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IFC 2005 The Death of Direct Mail David Dixon Director, The Phone Room
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IFC 2005
The Death of Direct Mail
David DixonDirector, The Phone Room
IFC 2005
The Death of Telephone
FundraisingDavid Dixon
Director, The Phone Room
IFC 2005
The Death of Direct Marketing
David DixonDirector, The Phone Room
IFC 2005
The Death of Direct Mail
David DixonDirector, The Phone Room
David Dixon [email protected].
ukIFC 2005
David Dixon
20 years in fundraising Nicaragua Campaign,Oxfam, Oxford Playhouse
Consultant on fundraising and donor development
Founder/Director of The Phone Room Fundraising, ticketing, marketing
David Dixon [email protected].
ukIFC 2005
New Media
• Voice over Internet (VOIP)• Videophones• IMS• Interactive TV• SMS/MMS• Mobile phone wallet• Blogs• i-mode
David Dixon [email protected].
ukIFC 2005
Direct Mail Under Attack
Direct Mail
New Media
New generation
Marginal
response rates
David Dixon [email protected].
ukIFC 2005
The Tipping Point
• We expect change to be gradual• Change is often sudden and
dramatic• E.g. adoption of e-mail• E.g. murder rate in New York
David Dixon [email protected].
ukIFC 2005
The Tipping Point in Mail Profitability
ROI
Volume
Break even1)
Small fall in
response rates
2) Makes all this volume uneconomic
David Dixon [email protected].
ukIFC 2005
What about the Telephone?
• Telephone is non-generational• Telephone (voice) is integral to new
technologies and has become ubiquitous in last 10 years
• The race to the bottom has barely begun
– The telephone is not under attack
David Dixon [email protected].
ukIFC 2005
Telephone still to reach middle-age
Telephone
New Media
integrationAll generations
Response
rates still high
David Dixon [email protected].
ukIFC 2005
The Telephone and New Technology
• The Telephone is Integrated!
• Current 3G devices are poor, but the next generation will soon change the way we communicate…..
…..as mobile phones and e-mail have done for this generation. i-mode
David Dixon [email protected].
ukIFC 2005
The Importance of Donor Loyalty
• Lifetime value increases• Profitability of acquisition is
improved• Security of income is enhanced• Access to donors for purchase,
campaigning, volunteering etc.
David Dixon [email protected].
ukIFC 2005
What Drives Loyalty?
• Satisfaction with service• Appropriate communications• Trust• Sharing the beliefs• Having a personal link• Having a deepened understanding• Having multiple engagements
Adrian Sargeant, Bristol Business School
David Dixon [email protected].
ukIFC 2005
Increasing Loyalty means CRM
• Inform & inspire • Accurate donor information• Respect donor’s wishes• Develop personal relationships• Customer Service is crucial• Cross-sell
»Be donor-centred
David Dixon [email protected].
ukIFC 2005
The Ideal Donor Department
• Is media neutral• Is Donor-centred• Integrates all data and media• Focuses on lifetime value• Manages multiple engagements• Uses technology to emulate major
donor fundraising
David Dixon [email protected].
ukIFC 2005
The Problem for Donor Programmes
• Direct mail dominates direct marketing• Most direct marketing gurus are really
direct mail specialists• Most strategists in NFPs and agencies
are direct mail specialists• Majority of direct acquisition budget is
allocated to mail• Most donor lists are mail generated
David Dixon [email protected].
ukIFC 2005
Direct Mail Distorts Investment
• Over-investment in Mail compared with other media
• Over-investment in donor recruitment vs. donor development
• Focus on the medium not on the donor
• Under-investment in integration• Under-investment in technology
David Dixon [email protected].
ukIFC 2005
IMHO• Direct Mail effectiveness will decline• The decline will be rapid and could be sudden• The phone will grow in importance• So will all new media• Donor development will become more important
as acquisition becomes more difficult• The future lies in integrated contact centres• The donor will drive direct marketing, not the
mail programme
