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Is Your Direct Marketing Ready for Gen Z?

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Generation Z is arriving in the marketplace. Gen Z, also called post-Millennials and the iGeneration, includes young people born in the mid-1990s to the early 2000s, who are now graduating and getting their first jobs. Any b2c marketer ignoring this group is risking the bottom line since Gen Z members not only make up 25.9% of the U.S. population now but will account for 40% of all consumer markets in 2020. Their annual purchasing power is already $44 billion and growing as they advance in the workforce. If you add their influence on parental spending, Gen Z accounts for closer to $200 billion in annual purchasing. Is your direct marketing ready?

The Challenges of Winning Over Gen Z

Wooing Gen Z will require marketers to amend their playbooks. Oberlo, an e-commerce agency, recently discussed Gen Z marketing challenges in its blog. IWCO Direct, a data marketing agency, comes to similar conclusions in a post. First, Gen Z members have a short attention span; marketers have only about 8 seconds to capture their notice, which is even shorter than the 11 seconds required to grab the attention of the typical Millennial. This means content must be targeted, relevant, to the point and quick to engage. Second, Gen Zers have a higher number of technological devices and are constantly jumping from one device to another. While Millennials bounce between three screens at one time, Generation Z can use up to five screens at the same time. Multi-channel, multi-platform, mobile-optimized campaigns are required to reach this generation. Third, Gen Z young adults have strong opinions and, raised to expect personalization, demand that marketers customize experiences. They will be very critical of advertising that fails to meet their standards for authenticity and meaningful interaction. What is meaningful? Gen Z members want to buy from companies that support their values, for example; 55% of Gen Z chooses brands that are eco-friendly and socially responsible. Yet Gen Z has less brand loyalty than prior generations and is less motivated by traditional loyalty programs, although they can be wooed with interaction, such as online games or events. And while Gen Zers are definitely social media fans, they use social platforms differently than prior generations. A study by Response Media found that Gen Z favors Snapchat to showcase real-life moments, gets news from Twitter and gleans some information from Facebook, although they see Facebook as a platform for older people. Market Wired research shows that Instagram is their most popular app for brand discovery, with 45% using it to find new products. YouTube video is another way to reach Gen Z.

Gen Z Was Weaned on Digital, But Print Marketing Still Works

However, direct mail marketers shouldn’t assume only a digital strategy can work with Gen Z. As IWCO Direct points out, Gen Z actually finds print media more trustworthy. An MNI Targeted Media study found that 83% surveyed said they turn to printed newspapers for trusted news instead of the Internet. Gen Z does not trust information on the Internet unless it comes from a website ending in .org or .edu, research showed. In fact, since Gen Z is online so often and using multiple devices, the biggest challenge is making a lasting impression, which is where trusted print material, such as direct mail that can be physically touched and revisited, offers an advantage. Omnichannel marketing that advertises on multiple online platforms and is combined dynamically with print is more likely to increase brand recognition than digital alone, per studies. For more insight on Gen Z marketing, including content and influencer strategies, check out this recent Forbes article.


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Basic Steps Help Maximize Direct Mail ROI

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Industry data shows that direct mail is still relevant and effective in this digital era, which is why clients continue to come to AccuList for its expertise in targeted direct mailing lists and data services. While postal mail wins a higher response rate than other direct marketing channels, its higher costs also intimidate those wary of ROI stumbles, so as marketers begin to prepare 2020 budgets, we’ll pass along some key tips for making “the most of the post” from Chief Marketer.

Keep It Clear and Simple—With a Wow Factor

Anxious to pack in maximum value for the cost of postage, direct mailers can create counterproductive pieces. Long-winded content and pieces crammed to the gills with words, images and multiple messages actually can create confusion that drives recipients away rather than calling them to action, the Chief Marketer article warns. Instead, use white space judiciously to highlight key content, keep messaging direct and simple, and make the offer and call to action clear and easy to follow. If you have multiple messages, consider multiple mailings. On the other hand, don’t be afraid to think big and out-of-the-box. Look for a wow factor that will stand out amid mailbox clutter. Oversize or dimensional mail pieces, promotions ranging from a personalized item to a free report, or an overnight envelope that sparks open-me urgency are examples that have proven effective in boosting response.

