[PPT] - PLANNING & EXECUTING DIRECT MAIL ACQUISITION Presented by: PowerPoint Presentation

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Proven Practices in Fundraising Webinar Proven Practices in Fundraising Webinar Proven Practices in Fundraising Webinar

PLANNING & EXECUTING DIRECT MAIL ACQUISITION

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Virginia Dambach

Presented by:

Hosted by:

Dambach & more vdambach@qwestoffice.net 701-293-7281 Allegiance Software, Inc. webinars@allegiancesoftware.com 800-858-7654

Sarah Tron

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Why Acquisition Direct Mail?

Build Your Donor File More members = more add gifts

Reduce Churn Longevity is key to stable income flow and planned giving Increase Renewal Rate Direct mail acquired donors renew at higher rates Build Loyalty Direct mail acquired donors stay active longer than pledge or web acquired donors Cost Effective Initial mailing breaks even; subsequent mailings generate net revenue Grow Member File The more active accounts on file, the more money you’ll raise from renewals, add gifts, and sustainers.

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The Proof is in the Math

Acquisition Method 1st Year Renewal Rate Multi Year Renewal Rate % acquired in 2000 still giving Mail 56% 74% 39% On-Air 36% 69% 24% Web 48% 66% 25%

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Acquisition Mail Timing

Should drop within 10 -14 days of pledge drive/sharathon start date.
Serves as a multi-media approach to membership marketing.
Mail reinforces on-air pledge messages
On Air pledge messages reinforce mail
Both mail and on-air reinforce email messages
On-air drives, email appeals and direct mail letters stimulate web

responses!

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Secrets of Success

90% of your success depends on:

1.

Getting the Appeal in the Mail on time

2.

Mailing to the right lists!

a)

Lapsed donors from your own file

b)

Traded lists with area non-profits that share the same values/audience

c)

Purchased subscription and donor lists

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Evaluating Acquisition Lists

Balance between types – i.e. subscription, donor, compiled,

local trade

Type of List Shares target demographic Proven performance for

ther non-profits

Average gift level $25+ Active in the past 12-14 months

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Ground Rules for Lists

Assign each list a unique code to track results by list
Names are rented for a one-time use only and must

be mailed within the approved date range

May not load names into station’s database
Can do follow-up 2nd drop mailing to multi-buyer

names (names that appear on more than one list)

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Finding Lists

Use a List Broker (provides names only)

Greater Public List Co-op (must be a GP member)
Names in the News

Use a Full Service Agency (provides names, proven copy, performs mail merge, prints, mails)

DMW
Carl Bloom
Greater Public Mail Production Collaborative

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Acquisition Basics

Exchange/Trade lists with other Non Profits
If you don’t exchange member lists, trade underwriting for one time use of their list
Have a written agreement when you trade lists (sample in handout)
Rent Lists
Be aware of list minimum penalties
You pay for the gross # of names delivered, not the number you mail to
Remember to merge/purge against your current member list
If you don’t find dups when you merge/purge, it’s NOT a good list for you
The more dups you find, the BETTER the list

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A Successful Acquisition Effort

Brings new members to the file
Comes close to break even
Results in additional gift giving
Increases renewal results
Strengthens your file by extending the lifetime value

(number of years a member stays on the file)

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Timeline for Acquisition

Acquisition does NOT turn on a dime…
Work backward from on-air drive dates to allow

lead time for vendors and service providers – list rental company, merge purge processor, printer, mailer.

Write/Secure/Approve direct mail letter copy,

response device etc.

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Direct Mail Conventions

12 pt type or larger Conversational style Ask on the first page Ragged right margins Specific Suggested Ask Amounts P.S. with a “call to action”

Those things that have been tested and proven to generate higher response rates and/or higher gift levels.

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What Does the Mailing Include?

White, window envelope with station return

address

Carrier Envelope

One page (front and back ok if needed to tell

the story) using Direct Mail Conventions

Letter Appeal

Separate card or perforated slip attached to

letter bottom

Response Device w/campaign source code

Pre-addressed to station but not stamped

Return Courtesy Envelope

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Sample Carrier Envelope

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Courtesy Reply Envelope

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Appeal Letter Structure

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Mail Conventions Observed

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But What do You SAY?

Speak to “you” instead of “everyone” or “our supporters” Declare, don’t ask

Is today the day to make your contribution? Vs Make your

contribution today.

Did you know WDEI provides the only xxxx in the valley? vs

WDEI provides the only xxxxx.

Questions invite discussion. Answers invite action.

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Little Words, Big Difference

Instead of

IF you contribute today…
IF you give, we’ll…

Use

WHEN you make your contribution today
WHEN you give, we’ll…

Using WHEN rather than IF assumes that the person will take action.

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Keep them at YES

We make assumptions –“we know how much you

value this station…”

We ask questions –“Don’t you believe that…?” “Didn’t

you just love…?” Avoid thinking you know what people believe, don’t ask questions when you may not want to hear the answer.

Make clear, passionate and declarative statements.

This will get you closer to YE$!

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10 Awesome Things

1. Make a list of ten awesome things your organization does 2. Share your list with at least three people and “cross pollinate” 3. Develop your list and use the words, phrases and key ideas every time you write. Repetition of your basic story builds emotion and connection…It delivers POWER to drive ACTION

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Response Device

Must be either a separate card or a perforated form to separate from the letter Must include: Name and address of donor/prospect An “ask string” with suggested giving amounts Credit Card payment option Ask for email address and phone Include a source code

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A GOOD Response Device

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Determining Order Quantity

How many pieces should I mail?

As a rule of thumb, you should be able to get good,

qualified names for about 2.5% of the coverage area household population.

Order as many qualified names as you can afford to.

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Merge Purge Processing

IF you’ve never done acquisition mail, order at least 25% MORE names than you plan to actually mail to

You will already have some names on your active file
Some people will appear on more than one list

IF you HAVE done Acquisition mail in the past, find out from your merge/purge processor what the merge/purge rates have been

n the past several mailings.
Order THAT % more names – average is 20 - 40%

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Source Coding for Data Tracking

Keep it simple
Keep it consistent
Q0216Alz

(Alzheimer's Disease Association)

Q0216 ADL (Anti-Defamation League)
Type = Q (Acquisition) (A=Add Gift, L=Lapsed/Rejoin, R=Renewal)
Timing = MM/YY
List Name = unique code that your software can track
Variation on list name is easiest to “read”
Alpha/Numeric codes work fine, you just have to use a table to

interpret

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Projecting Response

0.5% is the national average for acquisition mail

response.

Goal is to generate1% response rate.
If you have never done acquisition direct mail you could

get rates at 2% and higher.

You get what you ask for.
The average gift of all gifts will be in the mid range of

your listed ask amounts.

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Evaluating Results

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Email Acquisition Testing

Recent email acquisition testing has shown initial promise. Email Acquisition tests performed at the same rate as direct mail acquisition with much lower initial cost. There is not yet data to determine how add gift giving, renewal rates, and longevity will compare. Stay Tuned!

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Questions?

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Join us next month!

allegiancesoftware.com sales@allegiancesoftware.com support@allegiancesoftware.com Sales: 844-858-7654 Support: 877-858-7654

Questions about the webinar? Contact Virginia Dambach: vdambach@qwestoffice.net