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Direct Marketing Plan
 

Direct Marketing Plan

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PPT created by Kulin Marketing founder Elizabeth Kulin and her graduate school classmates.

PPT created by Kulin Marketing founder Elizabeth Kulin and her graduate school classmates.

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  • ACS is a non-profit dedicated to providing monetary funding to the cause of cancer. For our direct marketing plan, Rahul and I conducted both primary and secondary research. We looked at the competitive market, industry direct marketing tactics and strategies used to increase donations at this time. During our research we learned that the current financial state of ACS is looking dangerous, as their expends are increasing and total revenue declining. Because of this occurrence we have developed a marketing strategy that focuses on reducing direct marketing costs, while using direct tactics to increase donations from current members and also new customers. Our strategy is carried out with the end goal always in mind – which is to maintain and continue to strive as a successful non-profit. Our project covers in detail, a direct marketing strategy which details which tactics are used to increase donations from current members (both active members who have never donated and those who have) and also a plan to use certain DM tactics to attempt to acquire new customers, activate these new customers in the form of donations. Finally, we our plan covers the frequency of such communication tactics, a overview of budget details, and measurement tactics that we suggest be carried out to analyses the success of our direct marketing strategy to our marketing strategy.
  • During the core of this project Rahul and I conducted Primary research, such as first hand experiments, conversing with ACS staff members, and surveys with friends and family. We also performed a large amount of secondary research via professional reports, journals and articles, as well as gathered information and data from the ACS website and publicly available financial reports.
  • ACS began in 1913 and has grown to become the second largest source of cancer research funds in the USA (first source being the USA government). It has developed as a business too, and now has 3,400 offices across the country. The mission has remained the same for ~100 years now, which is a dedication to decreasing cancer as a major health problem in our society.
  • Dictionary.com defines a non-profit organization as one that is not established, or started, with the goal of making money. They have the purpose of serving a public or mutual benefit other than the pursuit or accumulation of profits for owners or investors. As other non-profits do, ACS uses the money they raise towards their cause, but also takes some for internal business growth. ACS publically states on their website that in 2008 they used 7% of their total revenue, or $73m, towards management and general support. In the USA, it is a fairly competitive market with almost 200,000 non-profits as of 2009.
  • Avon: breast cancer crusade (raised $525m) Susan Komen: Race for the cure, breast cancer 3-day (raised $1.3b) LLS ($1b) Livestrong ($250m) ACS – $3b? Relay = $1.5b
  • As an industry, Direct Marketing is widely practiced in effort to reach objectives and goals of the marketing strategy. The Direct Marketing Association claims that “Direct Marketing driven sales are expected to grow 6.8% annually.” The industry carries out such direct marketing tactics as direct mail, email, telemarketing, social media, mobile marketing, web personalization, search engine optimization, and cataloging. Direct Mail: our text book describes direct mail as “printed matter usually carrying a sales message or announcement designed to elicit a response from a carefully selected consumer or business market” in the form of postcards, self mailers, catalogs, and/or packages. It was the 2 nd most used method for raising non-profit donations in 08. ~1/3 rd of non-profits use direct mail solely to drive recipients to their online donation webpage. However, it is stated that most donations for the non-profit industry still come in by mail. 2. Email Marketing is defined as, “the transmission of messages of computer networks.” As a marketing tactic, email sending increased 28% from 07-08 and the average open rate for the non-profit industry is ~20%. 3. Telemarketing is defined as, “Use of the telephone as an interactive medium for promotion or promotion response.” DMA claims that from 2000 to 2008 sales gathered via telemarketing declined 30.38%. It is stated by fundraising success magazine that “many nonprofit organizations view telemarketing as an untactful medium that should be avoided at all costs.” because it is seen as invasive and expensive. But Fundraising Success Magazine publisher Jim Hussey claims that it is a very effective means to encouraging donors to commit to a recurring giving program, and/or increasing their monetary donation amount. 4. Social Media is defined, by WebProNews publisher Brian Solis, as a new way to share news, information and content via technology platforms such as social networks (facebook over 200m members), Blogs (133M written), Video & Picture (youtube 7m videos, flickr 3B images), Vertical Networks (ning .5m users), social bookmarketing (Digg, 6.8m diggs), and Wikis (MetaCafe, 10m traffic). Studies have found that 60% of Americans use social media and 59% interact with companies via social media (Cone,inc). 89% of charitable organizations are using some form of social media including blogs, podcasts, message boards, social networking, video blogging and wikis. 75% in 2008 report they monitor the Internet for buzz, posts, conversations and news about their institution. Social media is a great tool to grow brand awareness, engage directly with constituents, learn about target audience and integrate marketing campaigns. Source: DMA & Blackbaud.com & Successful Direct Marketing Methods & FSM & Casefoundation.org &prxinc.com
