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

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90 tips that will help you improve your direct marketing program, from retention to conversion to upgrade to prospecting.

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Transcript of "90 Direct Marketing Tips in 60 Minutes"

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