Why Participate in Modeled Cooperative Databases?

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Today’s modeled cooperative databases offer big advantages for B2C and B2B direct marketers, which is why AccuList now represents 18 private modeled cooperative databases that clients can use to optimize direct mail results. These databases include millions of merged, deduped, and “modeled and scored” hotline names from thousands of commercial and nonprofit participants.  At no charge, each can match the client’s database, model client postal addresses, and deliver optimized “look-alike” names.  The database will prioritize those modeled names by decile or quintile to help clients further identify targets most likely to respond to an offer or fundraising appeal.

Fear of Sharing Misses Optimizing Opportunities

Marketers sometimes hesitate to participate because of unfounded fears of sharing exclusive/unique customers, catalog buyers, subscribers or donors with membership-based database participants. Note that these databases generally match a marketer’s names against the cooperative database files and share transactional data. If there are matches, only transactional information is added to the cooperative database records; and if there are no matches, the unique names are not added to the pool.  Why do cooperative databases opt to incorporate only multi-occurring or duplicate records? Because that is data that tends to be far more predictive, with proven response. Plus, the reality is that very few names are unique to a firm, publication or fundraiser. About 80% to 90% of consumer prospects are multi-buyers and so are in the database already, and 90% of nonprofit donors give to two or more organizations and so also are already included in cooperative data. On the other hand, by participating to access a huge pool of names rich with demographic and transactional information, marketers can tap many more optimized prospects, improve list segmentation and testing, bump up response and conversion, hone creative and offer targeting, and increase mailing efficiency.

Modeled Data Offers Cost-Effective Prospect and House Mailing

Acquisition campaigns clearly can benefit from netting look-alike prospects from the large cooperative database pool, a real boon for regional or niche mailers who struggle to find acquisition volume. The large universe also allows for more segmentation to target not only higher response groups but more valuable response segments. In the case of nonprofits, that could be high-dollar donors, for example. Profiling and modeling can create better results from house names, too. Instead of mailing the whole house file, current customers, subscribers or donors can be flagged for likelihood of response and upsell, for channel and messaging preference, for risk of lapse/attrition, and more. Plus, modeled databases offer cost efficiency via an attractive list CPM; recent, clean, deduped records that lower mailing costs; and optimization selects (or deselects) that also boost mailing efficiency and ROI. Check out these arguments for nonprofit participation in modeled cooperative databases, as well as these useful best-practices tips for commercial mailers from Chief Marketer and Target Marketing magazine posts.

Choosing One (or More) Modeled Cooperative Databases

As an industry-recognized list brokerage, AccuList now represents a long list of private modeled cooperative databases, some specializing in B2C, some in B2B, and many offering modeled names for both B2B and B2C campaigns. In addition, as a value-added option, some modeled cooperative databases feature omnichannel targeting services that allow matching of optimized direct mail names with digital media, including Facebook. We can help you choose the right solution to fit your marketing goals with the following leading cooperative databases:

  • Abacus Alliance
  • Alliant
  • American List Exchange (ALEXA)
  • Apogee
  • Dataline
  • DonorBase® (Founding Member)
  • Enertex
  • I-Behavior
  • MeritBase B2B Cooperative Database
  • OmniChannelBASE®
  • PATH2RESPONSE
  • Pinnacle Business Buyer Database
  • Pinnacle Prospect Plus
  • Prefer Network
  • Prospector Consumer Fundraising Database
  • Target Analytics
  • TRG Arts
  • Wiland

Tech & Data Trends Spur 2019 Fundraising Opportunities

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Despite 2019’s many challenges for nonprofit marketers, including competing for attention with political fundraising noise, trends in data analytics and technology offer good news for AccuList’s fundraising clients.

Fundraising Can Leverage Digital Innovations

Consider trends highlighted in this spring’s Nonprofit Technology Conference in Oregon. For example, nonprofit tech pros reported success using Digital Wallets, such as Apple Pay, Paypal and Google Pay, to make donating easier for donors and to increase conversions. AI and chatbots are another boon cited by tech experts, not just because they free up staff from time-consuming interfaces but because they can be used to segment audiences and tailor communications to boost donor acquisition, value and retention. Meanwhile mobile text messaging and mobile giving not only continue to grow in use, but nonprofits are learning to leverage SMS to trigger response, scale donor relationships and engage and motivate communities more fully. Online giving continues its growth path, but there are now more online giving services and their offerings are expanding. For example, Give Lively has free online fundraising tools for text-to-give, peer-to-peer, events, and integration with social media platforms such as Facebook. Finally, virtual-assistant voice services have entered the fundraising arena; for example, Amazon’s Alexa now can help donors verbally contribute up to $10,000.