  • 5. Mobile Marketing is another new form of marketing that can be carried out in a targeted and segmented manor. In March of 2008, the DMA partnered with MobileCause (a company that provides provides text messaging, WAP, and mobile marketing solutions for corporations, nonprofit groups and marketing agencies that seek new media ROI) to help non-profits increase fundraising opportunities through mobile marketing. A non-profit marketer can use mobile marketing to send SMS text messages to donors, set up a short code to receive donations via text message that are easily billed to the donors cell phone bill, and design a website specifically for mobile devices. Mobile Charity has been successful. In May 2009, Alicia Keyes asked her concert audient to text a short code “Alive” into their cell phones to donate $5 to charity “Child Alive”. 90,000 did and she raised ~$450,000 in 2 hours. This marketing tactic is growing fast as a way to increase donations by non-profits. Since almost everyone in our country carries a cell phone and texts, donations can be made from any location (not bound to mail or email) from the click of just a few buttons. Over 150 non-profits, such as United Way, St. Judes, and The Red Cross have done some mobile marketing and VeriSign and the MGF predict that more than $5 million will be raised this year with mobile giving (prxinc.com). However, it should be noted that there are some restrictions to this medium. A marketer can not perform outbound SMS mobile marketing without an opt-in from the recipient, making this medium a better fit as a multi tactic used in conjunction with another, for example print or direct mail. Also, donations are for now, limited to at max of $10. Therefore, mobile marketing may not be a way to grow mass amounts of donations quickly, but it is is being seen as way for charities to begin donor relationships with the tech savvy youth target markets. 6. Search engine Optimization: A non-profit can optimize their website pages to enable the search engines to find their sites easier during a persons search, using specific keywords. For example, (Google/search hyperlink) if a search user types the keyword “donate” into Google, there are non-profits that come up naturally, and others that have engaged in PPC campaigns and bid for the keyword. As you see here naha-inc is the winner of this paid keyword over the competition. Many non-profits, 72%, recognize that search optimization is important for successfully driving donors to their website, while only 9% of donations in 2008 actually came from search engine searches (per DMA). 7. Catalog: Non-profits use catalogs, mail catalogs and online, to sell promotional products such as T-shirts, coffee mugs and ball caps with their organization's logo and tagline. The benefits go toward the organization’s cause. The DMA claims that the industry will see a loss in staffing in this direct marketing area over the next 3 years.
  • Non profits are incorporating micro-donation strategy into their direct marketing campaigns. It helped Obama: $500 million was raised online in amounts of $50 or less Good strategy for raising donations when the tactic used to promote micro-donating is not very expensive (need ROI on marketing tactic) and you are targeting a market that is likely to donate, and likely to not donate a lot (don’t want to cannibalize potential large donations). This financial aspect is something that ACS needs to take into account when deciding on which direct marketing tactics to use and how.
  • As you can see by this chart, for ACS specifically, donations have increased slowly year to year. From 2007 to 2008 contribution donations increased 1.5%. However, expensive are increasing rapidly and the same time, the overall total revenue, that includes donations plus mainly event fundraising, but also legacies, interest agreements, and merchandise sales, is declining quickly and saw a very sharp loss in 2008. Industry tren: Now, in 2009, Business Journal states that currently, “fewer than half (non-profits are) raising more money in 2008 than in 2007” ACS 2009 donations: This article also quoted ACS Executive VP, Frank Mascia, as stating that ACS donation contributions in 2009 have been flat in comparison to 2008, “which in this economy is the good news”. Marketing can save: The organization has to focus on growing revenue in effective and also efficient ways right now. Strong marketing strategies can help achieve this organization objective. Industry thinks so: Since 1969 nonprofit organizations have increasingly turned to marketing to develop strategies and execute tactics that will increase growth, funding, and prosperity (Britannica.com).
  • Some non-profit data I found in regards to a survey of over 1000 non-profits in the US in 2008. Results show us that retaining donors is #1 goal but only 22% believe they are capable of retaining donors. Research shows that retaining current customers is less expensive than trying to acquire new ones (www.business.com) So, at this point, ACS should focus on increasing revenue from current customers.
  • the current ACS marketing strategy is: We recommend that ACS actually focus on using cost efficient direct marketing strategies that can maximize donations, particularly from current customers. overall goal is to increase profit and make constituents happy about being a part of ACS, and with ACS. Rahul and I are going to recommend direct marketing strategies that we believe will be best to continue in the effort of reaching this LT mission.
  • First, we believe that ACS must segment between current customers, those which they have in their database as either members who have never donated, and those who are members who have donated. This segmentation will allow ACS to use different and most appropriate DM tactics to either activate the never donated members, and/or increase RFM of those who have. We recommend the use of Email, Mail, SM and Web personalization.
  • ACS does email already. This is a personal email.
  • This is a newsletter List : ACS focus should be on a carefully built list of people who care rather than an enormous list of cold prospects. It can do much better with the latter group, who has given you permission to communicate with them. They will be far less likely to consider you spam. The can even use their database of the donors, volunteers and registered members. But confirm that receiver don’t clash. Offer: ACS should always offer something of value to the reader, Subject line of the E-mail should focus on audience's interests, aspirations and desires rather than their own need for money. Subject line: It should spell out immediate benefit, aspiration, interest or desire of the reader like “ be a proud donor”, “ your contribution matters a lot”. ACS should always give its name in the so that it is easily recognizable. Copy: ACS email copy should contain a message tailored to the audience. It should be relevant short and concise, It should be personalized and clearly talk about the donations and the benefit to the ACS and to the community by that donation. In the first few words. The beginning of the email needs to seize the audience's attention. Layout: ACS is a non-profit organization and job of layout is to raise the funds not the beauty. It should have images, slogans and themes to get recognized. Layout should be creative enough to make donor understand the value of his donation to the community and drive him to donate. Timing: ACS should be very particular in frequency and timing of email. It should be sent to receiver, when he is believe to have enough time to read the email as per the information available by list and database. Email should not be send no more than once a week and no less than every six weeks
  • Their competitors do email too.
  • we recommend ACS continues to do email, but change the following: 1. Writing 3 different emails and segmented who they are sent to based on RFM and donors past behavior to increase the appropriate segment’s RFM behavior.
