Direct mail 21st safrw

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Direct Mail basics for fundraisers

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  • Sean
  • NOT a big brochure / newsletter – just a summary
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  • Tell basketball story? S imple U nexpected C oncrete C redible E motional S tories BUT don’t forget to make the ask.
  • More you than me
  • The problem is big, but the donor can make a difference, UNICEF birthing bag Explain the big target small donations thing
  • 1. Ask, ask and ask again. The first ask should be direct and early, within the first couple of paragraphs. "…that is why I am asking you today for a donation of $50…". It should be repeated throughout the letter and on the response coupon
  • Direct mail 21st safrw

    1. 1. Money in the Mail ‘ How to’ of Direct Mail! Presented by Anup Tiwari, Director-Asia, Fund Development & Communications, SOS Children’s Villages International & Yogesh Aggarwal, MD, Yellow Umbrella Direct Mail Clinic; 21st SAFRW 2010, Agra, India
    2. 2. Part 1: Introduction to Direct Mail (45 minutes)
    3. 3. How long has the Direct Mail been around? 800 Years ago by Eihei Dogen
    4. 4. Probably the oldest Fundraising Direct Mail Source: Exhibit by Mal Warwick on www.sofii.org
    5. 5. Direct Mail Now- butt of jokes
    6. 7. But still Direct Mail continues to deliver
    7. 8. Acquiring Donors What can you use Direct Mail for - 1
    8. 9. What can you use Direct Mail for - 2 Retaining Donors
    9. 10. What can you use Direct Mail for - 3 Converting Donors
    10. 11. <ul><li>Envelope </li></ul><ul><li>Letter </li></ul><ul><li>Endorsement or Lift Letter or Lift photo / leaflet </li></ul><ul><li>Donation Coupon </li></ul><ul><li>(Premiums &Mission Premiums) </li></ul><ul><li>Business Reply Envelope </li></ul>Acquisition Package
    11. 12. Envelope also Communicates
    12. 15. Key direct mail tactics Long V/s Short
    13. 17. Key direct mail tactics - Personalisation
    14. 18. Underlining Post Script Questioning Key direct mail tactics
    15. 19. Lift or Endorsement Letter Key direct mail tactics
    16. 20. Address Labels visible from back of envelope Premiums Key direct mail tactics
    17. 21. ORS Sachet in a package asking money for saving children Key direct mail tactics
    18. 22. Key direct mail tactics Plastic sheet
    19. 23. Key direct mail tactics
    20. 24. Key direct mail tactics
    21. 25. Measuring success of Direct Mail 1 Response Rate
    22. 26. Measuring success of Direct Mail 2
    23. 27. Measuring success of Direct Mail 3 Long-term value of donors
    24. 28. Coding Your Direct Mail
    25. 29. Getting ready to send
    26. 30. Manual Mail Insertion
    27. 31. Mechanical Mail Insertion
    28. 32. Franking
    29. 33. Mail Sorting Zip or Pin Code
    30. 34. Using Postal Services
    31. 35. Using Courier Services
    32. 36. Unaddressed home drops
    33. 37. Always Seed Your Mail!
    34. 38. Part 2: Direct Mail Pros & Cons (10 minutes)
    35. 39. Number of new donors brought in <ul><li>Does Direct Mail bring in More Donors as Compared to Other Methods? </li></ul>Con
    36. 40. Average Donation brought in <ul><li>Do Direct Mail Donors Give More or Not as Compared with Other Methods? </li></ul>Pro
    37. 41. Quality of donors <ul><li>Do Direct Mail Acquired Donors Stay Longer or Not? </li></ul>Pro
    38. 42. Scalability <ul><li>Can Number of Direct Mailers to be Sent Increased Quickly as per the Need? </li></ul>Pro
    39. 43. Part 3: Choosing Databases- fluke or science (20 minutes)
    40. 44. What is more important ? <ul><li>Creative design </li></ul><ul><li>Quality of lists </li></ul><ul><li>Mode of delivery </li></ul>
    41. 45. Your First Appeal Data Selection
    42. 46. First Date
    43. 47. Things Not Done Well Have An Everlasting Impression
    44. 48. Good Date Bad Date
    45. 49. Good Data Bad Data
    46. 50. Selecting Database
    47. 51. Art or Science
    48. 52. Locating Databases may be an Art But Using them is a Definite Science
    49. 53. Proprietary Data
    50. 54. I am Well Kept & Protected
    51. 55. Compiled Lists
    52. 56. List Owners
    53. 57. List brokers
    54. 58. List vendors
    55. 59. Using lists
    56. 60. Testing lists
    57. 61. Picking up a small sample
    58. 62. How big should a test be?
