90 Direct Marketing Tips in 60 Minutes

0 to 90 in 6090 direct mail tips in just 60 minutes!

Leah Eustace, CFRE

@LeahEustace

2

Set the right goal

• Be clear on what you’re trying to do with your pyramid

• Stabilize the base• Grow the base• Grow the vertical

3

Be realistic about growth

• How ‘sexy’ is your cause?

• Are you Sick Kids or the Psoriasis Foundation?

• Set targets appropriately!

4

Set long-term direction

• Have a multi-year

(3-5) direction• Make sure this year’s

plan fits into the bigger picture

5

Make sure everyone’s on the same page

• Set expectations throughout the organization

• Educate leadership – both staff & board

• Failure to do this may upset your apple cart down the road!

6

Offer donor choice…

• Number of appeals• Stewardship options• E vs. paper receipts,

newsletters etc.• Phoning okay

Greater choice =

greater loyalty!

7

Integrate channels

• DM was a stand alone tactic in the 1980s

• Not any more• Multi-channel world• Phone, online, face-

to-face• Seamless baby!

8

Get your data house in order

• Your direct mail program will only be as successful as your data allows it to be.

• Invest in proven fundraising software – and make sure someone is properly trained to get the most out of it.

9

Put your year on a spreadsheet

• Mail dates• Mail types (donor

renewal, prospect etc.)

• Costs• Response rates• Average gift• Revenue – gross

and net• Key ratios

10

Make a creative plan

• Themes• Signatories• ‘looks’• Length• Inserts (if any)• Info required

11

Make a critical pathfor each campaign

• Work dates ‘backwards’• Include all key milestone

dates• Work from this document

daily – or put reminders in your outlook calendar

• If the path is met, the mail drops on time!

12

Case for Support

• Take the time to write a powerful case for support

• We’re amazed at how many organizations don’t have one (even the big guys)

• A solid case saves time in the long run

13

Line up your people

• Ensure everyone knows what’s expected of them – and when it’s expected

• Interviewing signatories• Lining up suppliers• Everyone who needs to

sign off

14

Set your evaluationmethods in advance

• What determines success & failure?

• Driven by strategy• Key performance

indicators will come into play (more later!)

15

“Demographics are 2/3 of everything” ~ David Foot

• 83% civic generation• Born pre-1946• Also called WW2

Generation• Grew up before

television• Older, empty nest

churchgoing woman

16

Meet Jacqueline

• Make sure your package design, letter copy speak to her – and not your executive director!

• Focus group a letter with an elderly neighbour rather than your communications staff

17

Carrier envelope

• Only purpose is to be opened

• Simple often works best

• Use teasers only when they contribute

18

Letter

• Purpose of the letter is to create the impulse to give

• Stay focused on purpose

19

Reply coupon

• Purpose is to facilitate easy giving

• Make it easy to use!• Don’t get complicated

20

Business reply envelope

• Just make sure you include one!

• Don’t send your donor looking for envelopes and stamps

• Make it easy!

21

Remember that oldereyes prefer…

big

fonts

22

Count your I’s and you’s

• The donor prefers to read ‘you’ to ‘I’

• Say you twice for every time you say I

23

Write emotionally

• Human beings are emotional animals

• We decide on our emotions

• Strike the right chord to generate response

24

Our favouritefundraising maxim

“The institution has no needs”

It’s all about connecting the donor with the beneficiary of the gift.

25

Take as long as it takes

• Despite what your boss thinks, long letters outperform short ones

• Take as long as it takes to tell your story

26

It’s direct mail, sobe direct

• Don’t be afraid to ask• Be as specific as you

can with your ask• Don’t be afraid to ask

more than once• Asking is why you’re

writing

27

Focus on benefits –not features

• A feature describes• A benefit is an outcome• Donors want to create

the benefit with their gift• It’s shorter emergency

room wait times – not an enhanced intake system

28

Positioning – the battle for the mind

• What’s your unique selling proposition?

• If you’re not unique, you’re interchangeable

29

Book Tip

“Positioning, the

Battle for the Mind”

By Al Reiss & Jack Trout

30

The success formula

problem

+

solution

+

credibility (yours)

+

ask

31

The offer – the reward

• Donors don’t just give• It’s an exchange• Each party gets

something• For the donor, it’s the

psychic reward• Talk about that

reward

32

Book Tip

“Influence – the Psychology of Persuasion”

By Robert B. Caldiani

33

Don’t crowd

• Short sentences• Short paragraphs• Leave lots of white

space• Make it easy to read

34

Write like you speak

• Your grade four English teacher would be furious!

• Incomplete sentences• Contractions• Hyphens• The eyes lead to the

brain – the ears to the heart!

35

Authentic copy

• Make your letter sound like it REALLY comes from the person who signed it

• Capture the voice/personality

• Interviews work best

36

Be very careful

Not to use jargon

“enhancing indigenous capacity-building among community-

based non-governmental organizations”

or

“helping people help themselves”

37

Appeal to the senses

People’s

imaginations can

see, smell, taste

touch and hear.

38

Book tip

Made to Stick

is a great book

that will help your

messages both

penetrate and stay

in the donor’s mind.

39

Passion is infectious..

If you show your passion for the cause, the donor will be infected.