  • Acs also does mail. Outer Envelope : Always have a tag line related to the organization on the outer envelope(be a proud donor), ( you can save a precious life) which can insist the reader to open the envelope. I believe that window enveloped should be use to make the letter more personalized and other window can be dually use the picture of the copy on the outer envelope, to make the envelope attractive. and the picture should be related to the theme of the letter. Inside letter: It should Begin with compelling opening to obtain interest. State the problem and cause you are working on. Describe your cause in terms of people you serve, needs to address and your success. Use familiar word short sentences and plenty of white space. Ask for the donation near the beginning and at the end of the letter. Even tell a evocative story. Always include return envelope in your mail. Back envelope: Used the space but it can be used to generate more funding .
  • This look like two different letters. One for fund raising and other informative. Need not to addressed the receiver twice. Marked graph describe the success which is very good for non profits. It should be always there so that reader should always know where the organization is heading. Also educating the reader.
  • Their competition does mail too.
  • We suggest that ACS does mail to current customers who we know are able to donate high amounts of monetary donations and are likely to. For example, a segmented list from our database of past donors who have responded to high levels of direct mail in the past, and responded by sending a large donation. This will ensure that the cost of direct mail, which is high , gets covered and the campaign is profitable. Also, we recommend the following details of the actual direct mail pieces change:
  • ACS also uses social meida. The messaging within is overall, very education and informational content, but only small amounts of donation call to action and new customer acquisition efforts. For example: ACS has done a fairly good job at growing awareness using social media. For example, they have a pretty good following on social networking sites Facebook and Twitter. Social Networking is defined as “a group of individuals or organizations that are linked together by family, friendship, business, or other interest” (Stone & Jacobs). In comparison, they are more successful in terms of social networking followers than Avon Foundation, but not Livestrong which has ~500,000 facebook followers and ~30,00 on Twitter. ACS has a cause page on Facebook and the members of this cause page can make donations to ACS on facebook, without having to leave (i.e. without having to go to another website). They have raised $20k, but Susan G. Komen has raised $50k. Content: the messaging on their social networking sites is mostly educational, including information about cancer. There is a call to action sense, but it more about the industry at large and not related to growing ACS. There is only one mention on FB of how fans can encourage their friends to join the FB page (in text long instructions). ACS also has a blog, which is a website where visitors can read, write, or edit a shared on-line journal. The ACS blog is updated very regularly (almost daily) from their expert in-house Deputy Chief Medical Officer, Dr. Lichtenfeld who writes the “Dr. Len’s Cancer Blog” on the ACS website. This area allows constitutes to speak directly to ACS via blog comments. Dr. Len provides information on cancer research and news in the media related to cancer and healthcare in the USA. Website gets about 30k visits/day, and blog gets about 1-10 consumer comments/blog. Blog about 1/wk. Content: lots of cancer information, but no call to action The ACS Vertical Network, which is a social network that targets a specific set of users, rather than a mass audience. For example, YourRunning (running lovers), Dogster (dog lovers) and ACS’s Cancer Survivors Network (CSN). The mission of CSN is stated on the ACS website, and reads, “There are 11 million cancer survivors in this country, and one-third of Americans have served as an unpaid caregiver to a relative or friend facing cancer. Our goal is to provide a robust online community that has something to offer each person.” Content: resource listings of cancer support, education on how to handle your connection to cancer. No call to action. ACS also has a youtube channel where viewers can more about ACS visually. It has the ACS TV commercials, and some short videos made about ACS fundraising events. But no call to action for donors. It is our recommendation that ACS continue to grow their awareness through these viral online tools. However, it is our recommendation that they begin to take advantage of the direct marketing opportunities within these social media mediums, specifically social networking and blogging, to retain a relationship with current members and activate donations.
  • We recommend that ACS use social media to encourage donations from their most supportive and influential fans. Out of all these areas, the mediums that receive the most amount of members and are the most appropriate to leverage for this direct marketing strategy of increasing donations among current customers is facebook and the internal blog. SOCIAL NETWORKING: focus on facebook because that is where your members are. facebook: Discussion board on group page and cause page: call to action posts / donation drives, fan of the month recognition, ask grp fans to cause page (~400k in grp and page, but only 300k on cause) Cause page – message donation call to action (Susan G. Komen has raised $50k) Twitter: Feed board, tweet call to action to donate, announce/hold donation drives (post results), announce fan of the month recognition (link to blog), encourage followers to join facebook cause community. LINK– include link to ACS donation page & DM tactic is free! MICRO DONATION – opportunity to TEST strategy on cause page – it is free! blog: 1. Post social networking fan of the month and link to social network communities. Also post call to actions to blog readers. 2. outreach to other bloggers who are influencers, which are those who like ACS and have a large following. Objective: get them to donate and their followers: Google blog search shows that there are ~700,000 blogs that talk about ACS. To use blog outreach to acquire new donors and activate donations, ACS could reach out to these blogger, thank them directly for their support via email and, in a transparent way, ask them if they could post a call to action in regards to donating (including a hyperlink to the ACS donation webpage) to their blog and urge their blog follower to donate. The most successful tactic would be to reach out to influences, that is bloggers who often write about ACS, write positive blogs about ACS, and have large followers. It is also imprint to follow blog outreach best practices. Ogilvy PR agency has written a Blogger Outreach Code of Ethics that includes steps such as: always read the bloggers blog before emailing them, disclose identity, and make the outreach relevant and beneficial to the blogger. LINK– include link to ACS donation page & DM tactic is free! MICRO DONATION – opportunity to TEST strategy on cause page – it is free! Micro donations would want to be tested because many of these current members have already donated. Those who have, it is important to focus on, not only reactivating them (so they donate again), but increasing their regency, frequency or monetary volumes. This is where web personalization can help.