    59. 63. The concept of random selection
    60. 64. No creaming while testing
    61. 65. The concept of partial rollouts
    62. 66. Part 4: Direct Mail Responses A list owners perspective (30 minutes)
    63. 67. By Yogesh Aggarwal Global Business Director Yellow Umbrella Group The Direct Mail Era
    64. 68. Critical success factors <ul><li>Realistic Expectations </li></ul><ul><li>Relevant Communication </li></ul><ul><li>Correct Timing </li></ul><ul><li>Correct Mail size </li></ul><ul><li>Correct Test Size </li></ul><ul><li>Correct Evaluation of Results </li></ul><ul><li>Understanding of Profile </li></ul>
    65. 69. Direct Mail Response <ul><li>A List owner’s Perspective </li></ul><ul><li>Responds a factor of your knowledge on Chosen segment </li></ul><ul><li>HNI Syndrome </li></ul><ul><li>Database options and cuts available  </li></ul><ul><li>Living with list owners </li></ul>
    66. 70. Responds a factor of your knowledge on Chosen segment <ul><li>Major Flaws – Individual / Corporate misunderstanding on what Works / Worked or Doesn’t.. </li></ul><ul><li>Profile knowledge … a Failure in doing Homework before running campaign. </li></ul><ul><li>Segment knowledge : Study Product / Market / Target Segment </li></ul><ul><li>Target those who require / would respond and not to all… </li></ul>
    67. 71. HNI Syndrome <ul><li>A little bit of TOO MUCH </li></ul><ul><li>A segment over-done. </li></ul><ul><li>Everyone wants a bit of HNI </li></ul><ul><ul><li>100% database queries are for HNI </li></ul></ul><ul><ul><li>100% companies wants to target HNI </li></ul></ul><ul><ul><li>Is HNI so Important ?? </li></ul></ul><ul><ul><li>Small Test…… Define it….. </li></ul></ul>
    68. 72. <ul><ul><li>Basic Questions to answer yourself </li></ul></ul><ul><ul><li>before Targeting HNI </li></ul></ul><ul><li>Why HNI? </li></ul><ul><li>How Do you connect to HNI? </li></ul><ul><li>Is HNI your Target segment? </li></ul><ul><li>What is your expectation from HNI? </li></ul><ul><li>HNI… HNI… HNI… </li></ul>HNI Syndrome Continued…
    69. 73. HNI Syndrome Continued… <ul><li>Purchase Behavior </li></ul><ul><li>It’s not the money that responds but the profile and lifestyle of a person which does. </li></ul><ul><li>Target the group by Profile, Educational balance….. </li></ul><ul><li>So how would you select the Data?? </li></ul><ul><li>Largely a Psychographic study of the TA? </li></ul><ul><li>Continued.. </li></ul>
    70. 74. What is Database???? <ul><ul><li>a key component in Direct Marketing </li></ul></ul><ul><ul><li>You Buy Customers and not the Mailing Lists </li></ul></ul><ul><ul><li>Options & Cuts Available </li></ul></ul><ul><ul><li>Databases are available by deep segmentation on Psychographic & Demographic classification </li></ul></ul><ul><ul><li>Spending Patterns </li></ul></ul>
    71. 75. Critical factors – Data selection <ul><li>What is your current donor profile? </li></ul><ul><ul><li>By Location </li></ul></ul><ul><ul><li>By Age </li></ul></ul><ul><ul><li>By Occupation </li></ul></ul><ul><ul><li>By Availability of Data with List owners </li></ul></ul><ul><li>Now Lets understand </li></ul><ul><li>Psychographic study of the Target Audience… </li></ul>
    72. 76. Psychographic Analysis <ul><li>It is a Technique of Geographic & Demographic study on psychological measurement, which includes the measurement of knowledge, value, abilities, attitudes, buying motives and personality traits . </li></ul><ul><li>Gender, Age, income, occupation, Location & even Religion play vital role in any purchase behavior. </li></ul><ul><li>Psychographic data can be purchased from direct marketers or market profiles for general marketers </li></ul>
    73. 77. Database options and surrogates Segment Surrogate By Occupation CEO/MD   General Manager +   Business Heads By Ownership Honda City + cars   Mutual fund owners of High value By Business Directors , Proprietors By Credit Credit Limit 1.5 Lakh + By Residence Residents to Premium localities By Age High Networth + Age > 40 By Ability to spend High value shoppers   High value donors
    74. 78. Living with list owners <ul><li>List owner is like your doctor </li></ul><ul><li>Share the objective </li></ul><ul><li>Share the communication </li></ul><ul><li>Share the expectations </li></ul><ul><ul><li>What ROI ? </li></ul></ul><ul><ul><li>Do not look for immediate R.O.I (return on investment). </li></ul></ul><ul><ul><li>Building a good relationship with the customer is possible only by winning loyalty. </li></ul></ul>
    75. 79. Living with list owners Continued … <ul><ul><li>What Media? </li></ul></ul><ul><ul><li>To maximize your R.O.I, It is vitally important to test your campaigns. </li></ul></ul><ul><ul><li>What Budget? & What size of campaign? </li></ul></ul><ul><ul><li>Start small campaigns and test various things to find what works </li></ul></ul><ul><ul><li>( Vivid Segments / Different Creative / Different Offerings ) </li></ul></ul><ul><ul><li>Then, just scale it up, your profit will scale up along. </li></ul></ul>
