0 to 90 in 60


Published on

90 Direct Marketing Tips in 60 Minutes, presented by Leah Eustace and Fraser Green at the Association of Healthcare Philanthropy Canadian Conference in April 2010.

Published in: Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

0 to 90 in 60

  1. 1. 0 to 90 in 60 90 direct mail tips in just 60 minutes! Leah Eustace CFRE Fraser Green CFRE
  2. 2. Set the right goal <ul><li>Be clear on what you’re trying to do with your pyramid </li></ul><ul><li>Stabilize the base </li></ul><ul><li>Grow the base </li></ul><ul><li>Grow the vertical </li></ul>
  3. 3. Be realistic about growth <ul><li>How ‘sexy’ is your cause? </li></ul><ul><li>Are you Sick Kids or the Psoriasis Foundation? </li></ul><ul><li>Set targets appropriately! </li></ul>
  4. 4. Set long-term direction <ul><li>Have a multi-year </li></ul><ul><li>(3-5) direction </li></ul><ul><li>Make sure this year’s plan fits into the bigger picture </li></ul>
  5. 5. Make sure everyone’s on the same page <ul><li>Set expectations throughout the organization </li></ul><ul><li>Educate leadership – both staff & board </li></ul><ul><li>Failure to do this may upset your apple cart down the road! </li></ul>
  6. 6. Offer donor choice… <ul><li>Number of appeals </li></ul><ul><li>Stewardship options </li></ul><ul><li>E vs. paper receipts, newsletters etc. </li></ul><ul><li>Phoning okay </li></ul><ul><li>Greater choice = </li></ul><ul><li>greater loyalty! </li></ul>
  7. 7. Integrate channels <ul><li>DM was a stand alone tactic in the 1980s </li></ul><ul><li>Not any more </li></ul><ul><li>Multi-channel world </li></ul><ul><li>Phone, online, face-to-face </li></ul><ul><li>Seamless baby! </li></ul>
  8. 8. Get your data house in order <ul><li>Your direct mail program will only be as successful as your data allows it to be. </li></ul><ul><li>Invest in proven fundraising software – and make sure someone is properly trained to get the most out of it. </li></ul>
  9. 9. Put your year on a spreadsheet <ul><li>Mail dates </li></ul><ul><li>Mail types (donor renewal, prospect etc.) </li></ul><ul><li>Costs </li></ul><ul><li>Response rates </li></ul><ul><li>Average gift </li></ul><ul><li>Revenue – gross and net </li></ul><ul><li>Key ratios </li></ul>
  10. 10. Make a creative plan <ul><li>Themes </li></ul><ul><li>Signatories </li></ul><ul><li>‘ looks’ </li></ul><ul><li>Length </li></ul><ul><li>Inserts (if any) </li></ul><ul><li>Info required </li></ul>
  11. 11. Make a critical path for each campaign <ul><li>Work dates ‘backwards’ </li></ul><ul><li>Include all key milestone dates </li></ul><ul><li>Work from this document daily – or put reminders in your outlook calendar </li></ul><ul><li>If the path is met, the mail drops on time! </li></ul>
  12. 12. Case for Support <ul><li>Take the time to write a powerful case for support </li></ul><ul><li>We’re amazed at how many organizations don’t have one (even the big guys) </li></ul><ul><li>A solid case saves time in the long run </li></ul>
  13. 13. Line up your people <ul><li>Ensure everyone knows what’s expected of them – and when it’s expected </li></ul><ul><li>Interviewing signatories </li></ul><ul><li>Lining up suppliers </li></ul><ul><li>Everyone who needs to sign off </li></ul>
  14. 14. Set your evaluation methods in advance <ul><li>What determines success & failure? </li></ul><ul><li>Driven by strategy </li></ul><ul><li>Key performance indicators will come into play (more later!) </li></ul>
  15. 15. “ Demographics are 2/3 of everything” David Foot <ul><li>83% civic generation </li></ul><ul><li>Born pre-1946 </li></ul><ul><li>Also called WW2 Generation </li></ul><ul><li>Grew up before television </li></ul><ul><li>Older, empty nest churchgoing woman </li></ul>
  16. 16. Meet Jacqueline <ul><li>Make sure your package design, letter copy speak to her – and not your executive director! </li></ul><ul><li>Focus group a letter with an elderly neighbour rather than your communications staff </li></ul>
  17. 17. Carrier envelope <ul><li>Only purpose is to be opened </li></ul><ul><li>Simple often works best </li></ul><ul><li>Use teasers only when they contribute </li></ul>
  18. 18. Letter <ul><li>Purpose of the letter is to create the impulse to give </li></ul><ul><li>Stay focused on purpose </li></ul>
