Date post: | 28-Nov-2014 |
Category: |
Marketing |
Upload: | avalon-consulting |
View: | 109 times |
Download: | 0 times |
Presented By:Brian DeLaite
Executive Vice President
September 18, 2013
Page 2September 18, 2013
Direct Marketing 101
Page 3September 18, 2013
To provide the attendee with an understanding of data sources & the development of acquisition planning and strategy
Page 4September 18, 2013
Direct Mail: Is it Dead?
In the US –Spent on
Direct Mail
Less than Spent on Search,
Display, Email, & Mobile Advertising Combined!
• Direct Mail has scale, endurance, impact & importance, acquisition and sensory benefits.
• Almost every household in the civilized world can be reached by direct mail.
Page 5September 18, 2013
Purpose
The Purpose of Direct Mail is Twofold…
• Direct Mail Revenue is responsible for building many of our country’s most important Nonprofit organizations
• For most small organizations, the most common source of funds is asking large amounts of people for small donations through Direct Mail
Page 6September 18, 2013
Educates prospects on mission of nonprofit
Creates awareness of issue
Increases “brand” recognition
New members/donors can become monthly givers and/or major donors
Supports other channels of fundraising
New Volunteers/Activists * Donate Goods Attend an Event Participate in a walk or run Volunteer to organize an Event Promote a charity on line Email or send a letter to an elected official Join a social network
Purpose
More Advocacy
More Fundraising
Creates more and More…
Page 7September 18, 2013
Factors to Achieve Success
• Lists
• Offer
• Copy
• Format / Packages
• Premiums / Benefits
If the mail piece does not reach the right people, Direct Marketing cannot do its job & will not be successful in
meeting its objectives.
Page 8September 18, 2013
Consumer lists change at a rate of about 2% per month as people are born, relocate, die or marry. NCOA adjusts for these factors.
ExamplesPhone Directories, Credits Records,
Deed RegistriesGovernment Data, Warranty
Cards, etc.
Commercial
Response Compiled
Consumer
Commercial Fundraising
Types of Lists Marketing and Targeting
Page 9September 18, 2013
Recency Dollar Gender Region Source Modeling
Member/Donor files Subscriber files Buyers Co‐Op Databases Compiled Survey Email Direct
“…better target prospect – lift response”
Other Factors:1. When was file last updated2. Selects Available3. Pricing4. Usage
Types of Lists Marketing and Targeting
Source of Prospecting Files for Fundraisers
Page 10September 18, 2013
Broker/List Manager
SRDS*/MIN/NextMark
Internet
Direct Connection
Exchange
Rental
One-Time Use
* SRDS = Standard Rate & Data Service. Database of media rates & related information – includes approx. 100,000 U.S. & Int’l media properties.
Approx. 25,000 Response Lists & 50,000 Compiled Files
Source of Lists and Types of List Transactions
Page 11September 18, 2013
Mailer
ListOwner
Clearance and Order Process
Page 12September 18, 2013
Represents the interests of the list owner ‐The Gatekeeper
Has historical record of key exchange relationships and keeps track of all offers,
mail dates, and pertinent competitive issues.
Works with multiple donor files – understands market trends & how to capitalize on them.
Expert at identifying, or overlaying, marketable segments of the donor file.
Can generate incremental revenue through list rental that can be used to re‐invest in your
acquisition campaigns.
Identifies who is mailing, when they are mailing, and what the opportunities are for their clients.
Why use a List Manager?
Page 13September 18, 2013
Awareness of current & historical trends in the overall direct mail market.
Expertise within your sector such as charitable, environmental,political, cultural/arts, etc.
Identifies the lists that are successful for a particular cause or membership offer.
Knows the characteristics and success of listsoutside of the core market.
Has the information on how a list was built & how often it is updated.
Mail responsive names that have both theto give to your cause.
Why use a Broker?
Page 14September 18, 2013
Why use a Broker?
• Works with the client to develop anacquisition plan including test recommendations.
• Identifies profitable segments on marginal/unlikely lists.
• Maximizes exchange opportunities & negotiates the best prices for you with the list owner.
• Coordinates with list manager for the timely delivery of names to the service bureau.
• Clears and orders continuation, retest, and test lists within a designated timeline.
• Invoices the campaign.
• Keeps track of the exchange balance between organizations.
• Evaluates response rates, average gift and other results.
Page 15September 18, 2013
Page 16September 18, 2013
Organization’s budget & goals determine the quantity to be mailed Prospecting is an .
Factors that determine the timing & number of Mailings per year: Expenses/Budget # of new Members/Donors to be added Timing of Cash Flow from New Donors Seasonality
Objective ‐ Most significant quality variable is the average gift amount
Average gift is also a key indicator of a donor’s upgrade potential& measurement of a stronger commitment
Structure of Acquisition Plan and Strategy
Page 17September 18, 2013
Know your primary, secondary & tertiary markets
Maximize the use of your core files Better target your marginal lists 10% to 20% of plan should be devoted to testing
List/Package optimization – Traditional/Mission based – Membership based or Premium based package Member/Donor lists are generally most responsive Test lists of Nonprofits whose mission is similar Hotline selects – great tool to get unique names & increase response rates. Cooperative Databases are must tests.
• Continuations• Retests• Tests
Structure of Acquisition Plan and Strategy
Must Lay aSolid
Foundation for your plan
Page 18September 18, 2013
Understand & reach the benchmark metric(s) established in your budget…
Use historical results and current trends to develop projections for each list…Rigorous, Quantifiable Metrics.
List selection is data driven. Not only qualify but must also quantify the viability of our
acquisition plan and strategy. Defend projections with objective data. Cause & Effect strategy…
Response Rate and Average Gift act like a weighted scale.
CAUSE & EFFECT
$$
Structure of Acquisition Plan and Strategy
Page 19September 18, 2013
Specifics of Mail Plan Development
Built on response information from previous mailings.
Quantities per list/select are input into the mail plan according to performance and most recent usage.
Universe counts Is the universe large enough to omit prior usage?
Strategize placement of list…how many mailings a year? Take all available and wait several mailings to mail again or take an nth amount so some quantity of list will be in each mailing.
Improve results by refining select segmentations 12 months instead of 24 months; 6 month instead of 12 Dollar amount of gift ($5+ versus $10+) Male versus Female Geo/SCF/Zip
Usage
Structure of Acquisition Plan and Strategy
Page 20September 18, 2013
When the right audience is targeted, a critical component of is met.
Returned, unwanted and undelivered mail produces vast amounts of waste paper.
Plan and implement the every step of the way: Reduce, Reuse, Recycle.
The ability to deliver your message to a precise audience ‐ produces cost effectiveness & environmental stewardship.
Structure of Acquisition Plan and Strategy
Page 21September 18, 2013
Prospecting is an .
Most clients keep 25‐35% of new donors in the 1st year; Multi‐year donors usually retain between 65‐75%.
Over the course of time if prospecting is not done in some manner– natural attrition will continue to exponentially reduce the size of your donor base.
Attrition and Acquisition of Donors