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.

Marketers Win by Catering to Millennial Direct Mail Fans

Remember when marketing gurus were calling direct mail “dead,” drowned by a wave of digital, mobile, and social technologies? Well, research keeps resurrecting mail from its low-tech tomb. In fact, recent studies find that Millennials–the 22- to 36-year-old, tech-savvy generation supposedly addicted to mobile devices and digital networking–are bigger fans of direct mail than older generations in some ways!  That’s information that printers, mailing services, and a list broker and direct marketing consultant like AccuList USA can use to convince clients who hesitate over direct mail spending.

Millennials Like Direct Mail in General

For example, a recent study by InfoTrends and Prinova found that response rates for direct mail remain high for all demographics, including Millennials, who open direct mail received at the same high rate of 66% as recipients overall. More significantly, Milennials as a group respond faster to mail–within 2.4 months–which is less than the average response time for all respondents. Plus, the InfoTrends research found that a big 63% of Millennials who responded to a direct mail piece within that three-month period actually made a purchase! Along similar lines, the U.S. Postal Service (USPS) and the American Association of Political Consultants (AAPC) conducted a survey on direct mail’s political impact on Millennials and found that at least 42% of Millennials prefer direct mail political ads over online ads, that twice as many thoroughly read political mail, and that Millennials are more likely to be prompted to action by mail, with 66% likely to research the candidate and 54% visiting the candidate’s website after receiving mail.

But Millennials Also Prefer Specific Mail Tactics

However, research also shows that all mail pieces are not created equal. Mailings that resonate best with Millennials are targeted and personalized, per research. Luckily, sophisticated targeting and personalization are possible with today’s variable printing, programmatic and automation programs, and database segmentation and analytics. Millennials demand printing quality as well, with one quarter of surveyed 25- to 34-year-olds saying they opened direct mail because of the print and image quality. Mailers going beyond the standard No. 10 envelope–including 3-D dimensional mailers, pop-ups and intricately folded pieces–are playing to this audience that appreciates visual creativity. Plus, engaging copy counts, with 25% of that same surveyed group saying they consider reading direct mail a leisure activity. That doesn’t mean that printed mail can be divorced from Millennials’ digital lifestyle. Data in eMarketer’s survey report “US Millennial Shoppers 2017” shows that Millennials prefer digital shopping, even while in stores, and are comfortable with mobile shopping. The Millennial preference for digital/mobile shopping means that integrating print and digital–via QR, AR, or PURL–can significantly boost response, as shown in multiple studies. Research also shows that video is a response-getter for Millennials’ digital promotions. And now mailers have the printing technology to jump on the video bandwagon with audio players and video screens incorporated in direct mail.

For a good overview of recent data on direct mail and Millennials, see this article from The Financial Brand.

For Direct Mail, What’s Old Can Be New (& Effective) Again

AccuList USA offers mailing lists, data services and direct marketing services to direct mailers in many business and nonprofit arenas, and that requires us to keep up with the latest options combining print and digital technologies. But that doesn’t mean we ignore the tried-and-true, pre-digital tactics that still deliver response! Real-life examples noted in recent Target Marketing magazine articles underscore that point.

Envelopes That Grab Attention

Thank Paul Bobnak, director of Who’s Mailing What!, for sifting through mail volumes to spot some successful new takes on old tricks for attention-getting envelopes. In his recent Target Marketing article, he noted the reappearance of four “old-school” tactics. One is an envelope highlighting Yes-No-Maybe stickers, once a favorite of subscription drives. The prospect is given three options on the reply form, with a sticker for each. Bobnak cites a recent mail piece from UPMC, a healthcare system: The Yes-No stickers are visible in an outer envelope window, while the “Maybe” is inside for recipients to self-qualify for follow-up mailer persuasion. Posting an outer envelope quiz is another proven way to intrigue prospects and get them to open a mailing to learn more–a ploy often used for health care and financial services offers. Bobnak shows how a few qualifying envelope questions work well today for the Harvard Health Letter as an example from publication marketing. The interoffice-routing-style envelope is an old trick for catching the attention of office workers and has been a go-to for B2B. Despite e-mail’s workplace dominance, interoffice paper still exists, and Bobnak notes the recent engaging nonprofit marketing use of an interoffice envelope by Sacred Heart Southern Missions, a social ministry. Then there’s the photo lab envelope, seemingly obsolete in this digital photo age. But high-quality printed photos still come in envelopes, Bobnak reminds, and that syncs with the creative services message of Dissolve, a stock footage agency, which recently prospected with a photo lab envelope containing quality photos from its collections.

Letters That Drive Response

Once recipients open the envelope–although use of QR, AR, PURLs, etc., are great new digital tools to boost response–the old-school marketing basics of the letter copy offer still matter. In another recent Target Marketing magazine article, Summer Gould highlighted seven items required for a great direct mail letter. With a few of our own additions, the seven key elements are: a first sentence that hooks the reader; an offer that is attractive (yes, a freebie or discount still entices); a story line that engages and pulls important emotional triggers (such as the well-known marketing motivators of fear, greed, guilt, exclusivity, and need for approval); flattery that convinces the reader he or she is special and appreciated, which today requires more personalization than just a greeting name; questions that qualify the prospect or customer (just make sure you expect the answers based on your data); a problem solved by your product or service; and benefits that matter to the prospect or customer. Why the reminder of what seems like marketing common sense? Because it’s unfortunately not always common practice! Dazzling dimensional creative will not make up for an offer misfire.

