Fundraising Challenges Include Gen Z, E-mail, AI

For AccuList USA’s nonprofit fundraising clients and fundraising consultants, 2019 will be another challenging year. Successful direct marketers will need to adapt to changes in demographics, technology and donor targeting, to name just a few trends recently cited by the Donorbox Nonprofit Blog.

Move Over Millennials; Here Comes Gen Z

Donorbox is sounding the alert ahead of the next demographic wave. While the Millennial generation is still the biggest cohort in the workforce, Gen Z is arriving. Born after 1996, they now make up an estimated 27% of the population and will account for 40% of all consumers by 2020. How are they different? The “2017 Global Trends in Giving Report” found that Gen Z members are interested in giving to many different causes, especially those involving youth, animals and human services. But to win the attention of these digital natives, messaging must be concise and engaging, offering an immediate experience that cuts through the marketing noise they routinely filter out. Gen Z is also the first mobile-only generation, so website, e-mail and donation forms must all be optimized for mobile. Plus, Gen Z likes visual-based platforms, so fundraising creative should use photos, videos and infographics to tell stories that grab attention.

Donors Expect Hyperpersonalized, Targeted Messaging

Accustomed to sophisticated digital technology that tailors messaging a la Amazon and Netflix, today’s donors expect a personalized, targeted approach that takes into account demographics, giving history and even psychographics. A generic appeal will fall flat. That means segmenting donor and prospect lists and using variable data printing to specialize messaging to account for generational differences and other demographics. It means tailoring the “ask” to the prospective donor’s income and giving history. It means refining giving/donation pages to highlight projects and wording that will resonate with the target donor group.

Donors Embrace E-mail Fundraising If Done Well

E-mail has gotten a bad rap recently because of crowded mailboxes, spam filtering and low response rates, but there is a lot to be said for revisiting e-mail strategy in 2019. For one, research shows that donors willing to donate through e-mail rose from just 6% in 2012 to 28% in 2018. Second, low-cost e-mail has an ROI of 122%, much higher than direct mail, social media and paid search. Finally, a backlash against social media abuses, including among the mobile-first generation, is improving e-mail’s digital appeal. But e-mail needs to be done well to deliver donors. Personalization and targeted messaging is expected, so, again, segment the audience by demographics, desired communication frequency, giving status, etc. Make sure there is a clear call to action, a compelling subject line, simple attractive visual design, and, most of all, impactful storytelling.

AI Can Help Turn Data Into Dollars

Artificial Intelligence (AI) is on its way to becoming ubiquitous in our society, and that will include fundraising. AI broadly refers to programs, computers and machines that perform “intelligent” tasks such as planning, learning, problem-solving, communication and more. AI can help nonprofits gather more data and use it better to advance missions and marketing. For example, one of the simplest uses of AI is a chatbot that interacts via messaging services like Facebook Messenger, Slack, Telegram, etc. A nonprofit can create a chatbot to handle donations, register members and distribute information about programs and services. AI also can be used to personalize donor journeys with tailored, personal messages based on real-time donor behavior and timed to encourage contributions. Finally, AI can weaponize data for more cost-effective donor development and marketing. For example, a donor’s giving and volunteering history, event attendance, affiliations, relationships, and data from wealth screening tools can all be analyzed to predict a potential donor’s likelihood to give a major gift.

See the complete list of eight fundraising trends identified by Donorbox.



fundraising trends for success

2019 Trends Open Doors for More Direct Mail Success

Direct mail lists and data services are core to AccuList USA’s business success, so each year we research which trends our direct mail marketing clients will want to embrace for maximum response–and which trends are fading in effectiveness.

Digital Ad Tune-outs Offer Mail Opportunities

Digital issues can create direct mail opportunities, points out direct mail agency Inkit, noting that customers are tuning out digital advertising, whether e-mails, banners or social media promos. In fact, eMarketer estimates that 30% of all Internet users will use ad blockers in 2019. One way to offset the drop in digital ad effectiveness is to beef up direct mail campaigns. Note that ANA-DMA research shows that 84% of millennials take the time to look through their mail and 64% would rather scan for useful information in the mail than e-mail. Plus, 41% of millennials and 53% of Gen Xers report enjoying catalogs. That engagement translates into higher response rates for mail than for any other media, per the 2018 ANA-DMA Response Rate Report, with 9% for house lists and 4.9% for prospect lists.

