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5 Reasons for Nonprofits to Still Use
Direct Mail
Our Presenters
 Jonathon Grapsas     Dianne Sheridan




 Regional Director     Vice President
 Pareto Fundraising    Artez Interactive
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Wrong way to think about it
Why DM must be in your plans

1. Still a large chunk of the pie
2. Delivering long term valuable monthly
   givers
3. Getting close to your donors
4. Working with other channels
5. Fueling bequests
Some context
Why DM must be in your plans

1. Still a large chunk of the pie
DM isn’t growing, but it’s still big
$70,000,000

                  Cash income from DM accounts
                  for around 60% of all cash
$60,000,000
                  income, and around 20% of all
                  individual income.
$50,000,000




$40,000,000




$30,000,000




$20,000,000




$10,000,000




        $0
                  2000         2001           2002           2003       2004           2005          2006         2007        2008          2009

        Direct Mail   Door to Door    Email   Face to Face    Online   Other   Phone     Press Inserts   Radio   TV   Unaddressed    Unsolicited
Online is growing, but it’s still small
$70,000,000

                 Online income grew in 2009, yet
                 still accounts for just 2% of all
$60,000,000
                 individual income.

$50,000,000




$40,000,000




$30,000,000




$20,000,000




$10,000,000




        $0
                  2000         2001           2002           2003       2004           2005          2006         2007        2008          2009

        Direct Mail   Door to Door    Email   Face to Face    Online   Other   Phone     Press Inserts   Radio   TV   Unaddressed    Unsolicited
Why DM must be in your plans

1. Still a large chunk of the pie
2. Delivering long term valuable monthly
   givers
DM recruits rock on monthly giving
$60,000,000




                Monthly giving continues to
$50,000,000     grow, from $44m to $48m
                in 2009. Of which, over
                20% is from DM monthlies
$40,000,000




$30,000,000




$20,000,000




$10,000,000




        $0
              2000          2001         2002        2003         2004        2005           2006          2007        2008   2009

                     Direct Mail   Door to Door   Face to Face   Online   Other      Phone    Radio   TV      Unsolicited
Value of a DM recruited monthly
               donor

• Net value after 3 years
  between $500 - $600
How do DM recruits stack up?
• A street recruit worth around $100 - $200 net
  value after 3 years
• A TV recruit worth around $250 - $300 net
  value after 3 years
• An online recruit worth around $600 - $800 net
  value after 3 years
Why DM must be in your plans

1. Still a large chunk of the pie
2. Delivering long term valuable monthly
   givers
3. Getting closer to your donors
Why DM must be in your plans

1. Still a large chunk of the pie
2. Delivering long term valuable monthly
   givers
3. Getting closer to your donors
4. Working with other channels
Offline driving online
Offline driving online
Offline driving online
And, online driving offline

                    Have you thought about using
                    online behavior to drive your
                    offline messaging?
Genuine integration
Why DM must be in your plans

1. Still a large chunk of the pie
2. Delivering long term valuable monthly
   givers
3. Getting closer to your donors
4. Working with other channels
5. Fueling bequests
The role of DM fueling bequests
Surveys rock, incl. for bequests
WARM SURVEY
                          2004      2005      2006       2007       2008
RESULTS
Quantity Mailed           15,888   16,357    18,835      24,883     21,563

Total Response            2,769     3,947     4,874      6,746      5,509

Response Rate %            17%      24%        26%        27%        26%

Immediate Gross Income   $104,178 $130,926   $111,890   $215,189 $178,381

Immediate Net Income     $55,011   $64,494   $92,326    $148,860   $114,999

Confirmed Bequest          373      191        86         81         120

Intend to Bequest          n/a      560        232        522        115

Consider Bequest          1056      647        614        335        156
DM programs fueling bequests

 In 2003, less than 100
 confirmed bequests and around
 $100k a year in bequest income
DM programs fueling bequests


 Five years later, 1,750
 confirmed bequests and around
 $5m year in bequest income –
 driven by heavily recruited DM
 file
Final takeaways

1. Understand what the data is telling you
2. Look beyond the immediacy of DM
   income, consider impact on other
   programs (I.e. bequests)
3. Find emotional triggers, get personal
4. Find ways for offline and online to
   support each other (including
   messaging)
More Webinars for You

Event Bootcamp: Fundamentals of Participant and Donor
Data Analytics (feat. Event 360)
May 12th @ 1 pm ET (North America)

From Donor Acquisition to Fundraising: Performance
Benchmarks for Nonprofits (feat. Cornerstone)
May 19th @ 1 pm ET (North America)

Register at www.artez.com

Check out more webinars at www.artez.com/webinarlibrary
Calendar Notes

May 11 & 13 Philip King & Claire Kerr @ IFC Online

“You Got Chocolate in My Peanut Butter”…
Integrating Online & Offline Fundraising
More info @ http://www.resource-alliance.org/ifconline/

May 20th Artez Club Night in Vancouver
6-5 pm @ Social Restaurant

Please RSVP to kballadin@artez.com
Calendar Notes

May 11 & 13 Philip King & Claire Kerr @ IFC Online

“You Got Chocolate in My Peanut Butter”…
Integrating Online & Offline Fundraising
More info @ http://www.resource-alliance.org/ifconline/