Focus on Quality Lists and Targeted, Personalized Content

Direct mail success starts with clean, up-to-date list data and selective targeting of prospects or customers. Just choosing the right targets is not enough, however. They must receive the right message. Marketers should use demographic, geographic and psychographic parameters to segment lists and then variable data printing to craft personalized content to send the right message to the right audience. Chief Marketer cites the marketing strategy of healthcare insurer Blue Cross Blue Shield of Michigan, which works with PFL marketing/printing and Salesforce Marketing Cloud to score its membership based on various criteria and then sends a tailored direct mail piece likely to drive engagement to each member. 

Test and Track to Maximize ROI

Trying to reduce mail costs by skimping on testing—whether of list, creative or offer—is sure to backfire in terms of ROI, warn the experts, especially when introducing a new brand, product or creative. Always test to optimize response before risking the cost of rollout. Also, failing to track mail response across channels, especially in today’s multichannel world, will compound ROI risks. Before you mail, consider how you will measure ROI, such as visits to a unique URL, calls to a dedicated 800 number, mailed reply card, or other response device, advises the article.


Plan How Mail Fits With Multi-channel Branding

Direct mail today rarely exists in a vacuum. Marketers simultaneously support promotions via websites, e-mail, social media and even TV. Before launching a direct mail campaign, decide how postal mail fits and interacts with other channels and branding initiatives. Make sure direct mail messaging is consistent with cross-channel efforts and brand identity. For more, see the full post of Chief Marketer tips.

The Right E-mail Tactics Can Make Holidays Merry for Retailers

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The holiday buying season is around the corner, and e-mail is more important than ever in the retail marketing mix for both existing customer lists and prospecting e-mail lists. Marketers planning for fourth quarter success may want to check plans against the “Ultimate Guide to Holiday E-mail Marketing” post offered by Campaign Monitor for some basic strategies and examples.

Leverage Online Buying, Mobile and Personalization Trends

Targeted e-mail marketing is positioned to capitalize on three big retail marketing trends: online buying, mobile commerce, and personalization. Four out of five Americans are now online shoppers, per Pew Research, so marketers will want to join the 41% of retailers that use “Buy Now” buttons in their e-mail marketing to link shoppers directly and quickly to online purchase pages. Mobile-optimized e-mails (linked to mobile-optimized landing pages) will also deliver more dollars because half of those online buyers make purchases using a mobile device. Sales on both Black Friday and Cyber Monday in 2018 surpassed $2 billion, breaking the previous record set in 2017, and, according to Movable Ink, 76% of Black Friday e-mails and 63% of Cyber Monday e-mails are opened on a mobile device.  Finally, now that personalization is demanded by consumers across channels, quality e-mail list data and segmentation can create the personalized e-mail messaging that delivers six times higher e-mail transaction rates, that converts 202% better than default e-mail calls to action (per HubSpot), and that generates a median e-mail ROI of 122% (per Instapage research). And don’t forget that personalized e-mail subject lines generate an average of 50% higher open rates (per Oberlo data)!

Start by Crafting Subject Lines that Get Opens

Indeed, the subject line is the first step in getting an e-mail noticed and opened. And on the subject of subject lines, Campaign Monitor has distilled some key tips. As noted above, personalize the subject line to boost open rates, using list data such as first name, for example, as well as relevant messaging based on purchase history, geography, gender, site actions/browsing, etc. Keep the subject line short but pack in “power words” that tap emotions and drive action, including sales-driven words (deal, promotion, discount, savings, free shipping); time-urgency words (order now, limited time, today only, last minute, exclusive); holiday references (12 Deals of Christmas, Season’s Greetings); and gratitude expressions (Thank you, appreciation, your support). Try engaging with a question (Need gift ideas?) or an eye-catching emoji. Brands using an emoji in their subject lines report a 45% increase in unique open rates, per Experian. Including an enticing offer in the subject line can help grab opens, too. For example, a mention of free shipping gains the interest of 74% of consumers, per UPS.

