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Simplified Data Mining for Direct Mail
The document discusses the importance of data mining for nonprofits to enhance fundraising campaigns by targeting specific donor segments and personalizing communications. It outlines key data to collect, strategies for effective segmentation, and emphasizes the cost-effectiveness of targeted direct mail over broad mailing. Additionally, it offers practical advice on data management and the resources available for nonprofits to improve their data practices.
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Simplified Data Mining for Direct Mail
- 1. Sponsored by: Simplified DataMining for Direct Mail Sue and Ron Rescigno May 28, 2013 Use Twitter Hashtag #npweb Part Of:
- 2. Sponsored by: Protecting andPreserving the Institutional Memories of Nonprofits Since 1993 www.cjwconsulting.com (866) 598-0430 info@cjwconsulting.com Part Of:
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- 4. Sponsored by: Today’s Speaker Ronand Sue Rescigno President & Vice President Rescigno's Marketing Connections Hosting: Cheri J Weissman, CJW Consulting & Services, Inc. Assisting with chat questions: Jamie Maloney, 4Good Part Of:
- 5. Simplified Data Miningfor Direct Mail Ron and Susan Rescigno 708.974.2600
- 6. In this presentationwe will answer… What is data mining? What data should I be gathering? How can I use data for my fundraising campaigns? How can looking at data save me money and reduce my costs? How can I maximize my fundraising budget by making more money with less of a budget? How can I give this data to a mail house that understands what I mean?
- 7. Data Mining isthe search for hidden information: The locating of previously unknown patterns and relationships within data using a database application.
- 8. The real answerto that depends on how you want to target your message to your audience. But here are a few that you absolutely should collect: Name (first and last in separate fields) Salutation (My name is Susan but most people call me Sue) Age Year of Graduation Affiliation with your organization Gift Amount Date of last gift Response code (what solicitation they responded to) Programs or Services that they are interested in supporting Birthday ETC… What information should you be gathering to improve your fundraising campaigns?
- 9. Once you havecollected the information and put it into the system, it can be used by segmenting your data into groups and writing specifically to each group member. Here are some ideas of different segments…
- 10. Ideas for Segmenting Donor/NonDonor Age Gender Friends Current Parents/Parents of Alums Lybunts/Sybunts/Event Attendees/New Members Past Patients Community Members
- 11. Segment Options •Major donor– this referenced their largest gift from the past 5 years “John, the Brothers always appreciate your support. Among your gifts over the years was an especially generous $1,500. Please know that we are grateful for your support at whatever level is comfortable for you. We would like to ask, however, if you could consider renewing your support at that significant level.”
- 12. Segment Options LYBUNT –last year donor “John, the Brother’s always appreciate your support and thank you for keeping up with us, most recently with your contribution on March 5, 2011 of $100. We hope we can rely on your continued support at this level.”
- 13. Segment Options Event Attendee “John,the Brothers always appreciate your support and thank you for keeping up with us through your attendance at alumni events over the years. If now would be a good time for you to invest $50 or $100 or more, you would be helping us significantly as we strengthen our efforts to invite young men to join us.”
- 14. Personalized Mail Campaignsoffer: – Increase Response Rates – Increased Average Gift Rates – Improves Campaign ROI The average response rate for a static direct mail piece today is .5%, but when we personalize that piece, the response increases to 3% - 4%. Why should you worry about collecting data and using it in your direct mail campaigns? Example: 2,500 x .5% = 2.5 responses 2,500 x 3% = 75 responses 5,000 x .5% = 25 responses 5,000 x 3% = 150 responses 10,000 x .5% = 50 responses 10,000 x 3% = 300 responses
- 15. “The Question shouldnot be how many can we mail within our budget. The question should be how many do we have to mail in order to achieve the desired results. Personalizing your piece will get you higher response rates. The desired result is always a better response!” - HP 2010
- 16. So how canwe save money by looking at our data? First look at how many you are mailing to and what your response rate is Should you be mailing to all of these people on your list? When is the last time you heard from these people? Are you writing to them about something they are interested in? Are you writing to them just because this is the list you inherited and you never really looked at it?