  • ACS also does web personalization. DEFINITION: Website personalization is a software that you can install into your database and website which automatically provides customers with information that is relevant to their specific needs, making their online experience more efficient and ultimately more satisfying. It is typically used to enhance customer service or e-commerce sales through Web page that are tailored to specifically target each individual consumer. Personalization is a way to meet the customer's needs more effectively and efficiently. It makes interactions faster and easier and, consequently, can increase customer satisfaction, the likelihood of response and return visits. A few examples of companies that sell web personalization software are Broadvision, Sitebrand and ResponseLogic. The ACS website does have a personalization component. During my experience, I registered on their website and entered personal and contact information. At that point, the website directed me to a ACS information page that was personalized in regards to some of the information I entered during registration, such as my connection to cancer. However, when I went to the donation page, as a returning donor (I have donated $5 twice that week), the donation webpage was not personalized at all. As a test, I performed this same routine on the leukimia and lymphoma society’s & also breastcaner.org websites. I personalized my page, made a donation, and then returned the next day and made another donation. It was my same experience that the only thing that was personalized was the addition of my name at the top of the WebPages. Other than that, they were exactly the same as ACS in the fact that I was brought to the same exact donation page, with no personalized messaging of any sort encouraging me to make larger donations.
  • The software of web personalization is not very expensive, and its functions can be used in extremely detailed ways. For one, it could segment ACS Segment: Activate members who never donated before OR 2. Past donors It is our recommendation that ACS should incorporate web personalization as a tool to 1. encourage those who are registered on their website and visit their website, but have never made a donation & 2. increase repeat donors RFM A more robust web personalization software could enable the ability to add personalized messages, which could be targeted to the specific visitor based on their past behavior, to increase regency, frequency and monetary donation volumes. Never donated - when log in to the ACS website, they are encouraged to donate (“click here to donation” message on WebPages) and reminded that their donation helps those in need (portrays the benefit to them donating, and a call to action). 2. past donors - logs in and makes their way back to the donation page (via personalized “click here to make ANOTHER donation” message on WebPages), certain fields of the message could be automatically populated (such as name, last donation date, and/or amount). The copy of the message should include the benefit to the donor, encouragement to donate again, and a strong call to action that motivates the returning donor to donation now. My example on this slide is the segmented “past donors” messaging, since I was a past donor at this point. I had only donated $5 and therefore, the audio-populated amounts are not much more than $5. If I had donated $50, the auto-populated fields could say $60 & $55. the objective is to increase Only possible if the member logs into the site. However, since the competition does not do this type of encouragement via the use of web personalization software, ACS could really stand apart from the completion, and be above the competition, in terms of more direct communication, targeted segmentation, and personalization with the target audience that encourages members & returning donors to do what they want them to do.
  • As it is most likely that donations will increase more rapidly from current members, or past donors, than new acquired customers…it is possible to use cost efficient direct marketing tactics to target new customers – and use some other tactics to attract attention of those most likely to donate as well. This new customer/new donor strategy is two prong. First we must acquire them, then activate them. Also, certain tactics are used for different segments of new customers since different tactics are different prices and have different capabilities in reaching various audiences. We will cover the direct marketing tactics of mail, email, social media, seo and mobile marketing and how they can each be used to attempt to acquire new customers in ways that offer greatest ROI potential.
  • We were unable to get a new customer ACS current email. But we recommend that an email attempting to acquire new customers looks like this:
  • Segment by high income and charity donors. Don’t have a mail piece to audit, but this is what we recommend: Only mail to those who have large income, and donate often – buy list from “Leadsplease” list broker Talk about: Buy segmented list Outter Envelope “ Dear” Offer Layout PS from
  • Also, ACS could use social media to acquire and activate new customers by asking current, most supportive and influential members to reach out to their friends to donate. Acs should do this by offering members the content of their reach out, and response method for their friends. I joined ACS and do not get personalized ads on facebook. I am also a member of LLS group and get ads for their main event TNT. Facebook allows advertisers and marketers to post targeted ads on facebook members profile pages. When a facebook member is logged into their account, ads that are related to the information they have on their profile, such as interests, statues, location, hobbies, group memberships pop up on their pages. There are a number of facebook members who offer information about themselves, such as their charity work, volunteer work, membership of health non profit organizations, etc. ACS could take advantage of this “public” to place targeted ads on members pages who are most likely to be interested in charity, donating and healthcare causes. HOWEVER, IT COSTS A MINIMUM OF $10K TO DO FACEBOOK TARGETED ADS. MORE COST EFFECTIVE, ACTUALLY FREE, WAY TO use social media to grow new customers acquisitions is through the already established base of current fans. On the ACS FB page, there is a short call to action by ACS staff to their page fans, with text instructions, on how fans can help support ACS & cancer by encouraging their friends to join the page group. It is our recommendation that this call to action be increased, and that the focus be made on the coast donation Facebook page (not the group or page). We recommend using Facbooks free communication tools such as discussion boards where call to action messages and links to the facebook cause page (or web donation page) can be added, events of