  19. 19. Reply coupon <ul><li>Purpose is to facilitate easy giving </li></ul><ul><li>Make it easy to use! </li></ul><ul><li>Don’t get complicated </li></ul>
  20. 20. Business reply envelope <ul><li>Just make sure you include one! </li></ul><ul><li>Don’t send your donor looking for envelopes and stamps </li></ul><ul><li>Make it easy! </li></ul>
  21. 21. Remember that older eyes prefer… <ul><li>big </li></ul><ul><li>fonts </li></ul>
  22. 22. Count your I’s and you’s <ul><li>The donor prefers to read ‘you’ to ‘I’ </li></ul><ul><li>Write from the outside in </li></ul><ul><li>Say you twice for every time you say I </li></ul>
  23. 23. Write emotionally <ul><li>Human beings are emotional animals </li></ul><ul><li>We decide on our emotions </li></ul><ul><li>Strike the right chord to generate response </li></ul>
  24. 24. Our favourite fundraising maxim <ul><li>“ The institution has no needs” </li></ul><ul><li>It’s all about connecting the donor with the beneficiary of the gift. </li></ul>
  25. 25. Take as long as it takes <ul><li>Despite what your boss thinks, long letters outperform short ones </li></ul><ul><li>Take as long as it takes to tell your story </li></ul>
  26. 26. It’s direct mail, so be direct <ul><li>Don’t be afraid to ask </li></ul><ul><li>Be as specific as you can with your ask </li></ul><ul><li>Don’t be afraid to ask more than once </li></ul><ul><li>Asking is why you’re writing </li></ul>
  27. 27. Focus on benefits – not features <ul><li>A feature describes </li></ul><ul><li>A benefit is an outcome </li></ul><ul><li>Donors want to create the benefit with their gift </li></ul><ul><li>It’s shorter emergency room wait times – not an enhanced intake system </li></ul>
  28. 28. Positioning – the battle for the mind <ul><li>What’s your unique selling proposition? </li></ul><ul><li>If you’re not unique, you’re interchangeable </li></ul>
  29. 29. Book Tip <ul><li>“ Positioning, the </li></ul><ul><li>Battle for the Mind” </li></ul><ul><li>By Al Reiss & Jack Trout </li></ul>
  30. 30. The success formula <ul><li>problem </li></ul><ul><li>+ </li></ul><ul><li>solution </li></ul><ul><li>+ </li></ul><ul><li>credibility (yours) </li></ul><ul><li>+ </li></ul><ul><li>ask </li></ul>
  31. 31. The offer – the reward <ul><li>Donors don’t just give </li></ul><ul><li>It’s an exchange </li></ul><ul><li>Each party gets something </li></ul><ul><li>For the donor, it’s the psychic reward </li></ul><ul><li>Talk about that reward </li></ul>
  32. 32. Book Tip <ul><li>“ Influence – the Psychology of Persuasion” </li></ul><ul><li>By Robert B. Caldiani </li></ul>
  33. 33. Don’t crowd <ul><li>Short sentences </li></ul><ul><li>Short paragraphs </li></ul><ul><li>Leave lots of white space </li></ul><ul><li>Make it easy to read </li></ul>
  34. 34. Write like you speak <ul><li>Your grade four English teacher would be furious! </li></ul><ul><li>Incomplete sentences </li></ul><ul><li>Contractions </li></ul><ul><li>Hyphens </li></ul><ul><li>The eyes lead to the brain – the ears to the heart! </li></ul>
  35. 35. Authentic copy <ul><li>Make your letter sound like it REALLY comes from the person who signed it </li></ul><ul><li>Capture the voice/personality </li></ul><ul><li>Interviews work best </li></ul>
  36. 36. Be very careful <ul><li>Not to use jargon </li></ul><ul><li>“ enhancing indigenous capacity-building among community-based non-governmental organizations” </li></ul><ul><li>or </li></ul><ul><li>“ helping people help themselves” </li></ul>
  37. 37. Appeal to the senses <ul><li>People’s </li></ul><ul><li>imaginations can </li></ul><ul><li>see, smell, taste </li></ul><ul><li>touch and hear. </li></ul>
  38. 38. Book tip <ul><li>Made to Stick </li></ul><ul><li>is a great book </li></ul><ul><li>that will help your </li></ul><ul><li>messages both </li></ul><ul><li>penetrate and stay </li></ul><ul><li>in the donor’s mind. </li></ul>
  39. 39. Passion is infectious.. <ul><li>If you show your passion for the cause, the donor will be infected. </li></ul>
  40. 40. Ease of reading <ul><li>Black type on white background </li></ul><ul><li>Lots of visual contrast </li></ul>
  41. 41. A picture is worth a thousand words <ul><li>Photographs amplify your message </li></ul>
  42. 42. Use a serif font <ul><li>The preferred </li></ul><ul><li>font of direct mail </li></ul><ul><li>(older) donors </li></ul>