Use Holiday Messaging That Drives Action

Research shows e-mail creative earns more click-throughs and conversions by making the call-to-action prominent via an eye-catching button with short text (Buy Now, Save 40%). Make sure the button has a trackable link to a landing page where the recipient can buy the specific offer in the e-mail rather than a home page or generic purchase page where prospects must search for the offer. Overall, messaging can use holiday shopping fever to heat up response with tactics such as offering a gift buying guide, pumping a Cyber Monday or Black Friday sale, offering a special gift for referring a friend, incorporating a traditional or pop-culture holiday theme, or catering to panicked last-minute shoppers (In 2015, the average shopper had only completed a little over half their shopping list two weeks before Christmas). For inspiration from real e-mail examples, go to the Campaign Monitor article.


Research Shows ABM, AI, Analytics Drive B2B Marketing Success

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A new report based on business-to-business marketing data from Salesforce Research, Forrester Research and the Information Technology Services Marketing Association shows how technically sophisticated top-performing B2B marketers have become in order to woo today’s demanding clients. “B2B marketers are increasingly using a mix of account-based marketing (ABM), artificial intelligence (AI), and analytics to connect the right customers with the right content at the right moments,” concludes B2B Marketing Trends: Insights From the Frontline released in June. To enlighten our B2B clients, AccuList can pass along a few key findings.

Unified Data Vital to Personalization Demand

Today’s business buyers demand personalization: 69% of business buyers expect companies to anticipate their needs, and 60% of business buyers are comfortable with companies applying relevant personal information in exchange for personalized engagement. B2B marketers are not quite up to speed yet, however, with only 46% of B2B marketers reporting a completely unified view from customer data sources. This is true even though most marketers agree that personalization improves brand building (92%) and customer advocacy (80%). The high-performing marketers have invested in customer data and are reaping the rewards, with 66% of high-performing teams saying they are satisfied with their ability to use data to create relevant, personalized experiences. In contrast, the under-performers are way behind, with only 7% satisfied with their use of data.

High-Performing Marketing Teams Use ABM

Account-based marketing (ABM) programs are collaborative efforts between marketing and sales teams, designed to focus attention on high-value customer accounts. High-performing B2B marketing teams are much more likely to collaborate effectively with sales teams on ABM programs (54%) compared with under-performing marketing teams (34%), according to the report. Because of the value of ABM programs, one-third of B2B marketers are currently planning to build them into their existing marketing automation platforms. Among B2B marketers using ABM, the ABM programs now account for more than a quarter of their total marketing budgets. Why? Nearly half of ABM users say the programs deliver higher ROI than comparable marketing methods: 77% of ABM users are achieving 10% or greater ROI, and 45% of ABM users are seeing at least double ROI compared to other marketing methods. ABM ROI is not a slam-dunk however; the top four challenges reported include getting data and reports to track results, personalizing marketing to key account contacts, getting adequate budget to support programs and resources, and developing customizable, scalable campaign assets. To further leverage ABM, many marketers have added, or plan to add, technology platforms such as website personalization to serve relevant content, predictive analytics to select accounts, and business intelligence or ABM data aggregators to measure results by account, etc. Also gaining in popularity is use of chatbots or conversational interfaces, while traditional efforts such as personalized, dimensional direct mail integrated into digital marketing continues to bolster ABM, too.

Growing Use of AI by B2B Marketers

Some 69% of business buyers expect personalized “Amazon-like” customer experiences today, per the recent B2B report. As a result, AI usage among B2B marketers grew 23% in 2018, with the majority of these marketers using AI within marketing platforms to optimize mid-cycle engagement. B2B marketers are using AI to facilitate online experiences with offline customer data, to drive next best offers in real time, to improve customer segmentation, to create dynamic websites and landing pages, and to personalize overall customer journeys, as well as a number of other goals. B2B marketers are also beginning to use AI technology beyond their marketing automation platforms; for example, almost half of B2B marketers use connected devices, and one-third added voice-activated personal assistants (such as Apple’s Siri and Amazon’s Alexa) in 2018. Register to download the free “B2B Marketing Trends: Insights From the Frontline” for more data on other B2B marketing trends.

Corporate Gift Marketers, Buyers Ready for Year-End Holiday Push

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Corporate holiday gift-giving lies ahead, and AccuLIst’s clients offering food and wine gifts and promotional products designed to clinch customer loyalty are gearing up for a key business-to-business marketing season. So what are major factors affecting corporate gift-giving in 2019?