    76. 80. Living with list owners Continued… <ul><ul><li>Method to measure? </li></ul></ul><ul><ul><li>A homework on what works and what doesn’t is very eminent before running a large scale campaign / or to derive at a conclusion </li></ul></ul><ul><ul><li>What Time? </li></ul></ul><ul><ul><li>Streamline your offers & campaigns with the current situation / Market Trends </li></ul></ul><ul><ul><li>Communicate well </li></ul></ul><ul><ul><li>Your segment </li></ul></ul><ul><ul><li>Your interpretation of HNI </li></ul></ul>
    77. 81. Last but not Least… <ul><ul><li>It’s a War.. </li></ul></ul><ul><ul><li>Direct mail vis-à-vis Email / SMS / Tele calling </li></ul></ul><ul><ul><li>Choosing Media - Media comparison </li></ul></ul><ul><ul><li>Coming Soon…. </li></ul></ul>
    78. 82. Part 5: The Fundraising Stretch (10 minutes)
    79. 83. <ul><li>Scottish Fundraising Guru’s tip on “How to Ask” </li></ul><ul><ul><li>Recruit donor, retain donor, convert to major donor </li></ul></ul><ul><ul><li>Ask at least 3 times in a letter </li></ul></ul>Finlay Craig’s Fundraising Stretch
    80. 84. Part 6: Choosing Media- Direct Mail v/s email/sms/telephone (25 minutes)
    81. 85. By Yogesh Aggarwal Global Business Director Yellow Umbrella Group Media Comparison
    82. 86. Take a Pick… Its Choosing Media <ul><ul><li>Direct mail vis-à-vis Email / SMS / Tele calling </li></ul></ul><ul><li>Concerns </li></ul><ul><li>Getting email read is becoming harder and harder. Bounces are very high </li></ul><ul><li>Target High Net Individuals / Premium base over phone through SMS / Telecalling has almost become impossible due to DND (DoNotDisturb) listing. </li></ul><ul><li>DND ratio is almost 50% </li></ul>
    83. 87. Mathematics   Mail Size Cost Total cost Response percentage Response Cost to acquire Email 100000 0.4 40000 0.03% 30 1333 SMS 100000 0.2 20000 0.020% 10 2000 Direct Mail 100000 6 600000 0.7% 700 857 Tele Call 100000 6 600000 1% 500 1200
    84. 88. Choosing Media   Advantage Disadvantage Email Faster and cheaper for tests Primarily reaches to value seekers     Doesn’t covers most of wealthy     Has limited shelf life     Reach is limited to individual to whom it is sent Tele calling More persuasive Negative Image     Slow reach     Doesn’t reach welthy     DND SMS Fast & cheaper Negligible shelf life     Not enough space to communicate     Doesn’t reach wealthy     DND
    85. 89. Direct Mail Facts Advantage Disadvantage Reaches ALL High Initial Cost Lot of space to communicate Cuts clutter No DND issues Helps build brand Read by multiple people at home
    86. 90. Direct Mail Facts Continued… <ul><li>Direct Mailer is not an expensive mode but Smart mode of marketing products / services. </li></ul><ul><li>The open ratio of an email campaign / SMS response is far low & in fact equivalent to the volume of Direct Mailer campaign. </li></ul><ul><li>Direct Mailer also works as a Reminder in many cases for recurring sale from same customer. </li></ul>
    87. 91. Mathematics for media option <ul><li>To make this simple let us check the following: </li></ul><ul><li>An email campaign of 1lac with even 95% delivered rate can fetch you open rate of 5k and unique clicks of 3k. Which simply means out of 1lac Target Audience only 5k have opened your email … </li></ul><ul><li>Whilst a Direct Mailer campaign of just 5k will fetch you approximately 4 times more visibility per household multiplying your Branding. </li></ul>
    88. 92. Fight the Flaws <ul><ul><li>Understand what works and what doesn’t </li></ul></ul><ul><ul><li>Profile Understanding </li></ul></ul><ul><ul><li>Target who requires and who doesn’t </li></ul></ul><ul><ul><li>Its not the Cost… It’s the Mode we communicate through…. </li></ul></ul>
    89. 93. Part 7: Tips on writing a Direct Mail Letter (20 minutes)
    90. 94. Writing a direct mail letter
    91. 95. Messages that stick S U C C S E imple nexpected oncrete redible motional tories
    92. 96. Don’t we on your copy
    93. 97. Power of You
    94. 98. Tell a story
    95. 101. A human interest story
    96. 103. With a before & after
    97. 104. In a first person account
    98. 105. Short Sentences
    99. 106. Language
    100. 107. Story with a ‘still unfulfilled need’
    101. 108. Pitch a small & urgent gap
    102. 109. Key direct mail tactics
    103. 110. Next…. <ul><li>Let’s write one now </li></ul>Writing- 25 minutes Presenting- 30 minutes
    104. 111. Happy Mailing For more information visit www.FundraisingAsia.org
    105. 112. Thank you
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