  43. 43. Tell great stories <ul><li>Human beings communicate by telling stories </li></ul>
  44. 44. Book Tip <ul><li>“ The Story Factor” </li></ul><ul><li>By Annette Simmons </li></ul>
  45. 45. Key Performance Indicators Donor Acquisition Cost <ul><li>Gross revenue minus expenditure </li></ul><ul><li>Divided by number of new donors </li></ul><ul><li>Sector average is $25 </li></ul>
  46. 46. Conversion rate <ul><li>Rate at which first time donors make a second gift </li></ul><ul><li>Repeat donors divided by once-only donors </li></ul><ul><li>Sector average is about 35-40% </li></ul>
  47. 47. Conversion Tip <ul><li>Call new donors simply to say thanks and welcome. </li></ul>
  48. 48. Conversion Tip <ul><li>You don’t get a second chance to make a first impression! </li></ul><ul><li>Get the thank you letter and tax receipt mailed within 72 hours. </li></ul>
  49. 49. Conversion Tip <ul><li>Send a welcome kit to first-time donors </li></ul>
  50. 50. Average gift <ul><li>Gross revenue divided by number of gifts </li></ul>
  51. 51. Gift frequency <ul><li>Average number of gifts per active donor per year </li></ul><ul><li>Total gifts divided by total number of active donors </li></ul><ul><li>Sector average is about 1.3 </li></ul>
  52. 52. Renewal rate <ul><li>Rate at which active donors renew their giving in subsequent year </li></ul><ul><li>Number of this years renewers divided by all last year’s active donors </li></ul>
  53. 53. Renewal Tip <ul><li>You may need to add another renewal appeal to your yearly program to maintain your renewal rate. </li></ul>
  54. 54. Renewal Tip <ul><li>Use newsletters to best advantage </li></ul><ul><li>Show money at work </li></ul><ul><li>Show positive results </li></ul><ul><li>Create donor satisfaction before </li></ul><ul><li>re-soliciting. </li></ul>
  55. 55. Active donor life expectancy <ul><li>Average length of time during which an active donor will continue to give every year </li></ul><ul><li>Function of renewal rate </li></ul><ul><li>Refer to CMA handbook </li></ul>
  56. 56. Repeat donor investment <ul><li>Donor acquisition cost divided by conversion rate </li></ul>
  57. 57. Lifetime value - gross <ul><li>Total revenue you’d expect from an active donor before she lapses </li></ul><ul><li>Average gift x gift frequency x life expectancy </li></ul>
  58. 58. Revenue to cost ratio <ul><li>Key measurement of efficiency </li></ul><ul><li>Compares costs to revenues </li></ul><ul><li>Total revenue divided by total cost </li></ul>
  59. 59. Lifetime value - net <ul><li>True return on new donor investment </li></ul><ul><li>Gross return minus costs </li></ul><ul><li>Gross lifetime value divided by the left number in the revenue to cost ratio </li></ul>
  60. 60. Production <ul><li>Tender elements of production process to a number of suppliers </li></ul><ul><li>Give them the specs and hold an auction </li></ul><ul><li>Keep them competing for your business </li></ul>
  61. 61. Communicate with suppliers after the fact <ul><li>Give them feedback on what you were pleased and displeased with </li></ul><ul><li>Little rewards can go a long way next time </li></ul>
  62. 62. You can save some money.. <ul><li>If you order a year’s worth of business reply envelopes all at once </li></ul><ul><li>Some suppliers will even store them for you </li></ul>
  63. 63. Guinea pig? <ul><li>Sometimes a supplier will give you a big discount if you’ll test drive a new product or service </li></ul><ul><li>Hand addressing for a nickel </li></ul>
  64. 64. Using photos <ul><li>Photos can certainly enhance your story and make your ask more compelling </li></ul><ul><li>But no photo is better than a bad one </li></ul><ul><li>Make sure you use high resolution photos with lots of contrast </li></ul>
  65. 65. Get thank you letters and receipts out quickly! <ul><li>It shows appreciation – and – that you’re organized. </li></ul>
  66. 66. Create a segmented fulfillment grid <ul><li>Create ‘categories’ of thank you tactics </li></ul><ul><li>Simple form letters to smaller gifts </li></ul><ul><li>Personalized notes and/or phone calls to more generous gifts </li></ul><ul><li>Use board members to call if you can! </li></ul>
  67. 67. Upsell <ul><li>The thank you letter is a </li></ul><ul><li>wonderful opportunity to </li></ul><ul><li>talk about upgraded giving. </li></ul>