Meeting and Exceeding Expectations

Corporate gift buyers and gift marketers will want to keep in mind some of the essential factors that affect gift satisfaction, as cited in a recent The Balance Small Business blog. To generate the desired client response, corporate gift givers should keep in mind 1) organizational policies, which may limit the dollar value of gifts or even prohibit gifts; 2) the personal preferences and needs of the recipient (note that today’s customer expectations of personalization apply); 3) any cultural/local differences (for example, a white-wrapped gift may not be well-received in Asia where white is the color of death); 4) the perceived quality of the gift and its packaging (although gift value should be proportional to client value so that a $200-a-year client doesn’t get a $300 gift); 5) today’s preference for a personal touch, such as a handwritten note or in-person delivery; and 6) IRS deductions (business gifts in the U.S. are tax deductible up to $25 per person for the tax year, although rules differ by business structure). What type of gift will meet most businesses’ requirements? The American Express Semi-Annual Small Business Monitor survey found that today’s top corporate gifts include cards or calendars (49%); gift certificates for retail or restaurants (26%); company-branded items (23%); a fruit/food basket (18%); a charity donation (18%); flowers/plants (10%); and wine/liquor (10%).

Value and Personalization Score with Clients

For more ideas, check out a 2019 Hubspot article listing more than 20 gifts rated as likely to keep clients thinking positively about a company throughout the year. Most fell within the general categories noted above, but here are the more specific descriptions for added inspiration: a terrarium or succulent garden; professional notebooks; coffee or tea blend packages; calendars; a coffee table book; a toiletry bag for travel; a gourmet food basket; a portable phone charger; a K-Cup coffee sampler; a Kindle e-reader; a custom-quality water bottle; online classes; a BarkBox gift for a pet owner; a charity donation; a beer brewing kit; quality clothing with a subtle logo; a restaurant gift card; a bakery delivery; a cook’s basket; a catered lunch; custom balls and tees for the golfer; and headphones. Note that six gifts involve a food and/or beverage basket. In choosing that basket, gift buyers may want to consider the 2019 ratings just out from Top Ten Reviews.

Top-Rated Gift Baskets for 2019

AccuList’s client Wine Country Gift Baskets once again ranked high with Top Ten Reviews for 2019. The reviewers tested baskets from the top 11 gift basket companies for taste, presentation, pricing/value, payment and delivery, customer support, number of basket types and special options (such as Kosher). Harry & David’s Founders’ Favorite Gift Box was rated “best overall,” while Wine Country Gift Baskets’ Gourmet Choice Gift Basket received “best value” for the amount and selection of foods for the price. For foodies, igourmet.com’s California Classic Gift Box was rated as “best for food connoisseurs.” To really personalize to individual tastes, the Design It Yourself company lived up to its name and was ranked as the “most personalized” option, while Gourmet Gift Baskets impressed among alcohol-themed hampers. Read more details on all gift basket ratings.

Is Your Direct Marketing Realizing Personalization’s Potential?

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Every direct marketing effort today starts with an assumption of personalization. In fact, with today’s tech advances in digital data, marketing automation, AI, variable data printing and more, the simple “Dear FirstName” personalization of yesteryear has been replaced by goals such as “hyper-personalization” and “personalizaton at scale.” Barry Feldman of Feldman Creative recently put together an infographic for MarketingProfs to illustrate the potential of personalized marketing for those who still think appealing to “FirstName” is enough.

It All Starts With Good Data

Before summarizing Feldman’s infographic, we would point out that, as data brokers and data services providers, AccuList is especially interested because personalized marketing relies on up-to-date, enhanced, accurate data to deliver on the promise—the right message, to the right person, at the right time—whether for customers or prospects. Customer outreach and the customer-based analytics for targeting prospects require collecting data from as many sources as possible: CRM, web activity, e-mail, direct mail, mobile apps, second- and third-party demographics, social media, and multichannel advertising. And then that data must be combined and maintained in a regularly hygiened customer data platform. Haven’t gotten there yet? You’re not alone. Only 5% of marketers have attained a single customer-data view that allows launching personalization across channels, per the infographic.