It All Comes Back to Targeted Data

But for tech innovations to be effective, quality data and data analytics are essential. For example, fundraising efforts can use data to identify and segment those groups of current or inactive donors more likely to increase their donation dollars or flag donors to tap as future legacy donors. And data analytics can combine with real-time marketing automation, triggered e-mail series and variable data printing of personalized direct mail for improved donor acquisition. While the task of data collection and analysis can seem overwhelming, nonprofits don’t need to vacuum up every bit of big data for better results. The key is to collect and track the information in the donor database, or to select the key response factors to target in prospect lists, which are most likely to lead to success. Beyond the basics of name, address/contact, gender, age and date and amount of last donation, data targeting can be enhanced with parameters indicating donor capacity (the ability to give) and donor affinity (the willingness to give). Indicators of donor capacity include personal income/wealth measures, real estate ownership, business title, stock ownership, etc., while donor affinity parameters include the RFM (recency, frequency, monetary) of the donor or prospect giving history, past relationship/interest in a specific cause or affiliated appeal, and political affiliation and giving. Check out this article on donor data from Candid’s Philantopic blog for data management tips.

Beware Assumptions About Donor Data

A good database policy also includes regular hygiene and updating as well as an ongoing check for knowledge/data gaps. Classy, the online fundraising software provider, suggests challenging assumptions of donor knowledge by making sure analytics can deliver on these questions:

  • When are donors most likely to donate?
  • What is the average donation amount?
  • What is the average donation amount?
  • Are there different types of donors?
  • What is the reason for donation?
  • How does the donor liked to be thanked?
  • What is the donor’s communication channel preference?
  • What value does the donor get from donating?

See the rest of Classy’s suggestions on using data for fundraising.

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.

Mailers Can Use USPS 2019 Promos to Spur ROI

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AccuList wants to remind all its direct marketing clients of the many 2019 U.S. Postal Service mailing promotions designed to increase response, engagement and ROI via new digital technologies and printing techniques, as well as traditional mail tactics.

Tactile, Sensory and Interactive

The registration and promotion periods have already begun for a Tactile, Sensory and Interactive Mailpiece Engagement Promotion that will last from February 1 to July 31. With the goal of encouraging marketing mailers to boost customer engagement through the use of advanced print innovations in paper and stock, substrates, inks, interactive elements and finishing techniques, all USPS Marketing Mail letters and flats are eligible for the promotion’s upfront 2% postage discount.

Emerging and Advanced Technology

Registration has also begun for the Emerging and Advanced Technology Promotion, open to First-Class Mail and USPS Marketing Mail. The promotion, also offering an upfront 2% postage discount, spans the March 1 to August 31 period this year and is designed to help mailers to both compete with and leverage the increased use of interactive and digital options already available via e-mail, mobile and social media. It rewards incorporating into direct mail emerging technologies such as Augmented Reality (AR), Virtual Reality (VR), Mixed Reality (MR), Near Field Communications (NFC), and Video in Print, as well as multi-channel mail integration with Addressable TV or digital assistants.

Earned Value Reply Mail

Hurry! Registration for this promotion closes March 31 for a promotion period from April 1 to June 30. It rewards mailings using Business Reply Mail (BRM), Courtesy Reply Mail (CRM) and Share Mail envelopes and cards by providing them with a financial benefit when customers put those pieces back in the mail. New participants will earn a 3 cent credit per counted reply piece between April-June of 2019. Repeat participants must meet a threshold equating to 95% of the volumes counted during the same period in 2018 to earn the 3 cent per piece credit. Credits may be applied to postage for First-Class mail pre-sort & automation cards, letters and flats and Marketing Mail letters & flats, but credits must be used by December 31, 2019.

Personalized Color Transpromo

Created by USPS to encourage bill and statement producers to invest in dynamic/color printing technology to increase consumer response, this program also offers an upfront 2% postage discount. The Personalized Color Transpromo Promotion starts registration May 15 and runs from July 1 to December 31. First-Class Mail pre-sort and automation letters—bills and statements only—that meet the dynamic print and personalization requirements will be eligible for the upfront 2% postage discount during the promotion period. First-time participants must meet only the dynamic color print requirements.

Mobile Shopping

This promotion is the USPS acknowledgement that almost all marketing efforts include mobile shopping convenience today. Marketers who will send regular and nonprofit Marketing Mail letters and flats combining mobile with print are encouraged to register starting June 15 for a Mobile Shopping Promotion that lasts from August 1 to December 31, right in time for the holiday season. There are many new mobile bar-code formats, in addition to Payment QRs, that can be leveraged to qualify for the upfront 2% postage discount during the promotion period.