recruitment to cause page contents can be posted on all members personal pages, and emails that can be sent directly to all FB members with call to action and response tools. MEMBERS COULD EMAIL FRIENDS, DISCUSTION BOARDS, POST TO THEIR FB STATUES. RESPONSE TOOLS are for the fans friends – link to FB cause page & home donation page. Call to action message follow AIDA formula, but also best practices. By following the AIDA formula in the copy of the postings, event postings, and/or emails to fans, should include text that relates/speaks to the facebook members (mention the donor fan of the month, for example), this way, relevance and interest can be created. Also, these and the response method of a easy click button can lead them straight to the ACS donation page. Blog outreach is another sources where ACS has a high volume of members, and the bloggers themselves also have high volumes of followers themselves. Google blog shows that there are almost 1m blog posts that mention ACS in their blog. As a good cause non-profit it is a good chance that most of these are positive blogs about ACS. ACS should isolate the bloggers that are the most positive, blog about ACS the most and have the highest number of followers. Once this is done, ACS can reach out this segment of bloggers and communicate with them in a way to encourage the blogger to post ACS donation call to actions to their followers. In the message, It is imperative that ACS follow the blog outreach code of ethics, which states that ACS should always thank the blogger, let them know that ACS read the content of the postings, and ask them to help even further in a way that is relevant to the blogger. For example, in order for the blogger to be interested in attempting to help promote ACS to their followers, their must be some common benefit to the blogger, and ACS should recognize this. Competitor LLS has done this in the past. LLS outreached to mom bloggers who supported LLS. LLS followed the code of ethics and offered the mom bloggers a gap coupon to post on their blogs which their followers could use for discounts at any gap. The message was also spiked with LLS hyperlink and short “join LLS” call to action. These methods can use the ACS influencers to grow new customer volumes through existing members, and free direct marketing tactics.
  • Another cost effective way to Acquire (market share) customers and activate them is through SEO: ACS is well optimized for organic search on the major search engines, Google, Yahoo and MSN in regards to keywords that related to donating to cancer causes. For example, the keyword search “donate to cancer” on all of the major search engines, ACS now only show up on the fist page, above the fold, but are within top 1-2 on list. This means that the ACS website is optimized for this keyword “donate to cancer”. In other words, the website has been designed with elements of prominence (used “donate” and “cancer” as headlines on WebPages), density/weight (uses “donate” and “cancer” often in WebPages), and proximity (placed keywords close together). The high ranking of this example can be explained by the volume of clicks ACS receives during the search of “donate to cancer” above the competition. High ranking occurs because the search engines naturally place the websites that searchers click on the most when searching a specific keyword. This means that ACS is being clicked on the most, above their competitors, such as #3 ranked on Google “donate to cancer” search www.thebreastcancersite.com. However, as ACS strives to acquire new donors and active donations, not every potential donor will use the specific keyword “donate to cancer” when searching for charities to donate to. It is this target market that ACS should further develop its Search Engine Marketing strategy for. For example, when I searched on the major search engines for “Donate to charity” ACS did not show up on the first two pages naturally or paid.
  • This search engine strategy should be implemented into Google, yahoo and MSN. However, if resources and cost are an issue, using only Google will surface since Google search engine is the number one used search engine (according to Alexa, the web information company). By using the Google Adwords platform, “keyword tool”, we can learn which keywords related to charity donating are the most searched on Google. This tool also shows competition scores (how many other businesses are bidding on the keyword), and average bid cost necessary to show up on page 1 of a search for that specific keyword. By using this tool I found that these keywords are highly searched while not having to much competition. Second, the paid ads should relate to these keywords, include copy follows the AIDA formula (interest the searcher, creates desire to learn more), and include a strong call to action that pushes the searcher to click. ACS will only pay when the ad is clicked on. It is important to remember that the click does not automatically equate to a conversion (a donation). Specifically designed landing pages for searches should be created. Landing page should be strategic designed and tested to ensure that the visitor will continue on the desired path (a next click, or filling out information on landing page). The copy and design in the landing page can reinforce the call to action and encourage visitors to donate. Also the page should allow the user can classify as a “new donor” or returning donor, and when doing do, lead the donor to a “new donor” or “returning donor” donation page. This segmentation can increase personalization and chances of obtaining donations from the visitor.
  • A popular new marketing tactic that non-profits are using to active new customers is mobile marketing. Cheap tactic – and people respond. Example: *In may of 2006, a cancer non profit conducted the first mobile text donation campaign as a test against mail and telemarketing. They received 59% response to text, 29% to mail, and 12% via phone. History:*2007, ACS used targeted mobile keyword buys which were streamlined to their mobile site to boost donations via mobile internet. Now, the non-profit industry is seeing the benefit to attempting to boost donations via SMS text donations. COMPETITION: *Susan Komen for the cure, stand up to cancer mobile campaign. In social media (this facebook group discussion board) and at events. ACS *Now LOCATION - social media outlets, grassroots campaigns, and in-game promotions (ask everyone who has been affected by cancer to stand up and shine their phone, then text $5-$10 to Relay), which is great, and seeming direct. However, they could be doing this at actual cancer events to encourage donations from those most likely to donate. *this is a promotional poster They are both asking current customers and also possible new customers to donate micro amounts via this channel that is great because it is accessible from anywhere that a donor gets cellular signal.
