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AARP knew it had to increase response to its mailings, and suspected the answer might lie in its database.

The Washington-based organization, which provides advocacy and services for persons age 50 and above, already had some data on its 34 million members. The trick was to organize this information.

So AARP, formerly known as the American Association of Retired Persons, split off customer retention from the marketing section of its database. In the process, the group also upgraded its technology.

“The programming [of the old system] was hard-coded, making it difficult to implement new processes,” says program manager Brenda Heggs.

The new system allowed AARP to more easily change the spacing of renewal campaigns, set up test and control groups for different renewal series and change pricing structures.

The result? Response rates to member fundraising letters went up from an average of 4% in 1996 to 9% in May 1999, says database marketing manager John Hagerty.

“We're able to capture and use more information on members so they can be targeted more precisely,” explains Hagerty. “We've become more flexible.” (AARP uses the term “member” to describe both members and donors.)

The organization raises 80% of its funds through direct mail. Its membership renewal revenue stands at about $140 million per year.

In addition to capturing recency, frequency and monetary data for each donor, the group overlays its files with demographic and other data from credit bureaus like Experian and Equifax, and from other sources. It also uses U.S. Census Bureau information.

For solicitation mailings, AARP exchanges files with other nonprofit organizations, and also rents outside names, says Hagerty. He notes that by law, the group isn't allowed to maintain a prospect list.

While AARP's fundraising campaign is not truly integrated, it does include other channels to generate revenue.

For example, there are direct response television spots on cable channels that reach the nonprofit's targeted 50+ demographic. But AARP's not averse to some broadcast television programs like game shows and even “Judge Judy.”

To a lesser extent, the group runs direct response space ads in magazines like The New Yorker as well as Ebony and People En Español to reach broader audiences.

AARP provides information and education, advocacy and community services supplied by a national network of local chapters and volunteers. It also offers members special benefits and services like shopping and travel discounts as well as Modern Maturity magazine and a monthly bulletin.

One service that's becoming popular is computer training. Classes are run in conjunction with several software firms.

The group has also begun soliciting donations through its Web site (www.aarp.org). Hagerty notes that the Internet represents a small part of the process, but predicts the site will play a bigger role in seeking future donations.