9. Defining an appeal
• Solicitation by direct mail (to individuals)
• For the purposes of today to existing donors
(warm, in-house)
• With an ask for cash (or a monthly gift) and/or
a request to take some other action (I.e.
survey)
10. What are we seeing?
• Developed 22 Christmas appeals in 2008
• In Australia, NZ, Hong Kong and Canada
• 13 up on income versus 2007, 9 down on 2007
• Overall income 2008 around $8.5m CAD versus $8m CAD
in 2007
• Individual giving still on the rise
• Monthly giving strong, still growing
• Cash giving stagnant (donors over $1k not giving at same
levels)
• Organizational income falling
• Specifically corporate support
11. What are we seeing?
• Developed 18 appeals in May/June 2009
• In Australia, NZ
• 7 up on income versus 2008, 11 down on 2008
• Overall income 2009 around $9.9m CAD versus $9.2m
CAD in 2008
14. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
15. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
16. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
17. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
18. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
19. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
20. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
8. Getting the follow up right
21. Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
8. Getting the follow up right
9. Test, test and test again
25. How do I decide who to ask?
Recency Frequency Value
indicates indicates indicates how
likelihood of likelihood of much they
giving giving will give
26. How do I decide who to ask?
Recency Frequency Value
0-12 months >1 a$1000+
13-24 1 b$500-$999.99
25-36 c$250-$499.99
37-48 d$100-$249.99
49-60 e$50-$99.99
61-72 f$25-$49.99
73-84 g$10-$24.99
85+ h$0.01-$9.99
27. Drilling down
Recency Frequency Value
0-12 months >1 a$1000+
13-24 1 b$500-$999.99
25-36 c$250-$499.99
37-48 d$100-$249.99
49-60 e$50-$99.99
61-72 f$25-$49.99
73-84 g$10-$24.99
85+ h$0.01-$9.99
30. Some tips
• RFV is the most important thing to drive the
success of your appeal
• Consider different packs for different
audiences
• Include confirmed bequestors, monthly
givers if they have given historically
31.
32. Asking for the right thing
Segment R F V Qty to Mail Ask 1 Ask 2 Ask 3
001 0-12 >1 $500+ 246 *1.5 *2.5 *4
$100-
002 0-12 >1 $249.99 1,011 *1.5 *2.5 *4
003 0-12 >1 $50-$99.99 2,555 *1.5 *2.5 *4
$100-
004 0-12 1 $249.99 4,340 *1.5 *2.5 *4
005 0-12 1 $50-$99.99 6,618 *1.5 *2.5 *4
$100-
006 13-24 >1 $249.99 1,330 *1.25 *2 *3
33. Asking for the right thing
Segment R F V Qty to Mail Ask 1 Ask 2 Ask 3
001 0-12 >1 $500+ 246 *1.5 *2.5 *4
$100-
002 0-12 >1 $249.99 1,011 *1.5 *2.5 *4
003 0-12 >1 $50-$99.99 2,555 *1.5 *2.5 *4
$100-
004 0-12 1 $249.99 4,340 *1.5 *2.5 *4
005 0-12 1 $50-$99.99 6,618 *1.5 *2.5 *4
$100-
006 13-24 >1 $249.99 1,330 *1.25 *2 *3
34. Personalized asks
• Based on previous donation patterns
• Used to prompt increase of donation
amount
• Consider using highest gift, last gift,
average gift prompts to elevate gift level
35. Personalized asks
• Based on previous donation patterns
• Used to prompt increase of donation
amount
• Consider using highest gift, last gift,
average gift prompts to elevate gift level
• Repetition of ask increases response
• Personal (and increased) ask amount
increases average gift
41. Some tips
• “I need you to <insert action>…”
• “This is the most important letter I have ever
written…”
42. Some tips
• “I need you to <insert action>…”
• “This is the most important letter I have ever
written…”
• “…respond by the 30th of June..”
43. Some tips
• “I need you to <insert action>…”
• “This is the most important letter I have ever
written…”
• “…respond by the 30th of June..”
• “I need to raise $250,000”
44. Some tips
• “I need you to <insert action>…”
• “This is the most important letter I have ever
written…”
• “…respond by the 30th of June..”
