Direct debit lotteries are performing “much better in terms of attrition” than door to door and private site face-to-face donor campaigns, according to research released by Decaid Consulting.

The Lotteries Council Benchmarking Survey 2015, commissioned by the Lotteries Council and undertaken by Decaid Consulting, analysed data from 109 society lottery campaigns between 2010 and 2014. These lotteries involved just under half a million players, supporting 18 different charities.

The data shows that lottery players recruited by face-to-face methods giving via direct debit had twice as high a chance of being retained after the first year (25 per cent attrition) as direct debit donors recruited by private site face-to-face or door methods to non-lottery fundraising campaigns (52 per cent attrition).

The survey also found that, across the years analysed, direct debit players “generated the highest amount of income” for charity with credit card and cheque payments performing the worst. Cash and standing order payment players performed in between the two.

Four different causes reported data to the survey: with 10 air ambulances, 10 hospice charities, two health charities and one sporting body. Four of these organisations “did not eventually submit data” and a further three “submitted data that was not usable”.

Of the total 109 usable campaigns, 40 per cent were credit card or cheque, 28 per cent were direct debit, 25 per cent standing order and 7 per cent cash lotteries.

Other findings

• Credit card and cheque payment players’ retention varies significantly when it comes to player renewal every quarter – going from the lowest levels of attrition in the first three months to one of the highest in year 2 onwards
• The retention of lottery players recruited to a local cause (e.g. hospice or air ambulance) is significantly higher than for a non-local cause (e.g. a nationally-based charity)
• Whilst the (gross) income raised from Direct Debit run lotteries has dropped slightly from 2010, it has held steady since 2011, with slight improvements showing from 2012 to 2013
• ‘No show ‘rates – donors who are recruited, but don’t make a first payment – are increasing year on year amongst direct debit payment players; going from 4 per cent in 2012 to 9 per cent in 2014

Rupert Tappin, co-author of the report and a director at Decaid (pictured), said: “The sector’s first-ever benchmarking of the long-term performance of weekly lotteries has produced some really valuable findings – insight which charitable organisations are already applying to their lotteries to strengthen their income from them”.

Methodology

The survey was launched in April 2015 and was open to all member agencies of the Lotteries Council to take part in.

All surveys were submitted to Dr Carolyn Steward, a freelance data analyst, who then contacted respondents to discuss “any issues” with the data and to work with them to ensure “the most accurate data possible”.

Data was provided by charities for lotteries run between 2010 and 2014 and “broken down into players who paid by cash, cheque or credit card, standing order or direct debit”.

The measurement used is “the number of players for each weekly draw”.