Snail Mail Can Join the 2019 Video Boom

While digital ads are being ignored, digital video is booming; Inkit reports that Cisco projects video will encompass more than 85% of all Internet traffic in the U.S. by 2020! Direct mail doesn’t have to be left out. Thanks to print technology–QR, AR, Video-in-Print and Near Field Communication (NFC)–paper promotions can jump on the video bandwagon and further boost their own mail response.

2019 Demands Personalized, Cross-Channel Campaigns

Customers in 2019 will expect marketers to personalize offers and deliver a seamless experience across channels, Inkit asserts, requiring integration of online, e-mail, direct mail, social media, mobile, and in-store campaigns. In fact, retailing research recently found that close to 90% of retailers say integrated cross-channel or omnichannel marketing is key to success. AI is one way marketers are getting a handle on messaging across channels and at different points in the buyer journey, which can help decide timing and targeting of direct mail. Meanwhile, for mail, variable data content printing and enhanced database targeting and segmenting can deliver the personalized relevant messaging that will be a basic of 2019 marketing.

Take Variable Data Printing to the Next Level in 2019

Yet when it comes to printing and personalization, there are some popular direct mail practices that need to be ditched this year, advises direct marketing agency Darwill. For example, using a 4-color master shell on which variable content is laser-printed in black and white has become old-hat given that new inkjet presses can create endless 4-color versions for a more targeted and engaging campaign. Along the same lines, the custom maps laser-printed in black and white can be replaced by full-color variable maps that are more personalized, eye-catching, and likely to drive leads.

Use Envelopes to Intrigue Outside; Put Tailored Offers Inside

This year, instead of revealing all details of a promotional offer on the outside envelope to drive opens, Darwill advises that a promotional pitch that is visible but not fully revealed on the envelope is likely to work better–a sneak peek at a personalized offer. Then once the recipient opens the envelope, he or she better not find one-size-fits-all content! Luckily, with today’s full-color inkjet technology, a letter or a coupon can now be varied based on a recipient’s past shopping patterns or demographics.

 

 

 

2019 Forecast Stresses Mobile Marketing Innovation

As mobile use has expanded to include the majority of the population, mobile marketing has become integral to AccuList USA clients’ multiple marketing channels, including direct mail’s mobile-scanned QR & AR codes, mobile-optimized e-mail, nonprofits’ mobile giving and retailers’ geo-located ads and apps. When the average U.S. adult is expected to spend more than three and a half hours a day on a mobile device and 70% of digital advertising is already mobile, it’s no surprise that 2019 is forecast to be another banner year for mobile marketing. A recent ClickZ post outlines some of the big trends to expect.

Increased Efforts to Combat Mobile Ad Fraud

Mobile ad fraud is on the rise, doubling year-on-year during the first quarter of 2018, which also saw an increase in fraud sophistication, such as SDK spoofing and click injection. As a result, ClickZ author Luca Mastrorocco predicts that advertisers will push to avoid fraud and boost brand safety by demanding supply chain transparency from vendors, increasing use of anti-fraud metrics for mobile apps, and seeking to engage users directly via mobile network operator rather in-app.

More Apps and More Diverse Apps

Even with over 2 million apps in both Google Play and the Apple App store, Mastrorocco asserts that the mobile app landscape is far from saturation, citing innovations such as J.P. Morgan’s online banking app offering free or discounted trades in its digital investing service, the success of TikTok’s viral 15-second video app, and Facebook’s investment in a new Lasso app to compete with TikTok. He foresees even more app development and innovation ahead, especially in AI-based apps and use of virtual reality and augmented reality (AR).

An Embrace of Mobile Interactivity

Mastrorocco also predicts that interactive mobile experiences, such as IKEA’s new AR app allowing users to virtually place furniture in their homes, will blossom in 2019, blurring the line between mobile advertising and content. Gamification will play a central role in interactive mobile marketing, even among non-gaming brands, he adds, as brands use playable ads to communicate with users in a entertaining way and to join digital and brick-and-mortar sales, such as by rewarding players with prizes or discount vouchers that can be redeemed in-store.