• “I need to raise $250,000”
• Singularly focused**
45. Remember to tell them
• What the single most important thing is
that you want them to do (proposition)
• Why they should give you money
• By when
• All of this in the first 3 paragraphs and
in the P.S.
57. A recap: what you must have
• Emotion
• A (human) story
• Repetitive and personalized asks
• Urgency
• Target and deadline
• As long as it needs to be
• Colloquial language
58.
59. A guide to personalization
• Make the recipient feel like an individual
• Apply the limited resources to where you will
get the best return
• Use survey information
• Acknowledge previous giving
• Recognize if they make monthly gifts or have
included your charity in their Will
75. Creative execution: must haves
• A brilliant letter
• Lift devices support the letter
• Authenticity
76.
77. Creative execution: must haves
• A brilliant letter
• Lift devices support the letter
• Authenticity
• Follow up/reminder mailing for ‘larger’
mailings
83. Ease of response
• Eliminate barriers or distractions
• Make sure the reply mechanism
integrates with the letter
• Include an involvement device where
there is an opportunity to do so
• Minimize response channels*
84.
85.
86.
87.
88. Getting the follow up right
• Thanking
• Measuring response
• Feeding back – the impact on beneficiaries
• Post campaign de-brief
89.
90. Thanking
• Develop an acknowledgement strategy
• Thank promptly
• Use of the words ‘thank you’
• Personalized response
• Include handwritten notes and PS where
possible
• Don’t ask the donor to do anything else
96. Feeding back
Responded to End of Year appeal
You’ve already helped us get off to a great start
with your gift to our recent appeal in support of
our work in tackling dangerous climate change.
Thanks to your< gift of $<don> – and the
overwhelming response that I received from your
fellow supporters – we’ve raised the $250,000
we need to double our climate change campaign
this year.
100. Consider testing
• Ask prompts (highest gift v last v average)
• Impact of lifts
• Impact of involvement pieces
101. Consider testing
• Ask prompts (highest gift v last v average)
• Impact of lifts
• Impact of involvement pieces
• Long term cohort tests
102. Consider testing
• Ask prompts (highest gift v last v average)
• Impact of lifts
• Impact of involvement pieces
• Long term cohort tests
• Letter length
104. Some rules
• Don't test for the sake of testing
• Test stuff that will have an impact, not because
it seems like fun
105. Some rules
• Don't test for the sake of testing
• Test stuff that will have an impact, not because
it seems like fun
• Make sure the volumes are sufficient to make
the results statistically valid
106. Some rules
• Don't test for the sake of testing
• Test stuff that will have an impact, not because
it seems like fun
• Make sure the volumes are sufficient to make
the results statistically valid
• Ensure you think through what the hypothesis
of the test is
107. A recap: Uncovering the magical steps
1. Targeting the right people
2. Asking for the right thing
3. Getting the message right
4. Getting the letter right
5. Getting personal
6. Getting the execution right
7. Making it easy to respond
8. Getting the follow up right
9. Test, test and test again
115. Did it work?
• Net income increased from $1.0m to $1.7m
• Response rate increased from 14% to 18%
• Reactivated over 2,500 donors
116. Why did this work?
• Brilliant, empowering copy that asked
repetitively
• We stretched people (HG in last 2 years
x 1.25)
• It was authentic
• It was really easy to respond
• We reminded donors of the importance (3
weeks later)
123. Did it work?
• Gross income $614,000 (AUD)
• Net income $500,000 (AUD)