Why Invest in Personalization? Buyers Demand It

So why worry about an edge gained by just 5% of competitors? When 78% of Internet users say personally relevant content increases their purchase intent, and 81% of consumers say they want brands to know them better and to know when (and when not) to approach them, any brand that is ignoring that demand for personalization is ignoring the bulk of their potential market. What do customers and prospects want? Feldman’s infographic breaks it down into “four R’s” based on research: Recognize, Remember, Relevance and Recommend. People expect to be recognized by name and to have their preferences remembered so that brands can make suitable recommendations and send relevant offers.

The Payoff Is Big in Financial and Brand Clout

The bottom line shows why the “four R’s” matter. Studies find that personalization can cut acquisition costs by up to 50%, lift revenues by 5%-15%, and increase the efficiency of the marketing spend by 10% to 30%, per the infographic’s sources. Plus, in a competitive market, personalization will woo the 60% of shoppers who prefer to do business with brands that provide personalized, real-time offers and promotions. This is especially true if the customer experience is consistent across channels. With omnichannel personalization, studies show that marketers can achieve the multiple goals of boosting response, improving customer experience, increasing brand loyalty, driving revenue and delivering creative consistency across channels.

Omnichannel Personalization Includes Direct Mail

While discussions of one-to-one marketing often focus on digital efforts, traditional direct mail also has benefited from the technology trends driving personalization. Of course, a postcard or an envelope are, in a sense, always personalized by name and address for delivery, but inside the envelope or mailer, a letter, reply card, lift note, coupon, etc. can be personalized even more extensively. For example, a personalized pre-filled reply card has the advantages of both increasing response by cutting recipient effort and ensuring reply completeness and accuracy. More important, with enough quality data on recipients and modern variable data printing (VDP), messaging can be modified for each recipient based on database/list information such as purchase history, demographics/firmographics and online activity. A business-to-business campaign can be tailored by industry, title, association membership, online visits and more. A retailer can use product purchase history to craft discount offers, up-sales and cross-sales. An auto insurance mailer can leverage policy expire date, owner age, vehicle information, online quote requests, etc. to create a timely, personalized offer. VDP can even tailor graphics to fit individualized content. Plus, printing a personalized url (PURL) is one option that can take a curious recipient to a personalized online landing page with a pre-populated form and select offers. Or unique QR codes can be printed to take each recipient to a custom, personalized web page. There’s no reason for direct mail to remain stuck in the “Dear FirstName” era of personalization!

Latest Data Shows Direct Mail Is Still Alive, Well and Effective

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Some marketers theorize that “direct mail is dead” about as often as “Game of Thrones” fans theorize about the fate of favorite characters. So for all of AccuList’s current and future direct mail list and data services clients, here is current proof that direct mail is alive and well, and still a key direct marketing tool.

Marketing Mail Enters 2019 on a Growth Path

The U.S. Postal Service reports that revenue for the first quarter of fiscal 2019 (October-December 2018) was up 2.9% to a $19.7 billion total over the same prior-year quarter. A decline in First Class Mail dollars and volume was more than offset by Marketing Mail’s 4.9% increase in revenue, up by $218 billion, and 4.8% bump in volume, up by 1 billion pieces, combined with Shipping and Packaging revenue growth of 8.7%, up by $516 million, and a 5.4% volume bump, up by 93 million pieces.

Mail Response Outpaces Other Channels

We’ve reported it before, but it bears repeating because it explains why direct mail is still an important marketing tool in this digital age: The 2018 DMA/ANA Response Rate Report shows an average direct mail response rate of 9% for house lists and 5% for prospect lists, stellar rates compared with response rates of 1% or less for e-mail, social media, paid search and display ads. In fact, lower mailbox volumes actually have helped turbocharge mail response in an era of digital promotional bombardment, from e-mail, to online ads to mobile ads. Consider that, each day, an average of 107 e-mails per person are received globally and an average 63 ads per person are viewed, but only an average of two pieces of mail are received per person. It’s clear which channel gets the audience attention and why 75% of households read or scan their direct mail ad materials daily, per a USPS 2016 study. Not only was direct mail the top purchase influencer among Baby Boomers, even beating out family and friend recommendations, per a 2015 MarketingCharts study, but even younger, digitally addicted generations are fans of direct mail, too. According to USPS studies, 77% of Millennials pay attention to direct mail advertising, 90% think direct mail advertising is reliable, 57% have made purchases based on direct mail offers, and 87% of Millennials say they like receiving direct mail. Direct mail works or an even younger group of consumers as well: 69% of 18- to 24-year-olds prefer reading print and paper communications over reading from a digital screen, per paper-producer Sappi.