A Focus on Real-Time Data Tracking & Analytics

Expect data-driven tactics to expand significantly in 2019. Brand marketers are forecast to increase their demand for user-centric advertising that tracks performance and analyzes results in real time to optimize media and creative in-flight. Their goals will be to both produce the best possible user experiences and more cost-effective ad spending. Brands using real-time data to produce iterative in-house creative can gain a competitive edge over those relying on agency creative, per Mastrorocco, who sees a resulting rise in experimentation with geo-location targeting and dynamic creative optimization. For the complete article, go to https://www.clickz.com/mobile-marketing-2019/221210/

Is Your E-mail Optimized for Best 2019 Performance?

E-mail marketing is constantly evolving, and AccuList USA tries to keep our e-mail list and e-mail marketing services clients up-to-date on the latest tactics and best practices. A good overview of trends for 2019 was recently supplied in a Business2Community post by Rohit Munipally.

Targeted, Segmented and Automated Marketing

The value of e-mail targeting and list segmentation is so clear that it will be a given for smart marketers in 2019. Munipally cites HubSpot research showing that e-mails that are relevantly segmented and targeted account for 58% of all e-mail earnings and increase profits up to 18 times more. When combined with automation, e-mail content power is further enhanced. Munipally gives examples of how e-mail marketers can track behavior to boost response and conversion. For example, if a contact hasn’t opened an e-mail for an extended period, the contact can be dropped from deployments, while a contact who has visited a web page several times or opened multiple e-mails can receive relevant automated e-mails prompting action. In fact, global automated e-mail marketing alone is expected to account for $2.7 billion in spending by 2025, Munipally reports.

Text-Only, Interactive & Story Content

Watch for acceleration of the trend away from graphics-heavy e-mail designs in 2019. Research shows e-mail users prefer plain text over HTML-style e-mails because plain text e-mails resemble a personal message that would be sent by a family member or friend. So marketers now use plain-text e-mails to create a more personable, sincere and less sales-oriented brand. Also expect to see interactivity dominate over product display and sales pitches in e-mails next year. Response data favors interactive e-mails that encourage engagement through quizzes, surveys, games, contests, GIFs, and call-to-action messaging that lets recipients shop, edit an order, update a wish list, send a shipping confirmation, etc. Story-telling also has proved itself as another content-engagement tool. E-mails that begin with a story that grabs the reader and then leads into the value and services/products offering have been shown to be highly influential–if delivered to a relevant audience (again underscoring the value of targeting and segmentation).

Focus on Mobile, Personalization and AI

Mobile optimization of e-mail will be essential for success in 2019, with 53% of e-mails opened via mobile devices and 75% of gmail users viewing accounts on mobile devices. Meanwhile, consumers demand content that is relevant and personalized whether they view it on a computer or mobile device, which means using data to go beyond the first name in the second paragraph to delivery of information unique to the reader’s account or buyer persona. Plus, next year should see growing use of AI for everything from targeting, subject line choice, image selection, unsubscribe prevention and more. To illustrate the power of AI, Munipally reports that Adobe recently developed an AI technology with a series of sophisticated algorithms based on e-mail campaigns and audience behaviors, resulting in e-mail users opening nearly 80% of work and 60% of personal e-mails.

For the complete post, see https://www.business2community.com/email-marketing/7-email-marketing-trends-for-2019-02120824

 

Trust Message Takes Center Stage in 2018 Insurance Marketing

Earlier in the year, Mintel Comperemedia identified four insurance marketing trends for 2018: courting consumer trust; fighting commoditization by redefining scope and repackaging; building AI savings and speed into underwriting, customer engagement and more; and competition via supplementary service and risk mitigation. AccuList USA’s insurance marketing clients will be interested in Mintel’s recent update on two of those predictions: trust messaging and expanded product scope.

