At the Hilborn Charity Info blog, a good question: Donation premiums: do they work?
But a weak answer:
- Experience says yes -- based on real-life numbers from actual fundraisers.
- Research says no -- based on survey research
The "research" in this case tells us nothing, because it's survey research -- that is, findings that only reveal what survey respondents say about premiums, not what they do in real life when premium mailings show up in their mailboxes. Surveys are not bankable information.
So go with the experience.
Here's what I can tell you about premiums in direct mail such as address labels:
- Premiums usually work.
- They don't work for everyone, or in all situations.
- They tend to raise response but lower average gift. Sometimes the trade-off doesn't work out, sometimes it does. Without careful analysis, it can be difficult to tell whether it worked or not.
- Not all premiums are equal. One type might work while another doesn't. And the design that's on them matters.
If you've been staying away from premiums because survey research tells you people won't respond, you owe it to yourself to give facts a try.