May 20th Artez Club Night in Vancouver
6-5 pm @ Social Restaurant

Please RSVP to kballadin@artez.com
Thank you




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Artez Interactive - Top five reasons for nonprofits to still use direct mail

  • 1. 5 Reasons for Nonprofits to Still Use Direct Mail
  • 2. Our Presenters Jonathon Grapsas Dianne Sheridan Regional Director Vice President Pareto Fundraising Artez Interactive
  • 3. Webinar Tips  This webinar is being recorded and will be available on our website shortly  If you have any technical troubles, please use the “chat” feature  We will take all questions at the end. Please use the “raise hand” or “chat” feature to ask a question.
  • 4. Wrong way to think about it
  • 5. Why DM must be in your plans 1. Still a large chunk of the pie 2. Delivering long term valuable monthly givers 3. Getting close to your donors 4. Working with other channels 5. Fueling bequests
  • 7. Why DM must be in your plans 1. Still a large chunk of the pie
  • 8. DM isn’t growing, but it’s still big $70,000,000 Cash income from DM accounts for around 60% of all cash $60,000,000 income, and around 20% of all individual income. $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Direct Mail Door to Door Email Face to Face Online Other Phone Press Inserts Radio TV Unaddressed Unsolicited
  • 9. Online is growing, but it’s still small $70,000,000 Online income grew in 2009, yet still accounts for just 2% of all $60,000,000 individual income. $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Direct Mail Door to Door Email Face to Face Online Other Phone Press Inserts Radio TV Unaddressed Unsolicited
  • 10. Why DM must be in your plans 1. Still a large chunk of the pie 2. Delivering long term valuable monthly givers
  • 11. DM recruits rock on monthly giving $60,000,000 Monthly giving continues to $50,000,000 grow, from $44m to $48m in 2009. Of which, over 20% is from DM monthlies $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Direct Mail Door to Door Face to Face Online Other Phone Radio TV Unsolicited
  • 12. Value of a DM recruited monthly donor • Net value after 3 years between $500 - $600
  • 13. How do DM recruits stack up? • A street recruit worth around $100 - $200 net value after 3 years • A TV recruit worth around $250 - $300 net value after 3 years • An online recruit worth around $600 - $800 net value after 3 years
  • 14. Why DM must be in your plans 1. Still a large chunk of the pie 2. Delivering long term valuable monthly givers 3. Getting closer to your donors
  • 15.
  • 16.
  • 17. Why DM must be in your plans 1. Still a large chunk of the pie 2. Delivering long term valuable monthly givers 3. Getting closer to your donors 4. Working with other channels
  • 21. And, online driving offline Have you thought about using online behavior to drive your offline messaging?
  • 23. Why DM must be in your plans 1. Still a large chunk of the pie 2. Delivering long term valuable monthly givers 3. Getting closer to your donors 4. Working with other channels 5. Fueling bequests
  • 24. The role of DM fueling bequests
  • 25. Surveys rock, incl. for bequests WARM SURVEY 2004 2005 2006 2007 2008 RESULTS Quantity Mailed 15,888 16,357 18,835 24,883 21,563 Total Response 2,769 3,947 4,874 6,746 5,509 Response Rate % 17% 24% 26% 27% 26% Immediate Gross Income $104,178 $130,926 $111,890 $215,189 $178,381 Immediate Net Income $55,011 $64,494 $92,326 $148,860 $114,999 Confirmed Bequest 373 191 86 81 120 Intend to Bequest n/a 560 232 522 115 Consider Bequest 1056 647 614 335 156
  • 26. DM programs fueling bequests In 2003, less than 100 confirmed bequests and around $100k a year in bequest income
  • 27. DM programs fueling bequests Five years later, 1,750 confirmed bequests and around $5m year in bequest income – driven by heavily recruited DM file
  • 28. Final takeaways 1. Understand what the data is telling you 2. Look beyond the immediacy of DM income, consider impact on other programs (I.e. bequests) 3. Find emotional triggers, get personal 4. Find ways for offline and online to support each other (including messaging)
  • 29. More Webinars for You Event Bootcamp: Fundamentals of Participant and Donor Data Analytics (feat. Event 360) May 12th @ 1 pm ET (North America) From Donor Acquisition to Fundraising: Performance Benchmarks for Nonprofits (feat. Cornerstone) May 19th @ 1 pm ET (North America) Register at www.artez.com Check out more webinars at www.artez.com/webinarlibrary
  • 30. Calendar Notes May 11 & 13 Philip King & Claire Kerr @ IFC Online “You Got Chocolate in My Peanut Butter”… Integrating Online & Offline Fundraising More info @ http://www.resource-alliance.org/ifconline/ May 20th Artez Club Night in Vancouver 6-5 pm @ Social Restaurant Please RSVP to kballadin@artez.com
  • 31. Calendar Notes May 11 & 13 Philip King & Claire Kerr @ IFC Online “You Got Chocolate in My Peanut Butter”… Integrating Online & Offline Fundraising More info @ http://www.resource-alliance.org/ifconline/ May 20th Artez Club Night in Vancouver 6-5 pm @ Social Restaurant Please RSVP to kballadin@artez.com
  • 32. Thank you Check Out “Digital Fundraising Podcast” on iTunes Follow Artez on Twitter: @artezonline Become our friend on Facebook: /artezinteractive