Life Insurance Ad Campaigns & Direct Mail Woo Consumer Trust

While all types of personal insurance lines showed shifts in messaging to win consumer trust via simplification, education and transparency, Mintel especially notes life insurance efforts to close the financial literacy gap through content marketing, such as Allstate’s launch of an advertising campaign in July 2018 that reminded viewers “truth today is hard to find” and concluded TV ads with “Now that you know the truth, are you in Good Hands?” Likewise, insurers Humana, Gerber Life, Kaiser Permanente, State Farm, John Hancock and Mutual of Omaha revamped direct mail messaging with some form of the line “insurance can be confusing” and then offered simplified language to which consumers could more easily relate. Meanwhile, on-demand coverage from Trov, Duuo, Cuvva and Slice addressed consumers’ product transparency demand by offering real-time coverage for what consumers want when they want it.

Partnerships Offer More to Health Insurance Shoppers

The marketing landscape for health insurance saw major changes in terms of insurance scope this year.  For example, the CVS pharmacy acquisition of Aetna opens the door to a one-stop-shop health care experience, including better digital customer service. Similarly, Mintel notes the Amazon acquisition of PillPack and the partnership between Walmart and Anthem as opportunities for established insurance products to expand and redefine the digital-age customer journey. Meanwhile, insurance marketers are watching to see how much the Amazon, JPMorgan Chase, Berkshire Hathaway collaboration to offer independent employee health care will shake up the status quo. For the full blog post, see http://www.mintel.com/blog/insurance/insurance-marketing-trends-2018-howd-we-do

2018 Recognition Market: Tech Partnering, Wellness & Non-cash Awards

AccuList USA recently completed proprietary research on hundreds of top performing lists of employee recognition and incentive product buyers to support clients in a business-to-business marketplace that now encompasses close to 90% of companies.

89% of Companies Committed to Recognition Spending

In fact, the 2017 “Trends in Employee Recognition” report from WorldatWork, a nonprofit human resources association, found 89% of surveyed organizations committed to recognition programs, with 65% offering between three and six different programs, from companywide (81%) to individual (69%) to department/team (67%). The top five recognition programs rewarded length of service (85%); above-and-beyond performance (77%); programs to motivate behaviors associated with the business initiatives, such as customer service (51%); peer-to-peer recognition (49%); and retirement (34%).  Certificates and/or plaques remain the most awarded recognition item, at 80% of respondents, followed by cash (55%), gift certificates/cards (45%), company-logo merchandise (40%), and food, such as a lunch or pizza party (39%). For incentive and recognition marketers, targeting can mainly focus on two departments responsible for administering programs: human resources (59%) and compensation (22%).

2018 Trends Include Brand Culture, Tech Partnering, & Wellness

The Incentive Research Foundation’s “IRF 2018 Trends Study” offers recognition and incentive marketers more guidance on changing demand trends. For one, predictive analytics, artificial intelligence and augmented reality capabilities will be a “fundamental requirement” for vendors and suppliers looking to partner with incentive professionals in 2018, per IRF. Marketers also will want to push wellness messaging, since more incentive professionals are adding health and wellness components focused on fitness, food, and comfort to their incentive programs this year compared with other features, says the report. And when it comes to merchandise products, incentive buyers in 2018 don’t want more choice as much as more “impactful products,”  such as products with local sourcing or organic roots and products that can be easily personalized and customized. The desire to build a brand-asset culture around intangibles, such as innovation, as well as traditional assets is one factor pushing these non-cash awards in 2018, notes the report. On the other hand, gift cards will continue to gain momentum this year, according to the IRF, which says mid-size firms spend an average of nearly $500,000 annually on gift cards across all programs, while large ones spend over $1 million annually. Finally, although incentive travel makes up a small part of the recognition pie, the incentive travel industry’s net optimism score for the economy is up almost 20 points from 2017 in the IRF report, leading to budget increases despite rising costs. For more on top incentive trends, see http://www.incentivemag.com/News/Industry/IRF-Top-Incentive-Trends-2018/

 

 

Millennial Attendees Reshape Event Success Strategies

As the millennial cohort expands event attendance, trade show and conference marketing clients, as well as performing arts marketing clients, with AccuList USA are beginning to change their targeting, messaging and event planning strategies to cater to a demographic that demands technological multi-channel savvy, interest-specific targeting, and experiential and interactive content. A recent post by UK-based Conference News highlights three strategies that event professionals can adopt to woo the millennial audience.