- 17. Data mining isthe most cost effective way to increase your ROI for direct mail $ $ $ $
- 18. Staying Cost Effective Ifyou are mailing to 12,000 people and getting basically the same 1,300 donors to renew their gift every year, then you have to ask yourself if that is cost-effective. By taking a look at your donors, you can find the patterns or similarities in them and find out what your average donor looks like. For example: Gender Age Income range Geographic location
- 19. What’s NEXT? Youcan then take that information and find those that match that group in your non-donors. You could cut your list in half or even more. I am not saying don’t communicate with those other but in a time when you have to watch your budget so closely, maybe you shouldn’t be mailing to them as much as the donors. Keep them on newsletter lost and email list.
- 20. This is anexample of a small non-profit, only 8 years old, that wanted to start a direct mail program. Instead of mailing to everyone on their list, they narrowed their list of 10,000 people to 1,202 Community College Foundation – Current Client Description Quantity Mailed Responses Average Gift Total Dollars Raised Response Rate ROI Holiday Appeal 1202 81 $135.21 $10,707 6.7% 331%
- 21. Description Quantity Mailed Responses AverageGift Total Dollars Raised Response Rate ROI Holiday Appeal 1202 81 $135.21 $10,707 6.7% 331% So, let’s look at this and use these numbers to get a good picture of this organization. This is the first time they have mailed a solicitation letter to their constituents. -They started with a small number of 1,202 prospects -Their response rate was 6.7%, so they targeted the right list -They raised $10,707 dollars -They received a 331% return on their investment (They invested about $3,000 into this project and raised over $10,000.) -They also have 81 people who have given them a gift with the majority being first time donors
- 22. Now what..? Now thatwe’ve discussed what data mining is, what kinds of information should be gathered, how are other organizations using their personalized data and how you can use it to save money on your direct mail, we need to talk about how you can collect the data and present it to the mail house so mistakes are not made.
- 23. Data – whatto include •Minimum fields: •Name (full name or prefix first middle last suffix fields) •Address •City, State Zip •Additionally: •Company •Title •This is your ADDRESS BLOCK
- 24. Data – whatto include •Include additional fields used in the mailing •ID •Ask Amounts •Last Gift •Salutation •Segment Version •Include fields not needed in the mailing for internal use, such as ID numbers or dates or last gift
- 25. Sample Data withExtra Fields This is a sample of data with the mailing info, but also fields needed to segment on our end and data used by the client to pull their data.
- 26. How to addinformation to your existing data •Put reply codes on reply devices to track campaigns •Personalize your reply cards and ask for updates (incl. ID #’s to make data entry easier) •Leave room for Cell #’s, Email, etc. •Utilize data append services – can add age info, income, ownership, etc.
- 27. Data – formats •Best– Excel or Access table •Also accepted – comma or tab separated •Each field should be in its own column
- 28. Data – whatNOT to do •Do not include line breaks in data – example: •7501 W 85th St •Suite 110 •It should instead read: 7501 W 85th St Suite 110 •Do not include notes in the address fields •Do not setup the list as “address labels” in word or excel
- 29. Data – whatNOT to do •Do not include multiple mailing addresses (like home and work) in the same record. You should have TWO records for this person •We CAN fix data that is not in the right format, please contact us BEFORE the job comes in.
- 30. Your data andyou… •Your donor database should be your institutional memory. •it should make it easy for you to look up donors, view giving histories, understand relationships and analyze trends. •It should help your fundraisers work more effectively. •It should be an aid, NOT a chore!
- 31. Rescigno’s Data Consulting •Rescigno’sMarketing Connections can help you with your data. •Available for consultation, database creation and updates/pulling queries •We can host your database and give you remote access to it. •We can append your data with more information.
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