Mail Wins by Being Trusted, Engaging and Personal

How can direct mail work so well across generations of consumers? First of all, in an age where trust in advertising is at a minimum, 76% of consumers say they trust direct mail when they want to make a purchase decision, and trust it more than digital channels, per a 2016 Marketing Sherpa study. Direct mail is also more engaging, memorable and persuasive, per neuroscience studies. In fact, a 2015 Canada Post neuroscience study of direct mail found that direct mail’s motivation response, its persuasive power, is 20% higher than digital media’s motivation response. Finally, in an age when personalization is expected and demanded, direct mail can harness multi-channel databases to machine learning/AI, variable data printing and behavior-based triggers to produce timely, highly personalized messaging, images and offers, way beyond the old first-name addressing of the past. Need more convincing? Check out direct mail solutions provider Compu-Mail’s slide show of 35 direct mail statistics for 2019.

Personalization Is Now Key to Insurance Marketing ROI

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Personalization has become a mantra for all direct marketers, but it is especially relevant to AccuList’s insurance marketing clients. According to an Accenture 2018 study, 80% of insurance consumers are willing to share data to get more personalized offers, messages, pricing and recommendations from auto, home and life insurance providers. Although over 70% of insurance marketing campaigns claim to use some personalization, surveys show marketers are not doing enough to satisfy that customer demand. As a result, marketers can miss out on personalization’s proven power to improve response and ROI, lower acquisition costs, and enhance cross-selling.

Personalization Revs Mail’s Acquisition Power

While digital data often leads conversations, the importance of personalization in traditional direct mail, still an insurance workhorse, should not be ignored. After all, direct mail is considered more personal than digital by 69% of recipients, giving personalized content extra power. Direct mail also gets an average 9% response rate for house lists and 5% for prospects, per 2018 DMA/ANA data, compared with 1% or lower for other channels. Plus, for the digitally addicted, adding direct mail to digital bumps up conversion by 28%. A recent article on insurance marketing from agency Ballantine advised on top ways to maximize mail ROI, and, no surprise, personalization dominated—assuming clean, up-to-date mailing lists with important targeting parameters. First, marketers can use variable data printing and database parameters to personalize content and images to match the consumer’s life stage, so, for example, auto policy creative targeting a young single first-time car buyer differs in messaging and images from the creative for an older couple with a minivan. Next, marketers can personalize rates by taking into account factors such as the age and gender of the targeted recipient. And they can tap personal interests by leveraging affinity relationships, such as a specific sports team or association affiliation, via targeted discounts. Personalization shouldn’t stop with the mailing package but should then continue through the customer journey. Marketers can study the sales funnel to find when leads are most likely to drop out so that processes can be simplified, streamlined and further personalized to boost conversion. Simple examples include pre-filled forms and postage-paid return envelopes.

It’s All About Prospect and Policyholder Data

Meanwhile, One Inc., an insurance software company, offers a helpful roadmap to digital personalization. As with direct mail, marketing begins with quality consumer data and analysis, taking a step beyond age, gender and location to parameters that identify unmet needs and customer value for targeting and prioritization—such as a recent move, a new home, a new baby or an upcoming policy expiration date. Next, marketers need to track lead and policyholder actions to decide on the specific digital behaviors that will trigger a personalized response, say following up an online request for information with a series of lead-nurture e-mails. Then, marketers can design and test small campaigns of personalized content and process before expanding to more channels and audiences. Once strategies and processes have been developed and tested, an investment in marketing automation technology can follow, including AI algorithms using real-time data and behavior to tailor offers, customer service, cross-selling, lead scoring and more. Indeed, the advent of AI in the digital world is accelerating consumers’ personalization expectations, and the impact on the insurance industry is expected to keep rising in 2019, per articles.

