Use Key Direct Marketing KPIs to Gird 2018 Plans

The busy year-end holiday season, especially for fundraisers and retailers, should not distract direct marketers from the working on the analytics they need to finalize next year’s marketing plans and ROI. A recent post by the Digital Dog Direct agency helpfully offers a checklist of basic marketing Key Performance Indicators (KPIs).

Spending and Lead Generation

Marketing ROI is about effective spending and requires tracking results by channel and campaign. KPIs use actual annual outlay for direct mail marketing (lists, print, lettershop, creative, postage), digital marketing (e-mail, SEO/SEM, landing pages, social media and creative), as well as spending on PR/events/brand/content marketing.  Marketers must keep a tally of the number of outbound leads attributed to direct mail or e-mail campaigns, as well as the inbound leads generated by efforts such as SEO, blog content or PR. Then a cost per lead acquired can be calculated by dividing annual expenditure by the number of leads generated. Since the ultimate goal is sales not merely leads, the percentage of leads that become paying customers and the dollar sales per lead are key measures.

Multi-channel Performance Rates

Beyond evaluating general performance, marketing planners should use measurement to fine-tune future marketing plans and budgets. This means identifying the response rates and conversion rates for each channel, for each direct mail and digital campaign, and for tests of creative, timing, frequency, lists and segments. Performance rates should be measured not only for campaigns to acquire new leads/customers but also targeting of existing customers and reactivation of dormant customers. Website traffic reports from Google Analytics can not only show online ad and SEM effectiveness but also track spikes around direct mail or e-mail promotions to give a fuller picture of response. A simple ratio of the annual return on marketing investment, or ROI by channel and campaign, can be calculated by adding up incremental sales from marketing and subtracting marketing amount spent, and then dividing the result by amount spent on marketing.

Long-term Growth of High-Value Customers

But remember that a focus on annual or campaign results can be myopic since these do not necessarily deliver long-term growth–for example if attrition is high so more customers are lost than added. Marketers need to look at customer and prospect databases to make sure they are growing year-over-year. Because acquiring a single sale per lead also is less profitable long-term than acquiring a repeat customer, measuring average customer lifetime value is a vital KPI and is calculated by multiplying average dollar sale per customer by the average number of purchases per year and the average retention time in years.

See the full article for the KPI checklist.

 

Nonprofits’ Crucial Year-End Fundraising Drives Have Begun

AccuList USA works with big and small nonprofits on their key year-end fundraising campaigns. With a third of annual giving occurring in December, over half of nonprofits starting year-end plans in October, and direct mail the leading fundraising channel, October often sees final tweaks to direct marketing plans (and mailing lists).

Planning for Year-End Fundraising Success

For example, nonprofit marketers may want to check their current plans against the four-step master plan recently offered by fundraising consultant Gail Perry on her blog. Step 1: Set goals for each donor segment, and don’t forget lucrative leading-donor annual gifts, lapsed donors and board members. Step 2: Select channels for a multi-pronged appeal, integrating direct mail, e-mail, telemarketing, social media, website, and video creative–and design a consistent message for all. Step 3: Gather resources and set a budget. Step 4: Set a timeline and calendar. Read the complete article by Perry for details and tips.

How Small Nonprofits Can Punch Above Their Weight

Of course, smaller fundraisers often bemoan budget limitations at this point. A guest post by Damian O’Broin for the Institute of Fundraising offers a bracing response. Greatness is not a function of size, it’s a function of attitude, he argues, citing donor surveys. The things that matter most to donors don’t depend on big budgets and lots of staff but on good, donor-centric fundraising practices: thanking promptly and properly; showing progress and impact; getting to know supporters and responding to their needs; empowering supporters; and asking consistently. “Because what we found from these surveys is that the best way to improve donor commitment is with great donor service. Responding to e-mails. Dealing effectively with queries when your donors call you. Thanking donors promptly–and just as importantly–making donors feel thanked,” he says. Even modest direct marketing campaigns, assuming they are well targeted, can use these practices to boost response.

