Digital new donors make up over 50% of the total acquisition volume for our regional and mission clients. This remarkable growth is a testament to the efficacy of our targeted digital strategies.
The proof is in the numbers:
Here’s how we did it and the high-performing tactics that can transform your donor acquisition efforts!
1. Take the risk and think beyond direct mail
The first step is to divest of lower-performing direct mail acquisition and reinvest in higher-performing digital campaigns. Consider your average return on acquisition investments and track to that goal. Cut underperforming options and invest that in testing new areas.
Our connected television (CTV) efforts yield above a 1:1 return on ad spend, while lower-performing direct mail campaigns can get below a 0.4 return on investment (ROI). Digital media, CTV, and email acquisition can all perform better than many traditional direct mail campaigns. Be willing to move money and pivot.
2. Kill the campaign
One of Masterworks' first breakthroughs back in 2019 was to stop thinking of our digital media efforts in social and display advertising as an extension of our direct mail program. Turning ads on and off to align with what was in the mailbox slowed learning, disrupted the optimization of audiences, and halted creativity.
Masterworks approaches digital marketing with an “always-on” mindset. It is optimized for digital donors. Creative and audience segments focus on the digital donors’ journey — not what is currently in the mail cycle.
3. Build an audience beyond conversion
While immediate conversions are important, building a loyal and engaged audience is crucial for long-term success. Focus on building awareness and engagement as well as conversion through tactics like:
- Video content: Utilize video to share stories of accomplishments and highlight the impact of donations.
- Storytelling: Create compelling narratives that resonate with potential donors.
- Education and volunteering: Offer valuable content that educates and involves your unique audience.
4. Be strategic with social media placement
While social media is a powerful tool, our diversified approach has yielded significant results. A digital program should leverage:
- Display ads: Use eye-catching display ads to capture attention where your audience is on the web.
- Native advertising: Integrate your content seamlessly into the platforms your donors frequent.
- Search advertising: Ensure the right page and information comes up when people search for you or related causes. Use key phrases that people use to find you through search to also build a library of blogs and content that interests your audience.
5. Leverage influencers and community voices
Influencers and community members can amplify messages in a relatable way. Masterworks uses:
- Video content from influencers: Collaborate with influencers using tools like Cameo to create authentic and engaging content.
- Community testimonials: Highlight stories from community members and other donors to build trust and credibility.
6. Add movement to advertisements
Static ads can often be overlooked. Introduce movement, even if it's subtle, to make a significant difference:
- Dynamic content: Animate elements of your static ads or create short video clips to grab attention.
- Interactive features: Consider non-ask calls to action (CTAs) like share, learn more, or even surveys and downloads — things that encourage interaction and engagement.
7. Infuse urgency and relevance
Creating a sense of urgency and tapping into seasonal themes can drive quick-decision donations from an audience who is now familiar with your work. We implemented:
- Specific Calls to Action: Clear and urgent messaging that motivates immediate action.
- Seasonal campaigns: Leverage themes such as weather crises, holidays, and food shortages to create timely and relevant appeals.
8. Maximize content utilization
Effective content reuse can extend the reach and impact of your message:
- Multichannel distribution: Share the same content across text, email, social media, and blogs to ensure maximum visibility and extend your reach.
- Timely reuse: Consider same-day resends on critical fundraising moments like GivingTuesday and Year-End to drive urgency and donations.
Now is the time to pivot
The shift to online donor acquisition has proven to be a game-changer for the growth of Masterworks’ clients. We are increasing online donor bases, enhancing donor engagement, and improving long-term value by cutting low-performing direct mail and reinvesting in high-ROI digital strategies. The tactics outlined above offer a roadmap for organizations seeking to grow their online donor base and maximize digital fundraising efforts.