Retention Relies on Smart Personalization, Too

Meanwhile, studies show personalization is also essential to cost-effective policyholder retention. One Inc. provides this example: An auto policyholder has a documented poor experience when filing a claim, putting the client in a “high risk” category for churn. Based on industry data that policyholders typically shop roughly two months (60 days) prior to policy expiration and that roughly one-third of shoppers switch carriers, marketers use the policy expiration date and contact information to send a letter 60 days before the policy is set to expire, personalized by the policyholder’s name, of course. The letter includes a personal note that acknowledges the poor experience and pledges to do better, an offer of a discount for renewing early, and rep contact information for quick response to questions or concerns.

Fundraising Challenges Include Gen Z, E-mail, AI

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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

Digital Options Lead 2019 Insurance Marketing Trends

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Digital marketing trends dominate professional advice for AccuList USA’s insurance marketing clients this year, from e-mail to social media to online search.

Trends Favor Personalized, Client-Focused Campaigns

Whether insurance marketing via digital or traditional channels such as direct mail, there are some general trends affecting success in 2019, per the American Agents Alliance. First comes the continued value of cultivating brand advocates with testimonials, referrals and word of mouth. Quoting Forbes magazine, “the top four most-trusted sources of advertising are people you know, branded sites, editorial sites, and reviews.” A myopic focus on impersonal advertising will miss these important lead drivers. The personal touch needs to extend into offering targeted, personalized digital and print content that is useful and engaging, as well as client interaction that is real and humanized, not generic and automated. Plus, marketers should take a longer view of prospecting and retention by continuing conversations via remarketing, the AAA advises. And finally, insurance marketers need to really listen during conversations with clients and prospects to understand pain points and how people shop online with search and voice queries in order to develop effective creative content and include key phrases for paid and organic search.

Tweak E-mail & Search to Retain Their Digital Clout

Insurance agency/broker marketing agencies like EaseCentral and OutboundEngine offer some advice on where to focus digital marketing energies more specifically in 2019. Start by revisiting e-mail strategy. With an average $32 return per $1 spent in 2018, e-mail remains an attractive direct marketing option not only because it is inexpensive, highly targeted, and an ROI leader, but because it also offers opportunities for the forwarding, social sharing, and referral business in line with the general trends noted above. However, be sure to check e-mail creative to make sure it is personalized and shares valued content, focusing less on promotion and more on audience needs. Another tried-and-true digital driver, paid and organic search engine ranking, still matters, but search strategy needs an important tweak this year to cater to the growth of voice searches. EaseCentral points out that ComScore forecasts close to 50% of all searches will be made through voice search by 2020. Plus, due to the increasing use of voice search, Google and other search engines are beginning to factor it into their algorithms. Mobile optimization will play a big role in effective leveraging of voice search since these searches occur mainly on mobile devices.

Leverage the Power of Social Media Marketing

Making the most of social media will be a challenge in 2019 as organic reach shrinks and promotional pricing rises, but social platforms offer some unique advantages for insurance marketers looking for a way to humanize and personalize services. For example, EaseCentral suggests using social media to implement a more personalized customer service, with client accessibility on Facebook and LinkedIn. OutboundEngine meanwhile urges more direct marketing via promoted posts and social ads, taking advantage of social media platforms’ increasing ability to target zip codes, professions and other demographics to hone response. In the social media sphere, blogs are the king of content creation, reminds EaseCentral, allowing an insurance marketer to prove expertise and build trust. But remember that a blog’s content-marketing success will require avoiding sales pitches in favor of engaging information of value to the audience.

Embrace Video As the New Must-Have Tool

Video is now a proven response driver in digital marketing for almost all industries, and with online video projected to account for 80% of all web traffic in 2019 per Cisco research, it is a must-have tool in insurance, too. It works for consumer and business prospecting; OutboundEngine cites a recent Forbes finding that an average of 40% of decision-makers call a vendor after watching a video. How to capitalize on the video wave? OutboundEngine suggests the following ideas for website and social media insurance-branding videos: Live stream (with permission) part of an event or fundraiser attended; record a 30-second clip once a week answering a frequently asked question; or post an Instagram story about volunteering in your local community.