 

Always Be Testing: Even the Best Mail Control Gets Tired

AccuList USA’s successful direct mail marketers seek to optimize response by constantly testing creative (as well as lists), because they know that even the best control package can lose its punch and need refurbishing or replacing.

Understanding the Sources of Control Success and Fatigue

Since direct mail testing can be expensive, especially multivariate testing where each variable tested needs a large enough mailed group for statistically valid results, it is important to think through why response to a proven control can flag and what changes are worth testing. A recent Target Marketing magazine article, by direct marketing consultant Gary Hennerberg, addresses the issue by reminding marketers of basics: The control has succeeded better than other mailing packages because, using the right list, the marketer has matched the offer’s emotional hot buttons and unique selling proposition to the prospects’ awareness of both their problem and the marketer’s solution at the time. But that alignment between prospect and promotion is not static.

As Brand Awareness Grows, Control Effectiveness Can Shrink

After mailing the same direct mail control package over and over (or using the same digital message), the majority of targeted prospects have either seen your pitch or been educated by other media, so your message may no longer fit with their knowledge and needs. “If you don’t stay on top of this changing awareness and understanding, your direct mail control package, or messaging in other channels, fatigues, and you’ll wonder why,” Hennerberg warns. He suggests that marketers commit to a program 1) assessing prospect awareness of the problem solved by the marketed product or service; 2) creating multiple creative approaches that align with different prospect awareness levels; and 3) testing creatives (headlines, leads, formats, etc.) against each other and the control to find the sweet spot. An important caveat: If a mail package seems to go over the heads of the current market, consider re-testing in future when the time may be ripe in terms of prospect interest.

For a basic overview of direct mail testing, see http://www.targetmarketingmag.com/post/direct-mail-ab-test/

 

 

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/

Use Digital Donation to Turbocharge Fundraising Direct Mail

AccuList USA would like to pass along some key facts to marketers planning fundraising direct mail: 1) 35% of all donors say they like to respond to direct mail by giving online (with 50% of Millennials and Gen Xers saying they prefer online response); 2) 51% of website visits are made via mobile device, and 3) mobile devices are now used by the majority to read e-mail (54% of opens) and access social networks (80% of social time spent). Bottom line, if you want to get the most from your nonprofit direct mail (still the best channel for capturing donor dollars), a multi-channel, mobile-optimized approach is essential.

How Nonprofits Miss Mail-to-Online Giving Opportunities

MobileCause has developed a powerful infographic laying out the case for a nonprofit direct mail-digital marriage. Unfortunately, many fundraisers fail to make an easy connection between direct mail and online response, and are discouraging donations as a result. As the infographic points out, 84% of donation pages are not mobile-friendly, 73% of nonprofits do not offer social sharing, and 65% of nonprofits require three or more digital clicks to donate.

Smart Practices Give Mail Multi-Channel Power

At the same time, the infographic data highlight ways to correct that digital lacuna in fundraising direct mail. First, commit to making direct mail part of a multi-channel campaign–because donors are 50% more likely to give when they receive multiple reinforcing messages via multiple channels. Fundraisers can even optimize response by catering to generational preferences: Millennials like text reminders, Gen Xers like e-mail reminders and Boomers like call reminders, per MobileCause. But for goodness sake, mobile-optimize e-mails, landing pages and donation pages! Then maximize donations by promoting QR codes, shortlinks and texting keywords across channels (and let the U.S. Postal Service reward that mailer QR code with a discount). Plus, data shows that by branding landing/donation pages to promote a specific mailer campaign or gift rather than a generic message, there’s a 38% increase in donation amount and a 66% likelihood that the donor will return and give again. Of course, don’t forget the basics: Make the call-to-action clear and giving easy to execute, whether by check or online.

Download the infographic for more tips.