40

Ease of reading

• Black type on white background

• Lots of visual contrast

41

A picture is wortha thousand words

Photographs amplify your message

42

Use a serif font

The preferred

font of direct mail

(older) donors

43

Tell great stories

Human beings communicate by telling stories

44

Book Tip

“The Story Factor”

By Annette Simmons

45

Key Performance IndicatorsDonor Acquisition Cost

• Gross revenue minus expenditure

• Divided by number of new donors

• Sector average is $25

46

Conversion rate

• Rate at which first time donors make a second gift

• Repeat donors divided by once-only donors

• Sector average is about 35-40%

47

Conversion Tip

Call new donors simply to say thanks and welcome.

48

Conversion Tip

• You don’t get a second chance to make a first impression!

• Get the thank you letter and tax receipt mailed within 72 hours.

49

Conversion Tip

Send a welcome kit to first-time donors

50

Average gift

Gross revenue divided by number of gifts

51

Gift frequency

• Average number of gifts per active donor per year

• Total gifts divided by total number of active donors

• Sector average is about 1.3

52

Renewal rate

• Rate at which active donors renew their giving in subsequent year

• Number of this years renewers divided by all last year’s active donors

53

Renewal Tip

You may need to add another renewal appeal to your yearly program to maintain your renewal rate.

54

Renewal Tip• Use newsletters to best advantage• Show money at work• Show positive results• Create donor satisfaction before

re-soliciting.

55

Active donor life expectancy

• Average length of time during which an active donor will continue to give every year

• Function of renewal rate• Refer to CMA handbook

56

Repeat donor investment

Donor acquisition cost divided by conversion rate

57

Lifetime value - gross

• Total revenue you’d expect from an active donor before she lapses

• Average gift x gift frequency x life expectancy

58

Revenue to cost ratio

• Key measurement of efficiency

• Compares costs to revenues

• Total revenue divided by total cost

59

Lifetime value - net

• True return on new donor investment

• Gross return minus costs

• Gross lifetime value divided by the left number in the revenue to cost ratio

60

Production

• Tender elements of production process to a number of suppliers

• Give them the specs and hold an auction

• Keep them competing for your business

61

Communicate withsuppliers after the fact

• Give them feedback on what you were pleased and displeased with

• Little rewards can go a long way next time

62

You can save some money..

• If you order a year’s worth of business reply envelopes all at once

• Some suppliers will even store them for you

63

Guinea pig?

• Sometimes a supplier will give you a big discount if you’ll test drive a new product or service

• Hand addressing for a nickel

64

Using photos

• Photos can certainly enhance your story and make your ask more compelling

• But no photo is better than a bad one

• Make sure you use high resolution photos with lots of contrast

65

Get thank you lettersand receipts out quickly!

It shows appreciation – and – that you’re organized.

66

Create a segmentedfulfillment grid

• Create ‘categories’ of thank you tactics

• Simple form letters to smaller gifts

• Personalized notes and/or phone calls to more generous gifts

• Use board members to call if you can!

67

Upsell

The thank you letter is a

wonderful opportunity to

talk about upgraded giving.

68

Donors are starving to see

• Their dollars at work

• Talk about how you’re using their gift

69

Test in each mailing!

• Lists – acquisition• Personalization• Packages• Carrier envelopes• Reply devices• The list is endless!

70

Book Tip

“Revolution in the Mailbox”

By Mal Warwick

71

Segment mailings

Gift size and recency are a great help to planning and measuring your campaigns.

72

Acquisition best practice

• Always test a new package against your control package

• You do have a control package don’t you?

73

Donor engagement

• Donor surveys are a great way to engage – and get valuable information

• We often use them with January renewal mail campaigns

74

Donor engagement

• Can you connect your donor directly to the recipient of the gift?

• Why do you think child sponsorship programs are so successful?

75

Monthly donor conversion

• Have a plan for monthly donor conversion

• Monthly donor lifetime value four times greater

76

Set a target..

Most organizations can convert 5% to 10% of their donors to monthly if they do it right.

Get on the telephone

77

Mail and phone work best to convert donors to monthly.

78

Best monthly prospects include

• Multi-donors• Credit card donors

Follow up

79

• Make sure you follow up on expired credit cards

80

Make a communications plan

• For your monthly donors• Don’t just take their money• Keep informing them of how

you’re putting their money to work

• Keep saying thanks

Upgrade

81

Ask monthly donors to increase their monthly gift after two to three years –

But

Give them a good reason to!

82

Monthly Giving - Book Tip

“Hidden Gold”

By Harvey McKinnon

83

It’s time to starta mid-level giving program

• 17% of your direct mail donors have made single gifts of $500 or more to charity

• You want a share of that market

• Make a plan – and execute it

84

Two keys for success

• Make the offer as specific as possible (quasi-designated if you will)

• Promise added value re: stewardship

85

The legacy gift gold mine

• One-third of your direct mail donors have either left a charitable bequest or are considering one

• This money will overtake DM revenues in 8-10 years

86

Integrate!

• Mail both annual giving appeals with legacy mailings throughout the year.

• Take the time to bring the silos down

87

Use a synergy

• Of major gift strategy and direct mail tactics

• Take the time to cultivate (at least a year)

• Ask appropriately

88

Best legacy prospects include

• “Miss”• Loyal• Monthly (mail or

phone sourced)• Large single gift

89

Your direct mail donorsare open to being cultivated

• But they want to hear from you by mail

• Don’t phone or visit• Let them control the

relationship• They don’t want to

feel pressured!

90

Best cultivation packages

• Testimonial from a living donor

• Vision piece from CEO

• Legacy-specific newsletter

• Testimonial from surviving loved one

91

Book Tip

“Iceberg Philanthropy”

By us!

92

Whew! I’m done!

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