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How Nonprofit Fundraising Can Weather Pandemic Impacts

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AccuList’s nonprofit fundraising clients are facing a novel crisis as the novel coronavirus pandemic shuts down business-as-usual across America and threatens recession. Humanitarian causes such as food banks, homeless shelters and senior-care services are feeling the pinch as food donations from panic-buying-hit grocery stores and dollars from corporations drop, and self-quarantines eliminate volunteers. At the same time, rising numbers of people, especially the old and the poor, are becoming food and shelter insecure. Meanwhile, nonprofits that rely on events for fundraising are especially hard-hit.

Stay the Course on Fundraising Efforts

Based on fundraising experience in previous crises, such as 9/11 and the 2008 recession, AccuList joins other experts in urging nonprofits not to cut back on fundraising efforts during this critical period.  Indeed, since event fundraising is likely to be cancelled or postponed, now may be the time to shift resources into high-response workhorses like direct mail. And for some causes directly impacted by pandemic issues (food banks, homeless shelters, elder care, emergency health and medical supplies), fundraising messages may be especially resonant and effective now. Yes, philanthropy has trended at 1.5% to 2.5% of GDP annually since 1978, and it’s pretty clear GDP (and thus fundraising) is going to take a hit in 2020. But as a NonProfit Pro magazine article by Craig Depole, president of direct-response fundraising agency Newport ONE, warns, organizations that pulled back and stopped soliciting after 9/11 and the 2008 recession took years to recover from their losses, “while organizations that continued to solicit their donors with messages of need and impact emerged stronger and healthier.”

Take Steps That Will Bolster Fundraising Appeals

Depole’s NonProfitPro article goes on to outline a number of steps to make fundraising outreach more successful during a national crisis: 1) Double-down on stewardship of donors (more thank-you phone calls, impact reporting, staff engagement); 2) Keep talking with donors and share compelling stories, with humanitarian charities especially able to cite the transformational impact of donations; 3) Acknowledge the fears of donors who are watching stock portfolios decline and engage with them as partners rather than ATMs; 4) Review messaging for relevance, clarity and appropriate tone; and 5) Have alternative plans ready to go, say in case your mail shop or creative team is quarantined, or you need to substitute for promotional supplies from China.

Focus Retention & Prospecting on Weathering the Crisis

As a Network for Good blog post by Kimberly O’Donnell stresses, “In uncertain times, one thing is certain with fundraising—the more you plan, the better off you will be.  Successful fundraising during a recession is two-pronged: 1) Focus hard on donor engagement and retention, and 2) Use intelligent prospecting techniques to recruit new followers and supporters…. When you work to retain your donors while broadening your reach, you hit the nirvana needed to withstand hard times.” A poll of fundraising agencies by The Nonprofit Alliance similarly offers two cogent responses to how agencies are preparing nonprofit clients for the financial impact of the coronavirus pandemic. One respondent advises, “As this unfolds, my advice will likely be the same as to every other major disruption, including 9/11: 1) Acknowledge the crisis and state how the organization is helping solve it; 2) Stay the course, (and) don’t cut back on acquisition and renewal efforts.” Another adds, “Election fundraising, along with a huge drop in retirement savings, will create a terrible environment for suggesting a donor should consider an upgraded level of giving this year.  Focus on mission, and focus on renewing their support at any level.  You need to fear 2020 donor attrition like never before and prevent it to the best of your abilities.  Focus on how many active donors you will have to begin calendar 2021.”

Direct Marketing Challenged by 2020’s Record Political Spend

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AccuList’s direct marketing clients need to plan for competition for consumer attention across all media as political campaigns’ ad spending is forecast to hit record heights in 2020. Kantar’s Campaign Media Analysis Group (CMAG) predicts that political media campaigns will spend a record $6 billion on advertising in 2020, a 14.3% increase over the $5.25 billion spent in the 2018 midterm elections, and a 37.9% increase over the last Presidential campaign year in 2016, with the biggest gains going to digital media, which will nearly double to $1.2 billion in 2020. Meanwhile, ad media giant GroupM forecasts that political ad spending could reach a record $9.8 billion or more in 2020, again driven by digital ad growth.