Informed Delivery

This year’s Informed Delivery Promotion pushes a new USPS omnichannel tool. The Informed Delivery program allows residential consumers the free ability to digitally preview letter-sized mail and manage scheduled packages on their computers, tablets, or mobile devices. Marketing mail participants may create Informed Delivery scanned campaigns through the Portal or submit elements through eDoc submission. Regular and nonprofit Marketing Mail letters and flats, and First-Class Mail pre-sort or automation letters, cards and flats meeting the promotion requirements will be eligible for an upfront 2% postage discount during the promotion. Register starting July 15 to take advantage of the September 1 to November 30 promotion period.

For more details go to https://postalpro.usps.com/promotions

For 2019 Edge, Event Pros Shouldn’t Overlook Direct Mail, SEO, Experiential Marketing

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Per the latest industry surveys, AccuList USA’s trade show and conference marketing clients can look forward to solid event industry growth in 2019–along with potential marketing strategy shifts in an increasingly competitive landscape.

Businesses Are Bullish on Event Marketing

Event software firm Bizzabo’s survey of over 1,000 mid- to senior-level marketers at major companies in 2018 found good news for the event industry: Most respondents (41%) consider live events to be the most critical marketing channel in achieving business outcomes (out of 9 possible channels), a 32% increase from 2017. Business execs are also doubling down on live events. Between 2017 to 2018, the number of companies organizing 20 or more events per year increased by 17%. Additionally, the vast majority of respondents (95%) believe in-person events provide attendees with a valuable opportunity to form connections in an increasingly digital world. This reflects a 12% increase compared to 2017.

E-mail & Social Media Remain Favored Promotion Channels

Meanwhile, Eventbrite, an online event management and ticketing firm, surveyed 1,200 event professionals last year to see how marketers are likely to spend in 2019. Word of mouth, an effective tactic for 63% of event marketers, is bolstered by investments in social media marketing, which 49% of event creators placed among the top three most effective drivers of ticket sales. They cited Facebook and Instagram as the top social platforms for reaching event-goers. E-mail rounded out the top marketing channels per those surveyed, with 38% of event professionals relying on it.

Trends Encourage Growth of SEO & Direct Mail Use

However, with 89% of attendees using search for purchase decisions, Eventbrite foresees a necessary expansion of SEO efforts. There’s definitely room for growth, with almost half (46%) of event professionals saying they aren’t using SEO. And, while e-mail is cited among the favored marketing channels, direct mail continues to turn in higher response for the 41% of event pros who use it. Eventbrite thinks the 50% who cite competition as their biggest challenge will want to reconsider the edge offered by adding mail to their arsenal, urging the hesitant to take a trial run by segmenting mailing lists and sending flyers or save-the-date cards to a test portion.

Experiential Marketing Is 2019’s Hot Buzzword

Experiential marketing is a hot new trend for trade show exhibit providers, brand marketers and event planners. It is a strategy that engages attendees by using branded experiences at an event, as part of an event, or in a pop-up activation not tied to any event. It’s all about immersing people in memorable live experiences to create more lasting and positive brand impressions. Yet Eventbrite found that close to 60% of event creators are not using experiential marketing. Acknowledging an intimidation factor, Eventbrite urges starting small, for example by promoting a pop-up shop (temporary retail space) grand opening at an event, by offering a smaller experiential activation like an on-site art installation, or by using a partner on-site sponsorship to enhance the event experience.

Download the Bizzabo report “2019 Event Marketing Benchmarks and Trends” for more details on event industry trends.

2019 Trends Open Doors for More Direct Mail Success

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Direct mail lists and data services are core to AccuList USA’s business success, so each year we research which trends our direct mail marketing clients will want to embrace for maximum response–and which trends are fading in effectiveness.

Digital Ad Tune-outs Offer Mail Opportunities

Digital issues can create direct mail opportunities, points out direct mail agency Inkit, noting that customers are tuning out digital advertising, whether e-mails, banners or social media promos. In fact, eMarketer estimates that 30% of all Internet users will use ad blockers in 2019. One way to offset the drop in digital ad effectiveness is to beef up direct mail campaigns. Note that ANA-DMA research shows that 84% of millennials take the time to look through their mail and 64% would rather scan for useful information in the mail than e-mail. Plus, 41% of millennials and 53% of Gen Xers report enjoying catalogs. That engagement translates into higher response rates for mail than for any other media, per the 2018 ANA-DMA Response Rate Report, with 9% for house lists and 4.9% for prospect lists.