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/

 

 

 

 

 

Why Direct Mail Remains Buoyant in Digital Flood

In the tidal wave of digital marketing options, prospects for our direct mail lists and support services sometimes worry about investing in an “old-fashioned” mail channel soon to be washed away by changing preferences and digital efficiency. So we like to keep providing data to show that direct mail is actually riding atop the digital crest.

Businesses Have Solid Reasons to Direct Mail Today

For example, a recent business.com post by entrepreneur Brian Roberts cites five basic reasons businesses should use “snail mail.” No. 1, thanks to a drop in mail volumes, mailers today enjoy much less competition for audience attention in physical mailboxes compared with spam-jammed e-mail inboxes or ad-laden web platforms. Plus, No. 2, those mailed communications aren’t going to be culled out by high-tech spam filters as is so much of today’s e-mail. No. 3, once delivered, a physical mail piece is a lot likelier to be opened than an e-mail message. As data firm Experian recently reported, 70% to 80% of direct mail recipients say they open their mail, and, per InfoTrends’ most recent data, a third of U.S. consumers report they read direct mail marketing more than e-mail marketing, and another 34% read both with equal frequency.  No. 4, direct mail allows a lot more creative freedom, unlimited by file size, spam filter triggers or flat visuals. Mail can be dimensional, digitally interactive, multi-sensory, immediately gratifying with promotional rewards, and more. Now that personalization is key, direct mail also outdoes digital, with 70% of Americans saying physical mail is “more personal” than e-mail, per Experian. Finally, at  No. 5, mail is great for geo-targeting and driving traffic to physical locations, with in-store-only promotions at retail stores as an example. Plus, it can drive digital traffic; 60% of direct mail recipients visit a website mentioned in direct mail, Experian reports.

Trends Prove Direct Mail’s Continued Business Appeal

A study by the Boston Consulting Group confirms that total spending on direct mail is expected to rise from 11% to 12% by 2020. The simple reason for snail mail’s survival is its continued marketing power. U.S. Postal Service surveys have found that consumers who receive direct mail spend 28% more than those who don’t, for example. As we’ve noted before, the Data & Marketing Association’s 2016 “Response Rate Report” put direct mail response rates at 5.3% for house lists and 2.9% for prospect lists, the highest DMA-tracked response rates since 2003, and far higher than the less than 1% of various digital channels. That is what sustains mail’s strong ROI. For a great summary of direct mail trends and stats, see the Experian infographic at https://www.edq.com/resources/data-quality-infographics/how-direct-mail-is-winning-in-the-age-of-the-internet/.

 

 

 

 

 

 

 

 

 

 

How Direct Mail Retains Its Place in Marketing Tool Chests

Direct mail, perhaps because of its proven workhorse status, keeps a low profile in marketing trend articles, except for the periodic “direct mail isn’t dead” reminder. Yet, despite growing use of digital channels–web, e-mail, social, mobile–AccuList USA and its many mailing list and direct marketing clients join the majority of marketers in continuing to rely on direct mail. Why? Marketing data backs up direct mail’s proven response power and ROI.

Data Proves Mail’s Staying Power

In fact, Target Marketing magazine’s latest study “Marketing Mix Trends 2010-2016” shows that 69% of marketers surveyed either increased or held steady on direct mail spending in 2016. The 6% of marketers decreasing their mail budgets were the smallest group since 2010. A reason for direct mail’s survival as a go-to marketing channel can be seen in the the Data & Marketing Association’s 2016 “Response Rate Report.”  The report showed 2016 direct mail response rates leaping to 5.3% for house lists and 2.9% for prospect lists, the highest DMA-tracked response rates since 2003. By comparison, 2015’s reported rates were 3.7% and 1.0%, respectively. More significantly, no other channel in 2016 had response rates over 1%! Direct mail response allows it to compete in ROI despite higher costs, coming in third at 27%, close to social media’s 28% (e-mail leads ROI).

