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Your organization is doing well if 85 percent of your donors renew their support each year, according to Stanley Weinstein in his book The Complete Guide to Fundraising Management.

To p

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ut it another way, you are doing well if no more than 15 percent of your donors fall away each year.

So do the math.

If your organization has 10,000 active donors, and if 8,

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

00 (85 percent) of them renew each year, then 1,500 (15 percent) of them will drop off every year. Ouch.

This is the main reason that you need to create and manage a well-planned, annua

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

l donor acquisition program. You cannot afford to simply mail to your existing donors only. You need to replace the donors who never renew. Without a steady influx of new donors, you will be movin

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

backwards each year, not forwards.

Here are some tips for running a successful annual donor acquisition program.

1. Know your attrition rate
Naturally, if you a

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

re to replace the donors who fall away each year, you need to know how many need replacing. That means you need to calculate your attrition rate. Your attrition rate is simply the rate at which do

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

ors do not renew their gifts, usually expressed as a percentage of active donors.

2. Recruit as well as replace
Your donor acquisition program likely needs to increase your

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

donor base as well. You not only need to replace the donors who stop giving each year. You need to add new donors as well. So if your attrition rate is 15 percent annually and your goal is to incr

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

ase your donor file by 10 annually, then you need to increase your donor file by 25 percent each year.

3. Mail in sufficient numbers to meet your acquisition goals
Another n

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

umber that you need to know is your response rate for acquisition mailings. If your acquisition control package currently generates a response rate of one percent, then you must mail 100 packages

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

o acquire one new donor.

So how many packages must you mail each year to reach your donor acquisition goals?

Well, using our previous example, if you have 10,000 active donor

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

s in your house file, and if you lose 15 percent of them each year through attrition, and if you want to increase the size of your list by 10 percent each year, then you must acquire 2,500 new don

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

rs each year (25 percent of your total list of 10,000).

So, if your acquisition package attracts one new donor for every 100 packages that you mail, then to attract 2,500 new donors ea

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

ch year you must mail 250,000 donor acquisition packages each year (1% of 250,000 = 2,500).

4. Aim to raise friends, not funds
Most acquisition mailings lose money or barely

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

break even. According to James Greenfield, in his excellent book, Fund Raising (second edition), you can expect to pay anywhere from $1.25 to $1.50 to raise $1 with an acquisition mailing. That do

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

esn’t sound like a wise use of your resources, does it? But with acquisition fundraising letters, you need to have your eyes fixed on the lifetime value of your donor, not the short-term value of

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

heir first gift.

5. Agonize over your list more than your package
The single most important factor in determining your success in direct mail donor acquisition is your list

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

. A poor letter mailed to a great list will generate a response. But a terrific letter mailed to the wrong people will generate nothing.

So before you rent a list of names and drop an e

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

pensive direct mail acquisition package in the mail, examine the potential donors on your list. Make sure they are good prospects for a donation today—and tomorrow. They need to meet at least thre

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

e criteria:

1. have the capacity to make a donation now

2. have an interest in your cause or the people you help

3. stand a good chance of making repeated donations

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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How can you compete and win in today's competitive business market? Offer superior service and keep finding ways to improve it. Your customers are your number one asset. If you're ready to follow a path to business success, it starts with this article.

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