  • It is our recommendation that ACS should do mobile marketing at cancer events where they encourage donors to donate via SMS text message. But there are few limitations. For example, how would ACS segment between members who are past donors, those who have donated in the past, and those who are new customers? At a cancer event, there is no way to do this. The messaging will be targeted solely on communicated with cancer supporters (after all it is a cancer event, so we can assume that all there are supporters) and are more likely to donate when encouraged to than non cancer supporters (people not at the event, for example, audiences of marketing if ACS placed posters in subways or other mass advertising locations). This is important, that at an event the response rate is potentially higher than if ACS marketed to masses, because text messages cost about $.10-$.20 per text. Not a lot of money, but when you multiply is my hundreds of thousands, you need an expected return to profit from this DM tactic. *The obstacle of getting opt-in from the customer can be tackled when the donor texts in their first donation. *Furthermore, for those members who have never donated, ACS would be activating them, and for new customers, ACS would be acquiring and achieving them. Also for returning donors – they would be reactivating. *The next threat, is the $10 donation limitation. This is a threat because, with no way to segment, there could be past donors who donated much more than $10 donating via SMS, only $10 – inadvertently cannibalizing a donation that could have been greater in monetary amount, if they had otherwise donated via mail or online (for example, research shows that the average online donation is $71 in 2008). SO – at an event, ACS can encourage response to the donation call to action. Get opt-in of current and new members, get activation and re-activation. Also, to counteract the possible canalization of what may have been greater monetary donations, ACS can do the flowing: Steps & Messages: Donor texts their donation Get immediate response confirming donation and a thank you, additionally, include information about where money going to and donor benefit (160 characters or less) Encourage donor to repeat donation by going online and giving more – include response method of website (can phone do buttons to mobile site?) 3. Follow up (month later or so): Get follow up text in future with same message (so text is related to opt-in reason) but opt-out option.
  • Database is great at ACS and can store registrations, history of donation behavior, segment lists, etc.
  • Need to finish notes Mail: Track how many donations we receive via the return envelope, 1-800 number and the hyperlink landing page that was specific to this campaign. Email: Track opens, clicks and conversion rates via the email platform “Vertical Response” which also sync’s with Google analytics to track which landing pages, post clicks, were the most successful in acquiring donations/activations. Social Media: Track the facebook advertisement clicks and rate of conversions from the specific click path. Also track how many new facebook fans to the ACS group, page and cause pages before the advertisement went live and after (to measure if the ad increased general awareness and if that relates to an increase in donations in anyway). Search Engine: Track on Google adwords which keywords and ads are receiving not only the highest volume of impressions (how many times the ACS PPC ad showed on the paid search page when a searcher searched by a specific keyword in Google), clicks, and conversions (donations via that click path). Continue to ad like keywords and ads that are similar to successful keywords (ones that receive conversions). Learn visitors behavior as they use keywords related to ACS brand and click their way to the donation page. Try to understand why some keywords and ads get conversions and others do not. Also, test landing pages design, call to action, and response forms. Mobile: Track how many donors respond to outbound mobile text message by texting back a donation – also if they respond immediately to the text and how much the average donation is via response text; $5 or $10. Web Personalization: Long Term: In general, measuring ACS constituent behavior based on their response rates to certain tactics and tests (A/B split test, for example) will enable ACS marketing team to understand what drives their target audience to donate. Once this is learned, they can implement these results and controls when strategizing the follow up communication tactics (mail, email, phone, and mobile text) to better ensure repeater donations and increases in RFM.

Direct Marketing Plan Direct Marketing Plan Presentation Transcript

  • Direct Marketing PlanAmerican Cancer Society By: Elizabeth Kulin & Rahul Bathla www.KulinMarketing.com
  • Executive Summary Non profit – cancer Research Industry: competition, dm tactics and new strategies to increase donations ACS current financial state ACS recommended marketing strategy: focus on lower DM and target current members (activate/re- activate)  1Goal: successful non-profit DM strategy  increase members donations  2. acquire new with efficient DM tactics DM tactics  Current customers:  activate members who never donated  Reactivate those who have and RFM them  New customers  Acquire and activate Communication Calendar, budget, measurements
  • Research Methods
  • Company History Founded in 1913 by fifteen physicians and businessmen. Now  The second largest source of non-profit cancer research funds after the United States government.  3,400 local offices with branches in all 50 states  Over 2 million volunteers Mission To eliminate cancer as a major health problem. Source: Google Analytics/Cast Study
  • Industry~160,000 in USA Source: Google Business Dictionary.com
  • ACS Competition Main competitors American Cancer Society position in marketplace  #1 cancer nonprofit/health organization, in nation.
