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Money in   the Mail ‘ How to’  of Direct Mail! Presented by Anup Tiwari, Director-Asia, Fund Development & Communications,...
Part 1: Introduction to Direct Mail (45 minutes)
How long has the Direct Mail been around? 800 Years ago by Eihei Dogen
Probably the oldest Fundraising Direct Mail Source: Exhibit by Mal Warwick on www.sofii.org
Direct Mail Now- butt of jokes
 
But still Direct Mail continues to deliver
Acquiring Donors What can you use Direct Mail for - 1
What can you use Direct Mail for - 2 Retaining Donors
What can you use Direct Mail for - 3 Converting Donors
<ul><li>Envelope  </li></ul><ul><li>Letter </li></ul><ul><li>Endorsement or Lift Letter or Lift photo / leaflet </li></ul>...
Envelope also Communicates
 
 
Key direct mail tactics Long V/s Short
 
Key direct mail tactics - Personalisation
Underlining Post Script Questioning Key direct mail tactics
Lift or  Endorsement  Letter Key direct mail tactics
Address Labels visible from back of envelope Premiums Key direct mail tactics
ORS Sachet in a package asking money for saving children  Key direct mail tactics
Key direct mail tactics Plastic sheet
Key direct mail tactics
Key direct mail tactics
Measuring success of Direct Mail 1 Response Rate
Measuring success of Direct Mail 2
Measuring success of Direct Mail 3 Long-term value of donors
Coding Your Direct Mail
Getting ready to send
Manual Mail Insertion
Mechanical Mail Insertion
Franking
Mail Sorting Zip or Pin Code
Using Postal Services
Using Courier  Services
Unaddressed home drops
Always Seed Your Mail!
Part 2: Direct Mail Pros & Cons (10 minutes)
Number of new donors brought in <ul><li>Does Direct Mail bring in More Donors as Compared to Other Methods? </li></ul>Con
Average Donation brought in <ul><li>Do Direct Mail Donors Give More or Not as Compared with Other Methods? </li></ul>Pro
Quality of donors <ul><li>Do Direct Mail Acquired Donors Stay Longer or Not? </li></ul>Pro
Scalability <ul><li>Can Number of Direct Mailers to be Sent Increased Quickly as per the Need?  </li></ul>Pro
Part 3: Choosing Databases- fluke or science (20 minutes)
What is more important ? <ul><li>Creative design </li></ul><ul><li>Quality of lists </li></ul><ul><li>Mode of delivery  </...
Your First Appeal Data Selection
First Date
Things Not Done Well  Have An  Everlasting Impression
Good Date Bad Date
Good Data Bad Data
Selecting Database
Art  or  Science
Locating Databases may be an Art But Using them is a Definite Science
Proprietary Data
I am Well Kept & Protected
Compiled Lists
List Owners
List brokers
List vendors
Using lists
Testing lists
Picking up a small sample
How big should a test be?
The concept of random selection
No creaming while testing
The concept of partial rollouts
Part 4: Direct Mail Responses A list owners perspective  (30 minutes)
By Yogesh Aggarwal Global Business Director Yellow Umbrella Group The Direct Mail Era
Critical success factors <ul><li>Realistic  Expectations </li></ul><ul><li>Relevant Communication  </li></ul><ul><li>Corre...
Direct Mail Response <ul><li>A List owner’s Perspective </li></ul><ul><li>Responds a factor of your knowledge on Chosen se...
Responds a factor of your knowledge on Chosen segment  <ul><li>Major Flaws  – Individual / Corporate misunderstanding on w...
HNI Syndrome <ul><li>A little bit of TOO MUCH </li></ul><ul><li>A segment over-done. </li></ul><ul><li>Everyone wants a bi...
<ul><ul><li>Basic Questions to answer yourself </li></ul></ul><ul><ul><li>before Targeting HNI </li></ul></ul><ul><li>Why ...
HNI Syndrome Continued… <ul><li>Purchase Behavior </li></ul><ul><li>It’s not the money that responds but the profile and l...
What is Database???? <ul><ul><li>a key component in Direct Marketing </li></ul></ul><ul><ul><li>You Buy Customers and not ...
Critical factors – Data selection <ul><li>What is your current donor profile?  </li></ul><ul><ul><li>By Location </li></ul...
Psychographic Analysis <ul><li>It is a Technique of  Geographic & Demographic  study on psychological measurement, which i...
Database options and surrogates Segment  Surrogate  By Occupation CEO/MD   General Manager +    Business Heads By Ownershi...
Living with list owners <ul><li>List owner is like your doctor  </li></ul><ul><li>Share the objective </li></ul><ul><li>Sh...
Living with list owners Continued … <ul><ul><li>What Media? </li></ul></ul><ul><ul><li>To maximize your R.O.I, It is vital...
Living with list owners Continued… <ul><ul><li>Method to measure? </li></ul></ul><ul><ul><li>A homework on what works and ...
Last but not Least… <ul><ul><li>It’s a War.. </li></ul></ul><ul><ul><li>Direct mail vis-à-vis  Email / SMS / Tele calling ...
Part 5: The Fundraising Stretch  (10 minutes)
<ul><li>Scottish Fundraising Guru’s tip on “How to Ask” </li></ul><ul><ul><li>Recruit donor, retain donor, convert to majo...
Part 6: Choosing Media- Direct Mail v/s email/sms/telephone (25 minutes)
By Yogesh Aggarwal Global Business Director Yellow Umbrella Group Media Comparison
Take a Pick… Its Choosing Media <ul><ul><li>Direct mail vis-à-vis  Email / SMS / Tele calling </li></ul></ul><ul><li>Conce...
Mathematics   Mail Size Cost Total cost Response percentage Response Cost to acquire Email  100000 0.4 40000 0.03% 30 1333...
Choosing Media   Advantage Disadvantage Email  Faster and cheaper for tests Primarily reaches to value seekers     Doesn’t...
Direct Mail Facts  Advantage Disadvantage Reaches ALL  High Initial Cost Lot of space to communicate Cuts clutter No DND i...
Direct Mail Facts  Continued… <ul><li>Direct Mailer is not an expensive mode but Smart mode of marketing products / servic...
Mathematics for media option <ul><li>To make this simple let us check the following: </li></ul><ul><li>An email campaign o...
Fight the Flaws <ul><ul><li>Understand what works and what doesn’t </li></ul></ul><ul><ul><li>Profile Understanding </li><...
Part 7: Tips on writing a Direct Mail Letter (20 minutes)
Writing a direct mail letter
Messages   that stick S U C C S E imple nexpected oncrete redible motional tories
Don’t we on your copy
Power of You
Tell a story
 
 
A human interest story
 
With a before & after
In a first person account
Short Sentences
Language
Story with a ‘still unfulfilled need’
Pitch   a small &   urgent   gap
Key direct mail tactics
Next…. <ul><li>Let’s write one now </li></ul>Writing- 25 minutes Presenting- 30 minutes
Happy Mailing For more information visit www.FundraisingAsia.org
Thank you
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Direct mail 21st safrw

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Direct Mail basics for fundraisers

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Direct mail 21st safrw

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

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