Offering Multiple Connection Points

While millennials are known for their social media, mobile-phone-addicted personae, studies show that these digital preferences can actually fuel greater live event interest; Conference News cites one survey showing 73% of millennials consider live event attendance as a way to express their beliefs and personality online. But it also means that event planners need to take cues from their digital experiences. Since millennials flock to online platforms that offer a nexus of various interests and connectivity, an event that focuses too narrowly can misfire. Conference News argues for a “multi-faceted event” and cites North Carolina’s Moogfest as an example. Moogfest is primarily a music festival, but, in 2016, it added a stage for workshops, installations and discussions of the current political climate. By combining art, activism, food/drink, and activities in one place, it addressed attendees’ multiple passions and created more social media fodder and buzz at the same time.

Playing With Non-Traditional Venues

Meeting the millennial demand for a multi-faceted event experience can require going beyond hotel conference rooms and exhibit spaces. In 2017, the demand for non-traditional spaces rose by 3.8%, notes the article. The right non-traditional venue will be a site that generates interest in itself while still providing comfort and meeting attendee requirements. Although on-site logistics may be more challenging, more event pros are betting that this venue creativity pays off in attracting and retaining audience.

Investing in Event Technology

Millennials are technically savvy and expect technically savvy event support. The Conference News article cites three event technology ideas likely to gain ground this year: 1) RFID (radio-frequency identification) wristbands, long in music festival usage, can work in other event milieus to speed up entry lines and to allow purchases without cash or cards; 2) Mobile Event Apps can let attendees craft customized experiences via eased navigation, personalized schedules, push notifications about upcoming activities, and social sharing with other attendees; and 3) Artificial Intelligence (AI) not only means chat bots to answer attendee questions but, in coordination with social-media-based event app info, can generate personalized on-site recommendations. See the complete article at http://www.conference-news.co.uk/blogs-features/top-3-event-trends-explore-2018

Skeptical of Marketing Tech Buzzwords? You’re Not Alone

To help support direct marketing clients, AccuList USA tries to keep up with the latest in marketing technology and tactics, and so we’ve been bombarded along with clients by advice on how to seize opportunities with personalization, “big data,” omnichannel, real-time marketing, and, most recently, artificial intelligence (AI). Marketers struggling to find room in real-world budgets often worry that they’re falling behind in an escalating martech arms race! New research by Resulticks—a survey of over 300 marketing pros across industry verticals—offers interesting perspective.

Big Expectations: Big Data and Personalization

“Big Data” was the hot topic at the 2013 DMA Annual Conference, with 50% of marketers enthusiastic about investing. But making practical sense of those data torrents turned out to be more difficult than expected. Resulticks finds that only 16% of today’s marketers have fully implemented big data solutions, 20% have given up on the concept, and just 27% rank big data as a top priority now. Part of the problem is overhyped, underperforming martech platforms, per the survey, with 21% of marketers complaining that vendors overpromise and underdeliver. In contrast, personalization—meaning targeting that goes beyond basic attributes such as name to deeper parameters such as purchase history and online behavior—has done better in fulfilling expectations, with 60% of today’s marketers reporting full or partial implementation. The only fly in the ointment: Tech investments have not always kept pace with enthusiasm, and only 20% rate their software ability to deliver personalization as “excellent.”

Technically Challenged: Omnichannel

Back in 2014, one study found almost half of retailers saying they were going to commit to an “omnichannel” approach. Unlike multichannel marketing, where marketers touch customers at multiple points on their journey, the ambitious goal of omnichannel marketing is to create a seamless customer experience across all channels. Resulticks finds that only 9% of today’s marketers describe their approach as omnichannel, compared with 63% who use a multichannel approach. Technical barriers explain omnichannel’s failure to thrive. Only 35% have fully or partially implemented the required software platforms for omnichannel, and, among those who have bet on platforms, 58% rank vendor execution as “poor” to “fair” (compared with 13% who give their omnichannel software “excellent” marks).

