Direct mail 21st safrw

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

Part 1: Introduction to Direct Mail (45 minutes)

How long has the Direct Mail been around? 800 Years ago by Eihei Dogen

Probably the oldest Fundraising Direct Mail Source: Exhibit by Mal Warwick on www.sofii.org

Direct Mail Now- butt of jokes

But still Direct Mail continues to deliver

Acquiring Donors What can you use Direct Mail for - 1

What can you use Direct Mail for - 2 Retaining Donors

What can you use Direct Mail for - 3 Converting Donors

Envelope
Letter
Endorsement or Lift Letter or Lift photo / leaflet
Donation Coupon
(Premiums &Mission Premiums)
Business Reply Envelope
Acquisition Package

Envelope also Communicates

Key direct mail tactics Long V/s Short

Key direct mail tactics - Personalisation

Underlining Post Script Questioning Key direct mail tactics

Lift or Endorsement Letter Key direct mail tactics

Address Labels visible from back of envelope Premiums Key direct mail tactics

ORS Sachet in a package asking money for saving children Key direct mail tactics

Key direct mail tactics Plastic sheet

Key direct mail tactics

Measuring success of Direct Mail 1 Response Rate

Measuring success of Direct Mail 2

Measuring success of Direct Mail 3 Long-term value of donors

Coding Your Direct Mail

Getting ready to send

Manual Mail Insertion

Mechanical Mail Insertion

Franking

Mail Sorting Zip or Pin Code

Using Postal Services

Using Courier Services

Unaddressed home drops

Always Seed Your Mail!

Part 2: Direct Mail Pros & Cons (10 minutes)

Number of new donors brought in
Does Direct Mail bring in More Donors as Compared to Other Methods?
Con

Average Donation brought in
Do Direct Mail Donors Give More or Not as Compared with Other Methods?
Pro

Quality of donors
Do Direct Mail Acquired Donors Stay Longer or Not?
Pro

Scalability
Can Number of Direct Mailers to be Sent Increased Quickly as per the Need?
Pro

Part 3: Choosing Databases- fluke or science (20 minutes)

What is more important ?
Creative design
Quality of lists
Mode of delivery

Your First Appeal Data Selection

First Date

Things Not Done Well Have An Everlasting Impression

Good Date Bad Date

Good Data Bad Data

Selecting Database

Art or Science

Locating Databases may be an Art But Using them is a Definite Science

Proprietary Data

I am Well Kept & Protected

Compiled Lists

List Owners

List brokers

List vendors

Using lists

Testing lists

Picking up a small sample

How big should a test be?

The concept of random selection

No creaming while testing

The concept of partial rollouts

Part 4: Direct Mail Responses A list owners perspective (30 minutes)

By Yogesh Aggarwal Global Business Director Yellow Umbrella Group The Direct Mail Era

Critical success factors
Realistic Expectations
Relevant Communication
Correct Timing
Correct Mail size
Correct Test Size
Correct Evaluation of Results
Understanding of Profile

Direct Mail Response
A List owner’s Perspective
Responds a factor of your knowledge on Chosen segment
HNI Syndrome
Database options and cuts available
Living with list owners

Responds a factor of your knowledge on Chosen segment
Major Flaws – Individual / Corporate misunderstanding on what Works / Worked or Doesn’t..
Profile knowledge … a Failure in doing Homework before running campaign.
Segment knowledge : Study Product / Market / Target Segment
Target those who require / would respond and not to all…

HNI Syndrome
A little bit of TOO MUCH
A segment over-done.
Everyone wants a bit of HNI
100% database queries are for HNI
100% companies wants to target HNI
Is HNI so Important ??
Small Test…… Define it…..

Basic Questions to answer yourself
before Targeting HNI
Why HNI?
How Do you connect to HNI?
Is HNI your Target segment?
What is your expectation from HNI?
HNI… HNI… HNI…
HNI Syndrome Continued…

HNI Syndrome Continued…
Purchase Behavior
It’s not the money that responds but the profile and lifestyle of a person which does.
Target the group by Profile, Educational balance…..
So how would you select the Data??
Largely a Psychographic study of the TA?
Continued..