  68. 68. Donors are starving to see <ul><li>Their dollars at work </li></ul><ul><li>Talk about how you’re using their gift </li></ul>
  69. 69. Test in each mailing! <ul><li>Lists – acquisition </li></ul><ul><li>Personalization </li></ul><ul><li>Packages </li></ul><ul><li>Carrier envelopes </li></ul><ul><li>Reply devices </li></ul><ul><li>The list is endless! </li></ul>
  70. 70. Book Tip <ul><li>“ Revolution in the Mailbox” </li></ul><ul><li>By Mal Warwick </li></ul>
  71. 71. Segment mailings <ul><li>Gift size and recency are a great help to planning and measuring your campaigns. </li></ul>
  72. 72. Acquisition best practice <ul><li>Always test a new package against your control package </li></ul><ul><li>You do have a control package don’t you? </li></ul>
  73. 73. Donor engagement <ul><li>Donor surveys are a great way to engage – and get valuable information </li></ul><ul><li>We often use them with January renewal mail campaigns </li></ul>
  74. 74. Donor engagement <ul><li>Can you connect your donor directly to the recipient of the gift? </li></ul><ul><li>Why do you think child sponsorship programs are so successful? </li></ul>
  75. 75. Monthly donor conversion <ul><li>Have a plan for monthly donor conversion </li></ul><ul><li>Monthly donor lifetime value four times greater </li></ul>
  76. 76. Set a target.. <ul><li>Most organizations can convert 5% to 10% of their donors to monthly if they do it right. </li></ul>
  77. 77. <ul><li>Mail and phone work best to convert donors to monthly. </li></ul>
  78. 78. Best monthly prospects include <ul><li>Multi-donors </li></ul><ul><li>Credit card donors </li></ul>
  79. 79. <ul><li>Make sure you follow up on expired credit cards </li></ul><ul><li>We had a client that didn’t </li></ul>
  80. 80. Make a communications plan <ul><li>For your monthly donors </li></ul><ul><li>Don’t just take their money </li></ul><ul><li>Keep informing them of how you’re putting their money to work </li></ul><ul><li>Keep saying thanks </li></ul>
  81. 81. <ul><li>Ask monthly donors to increase their monthly gift after two to three years – </li></ul><ul><li>But </li></ul><ul><li>Give them a good reason to! </li></ul>
  82. 82. Monthly Giving - Book Tip <ul><li>“ Hidden Gold” </li></ul><ul><li>By Harvey McKinnon </li></ul>
  83. 83. It’s time to start a mid-level giving program <ul><li>17% of your direct mail donors have made single gifts of $500 or more to charity </li></ul><ul><li>You want a share of that market </li></ul><ul><li>Make a plan – and execute it </li></ul>
  84. 84. Two keys for success <ul><li>Make the offer as specific as possible (quasi-designated if you will) </li></ul><ul><li>Promise added value re: stewardship </li></ul>
  85. 85. The legacy gift gold mine <ul><li>One-third of your direct mail donors have either left a charitable bequest or are considering one </li></ul><ul><li>This money will overtake DM revenues in 8-10 years </li></ul>
  86. 86. Integrate! <ul><li>Mail both annual giving appeals with legacy mailings throughout the year. </li></ul><ul><li>Take the time to bring the silos down </li></ul>
  87. 87. Use a synergy <ul><li>Of major gift strategy and direct mail tactics </li></ul><ul><li>Take the time to cultivate (at least a year) </li></ul><ul><li>Ask appropriately </li></ul>
  88. 88. Best legacy prospects include <ul><li>“ Miss” </li></ul><ul><li>Loyal </li></ul><ul><li>Monthly (mail or phone sourced) </li></ul><ul><li>Large single gift </li></ul>
  89. 89. Your direct mail donors are open to being cultivated <ul><li>But they want to hear from you by mail </li></ul><ul><li>Don’t phone or visit </li></ul><ul><li>Let them control the relationship </li></ul><ul><li>They don’t want to feel pressured! </li></ul>
  90. 90. Best cultivation packages <ul><li>Testimonial from a living donor </li></ul><ul><li>Vision piece from CEO </li></ul><ul><li>Legacy-specific newsletter </li></ul><ul><li>Testimonial from surviving loved one </li></ul>
  91. 91. Book Tip <ul><li>“ Iceberg Philanthropy” </li></ul><ul><li>By us! </li></ul>
  92. 92. Whew! We’re done! <ul><li>www.flagroup.ca </li></ul><ul><li>check out the </li></ul><ul><li>research room for </li></ul><ul><li>more articles, podcasts </li></ul><ul><li>and presentations </li></ul>