Basic Tactics Keep Winning for Direct Mail

Bottom line, direct mail’s evergreen power lies in delivering on direct marketing basics. To that end, industry pros–agencies, data brokers, printers, mailing houses and creative services–still need to guide clients toward success. Rather than exploring the diverse creative and tech-savvy ways to meet direct mail goals, it is easier to focus on a few big mail “don’ts,” and that’s the tack recently taken by Summer Gould of Target Marketing magazine in “5 Things Not to Do in Direct Mail.” Obviously there are more than five missteps out there, but Gould chooses key, highly avoidable pitfalls: a hard-to-read font (yes, point size matters); dishonesty (seeking a sale at the cost of long-term customers and reputation); old, bad data in mailing lists (one of our bugaboos); a missing or unclear call-to-action (a response killer); and a promotional focus on features over benefits (a basic marketing no-no). Direct mail–no matter how loaded with interactive QR codes, variable data printing personalization and multi-channel customer analytics–will miss the mark if it misses on these basics! For more, go to http://www.targetmarketingmag.com/post/5-things-not-to-do-in-direct-mail/

 

USPS Informed Delivery Injects Physical Mail in Digital Mailstream

The U.S. Postal Service has implemented Informed Delivery, a program that e-mails consumers’ sneak previews of mailing pieces before that mail even lands in their physical mailboxes. The USPS considers the program an innovative “integration of digital and physical mail,” and AccuList USA definitely is intrigued on behalf of our many direct mail list brokerage and marketing services clients. What are the issues for direct mailers?

Integrating Direct Mail and the Digital Lifestyle

Under the USPS Informed Delivery program, consumers can enroll online for free and get a password-protected account that creates a digital mailbox for the direct mail they will later receive at home. Before the mail is physically delivered, it is scanned so that users can log in and see a grayscale image of common-sized mail pieces, such as a #10 envelope or a folded self-mailer. Mailers can complement that digital touchpoint with a color image added below or in place of the grayscale scan, and can add a click-through URL. Even flat-sized mailings (which aren’t scanned) can participate by supplying two custom images and a URL. Now, there may be some in the direct mail business who are nervous about further digital inroads into traditional mail’s marketing space. But it’s self-defeating to ignore the reality that consumers have made digital platforms a part of their daily lives, many looking at digital mailboxes more often than physical mailboxes. And it’s hard to argue against the potential benefits: the ability to use the Intelligent Mail barcode (IMb) to reach target audiences in digital and physical mailboxes simultaneously; potential tracking of when and which e-mails are viewed, and actions taken, to improve personalization and targeting;  and finally, a welcome boost to audience engagement for participating marketers. Per USPS data, there’s a 70% open rate for Informed Delivery e-mails, and 88% of users check their Informed Delivery notifications every day or almost every day.

Scripting for Mail With a Digital Cue

However, Informed Delivery will require some marketing adjustments to successfully inject traditional mail directly into the digital mailstream. Marketers who don’t opt for enhancing with color images will need to consider how images and copy work in grayscale, for example. And all mailers will need to re-think how they use outer mail design both to gain click-through/interaction and to build anticipation for the physical piece–and then the physical piece will still need to deliver ROI. Plus, since many folks view their e-mails on mobile devices, marketers need to think about how their mail translates to mobile viewing. Marketers also need to think through how and why an e-mailed preview fits the target audience. Some industries seem especially suited, and the USPS cites retail, financial services, insurance, government, and telecoms as potential beneficiaries, but other markets may gain less from an advance digital touchpoint. Mail marketers who are interested in testing the program have two ways to submit an Informed Delivery campaign to the USPS–via e-mail using an Excel file or via PostalOne!–and should also check with direct mail vendors about interfaces with presort and post-presort software that allow setup of Informed Delivery campaigns at the piece version level or at the piece detail level. For more information, see both the USPS overview of the program and its more detailed interactive campaign guide.