Simplified Data Mining for Direct Mail

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Don’t waste time and money by trying to communicate to those who have shown little or no affinity to your cause.

Our webinar will examine how to look at your constituents through the filter of your database, thus providing a better understanding of who they are and what they are interested in.

Know your audience…manage your data. Successful fundraising strategies depend upon it!

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Simplified Data Mining for Direct Mail

  1. 1. Sponsored by:Simplified Data Mining for DirectMailSue and Ron RescignoMay 28, 2013Use Twitter Hashtag #npwebPartOf:
  2. 2. Sponsored by:Protecting and Preserving theInstitutional Memories ofNonprofits Since 1993www.cjwconsulting.com(866) 598-0430info@cjwconsulting.comPartOf:
  3. 3. Sponsored by:PartOf:Coming this June
  4. 4. Sponsored by:Today’s SpeakerRon and Sue RescignoPresident & Vice PresidentRescignos Marketing ConnectionsHosting:Cheri J Weissman, CJW Consulting & Services, Inc.Assisting with chat questions:Jamie Maloney, 4GoodPartOf:
  5. 5. Simplified Data Mining for Direct MailRon and Susan Rescigno708.974.2600
  6. 6. In this presentation we will answer…What is data mining?What data should I be gathering?How can I use data for my fundraising campaigns?How can looking at data save me money andreduce my costs?How can I maximize my fundraising budget bymaking more money with less of a budget?How can I give this data to a mail house thatunderstands what I mean?
  7. 7. Data Mining is the search for hidden information:The locating of previously unknownpatterns and relationships within datausing a database application.
  8. 8. The real answer to that depends on how you want to target your message to your audience. Buthere are a few that you absolutely should collect:Name (first and last in separate fields)Salutation (My name is Susan but most people call me Sue)AgeYear of GraduationAffiliation with your organizationGift AmountDate of last giftResponse code (what solicitation they responded to)Programs or Services that they are interested in supportingBirthdayETC…What information should you be gathering to improveyour fundraising campaigns?
  9. 9. Once you have collected theinformation and put it into the system,it can be used by segmenting yourdata into groups and writingspecifically to each group member.Here are some ideas of differentsegments…
  10. 10. Ideas for SegmentingDonor/Non DonorAgeGenderFriendsCurrent Parents/Parents of AlumsLybunts/Sybunts/Event Attendees/New MembersPast Patients Community Members
  11. 11. Segment Options•Major donor – this referenced their largest giftfrom the past 5 years“John, the Brothers always appreciate yoursupport. Among your gifts over the years was anespecially generous $1,500. Please know thatwe are grateful for your support at whateverlevel is comfortable for you. We would like toask, however, if you could consider renewingyour support at that significant level.”
  12. 12. Segment OptionsLYBUNT – last year donor“John, the Brother’s alwaysappreciate your support and thank youfor keeping up with us, most recentlywith your contribution on March 5,2011 of $100. We hope we can rely onyour continued support at this level.”
  13. 13. Segment OptionsEvent Attendee“John, the Brothers always appreciate yoursupport and thank you for keeping up with usthrough your attendance at alumni events overthe years. If now would be a good time for you toinvest $50 or $100 or more, you would be helpingus significantly as we strengthen our efforts toinvite young men to join us.”
  14. 14.  Personalized MailCampaigns offer:– Increase Response Rates– Increased Average GiftRates– Improves Campaign ROI The average response ratefor a static direct mail piecetoday is .5%, but when wepersonalize that piece, theresponse increases to 3% -4%.Why should you worry about collecting data and using it inyour direct mail campaigns?Example:2,500 x .5% = 2.5 responses2,500 x 3% = 75 responses5,000 x .5% = 25 responses5,000 x 3% = 150 responses10,000 x .5% = 50 responses10,000 x 3% = 300 responses
  15. 15. “The Question should not be how many canwe mail within our budget. The questionshould be how many do we have to mail inorder to achieve the desired results.Personalizing your piece will get you higherresponse rates. The desired result is alwaysa better response!”- HP 2010
  16. 16. So how can we save money by looking at our data?First look at how many you are mailing to and what yourresponse rate isShould you be mailing to all of these people on your list?When is the last time you heard from these people?Are you writing to them about something they are interested in?Are you writing to them just because this is the list you inherited and younever really looked at it?