• Doubled income from previous year
• Most successful appeal ever
124. Why did this work?
• Brutally honest
• Genuinely urgent
• It was personal (30 uses of the word 'I' and 20
uses of the word 'you' in a four page letter)
• It pulled at the heart strings
• Managed to maintain credibility despite crisis
126. “It only works for big charities”
• Australian charity with small individual database
• Attended a Pareto Fundraising workshop
• Interviewed service workers for a story
• Segmented database by RFV and tailored ask
• Wrote a 3 page letter and separate response
mechanism
– CEO said: ‘No one will read this’
• Created a sense of urgency and emotion
131. “Don’t send appeals to monthly givers”
Response
Rate Recency Prev gifts Value
26.13% Monthly Givers 0-12 Multi $100+
17.43% Cash only 0-12 Multi $100+
$138,000
4.14% Monthly Givers 0-12 Single $100+
2.38% Cash only 0-12 Single $100+
$89,000
48.66% Monthly Givers 0-12 Multi $50-$99.99
20.44% Cash only 0-12 Multi $50-$99.99
6.73% Monthly Givers 0-12 Single $50-$99.99
5.93% Cash only 0-12 Single $50-$99.99
132. “Don’t send appeals to monthly givers”
Response
Rate Recency Prev gifts Value
26.13% Monthly Givers 0-12 Multi $100+
17.43% Cash only 0-12 Multi $100+
$138,000
4.14%
2.38% Monthlies rock!
Monthly Givers
Cash only
0-12
0-12
Single
Single
$100+
$100+
$89,000
48.66% Monthly Givers 0-12 Multi $50-$99.99
20.44% Cash only 0-12 Multi $50-$99.99
6.73% Monthly Givers 0-12 Single $50-$99.99
5.93% Cash only 0-12 Single $50-$99.99
134. Street recruits don’t respond
Recruited straight to Cash Given (ie have Response Rate
regular giving by… they given a one off
donation since
recruited?)
$138,000
Other No 11.40%
$89,000
Face to Face No 1.10%
Other Yes 23.80%
Face to Face Yes 7.10%
135. “No one will read a long letter”
Resp
Mailed Cost Resp Avg Gift Income ROI Net Income
Rate
$138,000
$89,000
4 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769
2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129
136. “No one will read a long letter”
Resp
Mailed Cost Resp Avg Gift Income ROI Net Income
Rate
$138,000
4 pages beats 2 pages
$89,000
4 page letter 9,415 $25,985 2,554 27.1% $59.03 $150,754 5.80 $124,769
2 page letter 9,415 $25,232 2,287 24.3% $57.44 $131,361 5.21 $106,129
137. “No one will read a long letter”
Mailed Resp Rate $138,000
Gross Income Average Gift Net Income ROI
$89,000
4 page letter 4,083 11.6% $21,624 $46 $19,056 0.89
6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98
138. “No one will read a long letter”
Mailed Resp Rate Gross Income Average Gift
$138,000 Net Income ROI
4 page letter
6 pages beats 4 pages
$89,000
4,083 11.6% $21,624 $46 $19,056 0.89
6 page letter 4,156 19.1% $48,389 $61 $23,904 1.98
139. “ROI is the most important measure”
10.00 $300,000
Real charity - change in ROI
9.00
$250,000
8.00
ROI
7.00
$200,000
6.00
ROI
5.00 $150,000
4.00
$100,000
3.00
2.00
$50,000
1.00
0.00 $0
140. “ROI is the most important measure”
10.00 $300,000
Real charity change in ROI and Net income
9.00
$250,000
8.00
Net
7.00 ROI
$200,000
6.00
ROI
5.00 $150,000
4.00
$100,000
3.00
2.00
$50,000
1.00
0.00 $0
143. Final takeaways
• Ask when you need the money, feedback and
care
• Always remember you are mailing real people
– think about your own relationships
144. Final takeaways
• Ask when you need the money, feedback and
care
• Always remember you are mailing real people
– think about your own relationships
• Be disciplined with your direct marketing
145. Final takeaways
• Ask when you need the money, feedback and
care
• Always remember you are mailing real people –
think about your own relationships
• Be disciplined with your direct marketing
• Scan what’s happening around you, including
abroad
146. Final takeaways
• Ask when you need the money, feedback and
care
• Always remember you are mailing real people –
think about your own relationships
• Be disciplined with your direct marketing
• Scan what’s happening around you, including
abroad
• Apply the Pareto Principle
147. The Pareto Group exists to make the world a
better place, by expanding the not-for-profit
sector's capacity worldwide to ensure as
many beneficiaries are helped as possible.
jonathon.grapsas@paretofundraising.com
www.jonathongrapsas.blogspot.com
416 915 4114
www.paretofundraising.com