Snail Mail Can Join the 2019 Video Boom

While digital ads are being ignored, digital video is booming; Inkit reports that Cisco projects video will encompass more than 85% of all Internet traffic in the U.S. by 2020! Direct mail doesn’t have to be left out. Thanks to print technology–QR, AR, Video-in-Print and Near Field Communication (NFC)–paper promotions can jump on the video bandwagon and further boost their own mail response.

2019 Demands Personalized, Cross-Channel Campaigns

Customers in 2019 will expect marketers to personalize offers and deliver a seamless experience across channels, Inkit asserts, requiring integration of online, e-mail, direct mail, social media, mobile, and in-store campaigns. In fact, retailing research recently found that close to 90% of retailers say integrated cross-channel or omnichannel marketing is key to success. AI is one way marketers are getting a handle on messaging across channels and at different points in the buyer journey, which can help decide timing and targeting of direct mail. Meanwhile, for mail, variable data content printing and enhanced database targeting and segmenting can deliver the personalized relevant messaging that will be a basic of 2019 marketing.

Take Variable Data Printing to the Next Level in 2019

Yet when it comes to printing and personalization, there are some popular direct mail practices that need to be ditched this year, advises direct marketing agency Darwill. For example, using a 4-color master shell on which variable content is laser-printed in black and white has become old-hat given that new inkjet presses can create endless 4-color versions for a more targeted and engaging campaign. Along the same lines, the custom maps laser-printed in black and white can be replaced by full-color variable maps that are more personalized, eye-catching, and likely to drive leads.

Use Envelopes to Intrigue Outside; Put Tailored Offers Inside

This year, instead of revealing all details of a promotional offer on the outside envelope to drive opens, Darwill advises that a promotional pitch that is visible but not fully revealed on the envelope is likely to work better–a sneak peek at a personalized offer. Then once the recipient opens the envelope, he or she better not find one-size-fits-all content! Luckily, with today’s full-color inkjet technology, a letter or a coupon can now be varied based on a recipient’s past shopping patterns or demographics.

 

 

 

Despite Doubters, 2018 Direct Mail Ups Response, ROI, Usage

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AccuList USA’s direct mail marketing clients received lots of encouraging news in the 2018 “ANA-DMA Response Rate Report.”  Direct mail improved its usage ranking to tie with social media as the second most-used medium (57%), for example, and continued to deliver the best response rates of any medium. In fact, “snail mail” even improved on its response success by doubling median response rates over last year to 9% for house lists and 4.9% for prospect lists in 2018. Mail’s Return on Investment (ROI) also leaped by 12 percentage points to beat out online display this year.

While Marketers Forecast Mail Decline, Usage Tells a Different Story

The only negative in the report is that those surveyed continue to doubt the future of direct mail, with 19% saying they plan to decrease usage in the coming 12 months. But if the report participants follow their behavior after previous surveys, which similarly predicted mail declines, direct mail usage will remain buoyant, which allowed it to rise in 2018 despite planned cuts. One drag on direct mail continues to be its Cost Per Action/Acquisition, which is the highest CPA of any medium and puts budget pressure on mail volume, which did decline for both house and prospect lists compared with the 2017 study.

Direct Mail Usage Dominates Most Industry Segments

However, high response rates, competitive ROI, online tracking and print-tech advances are keeping marketers loyal to “traditional” mail in a digital world. In fact, direct mail usage for marketing campaigns equals or exceeds 50% for most of the 11 industry segments cited in the study. In usage, direct mail leaders were travel or hospitality (80%), nonprofits (75%), publishing or media (71%), and financial services/banks/credit (67%). Only Technology (44%), Retail (44%), and B2B Services (34%) came in below the 50% usage mark. 

B2B, B2C Split on Formats As Response Tracking Goes Digital

When it comes to direct mail creative format, postcards tend to produce the best overall response in combined B2B and B2C data, with a 13% median response rate for house files and 10% for prospecting files. Letter-size envelope formats turned in rates of 10% for house lists and 4% for prospecting, and oversize envelope mail garnered 11% for both house and prospect lists. Format results are different for B2B versus B2C, however. Looking only at B2B, limited data indicates the letter-size envelope format outperforms with a combined median response for house and prospect lists of 15%-40%, compared with postcards’ 14%-16%. For B2C, responses show oversize envelopes actually turning in the best 9%-12% median response for house and prospect lists combined, compared with postcards at 9% and letter envelopes at 4%. In tracking those response rates, marketers have definitely gone digital, with over half of surveyed marketers (53%) saying they use online tracking capabilities, such as PURLs, followed in popularity by the use of codes or coupons (45%) and call center or telephone inquiries (41%).