Political Digital Competition Will Squeeze Inventory, Drive Up CPM

Nonpolitical marketers will face a considerable challenge, especially if they are advertising in politically divided markets, warns Kantar. For example, in the last three weeks of the 2016 campaign season, political advertising totaled 32% of local TV ad time within the battleground markets studied, an increase of 26% from the beginning of the season, while nonpolitical advertisers watched their share of the market plummet from 77% to 51%. Meanwhile, because digital is a big growth area for politicos in 2020, with a preference for programmatic advertising, marketing agency Hiebing warns that a scramble for digital inventory will significantly drive up CPMs for nonpolitical campaigns. Advertisers should develop a game plan early, either shifting campaign flights out of the election window or diversifying channels and tactics, Hiebing advises. Marketers should also consider Private Marketplaces, or PMPs, which are invitation-only marketplaces where selected programmatic media buyers make deals with publishers. These can offer access to more premium inventory, and better control over brand safety, than open exchanges crowded by 2020 political buyers.

Direct Mail Needs Careful Scheduling, Targeting, Stand-out Tactics

For direct mailers, it’s important to recognize that mailbox crowding will be especially bad around certain key events, such as the weeks before an election date, as well as early voting starts and the delivery of absentee/mail ballots. Marketing-mail drop dates need to be adjusted accordingly. Since bulk mail delivery is slowed, taking a back seat to first-class political promotions, mailers need to build in extra delivery time to the in-home date. Plus, in 2020, you will need to pay attention to the Super Tuesday primaries on March 3 because those primaries will see more impact (and more political mail) than usual as two of the nation’s most populous states, Texas and California, are among the 14-state total; indeed, Super Tuesday this year affects a whopping one third of the U.S. population. Bottom line: Careful planning of mail schedules will be required to get promotions in the hands of target audiences at the right time! Even with good timing, mailboxes are busier and response can be impacted, so marketers also need to make an effort to stand out creatively, perhaps changing up outer envelopes in size and color, and to avoid costly waste with more targeted messaging, via segmentation and personalization.

Make Clean Data a Top Priority for Effective B2B Marketing

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As business-to-business marketers craft their fiscal 2020 budgets, it’s important that complex issues such as analytics, automation or AI do not distract from a core investment for achieving ROI: clean data. Certainly, AccuList stresses to all its list hygiene and management clients, whether for house lists or rental prospecting lists, the importance of data quality for targeting and response, and a recent blog post by b2b data management firm Synthio confirms the basic steps for data hygiene.

Start With a Clear Data Plan

When 94% of B2B companies suspect inaccuracy in their databases, any marketers who do not prioritize data hygiene have their heads in the marketing sands.  That starts with a data plan. A good data plan will decide on the data-quality key performance indicators (KPIs) needed to achieve business goals. The plan will survey existing contact and account data and determine how to measure health in terms of data accuracy and completeness and how to maintain data hygiene tracking on an ongoing basis. It will look to see if there are important parameters for KPI success that the existing data does not address.

Standardize, Validate and De-Dupe Contact Data

What are the basics of data health and hygiene? Before cleaning data even begins, marketers need to check that important contact data at the point of entry or download is standardized. This will make it easier to catch errors and duplicates and to merge data from multiple sources. There should be a standard operating procedure (SOP) that defines fields, formats, and entry or upload processes to ensure that only quality, standardized data is used. The next step is to validate the accuracy of the data. Although a manual process might work for a small database, and there are tools and imported lists for cleaning data, advanced data hygiene is probably best handled by experts like AccuList, which can match contact addresses against USPS verification standards and change of address databases as well as update e-mail address changes. With standardized, validated information, data sets can be seamlessly merged and purged of duplicates. Why worry about duplicates? Duplicate records hobble CRM efforts, waste dollars in marketing campaigns, undermine the Single Customer View essential for targeting and response tracking, damage customer relations and brand reputation, and result in inaccurate reporting that can mislead marketing strategy.