Enthusiastic Embrace: Real-time Marketing

There’s a better report card for the “real-time marketing” that rapidly uses data across channels for more timely, targeted engagement in the customer journey. Resulticks reports that 49% of marketers rate their real-time marketing ability as “good” to “excellent,” that half say they have fully or partially implemented real-time marketing solutions, and that 47% say real-time is a priority for their organizations today. However, many marketers may need to adjust their definition of “real-time” if they want to compete for customers’ expectations; 47% are defining real-time as responding in an hour or more (with 20% taking a day or more), compared with the 12% delivering true real-time response in the milliseconds.

New Kid on the Block: AI

Social media giants have been betting on AI, and marketers are following their lead, with one study showing more than 50% planning to adopt AI in the next two years. However, Resulticks’ survey finds almost half (47%) of the marketers polled already rate AI as overhyped. Here’s a big source of that skepticism: 43% of marketers believe martech software vendors overpromise and underdeliver, and 69% rate their vendors’ ability to execute AI as “fair” to “poor.”

To download the study report, go to https://www.resulticks.com/marketingflabtofab.html

2018 Digital Marketing Trends: Technology, Targeting, Tactics

Digital marketing continues to experience rapid changes. AccuList USA will be helping clients navigate this year via quality data, data services and other support efforts that take into account 2018 digital marketing trends recently outlined by Forbes magazine’s Forbes Agency Council.

Technology Drivers: AR, Conversational Interfaces, Video

The first of the article’s 15 trend predictions is continued growth in the use of Augmented Reality (AR), per Chris Carter of Rep Interactive, as mobile devices become more powerful, social apps improve AR integration, and, we would add, traditional print, from direct mail to ads to labels, also embraces AR. Meanwhile, the popularity of  conversational interactions will offer new opportunities and challenges, per a couple of council members—such as Amazon’s Alexa, Google’s Assistant, Microsoft’s Cortana, chatbots and more. Now that Google says 20% of its mobile queries are voice searches and usage set to climb further, marketers will need to create content targeting these types of searches and ads for non-traditional venues (such as sponsored smart-fridge recommendations), predicts Brett Farmiloe of Markitors. Video was a big story in 2017 and is now seen as a basic of success for 2018 marketers, per several Forbes council members. It also means that marketers will face a higher bar in terms of quality. As social media platforms jump into live video and add features, “the shaky, holding-a-phone-in-your-hand live video won’t be acceptable anymore,” warns Thomas Brodbeck of Site Strategics.

Targeting Goes Hyper: Personalized & Contextual

Most marketers agree that the days of impersonal e-mail blasts are done. So what’s ahead in 2018? Marketers will be focused on hyper-targeting and personalizing every interaction, forecast several experts. Watch for personalized landing pages connected to each advertising campaign, for example. The need for unbiased targeting, predictive analytics and budgeting at every step of the customer journey also will increase use of application programming interfaces for machine-learning algorithms, natural language processing and artificial intelligence, opines Douglas Karr of DK New Media. And as data protection regulation increases, ad tech vendors will need to go beyond tracking behavior with cookies to contextual targeting strategies based on page content, adds Julien Verdier of Adyoulike.

Some Tactics Keep Their Buzz, and Some Fade

“Influencer marketing” had marketing buzz in 2017, but Craig Greiwe of Rogers & Cowan predicts that 2018 will see a collapse of interest because brands that spent big on influencers haven’t seen measurable results. He expects brands instead to “zero in on a few select individuals who drive results or move to organic grassroots promotion, and away from high-cost, middle-tier influencers who drive awareness but little ROI.” Content marketing, meanwhile, will remain a key part of the marketing tool box—but with some changes. New formats, video, and voice search are ending the focus on blog posts and listicles and pushing marketers toward featured snippets, interactive spoken tutorials and integration with User Interface features, says Kristopher Jones of LSEO.com. In the crowded online grab for engagement, native advertising will retain appeal, too, per Timothy Nichols of ExactDrive, Inc., helping marketers to expand viral sharing and develop a more involved relationship with target markets.

For more trend predictions, see https://www.forbes.com/sites/forbesagencycouncil/2017/12/18/how-digital-marketing-will-change-in-2018-15-top-trends/#464141092d9a