What is Database????
a key component in Direct Marketing
You Buy Customers and not the Mailing Lists
Options & Cuts Available
Databases are available by deep segmentation on Psychographic & Demographic classification
Spending Patterns

Critical factors – Data selection
What is your current donor profile?
By Location
By Age
By Occupation
By Availability of Data with List owners
Now Lets understand
Psychographic study of the Target Audience…

Psychographic Analysis
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 .
Gender, Age, income, occupation, Location & even Religion play vital role in any purchase behavior.
Psychographic data can be purchased from direct marketers or market profiles for general marketers

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

Living with list owners
List owner is like your doctor
Share the objective
Share the communication
Share the expectations
What ROI ?
Do not look for immediate R.O.I (return on investment).
Building a good relationship with the customer is possible only by winning loyalty.

Living with list owners Continued …
What Media?
To maximize your R.O.I, It is vitally important to test your campaigns.
What Budget? & What size of campaign?
Start small campaigns and test various things to find what works
( Vivid Segments / Different Creative / Different Offerings )
Then, just scale it up, your profit will scale up along.

Living with list owners Continued…
Method to measure?
A homework on what works and what doesn’t is very eminent before running a large scale campaign / or to derive at a conclusion
What Time?
Streamline your offers & campaigns with the current situation / Market Trends
Communicate well
Your segment
Your interpretation of HNI

Last but not Least…
It’s a War..
Direct mail vis-à-vis Email / SMS / Tele calling
Choosing Media - Media comparison
Coming Soon….

Part 5: The Fundraising Stretch (10 minutes)

Scottish Fundraising Guru’s tip on “How to Ask”
Recruit donor, retain donor, convert to major donor
Ask at least 3 times in a letter
Finlay Craig’s Fundraising Stretch

Part 6: Choosing Media- Direct Mail v/s email/sms/telephone (25 minutes)

By Yogesh Aggarwal Global Business Director Yellow Umbrella Group Media Comparison

Take a Pick… Its Choosing Media
Direct mail vis-à-vis Email / SMS / Tele calling
Concerns
Getting email read is becoming harder and harder. Bounces are very high
Target High Net Individuals / Premium base over phone through SMS / Telecalling has almost become impossible due to DND (DoNotDisturb) listing.
DND ratio is almost 50%

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

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

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

Direct Mail Facts Continued…
Direct Mailer is not an expensive mode but Smart mode of marketing products / services.
The open ratio of an email campaign / SMS response is far low & in fact equivalent to the volume of Direct Mailer campaign.
Direct Mailer also works as a Reminder in many cases for recurring sale from same customer.

Mathematics for media option
To make this simple let us check the following:
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 …
Whilst a Direct Mailer campaign of just 5k will fetch you approximately 4 times more visibility per household multiplying your Branding.

Fight the Flaws
Understand what works and what doesn’t
Profile Understanding
Target who requires and who doesn’t
Its not the Cost… It’s the Mode we communicate through….

Part 7: Tips on writing a Direct Mail Letter (20 minutes)

Writing a direct mail letter

Messages that stick S U C C S E imple nexpected oncrete redible motional tories

Don’t we on your copy

Power of You

Tell a story

A human interest story

With a before & after

In a first person account

Short Sentences

Language

Story with a ‘still unfulfilled need’

Pitch a small & urgent gap

Key direct mail tactics

Next….
Let’s write one now
Writing- 25 minutes Presenting- 30 minutes

Happy Mailing For more information visit www.FundraisingAsia.org

Thank you

http://www.fundraisingindia.org	68
http://www.fundraisingasia.org	10
http://translate.googleusercontent.com	1

Direct mail 21st safrw

by anuptiwari on Aug 10, 2010

Accessibility

Categories

Tags

Upload Details

Usage Rights

3 Embeds 79

Statistics

Direct mail 21st safrw — Presentation Transcript