Append Missing Data Parameters

Most b2b house databases have data for each record, such as contact first and last name, e-mail, company name and business address. But complete data for all records may be spotty, and some desired data may be missing altogether, such as title, phone number, company annual revenue, tech stack, purchase history, etc. Wouldn’t it be great for targeting and response to fill in the blanks? Data appending can enhance a house file with hundreds of variables from outside lists, including business “firm-ographics” on revenue, industry, employee numbers, etc.; opt-in e-mail, and telephone numbers. Self-reported LinkedIn data is another source that can be used. For more detailed data cleaning tips, see Synthio’s full article.

Make Sure You Have a 2019 Data Hygiene Plan

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As marketers prepare to launch their 2019 campaigns, they should make sure that a complementary data hygiene plan is in place, and certainly AccuList USA data services stand ready to aid in ensuring the quality, up-to-date, enriched data essential for achieving marketing results.

Why Does Clean Data Matter?

Marketers don’t want to join the 88% of U.S. companies whose bottom lines are hurt by dirty data, based on Experian research. The top areas impacted by poor data practices are marketing (66% of companies) and lead generation (80% of companies), according to DemandGen. Dirty data leads to poor targeting and ROI for marketers, reduced revenue from customer acquisition and retention, wasted company resources and misdirected strategy. To avoid that fate, marketers need a plan to regularly fix any customer and prospect data that is incorrect, inaccurate, incomplete, incorrectly formatted, duplicated, or irrelevant, plus to enrich the database via appending of relevant but missing customer parameters.

Developing a Data Cleansing Strategy

Pete Thompson, founder of DataIsBeauty.com, has put together a useful primer for developing a data hygiene plan. Start with the basics: Decide what data is important for business decisions and estimate the ROI of data quality improvement. Then review existing data processes: types of data captured, where it comes from and how is it captured, the standards for data quality, how errors and issues are detected and resolved, etc. Other questions include the main sources of errors, methods for validating and standardizing data, methods for appending or combining multiple sources, automation used if any, accountability for data quality, and measurement of data ROI.

Key Elements of a Data Hygiene Plan

Without going into detail, the basic steps of the data plan will start with creating uniform data standards, preferably applied at the point of data capture. Then develop a data validation process, applied either when data is captured or, if that is not possible, at regular intervals for data already entered. After data has been standardized and validated, you can append missing fields by cross referencing with multiple data sources. Streamline the process through automation tools and scripts, saving time and money and reducing human errors. However, while it may be tempting to start with automation, Thompson cautions against putting the cart before the horse; success requires having data standards and a proven validation process in place before automating. And then set up a monitoring system of the hygiene process, whether automated or not, via random test samples and back testing, and implement periodic checks.

For regular monitoring, or overall scrubbing without an automated regimen, experts suggest a quarterly hygiene review for databases of 100,000 records or more, and semi-annual cleaning for smaller databases. Based on our own years in the data business, we think the best advice from Thompson and other experts is to enlist the services of data processing pros when hygiene is due!

Check out more details from Thompson’s data hygiene plan.




Year-end Fundraising Needs Multi-Channel, Multi-Touch Effort

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Even though AccuList USA’s nonprofit clients are deep into year-end donation drives, it’s worth checking off fundraising benchmarks to give those final tweaks and finishes before New Year’s. MobileCause, a fundraising software and strategy firm, has developed a handy infographic based on marketing research and insights gleaned from its webinar attendees.

Multi-channel Campaigns Maximize Giving

A key takeaway is that branded, multi-channel campaigns raise both more immediate dollars and have more long-term value, with 61% of donors more likely to give again. The infographic cites Japs-Olson Company data to prove the point: Response rates are 6% for direct mail only, 27% for direct mail and web, 27% for direct mail and e-mail, and 37% for the combination of direct mail, web and e-mail. While direct mail remains the centerpiece of donation drives, with 71% to 81% of donations from mail, greater success requires combining and coordinating channels.

