Using Direct Mail to Improve Donor Lifetime Value: Part 2

Hub and Spoke Recurring Gift Marketing
By Tim O'Brien

Last week, we looked at ways to increase donor lifetime value (LTV) or the net profit opportunity of your entire future relationship with a donor through direct mail-related retention strategies. Now, we’re going to focus on monthly giving as a way to boost LTV.

Hub and Spoke

Before we jump in, let’s discuss “Hub and Spoke” integrated marketing. Traditionally, hub and spoke in terms of content marketing means taking a piece of content and repurposing it across physical and digital platforms, such as a direct mail piece, a blog, social ad and landing page. Hub and spoke has now evolved to a more inverted meaning, where all of the repurposed content - such as web pages, social ads and landing pages - aims to drive a donor to one specific goal: a conversion in the form of a download or a donation. Better yet, a recurring donation through monthly gifts. 

P.S. I’m Following Youhub and spoke

Recently, I came across an example of how a nonprofit school used hub and spoke marketing to drive potential and/or existing donors to the "hub": a web submission form.

My first engagement with the school was in the form of a direct mail appeal, representing the first "spoke" in my journey as a donor. Next, I interacted with another "spoke" when visiting the school’s website to do some research. A few days later, a sponsored ad showed up in my LinkedIn feed. I clicked on this "spoke", and was taken to another "spoke" in the form of a landing page.

On the landing page, an image of a student needing financial support for coats and other items was placed next to a call to action: “Help keep our children warm.” Below that were six suggested gift amounts - $20, $50, $75, $100, $150 or Other. Below those amounts was the goal behind the direct mailpiece, website, LinkedIn ad and landing page "spokes": the donation submission form "hub" (near a box for visitors to select monthly giving).

The hub and spoke marketing worked! I pledged a one-time gift, and a few weeks later received a custom direct mail piece, designed similarly to the LinkedIn ad and landing page, with a personalized form thanking me for my support and another opportunity to give a recurring monthly gift in the P.S. area of the letter.

Good Donor Targets

Each aspect of this campaign, from the LinkedIn ad to the landing page to the direct mailpiece, held a consistent visual theme, which I was reminded of several times throughout my experience with this organization. In similar applications, organizations seeking to run a hub and spoke campaign could target specific contacts in their donor base based on behaviors, such as those who exhibit higher frequency gift giving or those who are most likely to respond to the appeal.

Focus on increasing your donor LTV by including monthly giving options throughout your integrated campaigns. Contact us today to explore how a well-designed direct mailpiece can complement your next appeal.

annual giving donation
Want to read more in this series?

Check out Using Direct Mail to Improve Donor Lifetime Value: Part 3 on boosting donor lifetime value with annual giving appeals.

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