  17. 17. Data mining is the most costeffective way to increase yourROI for direct mail$ $$$
  18. 18. Staying Cost EffectiveIf you are mailing to 12,000 people and getting basicallythe same 1,300 donors to renew their gift every year,then you have to ask yourself if that is cost-effective.By taking a look at your donors, you can find the patternsor similarities in them and find out what your averagedonor looks like. For example:GenderAgeIncome rangeGeographic location
  19. 19. What’s NEXT? You can then take that information and find thosethat match that group in your non-donors. You couldcut your list in half or even more. I am not saying don’t communicate with those otherbut in a time when you have to watch your budget soclosely, maybe you shouldn’t be mailing to them asmuch as the donors. Keep them on newsletter lost and email list.
  20. 20. This is an example of a small non-profit, only8 years old, that wanted to start a direct mailprogram. Instead of mailing to everyone ontheir list, they narrowed their list of 10,000people to 1,202Community College Foundation –Current ClientDescription QuantityMailedResponses AverageGiftTotalDollarsRaisedResponseRateROIHolidayAppeal1202 81 $135.21 $10,707 6.7% 331%
  21. 21. Description QuantityMailedResponses Average Gift Total DollarsRaisedResponseRateROIHoliday Appeal 1202 81 $135.21 $10,707 6.7% 331%So, let’s look at this and use these numbers to get a good picture of thisorganization. This is the first time they have mailed a solicitation letter totheir constituents.-They started with a small number of 1,202 prospects-Their response rate was 6.7%, so they targeted the right list-They raised $10,707 dollars-They received a 331% return on their investment(They invested about $3,000 into this project and raised over $10,000.)-They also have 81 people who have given them a gift with themajority being first time donors
  22. 22. Now what..?Now that we’ve discussed what data miningis, what kinds of information should begathered, how are other organizations usingtheir personalized data and how you can useit to save money on your direct mail, we needto talk about how you can collect the dataand present it to the mail house so mistakesare not made.
  23. 23. Data – what to include•Minimum fields:•Name (full name or prefix first middle last suffix fields)•Address•City, State Zip•Additionally:•Company•Title•This is your ADDRESS BLOCK
  24. 24. Data – what to include•Include additional fields used in the mailing•ID•Ask Amounts•Last Gift•Salutation•Segment Version•Include fields not needed in the mailing for internal use,such as ID numbers or dates or last gift
  25. 25. Sample Data with Extra FieldsThis is a sample of data with the mailing info, butalso fields needed to segment on our end and dataused by the client to pull their data.
  26. 26. How to add information to yourexisting data•Put reply codes on reply devices to track campaigns•Personalize your reply cards and ask for updates (incl. ID#’s to make data entry easier)•Leave room for Cell #’s, Email, etc.•Utilize data append services – can add age info, income,ownership, etc.
  27. 27. Data – formats•Best – Excel or Access table•Also accepted – comma or tab separated•Each field should be in its own column
  28. 28. Data – what NOT to do•Do not include line breaks in data – example:•7501 W 85th St•Suite 110•It should instead read: 7501 W 85th St Suite 110•Do not include notes in the address fields•Do not setup the list as “address labels” in word or excel
  29. 29. Data – what NOT to do•Do not include multiple mailing addresses (like home andwork) in the same record. You should have TWO recordsfor this person•We CAN fix data that is not in the right format, pleasecontact us BEFORE the job comes in.
  30. 30. Your data and you…•Your donor database should be your institutional memory.•it should make it easy for you to look up donors, viewgiving histories, understand relationships and analyzetrends.•It should help your fundraisers work more effectively.•It should be an aid, NOT a chore!
  31. 31. Rescigno’s Data Consulting•Rescigno’s Marketing Connections can help you with yourdata.•Available for consultation, database creation andupdates/pulling queries•We can host your database and give you remote access toit.•We can append your data with more information.
  32. 32. Thank You!Any Questions??708.974.2600
  33. 33. Sponsored by:Find listings for our current seasonof webinars and register at:NonprofitWebinars.comPartOf:

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