G2/Canada PostG2/Canada PostAquiringAquiring New Monthly DonorsNew Monthly Donors

WebinarWebinar

February 2014

AgendaUpdate on Canada Post announcementDirect mail trendsList options offered by Canada PostCreative and best practices

Canada Post’s strategic direction

• TREND:

• Letter mail volumes are declining (Parcels and Direct Mail continue to grow)

• Canadians are relying less on physical letter mail and increasingly using electronic means to send and receive their bills and statements and are shopping more and more online

• Direct Mail marketing is growing as marketers are finding that e-solutions are not reaching all Canadians and greater targeting solutions are increasing ROI

• Canada Post is the best B2C solution for eCommerce in Canada seeing 8% growth year over year

• FOCUS:

• Grow our parcel business

• Growing and simplifying our Direct Marketing mail products

• Offering strong digital solutions including the most comprehensive up-to-date data lists in the market today

Canada Post unveils Five-point Action Plan

1. Conversion to Community mailboxes (CMBs) over 5 yrs2. A new approach to Lettermail pricing 3. Expanding convenience by opening more postal franchises4. Streamlining operations5. Addressing the cost of labour

• For Addressed Admail this is positive news! • With Canada Post’s POC and data targeting tools, we will enable more accurate

addressing from the outset. • And with our new equipment, sorting technology, and mechanized delivery (using fuel

efficient vehicles) these changes will have a positive impact on Addressed Admail delivery in the future. It could mean a more accurate and faster delivery window with greater visibility, possibly tracking.

• www.canadapost.ca

Tips on how to minimize the impact of these new changes

• Biggest impact of the announced changes for eNGO will be the lettermail rate. Lettermail rate is at 75 cents for metered letters.

• To keep this cost down consider: – Batching communications (loyalty, newsletters, acquisition etc.) into 1,000 or

more at a time. (Addressed admail rate: $0.44/piece) some preparation is required, please talk to your mailshop.

– Only issue receipts once a year, vs. every donation, or look for electronic means.

– Ensure your database is clean to ensure deliverability: • Use tools like address complete

• Smart data cleaner or other address validation tools

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Giving in Canada

Source: Imagine Canada

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Why Canadians Donate

Source: Imagine Canada

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Demographics of Donors

Source: blackbaud, The Next Generation of Canadian Giving, 2013

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Donors align to causes

Source: blackbaud, The Next Generation of Canadian Giving, 2013

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Donors respond to…

Source: blackbaud, The Next Generation of Canadian Giving, 2013

Direct mail is most acceptable behind only being asked by a friend.

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Donors are going online and to the mail to give

Source: blackbaud, The Next Generation of Canadian Giving, 2013

As online donations are increasing, mailed donations are also increasing

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Donors are going online…but why?

Growth in online donations from 2010 to 2013

Source: Dunham + Company 2012

The percentage of online donations made in the US because of a

message delivered…

by mail: 17%

by email: 5%

Who will drive donors online?

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Tips on telling a compelling story

Telling a story is a great way to get people engaged. People no longer want to hear a plea but want to be engaged. Tips:

1) Beginning with a meek opening – take advantage of the first glance.

2) Use subheads to break up copy – we now read “bits”

3) Use images of the person you are talking to – “that could be me”.

4) Involve the reader – paint the picture and help qualify the need

5) Integrate with other media - drive to website to provide a richer engagement such as a video, or reference other media or events.

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Data and listsMost complete residential and business address list in Canada

Addressed listsBased on the Canada Post operating database plus

White PagesSelf reported dataIndustry data

CensusPhone

Businesses

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Canada Complete Consumer ListsThe most complete, robust, and accurate consumer address data

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Reach and market penetration is comparable to other list providers

100% Address Accuracy in address data including complete apartment and suite information where  available

Exclusive targeting selects from internal and third party data sources (including New Movers and  eCommerce)

Incentives based on volume – eligible at 20,000 records

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Using Addressed Admail to Optimize your Mailings

Do Not Mail Does not meet your target profile

Acquisition In- fill to connect with the neighbours of your customers!

For customer retention and cross-sell use Addressed Admail!

