Fundraising Mail Benefits From Data-Rich List Segmentation

Because effective data use is so key to nonprofit direct mail success, AccuList USA goes beyond data brokerage and supports fundraising clients with merge-purge and segmentation, predictive analytics, and data hygiene and appending, as well as rental list vetting and parameter selection.

Limited Data Limits Response

Some fundraisers question the need for a more sophisticated data approach, of course. So we’ll pass along a recent NonProfitPRO blog post by Chris Pritcher, of Merkle’s Quantitative Marketing Group, which challenges overly narrow views of donor data. Too often, using data to understand the donor base is limited to one of two categories, Pritcher notes: 1) RFM (recency, frequency, monetary) data and giving history, or 2) donor demographics and behavioral measures, ranging from factors such as wealth or related interests/purchases to applying behavior-lifestyle systems such as Prizm. Whether the data is first-party or third-party sourced, each approach has its limitations. RFM often silos data from a single channel, for example, even though donors live in a multi-channel world. RFM also focuses mainly on short-term financial action, ignoring donors, especially Millennials, whose giving is maximized through an interactive, long-term relationship. Meanwhile, though donor demographics can help avoid low-opportunity lists and segments, demographics in isolation may be too general for effective response targeting. Wealth data indicates who has money but not who is willing to give that money to a specific cause, as Pritcher points out.

Multi-dimensional View Enriches Segmentation

Pritcher urges fundraisers to step up their donor targeting and embrace “multi-dimensional segmentation” over the either/or data approach described above. Instead, nonprofits can analyze donor actions (both financial and non-financial) along with data such as demographics, wealth, donations to other organizations, etc., to create more actionable segments. Here are some of his basic tips for success: 1) avoid a myopic view by using financial and non-financial information across channels; 2) control scale by limiting segments and focusing on actionable over descriptive data; 3) include a plan for migrating donors into the most engaged segments; 4) focus strategy and budget on top donor segments, and use segmentation to acquire prospects likely to grow into similarly engaged donors; 5) target messaging by segment to further boost response, affinity and loyalty.

For the complete article, go to http://www.nonprofitpro.com/post/who-exactly-are-your-donors/

How Acquisition Mailing Won With Price, Premium, Benefits Copy

While many of our direct mail clients recently have focused on the secret to millennial response, AccuList USA’s direct mail consulting keeps a close eye on mail tactics that work well with older and general audiences, too. A case in point is a recent Target Marketing magazine case study sharing the Mayo Clinic Health Letter’s expertise in testing toward maximum acquisition response for its control. With its huge 2 million to 5 million mail pieces per quarter, Mayo has a lot of room for testing and 17 years of success to back up its results!

Pricing & Premiums Lift Response

Targeting an older audience (age 70 and up), the Mayo Clinic mailer has long used an oversized kraft outer envelope with a simple teaser that appeals to the older market preference for courtesy: “Please favor us with a reply within 10 days.” Successfully tested changes include shifting the envelope size from 11″x 14″ to a 10″ x 14″ to save money, but other inside-package tweaks have delivered the response boosts.  For example, the letter now leads with pricing, a “tough times” stress on the per issue $1.97 over an annual savings. A spot-glued lift note with a testimonial segues into a personalized, boxed reference to that testimonial on the first page of the letter.  But one of the most significant response-getters has been the addition of a premium in the form of existing internal special reports–on weight loss or arthritis, for example–offered for free.

Long, Easy-Read Letter Targets Seniors

The control has also increased its lift by moving to an eight-page letter, up from the original four-page pitch. The results are proof that longer copy can outdo short copy when it comes to self-help offers and older markets. For one, the long-form letter allows marketers to pack in more benefits. Second, it allows for a larger type size. For example, the Mayo letter has shifted to a 14-point type as a boon to aging eyesight and a way to distinguish its approach as more personal and less corporate. And the package includes a full page on “The Mayo Clinic Story” of pioneering research and patient care to build brand awareness and value validation.

A 3-in-1 Response Device Packs a Punch

The mailer’s reply card page has three-in-one power: reply form, premium stuffer and a BRE, in yellow to stand out in the package. Other smart tweaks include a “No-Risk Certificate” reply card numbered to show exclusivity. Plus, to keep recipients from losing focus while searching for a pen and laboring over a form, the bill-me-only reply uses involvement stickers. To download the complete case study, go to http://www.targetmarketingmag.com/resource/acquisition-mail-case-study-editorial-premiums-benefit-filled-copy/

 

 

 

 

 

2017 Marketing Budgets Set to Shift More Dollars to Acquisition

Balancing marketing budget between acquisition and retention growth is a perennial conundrum. But if you take your cue from respondents to Target Marketing magazine’s annual “Media Usage Survey,” you’ll be more bullish on acquisition efforts this year. Half of the 725 respondents (42% B-to-B, 22% B-to-C and 36% claiming both business and consumer targets) said they would be boosting acquisition spending in 2017. That’s compared with only a third planning to add to retention dollars. Regardless of the choice of “finders vs. keepers,” optimism rules the year ahead; only 5% of respondents foresaw decreased acquisition or retention spending.

Direct Mail & E-mail Lead ROI Expectations

For the second year in a row, the survey found marketers giving direct mail and e-mail top marks for ROI in both acquisition and retention, which means more success stories from AccuList USA’s direct mail and e-mail list brokerage clients. In acquisition, 25% of marketers said e-mail is the method delivering best ROI and 15% cited direct mail, with third place going to search engine optimization. In retention, 46% gave e-mail top place for ROI and 14% chose direct mail, with 10% selecting social media engagement as best for retention ROI. Those 2017 percentage rankings by channel were pretty close to the 2016 survey results, but there were some shifts below the top ROI performers. For example, telemarketing was the top answer for more firms in 2017 than in 2016, especially as an acquisition vehicle (chosen by 8%), while webcasts and webinars, which were rated among the top five for acquisition and retention ROI in 2016, dropped below 5% this year.

More Channels in the Mix

If an expanded channel mix is part of your planning this year, join the crowd. Surveyed marketers embraced more channels for both acquisition and retention in 2017 than in 2016. Of note, some channels traditionally thought better suited to retention (such as e-mail and social media engagement) are now used by a majority of marketers to drive acquisition, with 87% planning to use e-mail and 69% opting for social media engagement. Although retention efforts can’t claim a marked channel preference, some channels are definitely more popular for acquisition than retention in 2017, notably online advertising, social media advertising and SEO, per the survey.

To see details of the survey, go to http://www.targetmarketingmag.com/article/finders-keepers-2017-acquisition-retention-trends/