WE ARE OFTEN ASKED where NPO stands on the use of premiums in direct mail.

Our answer is simple but direct: use what works for the long-term benefit of your member/donor program.

In our experience, premiums boost the results to direct mail appeals in all their forms: renewal, upgrade, lapsed member recovery, acquisition, annual fund, and capital campaign. How they work best varies by appeal.

Use premiums in renewal and upgrade appeals to increase the average gift. We typically offer two premiums or “thank you” gifts in these appeals: one for moving to the next level of membership, and a second one (with a higher perceived value) for moving two levels higher. Later in your renewal series, you may want to switch to offering a premium for renewing in order to increase your retention rate.

Lapsed/Acquisition

Our testing has shown that premiums can be used in lapsed and acquisition appeals to improve the response rate and the average gift. We offer an inexpensive premium to encourage prospects to respond, then more valuable premiums to encourage them to respond at higher giving levels.

Annual Fund/Capital Campaign

Premiums in these types of appeals usually take the form of special recognition to boost the average gift. Again, the higher the giving level, the higher the profile for the recognition opportunity. For the public phase of capital campaigns, these opportunities include permanent recognition for gifts of $1,000 or more.