Multiple Appeals Drive Donor Action

It is also essential to make multiple appeals across channels, since research shows that it takes a minimum of three exposures to a message to generate a decision. MobileCause suggests the following tactics for maximum impact: a warm-up letter, an appeal letter, a follow-up letter, and e-mails every two weeks, all supported by website home page articles, customized donation form and personal communication (such as phone calls). Don’t neglect to craft social media ads, too. Plus, plan to use video to drive engagement and response across channels–on social pages, e-mail, and website (Augmented Reality can even add video to paper mail, too). You’ll be in sync with MobileCause attendees: 61% plan to add video to campaigns, 23% plan a custom donation page, and 21% plan an online landing page.

Timing and Planning Make the Difference

By December, fundraisers should be reaping the results of efforts that launched in October, when website, donation page and videos were readied and the first year-end appeal mailed. November should have leveraged Giving Tuesday and e-mail follow-ups. But now that we’re in December, there’s still time for the extra push. Consider a Dec. 26 year-end e-appeal and a Dec. 31 last chance e-appeal, for example.

Check out the year-end giving infographic from MobileCause for more data and tips.

Making the Case for Direct Mail Power in Multi-channel Marketing

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As our multi-channel marketing clients polish their 2018 marketing plans, it’s a good time to remind them of the continued value of direct mail in this digital era. A recent infographic from direct marketing agency US Presort puts together data from The Data & Marketing Association (DMA), Social Media Examiner, Epsilon, Experian and Marketing Sherpa to make the case for a direct mail commitment.

Why Connect Digital & Direct Mail?

The majority of marketers (71%) say they believe in an integrated multi-channel approach. After all, a smart multi-channel strategy can combine the pervasive impact of digital (96% of consumers say they were influenced online in making a purchase decision) with the effectiveness of direct mail (digital can’t beat mail’s 80% open rate or its consumer trust rating  of 76% compared with 61% for Google search, 43% for social and 39% for online ads). And marketers who combine direct mail and e-mail in a single integrated campaign report better results than when running standalone efforts, with overall response increasing by 35% or more. So why are so few marketers (just 29%) actually implementing those integrated multi-channel campaigns?

Addressing Direct Mail Myths

Lingering misconceptions may cause some marketers to hesitate over integrating direct mail with digital. As the infographic points out, direct mail has a high perceived cost. Yet while direct mail costs more to produce and distribute, its response rates are also much higher than other channels, so its ROI remains competitive. For example, per the DMA’s 2016 data, direct mail response rates averaged 5.3% for house lists and 2.9% for prospect lists, compared with online display ads at 0.9%, e-mail at 0.6% for house files and 0.3% for prospects, social media with 0.6%, and paid search at 0.5%. As a result, median ROI for direct mail, while behind e-mail, is on par with social media at 29% and 30%, respectively, and ahead of other digital channels such as mobile, search and online ads. Others assume difficulties in connecting and tracking combined paper and digital promotions. But technology and U.S. Postal Service discounts are making direct mail easier and cheaper to integrate with digital via mobile device-scanned coupon links, QR codes, PURLs (Personalized URLs), and landing pages. Plus, direct mail is now much easier to track in real time thanks to the U.S. Postal Service Intelligent Mail Barcode that lets marketers follow every single piece from the postal DSCF unit to the prospect’s door.

Making Direct Mail Part of a Multi-channel Solution

Successfully leveraging the power of direct mail in a multi-channel strategy requires a few key steps. As suggested in the infographic, include the USPS Intelligent Mail Barcode on all mail to track delivery and coordinate with other channels, and then gather measurable response from multiple channels via tactics such as reply cards, 800-number call tracking, as well as mobile-scanned QR codes and PURLs. Create campaign-specific landing pages and make sure they are mobile-friendly. Integrate e-mail and direct mail messaging and lists, and coordinate e-mail blasts with mail delivery; plus create Facebook ad campaigns to target the same audience as your direct mail lists (see our Digital2Direct programs). Finally, consider IP Direct Mail or Web Direct Mail to target the same mail audience on Google with coordinated ad banners.

To share the full infographic, go to https://www.uspresort.com/posts/direct-mail-how-to-succeed-in-digital-era

 

 

Use Key Direct Marketing KPIs to Gird 2018 Plans

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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

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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.