Combining proven marketing tactics with technology, “snail mail” continues to deliver a response rate ahead of other channels. To see physical examples of what Bobnak describes, go to www.targetmarketingmag.com/post/4-old-school-direct-mail-tactics-still-work/

USPS & Science Encourage Merger of Digital & Mail Efforts

For any direct marketers who haven’t committed to combining direct mail with digital media, 2017 is a perfect year for experimentation. At AccuList USA, we have seen the positive impact on direct marketing clients’ results (and have developed our Digital2Direct program in support). And now  “brain science” and U.S. Postal Service incentives further increase the attractions of a mail-digital marriage.

Brain Science Shows Impact of Mail-Digital Mating

For example, an article from The Association of National Advertisers (ANA) recently highlighted the “neuromarketing” evidence for mail-digital pairings.  (Neuromarketing is the application of neuroscience to marketing.) ANA cites a recent study by Temple University and the U.S. Postal Service (USPS) Office of Inspector General, “Tuned In: The Brain’s Response to Ad Sequencing.” The research explores the relative effectiveness of physical mail and digital advertising in cross-media marketing campaigns, using not only self-reported responses but actual MRIs of participant brain activity while viewing ads. A key finding: Consumer “willingness to pay” was significantly higher when media was delivered across both digital and physical channels rather than a single channel. Another notable study, “A Bias for Action: The Neuroscience Behind the Response-Driving Power of Direct Mail,” comes from a partnership between the Canada Post and True Impact Marketing, a leading neuromarketing research and strategy firm. Their study seeks to quantify the effectiveness of physical (direct mail) and digital (e-mail and display) media by focusing on two key indicators of media effectiveness: ease of understanding and persuasiveness. The results indicate that while digital media provide key platforms for customer interaction, direct mail is actually better at closing the marketing-sales loop. So for marketers, a mail-digital combination offers the best of both worlds and helps bridge the gap between interaction and action.

USPS Promotes Enhancing Mail With Digital Power

Why wait to reap the benefits? Especially now that the U.S. Postal Service is offering a range of 2017 programs that make the economic decision easier. The new Informed Delivery program, which inserts mail into consumers’ daily digital routines, is one example. Informed Delivery users receive e-mails that capture grayscale images of the address side of their mail. Currently, preview images are for letter-sized mailings processed through automated equipment, but flat mailings, such as magazines and catalogs, can be displayed if the mailer supplies a color image to be included in the Informed Delivery notifications. Under the program, marketers can take advantage of three potential touchpoints with one mail piece: an advance preview via e-mail/app, actually delivery in the mailbox, and inclusion of a unique URL in the digital preview to drive trackable traffic to a website. Plus, the USPS has two more promotions supporting mail-digital pairing. The Emerging & Advanced Technology Promotion (March 1 – Aug. 31, 2017) encourages mailers to integrate direct mail with advances in mobile technology using NFC technology, Video in Print (ViP), Beacon technology, “Enhanced” Augmented Reality, Virtual Reality (newly included this year) or, as of 2017, use of Digital to Direct Mail to boost response with dynamically printed, personalized messaging automatically triggered by digital interaction. Mail-digital pairing is also rewarded by the Mobile Shopping Promotion (Aug. 1 – Dec. 31, 2017), which encourages mailers to invest in technologies that take recipients directly from the mail piece to a mobile-optimized online shopping experience via Quick Response (QR) Codes, Snap Tags, Watermarks and other technologies. For details on these and other USPS promotions, see https://ribbs.usps.gov/mailingpromotions/documents/tech_guides/2017PromotionsCalendar.pdf

 

 

 

 

 

Subscription Marketing Basics Still Create Winning Formulas

Despite modern publishing’s multi-platform environment (print, web, mobile), many long-time subscription marketing rules retain their relevance. A recent post from Bill Dugan, for niche magazine consulting firm Mequoda, stressed just that point by reminding audience development pros of the fundamentals for price, offer and creative. As a list brokerage with many paid or controlled circulation clients, AccuList USA would, of course, add another important component: quality data

Price, Offer, Creative

As Dugan stresses, the art and science of pricing still counts. In pricing, whether for print, online, tablet or combination packages, subscription marketers actually have an edge over many other products by being able to sell the same product at different prices each time it’s purchased, from a new subscriber to each subsequent renewal. Pricing strategies can include 1) simply the same price at every stage of buying or renewing; 2) giving the more price-sensitive new subscriber an introductory discount and then selling renewals at full price; 3) maximizing response and profitability with a step-up program from a low introductory price through gradual renewal increases to maximum; and 4) rewarding subscribers with a lower monthly price for selecting a longer (annual) term. Next, marketers can build a range of offers. Based on testing, Dugan reports that the best response is earned by a “soft offer,” meaning a trial free issue or more, plus a premium and a bill-me-later for a full subscription. The lowest response offer is the old-fashioned hard offer, requesting up-front credit card payment with no trial or premium,per his testing. And finally, direct marketing success requires wrapping the offer in effective creative. A key to creative response today, whether direct mail or e-mail, is personalization that focuses on the target customers’ needs.

And Market-Tested, Targeted Lists!

Of course, effective personalization requires targeted, quality data! So while Dugan didn’t talk about the paramount importance of data, we remind marketers of the continuing relevance of either the 40-40-20 rule (40% of response success from audience/list, 40% from offer and 20% for creative) or the 60-30-10 formula (60% from targeted audience/list). Bottom line, good audience data is key. To support digital and print publishers, AccuList USA turns to its proprietary research on market-tested data and selection parameters most likely to boost response. That means lists such as those targeting active subscribers to trade or consumer publications; book buyers having specific interests; digital or print edition subscribers; known subscribers at work, home, or waiting room address; or subscribers with Facebook profiles.

For the complete Mequoda article, see http://www.mequoda.com/articles/subscription_websites/subscription-marketing-the-more-things-change-the-more-they-stay-the-same/