XXXX

X

X XXX

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Address‐Only  Direct

Address‐Only List  

Delivered with Custom Greeting “Dear Occupant”

Names & Neighbourhood  Direct

Blend of Address‐Onlyand Name & Address List

Delivered with Names where available,  and Custom Greeting where not

Consumers  Direct

Name & Address List 

Delivered with Names

Canada Complete™ List Options The richest, largest repository of list data available anywhere

+

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Interests Understanding Consumer Behaviour

• Aggregated self‐reported data at the Postal Code level • Counts for each Interest category is based on the top 10% of postal codes that 

have self‐reported that interest

Interest Categories & SubcategoriesInterests can be selected by high‐level categories or sub‐categories*

Charitable Donors•Animal welfare•Children•Environment/wildlife•Health •Religious•# of donors > 2

Mail Order Buyers•Books•Clothing•Cosmetics•Gifts•Magazine•# of mail orders > 2

Common Ailments•Allergy, sinus or nasal•Arthritis•Diabetes•High cholesterol•Respiratory

Reading Preferences•Best-sellers•Bible/devotional•Business•Cooking•History•Medical•Sports

Travel•Preferences•Destinations•Reasons •Frequency

Finance•Credit card spend•Credit card features•Payment patterns•Investment•Loyalty card holders

Extra-curricular Activities•Cooking•Crafts•Sports•Woodworking•Theatre•Gardening

Pets•Pet owners•Cats•Dogs

* Full list of Interest categories available – refer to PDF

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AddressCompleteThe days of incorrect addressing information are over

* Canada Post Parcel Survey 2011 ** PCA Online Shopping Survey 2011

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CreativeThe other 30% of your marketing pie

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Customization and Personalization

The PlanThe Toronto Humane Society has been collecting pet names from their donors for quite some time. In each mailing sent (including acquisitions) they’ve been asking…“Tell us what kind of pet you have: dog, cat or other; and what are their names”. Initially they segmented the database by type of pet and including pet names. All this was also segmented by the ‘type’ of donor that THS was talking to - loyal, new, lapsed, etc.

The ResultsAs this initiative was being measured against the previous years Renewal (non- personalized) – it was a resounding success. It achieved double the response, the cost to raise a dollar dropped and overall revenues increased.

Source: direct marketing magazine

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Make your prospect feel the urgency of the situation. Show someone's life or welfare hanging in the balance. Make it clear that this person needs help now, not a month from now. Talking about past successes is fine, but the current problem must remain unresolved, needing immediate action from your prospect.

Explain the consequences if help doesn't arrive in time. When someone fights the urge, the result is guilt. Use it to your advantage. Don't lecture or chastise, but do be explicit about what is about to happen if the person doesn't get help soon.

Source: nthfactor

Urgency

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Utilize multi-channel strategies

Convert individuals who were not current donors, but had an established online relationship with the Foundation

The mailing yielded exceptional results in terms of response rate and average gift. By combining the strengths of physical mail and online media, the Foundation was able to turn engaged individuals into financial supporters.

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Grow value

Manage cost

Top 20%= 80%Retain

Maximize Donor Value

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Source: Grizzard

Encourage second gifts…quickly

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Convert to Monthly donor

Source: blackbaud, The Next Generation of Canadian Giving, 2013;

20 % of Canadian donors said they have given a monthly gift in the last two years.

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Convert to Monthly donor - Example

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Be Unique and relate to the cause

Targeting businesses in the Philippines to increase participation in Earth Hour

Result: 260% increase in participation over previous year

Source: Leo Burnett

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Make donors feel included

Summary/objectives:This special appeal, directed at existing donors to the International Campaign for Tibet, was intended to reinforce their commitment to the Free Tibet cause and to generate significant net revenue for the Campaign.

Special Characteristics:A black-and-white yarn ‘freedom bracelet’ included as a front-end premium.

Source: Mal Warwick

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Have Presence

Target: Working with a direct-mail consultant, the organization established a multi-year strategy that aimed to increase private donations to 50 per cent of all revenue.

Results: Today, the organization typically runs acquisition campaigns in Spring and Fall, and solicits active donors up to seven times a year. Acquisition mailings have yielded an overall ROI of 86% and retention mailings have yielded an ROI of 248%.

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The best snow is at your doorstep

Monarch airlines goal is to get more people to the slopes. After targeting specific postal codes that  match Monarch customer profiles, they identified a specific message for each profile. Each airport  participating in the campaign used their own area insight to drive effective messaging.

After downloading an app, users could snap a shot of the direct mail piece and be transported to a  3D rendering of resorts served by the airline.

Personalization & augmented reality

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Long live diversity 

IKEA campaign

Direct mail can push the creative boundaries to reinforce your brand

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Interact With Direct Mail, You Get To Create an Experience

Die Cut

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Dare Them

Interact With Direct Mail, You Get To Create an Experience

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OpticsSimilar to today, the  new templates will be  printed on the envelope  but they will give the  appearance of a stamp.

1 : 1The right side of the  indicia allows you to  make your Addressed  Admail more targeted  & more personal.

Making the Most of the Mail Moment Customized Addressed Admail Indicia

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Use the front of the envelope to get noticed

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Summary

Donors are looking for relevance and a cause to rally behind.

Personalized mail is still one of the most welcome and highest responding mediums

Using data insights to understand your customer is key to positioning your cause

Keep your data clean

Direct mail does not need to be expensive, it needs to be part of a strategy, not a “one-of”.

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Thanks for the support of: