DM 101 - Belardi Ostroy - Lists/Acquisition

Presented By:Brian DeLaite

Executive Vice President

September 18, 2013

Page 2September 18, 2013

Direct Marketing 101


To provide the attendee with an understanding of data sources & the development of acquisition planning and strategy


Direct Mail: Is it Dead?

In the US –Spent on

Direct Mail

Less than Spent on Search,

Display, Email, & Mobile Advertising Combined!

• Direct Mail has scale, endurance, impact & importance, acquisition and sensory benefits.

• Almost every household in the civilized world can be reached by direct mail.


Purpose

The Purpose of Direct Mail is Twofold…

• Direct Mail Revenue is responsible for building many of our country’s most important Nonprofit organizations

• For most small organizations, the most common source of funds is asking large amounts of people for small donations through Direct Mail


Educates prospects on mission of nonprofit

Creates awareness of issue

Increases “brand” recognition

New members/donors can become monthly givers and/or major donors

Supports other channels of fundraising

New Volunteers/Activists * Donate Goods Attend an Event Participate in a walk or run Volunteer to organize an Event Promote a charity on line Email or send a letter to an elected official Join a social network

Purpose

More Advocacy

More Fundraising

Creates more and More…


Factors to Achieve Success

• Lists

• Offer

• Copy

• Format / Packages

• Premiums / Benefits

If the mail piece does not reach the right people, Direct Marketing cannot do its job & will not be successful in

meeting its objectives.


Consumer lists change at a rate of about 2% per month as people are born, relocate, die or marry. NCOA adjusts for these factors.

ExamplesPhone Directories, Credits Records,

Deed RegistriesGovernment Data, Warranty

Cards, etc.

Commercial

Response Compiled

Consumer

Commercial Fundraising

Types of Lists Marketing and Targeting


Recency Dollar Gender Region Source Modeling

Member/Donor files Subscriber files Buyers Co‐Op Databases Compiled Survey Email Direct

“…better target prospect – lift response”

Other Factors:1. When was file last updated2. Selects Available3. Pricing4. Usage

Types of Lists Marketing and Targeting

Source of Prospecting Files for Fundraisers


Broker/List Manager

SRDS*/MIN/NextMark

Internet

Direct Connection

Exchange

Rental

One-Time Use

* SRDS = Standard Rate & Data Service. Database of media rates & related information – includes approx. 100,000 U.S. & Int’l media properties.

Approx. 25,000 Response Lists & 50,000 Compiled Files

Source of Lists and Types of List Transactions


Mailer

ListOwner

Clearance and Order Process


Represents the interests of the list owner ‐The Gatekeeper

Has historical record of key exchange relationships and keeps track of all offers,

mail dates, and pertinent competitive issues.

Works with multiple donor files – understands market trends & how to capitalize on them.

Expert at identifying, or overlaying, marketable segments of the donor file.

Can generate incremental revenue through list rental that can be used to re‐invest in your

acquisition campaigns.

Identifies who is mailing, when they are mailing, and what the opportunities are for their clients.

Why use a List Manager?


Awareness of current & historical trends in the overall direct mail market.

Expertise within your sector such as charitable, environmental,political, cultural/arts, etc.

Identifies the lists that are successful for a particular cause or membership offer.

Knows the characteristics and success of listsoutside of the core market.

Has the information on how a list was built & how often it is updated.

Mail responsive names that have both theto give to your cause.

Why use a Broker?


Why use a Broker?

• Works with the client to develop anacquisition plan including test recommendations.

• Identifies profitable segments on marginal/unlikely lists.

• Maximizes exchange opportunities & negotiates the best prices for you with the list owner.

• Coordinates with list manager for the timely delivery of names to the service bureau.

• Clears and orders continuation, retest, and test lists within a designated timeline.

• Invoices the campaign.

• Keeps track of the exchange balance between organizations.

• Evaluates response rates, average gift and other results.



Organization’s budget & goals determine the quantity to be mailed Prospecting is an .

Factors that determine the timing & number of Mailings per year: Expenses/Budget # of new Members/Donors to be added Timing of Cash Flow from New Donors Seasonality

Objective ‐ Most significant quality variable is the average gift amount

Average gift is also a key indicator of a donor’s upgrade potential& measurement of a stronger commitment

Structure of Acquisition Plan and Strategy


Know your primary, secondary & tertiary markets

Maximize the use of your core files Better target your marginal lists 10% to 20% of plan should be devoted to testing

List/Package optimization – Traditional/Mission based – Membership based or Premium based package Member/Donor lists are generally most responsive Test lists of Nonprofits whose mission is similar Hotline selects – great tool to get unique names & increase response rates. Cooperative Databases are must tests.

• Continuations• Retests• Tests


Must Lay aSolid

Foundation for your plan


Understand & reach the benchmark metric(s) established in your budget…

Use historical results and current trends to develop projections for each list…Rigorous, Quantifiable Metrics.

List selection is data driven. Not only qualify but must also quantify the viability of our

acquisition plan and strategy. Defend projections with objective data. Cause & Effect strategy…

Response Rate and Average Gift act like a weighted scale.

CAUSE & EFFECT

$$



Specifics of Mail Plan Development

Built on response information from previous mailings.

Quantities per list/select are input into the mail plan according to performance and most recent usage.

Universe counts Is the universe large enough to omit prior usage?

Strategize placement of list…how many mailings a year? Take all available and wait several mailings to mail again or take an nth amount so some quantity of list will be in each mailing.

Improve results by refining select segmentations 12 months instead of 24 months; 6 month instead of 12 Dollar amount of gift ($5+ versus $10+) Male versus Female Geo/SCF/Zip

Usage



When the right audience is targeted, a critical component of is met.

Returned, unwanted and undelivered mail produces vast amounts of waste paper.

Plan and implement the every step of the way: Reduce, Reuse, Recycle.

The ability to deliver your message to a precise audience ‐ produces cost effectiveness & environmental stewardship.



Prospecting is an .

Most clients keep 25‐35% of new donors in the 1st year; Multi‐year donors usually retain between 65‐75%.

Over the course of time if prospecting is not done in some manner– natural attrition will continue to exponentially reduce the size of your donor base.

Attrition and Acquisition of Donors


Speaker Contact Information: Brian DeLaite

[email protected]‐381‐1703