  • Non-Profit Direct Marketing Tactic Details •Definition: Printed Matter carrying a sales messageDirect Mail •Statistics: •57% of non-profits do direct mail •#1 communication channel with donors •82.56% increase in sales gained via direct mail (industry wide) since 2000.Email •Definition: Electronic transmission of a message •Statistics: •78% of non-profits do email marketing •Sales via email marketing increased 166.34% since 2000Telemarketing •Definition: Usage of telephone for promotion response •Statistics: •30% decline in sales •Expected to decline in sales growth (.6% annually)Social Media •Definition: shift in how people discover, read, and share news and information and content. Its a fusion of sociology and technology, transforming monologue (one to many) into dialog (many to many.) •Social networks, blogs, video & picture, Vertical networks, Bookmarking, Wikis •Statistics: •89% of non-profits use social media (79% use social networking and blogging) •75% watch their buzz
  • Non-Profit Direct Marketing Tactic Details •Definition: "the use of wireless media (primarily cellular phones and PDAs) as an integrated content deliveryMobile Marketing and direct response vehicle within a cross media marketing program” (MMA). •Must be Opt-in •Mobile Donation Limit = $10 •SMS text message (send and receive), & mobile friendly site. •Example: Alicia Keyes - $450,000 text donations •Statistics: •86% of us has cell phone •2008 - 3.5 billion SMS were sent every day •Over 150 non-profits •Expect $5m donations in 2009 •Definition: each Engine Optimization (or SEO) is the systematic process by which an organization gains betterSearch Engine search engine visibility over time.Marketing •Paid (PPC) or Organic (SEO) http://www.Google.com/search •Statistics: •72% of Non-profits optimize their websites for search (4% more than 2007) •Search Optimization drives 9% of donations •Definition: A promotional book or booklet offering a variety of merchandise displaying photos ofCatalog merchandise, with descript details and prices •Offline to online •Non-Profit use: Sell products for donations •Statistics •Largest loss in DM driven employment (2.4% annually)
  • Micro-DonatingA new marketing strategy that non-profits are using to grow donations from people who could not otherwise donate. minimum of $5 Easy for donors Can attract high volume of donors (Obama)
  • ACS Finances•Donations = ~25% of total Revenue•Average Donation = $40 Source: ACS Combined Financials 2006 & 2008 Relay.acsevents.org
  • Industry Marketing 200822% 9% Source: Blackbaud 2008
  • ACS Marketing Strategy Current:ACS is currently using both mass marketing and direct marketing to promote themselves as a cancer resource and supportnetwork to win new event participants, specifically Relay for Life. Recommendation: Develop a cost efficient direct marketing plan to increase donation profits. Make Grow Constituents Goal Profits Happy
  • Direct Marketing Strategy Current Activate Increase RFM Customers Non donation members past donors TACTICSEmail Mail Social Media Web Personalization
  • Current Customer Email - Audit
  • Current Customer Email (newsletter) - Audit
  • Competitor Comparison - Email American Cancer American Lung American Heart Society Association AssociationSubject Line Strong subject line Strong subject Weak at subject line lineOffer Well defined, Straight forward Ambiguous, not supported by offer. clear stories & articlelayout Attractive and Very short, little Very lengthy, very persuasive text, just a tightly written, lot picture, non of pictures . persuasiveCopy Personalized, Not personalized, Personalized, Informative, patient contains just an include surveys & stories offer polls, informativeResponse Several direct links No response Direct linksMethod available in the method available available email
  • Current Customer Email - Recommendation ACS should try to increase RFM via e-mails to past donors. ACS should be careful while using last name and first name of the customer. ACS should use the copy to collect information regarding customer interest via surveys, polls etc as AHA. ACS should make costumer proud for his earlier donations and volunteer work and motivate them to donate more. Thanking e-mail should be persuasive and encourage to donate again as well as more.
  • Current Customer Mail –Audit Outer Envelope
  • Copy and Card - Audit Copy and Reply Envelope - Audit
  • Mail - Competitor Comparison American Heart American Susan G Association Cancer Society Common CureHeadline Strong headline Weak headline Strong headlineOuter Envelope Not appealing, Would have Attractive, insist Just ordinary been better to openCopy Highly Wordy and Not persuasive ambiguous personalized, mixed upOffer Very clear Mixed up Not clear
  • Current Customer Mail - Recommendation Segment & send to only: Past large donors, likely to response to mail There should be a punch line on the envelope to insist the receiver to open it. Need strong subject line Donor card would have been used from the window as we receive a credit card to create more interest. It looks like two mails at a time and addressed twice. Mail should have used compelling opening to ignite the interest. Very tightly written, no white space. There was no call to action.
  • Current Customer Social Media - Audit Social Networking  Facebook: ~700,000 fans (grp, page, cause-$20k)  Twitter: 472 followers  MySpace: 815 friends*Content: Educational information, light call to action Blog: Dr. Len’s Cancer Blog*Content: Cancer information, no call to action Vertical Network – Cancer Survivors Network*Content: Resource guides, education, no call to action Viral Video: Youtube channel – 468 subscribers*Content: ACS TV commercials, Event videos, no call to
  • Current Customer Social Media – Recommendations Medium Channel Recommendations •Include donation call to action (disc. Boards, links to donation webpage) •Hold donation drives on cause page Focus on Facebook •Recognize a fan of the month (based on Social donations)Networking •Encourage grp fans to become cause members •Webpage links & micro-donating tests •Include call to action (in blog posts) that reads, “Take action – donate today” Internal Blog •Donor of the month recognition (in blog Blogging posts) •Donation page links & micro-donating tests
  • Current Customer Web Personalization - AuditEnter Personal InfoEnter Contact Info My personalized page based my info I made donation #1 I returned. Donation #2 My donation page is not personalized or based on past behavior
  • Current Customer Web Personalization - RecommendationMember, Never Donated Returning Donor Hello, Elizabeth Thank you for your past $5 donation. You money went directly towards research aimed at stopping cancer. We understand these are tough times, but Hello, Elizabeth A donation of $15, or Thank you for being a even $10, more could part of ACS. dramatically help in the fight against Cancer. Your support and help is needed more than Thank you for your ever. support, and please do consider those in Please make a donation need when donating now. and help lives by clicking here: (Donation Button)
  • Direct Marketing Strategy New Acquire ActiveCustomers get into Database Donations TACTICS Email Mail Social media SEO Mobile
  • New Customer Email - Recommendation
  • New Customer Mail - Recommendation Send to: High Income, Charity lovers
  • Social Media Recommendation Targeted Facebook Ads Being a hero is easy. Give (as little as $5) the American Cancer Society now and help save a life. $10,000 Minimum Click Here ACS MembersMembers Connections & Blogger $ FREE New AcquisitionsLead them to Donations Let your friends fight too! Show them how to find us: ACS/FB/Causepage (button) Follow: AIDA Formula & Blow Outreach Code of Ethics
  • Search Engine Marketing - Audit Keyword search: “Donate to Cancer”Google  ACS #1 natural and PPC Yahoo  ACS #1 natural, 0 PPC MSN  ACS #1 natural, 0 PPC High ranking = Website optimizationKeyword search: “Donate to Charity”
  • Search Engine - RecommendationPPCAds Targeted Donation Page
  • Mobile Marketing - AuditSusan G Komen ACS Locations: Locations: •Social Media •social media •Events •grassroots •sport games
  • Mobile - Recommendation Sending Received Received You’re still a hero to Thanks for being a those you helped hero by donating. when you last Donating $5- Your gift helped save donated to cancer. lives. Give an even $10 now greater contribution Be an even greater one now. Donate & and increase your without limits: opt-in hero footprint. www.cancer.org/dona www.cancer.org/Dona te te (Opt-out option)
  • Database Technical aspects  Holds customer information  Segments customer types (demographics, behaviors, geographic)  Charts and dashboards  Communication Calendar Usage  List: Mail, email, mobile  web personalization  To achieve effective personalization, organizations must rely on all available data, including the usage and click-stream data (reflecting user behavior), the site content, the site structure, domain knowledge, as well as user demographics and profiles. data inputs, a personalization tool, and the personalized output. Enhancement  ACS will use database to hold data, segment lists, and track analytics
  • Communication Calendar Email: 1/month Social Media:  Facebook: 1/month  Call to action  Fan of the month  Blog Outreach: 2/year Mail: 1/quarter Mobile: 1/month  Follow up SMS texts  Stop when member opt-out
  • Budget Mail  List purchasing  Printing  Postage Email  List rental fees (For example, $.10 per lead  2000 leads = $200)  Email platform fees (For example, $.05/email) Social media  Facebook targeted advertisement Fee ($10k min) Search Engine Marketing  Pay per click budget (For example, $5,000/year) Web Personalization  Software Mobile Marketing  Service & text message fees
  • Measure Short Term:  Mail - returns, conversions  Email - opens, clicks, conversions  Social media – feedback, clicks, conversions  Search Optimization - PPC impressions, clicks, conversions  Web Personalization– before and after donation levels of returning donors  Mobile – donations via text, online conversions, opt-out rateLong Term:  Learn constituents behavior  What keeps them returning and increasing RFM levels  Most ROI efficient tactic to acquire new customers
  • References http://www.Google.com/analytics/case_study_acs.html http://www.britannica.com/EBchecked/topic/417800/nonprofit-organization ACS_Combined_Financials_FY2006 ACS_Combined_Financials_FY2008 http://relay.acsevents.org/site/DocServer/RFL%20Muk%20March.April%20newsletter.pdf?docID=92181 http://www.cancer.org/docroot/AA/content/AA_1_2_ACS_Fact_Sheet.asp http://southflorida.bizjournals.com/southflorida/stories/2009/03/30/daily14.html http://www.cancer.org/docroot/res_0.asp?from=fast http://www.cancer.org/docroot/PED/ped_1.asp?sitearea=PED&level=1 http://www.cancer.org/docroot/PED/ped_2.asp?sitearea=PED&level=1 ACS Patient Services Flyer.pdf (1191KB) Direct Marketing Association, Direct Marketing Facts and Figures in the Nonprofit Inudstry. http://www.blackbaud.com/files/resources/industry_analysis/2008_SONI_NorthAmerica.pdf Bob Stone & Ron Jacobs, Successful Direct Marketing Methods, Mcgrawhill, New York, 2008 http://www.fundraisingsuccessmag.com/article/50000-50999/50809_1.html http://nonprofitstrategies.wordpress.com/2009/06/30/using-telemarketing-to-reactivate-lapsed-donors/ http://www.webpronews.com/blogtalk/2007/06/29/the-definition-of-social-media http://www.coneinc.com/content1182 http://www.casefoundation.org/blog/nonprofits-take-plunge-social-media-outpace-fortune-500 http://www.mmaglobal.com/articles/whats-mobile-marketing http://www.the-dma.org/cgi/dispannouncements?article=1027 http://www.mobilemarketer.com/cms/sectors/nonprofits/3317.html http://www.mobilemarketer.com/cms/opinion/editorials/2328.html http://www.prxinc.com/2009/04/29/mobile-donations-raise-money-from-text-messages/ http://searchcrm.techtarget.com/sDefinition/0,,sid11_gci532341,00.html http://www.dcs.warwick.ac.uk/~ssanand/itwp09/ http://seo.grassroots.org/nonprofits http://blog.ogilvypr.com/2007/10/the-ogilvy-pr-blogger-outreach-code-of-ethics/ http://www.dcs.warwick.ac.uk/~ssanand/itwp09/ http://www.mmaglobal.com/bestpractices.pdf http://www.forrester.com/Research/Document/Excerpt/0,7211,41864,00.html http://philanthropy.com/news/updates/8256/size-of-average-online-gift-dropped-in-2008-from-86-to-71 http://www.mmaglobal.com/studies/macmillan-cancer-support-donations-text-message-plus-gift-aid-contribution-mobile-internet-i
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