ChildFund had experienced a dramatic increase in new child sponsors year on year - and expected a corresponding lift in donations as a result. However, donor revenue didn’t reflect this. New sponsors were not staying and the number of children in need of a sponsor was growing. ChildFund asked for Datamine’s help to discover why the organisation was experiencing a high rate of donor churn - and why the new donors weren’t contributing as expected.
Datamine determined that revenues didn’t match the increase in sponsors for two critical reasons:
- The profile of the new sponsors showed that they were from a lower socio-economic background.
- These sponsors had been acquired through direct recruitment (approached on the street).
In essence, prior to the downturn ChildFund had made a strategic shift in its recruitment strategy and had decided to invest more resource into direct ‘on the street’ sponsor acquisition. The problem was, however, that these sponsors either couldn’t afford the sponsorship or simply couldn’t refuse signing up when approached in a shopping centre or supermarket.
The findings resulted in a total revision of ChildFund’s acquisition strategy with advertising spend being allocated more effectively due to ChildFund’s better understanding of its target audience.