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Brain Science, Industry Data Bolster Direct Mail Fundraising

As digital, mobile and social media expand their donor influence, some nonprofit marketers prepping for the all-important fourth-quarter may wonder about direct mail’s role as a fundraising workhorse. To underscore why it’s essential to keep direct mail in harness, AccuList can not only cite years of success as a direct mail list broker and data services provider to fundraising clients, but also the latest brain science and marketing industry data.

Science Shows Donor Brains Respond to Direct Mail

Marketing channels and technology may be changing rapidly, but the human brain hasn’t changed in size and basic construction for about 500,000+ years, and mail marketers have a brain advantage, notes a recent NonProfit PRO article by Christopher Foster, vice president of business development at Modern Postcard. Neuroscience has shown that direct mail taps two basic parts of the brain: the cerebral cortex and the amygdala-hippocampus pairing. The cerebral cortex
is where we process information, think about messaging and language, and weigh the pros and cons of decisions. Unlike the truncated messaging of digital, e-mail and social, direct mail can engage this part of the brain by describing benefits and citing the objective reasons that a nonprofit is the best choice for donor dollars. Plus, research consistently shows that people trust print/direct mail information more than digital channel info. Of course, recall and emotional engagement are key drivers, and the amygdala and hippocampus, combining long-term memory with emotional response, favor direct mail over digital, too. In fact, research shows that direct mail is 35% stronger than social media and 49% stronger than e-mail when it comes to long-term memory encoding, and 33% stronger than e-mail and social media in the engagement that drives memory encoding. Overall, direct mail’s motivation response is 20% higher than digital media, per Canada Post research.

Mail Spurs Donor Response and Retention in Omnichannel Efforts

While the volume of direct mail has decreased by about 2% each year since 2015, this has actually helped boost direct mail effectiveness by helping it stand out in the messaging blitz of the digital era. In fact, the Data & Marketing Association (DMA) 2018 direct mail response rates were 9% for a house list and 5% for a prospect list, way higher than any other channels (such as e-mail, social media and paid search at 1%). As a result, mail’s median ROI is also higher than most digital channels. Direct mail, of course, works even better integrated into an omnichannel campaign, where it actually spurs digital results; for example, studies show donors are three times more likely to give online in response to a direct mail appeal than to an e-appeal. Plus, direct mail drives donor retention; for example, 70% of donors have restarted a relationship because of direct mail, per DMA data. And direct mail is efficient at retention; the Association of Fundraising Professionals reports direct mail costs $0.25 for every $1 from recurring donors.

The Right Fundraising Tactics Capitalize on Mail’s Strengths

However, direct mail’s fundraising success is certainly not a given. A recent NonProfit PRO article by Jen Linck, chief marketing officer for Corporate Giving Connection, cites some important strategies, beginning with list segmentation and targeting to avoid wasting time and resources sending costly direct mail to bad leads. We would note here that, for effective segmentation, data quality is key, which requires prospect lists from reputable sources and good hygiene of house lists (note that 20% of addresses in donor databases are out-of-date, per research). Then get creative to capture attention and drive envelope opens via tactics such as dimensional mail and a large or unconventional sized envelope, urges Linck. And make sure the direct mail pieces add value to the audience’s lives by including a special offer or a promotional gift of branded materials for everyday use, such as a notepad. But remember that content needs to tap both logical persuasion and emotional connections in donor’s brains! Because 63% of donors want to know how their donation will be used, use specific donation amounts to tell donors how they help and quantify how previous amounts donated have been used, but also inject emotional examples into the dollar results. Finally, remember that direct mail works best when it is integrated into an omnichannel campaign, so be sure to incorporate digital technology by including QR codes, short links or text keywords for use across all channels. Plus, links should direct donors to a branded, campaign-specific landing page, since 38% more donations happen when landing pages are branded and campaign-specific, and 66% of those same donors are more likely to come back and donate again. For more tips on integrating direct mail with digital fundraising, see this MobileCause infographic.

Is Your Direct Marketing Realizing Personalization’s Potential?

Every direct marketing effort today starts with an assumption of personalization. In fact, with today’s tech advances in digital data, marketing automation, AI, variable data printing and more, the simple “Dear FirstName” personalization of yesteryear has been replaced by goals such as “hyper-personalization” and “personalizaton at scale.” Barry Feldman of Feldman Creative recently put together an infographic for MarketingProfs to illustrate the potential of personalized marketing for those who still think appealing to “FirstName” is enough.

It All Starts With Good Data

Before summarizing Feldman’s infographic, we would point out that, as data brokers and data services providers, AccuList is especially interested because personalized marketing relies on up-to-date, enhanced, accurate data to deliver on the promise—the right message, to the right person, at the right time—whether for customers or prospects. Customer outreach and the customer-based analytics for targeting prospects require collecting data from as many sources as possible: CRM, web activity, e-mail, direct mail, mobile apps, second- and third-party demographics, social media, and multichannel advertising. And then that data must be combined and maintained in a regularly hygiened customer data platform. Haven’t gotten there yet? You’re not alone. Only 5% of marketers have attained a single customer-data view that allows launching personalization across channels, per the infographic.

Why Invest in Personalization? Buyers Demand It

So why worry about an edge gained by just 5% of competitors? When 78% of Internet users say personally relevant content increases their purchase intent, and 81% of consumers say they want brands to know them better and to know when (and when not) to approach them, any brand that is ignoring that demand for personalization is ignoring the bulk of their potential market. What do customers and prospects want? Feldman’s infographic breaks it down into “four R’s” based on research: Recognize, Remember, Relevance and Recommend. People expect to be recognized by name and to have their preferences remembered so that brands can make suitable recommendations and send relevant offers.

The Payoff Is Big in Financial and Brand Clout

The bottom line shows why the “four R’s” matter. Studies find that personalization can cut acquisition costs by up to 50%, lift revenues by 5%-15%, and increase the efficiency of the marketing spend by 10% to 30%, per the infographic’s sources. Plus, in a competitive market, personalization will woo the 60% of shoppers who prefer to do business with brands that provide personalized, real-time offers and promotions. This is especially true if the customer experience is consistent across channels. With omnichannel personalization, studies show that marketers can achieve the multiple goals of boosting response, improving customer experience, increasing brand loyalty, driving revenue and delivering creative consistency across channels.

Omnichannel Personalization Includes Direct Mail

While discussions of one-to-one marketing often focus on digital efforts, traditional direct mail also has benefited from the technology trends driving personalization. Of course, a postcard or an envelope are, in a sense, always personalized by name and address for delivery, but inside the envelope or mailer, a letter, reply card, lift note, coupon, etc. can be personalized even more extensively. For example, a personalized pre-filled reply card has the advantages of both increasing response by cutting recipient effort and ensuring reply completeness and accuracy. More important, with enough quality data on recipients and modern variable data printing (VDP), messaging can be modified for each recipient based on database/list information such as purchase history, demographics/firmographics and online activity. A business-to-business campaign can be tailored by industry, title, association membership, online visits and more. A retailer can use product purchase history to craft discount offers, up-sales and cross-sales. An auto insurance mailer can leverage policy expire date, owner age, vehicle information, online quote requests, etc. to create a timely, personalized offer. VDP can even tailor graphics to fit individualized content. Plus, printing a personalized url (PURL) is one option that can take a curious recipient to a personalized online landing page with a pre-populated form and select offers. Or unique QR codes can be printed to take each recipient to a custom, personalized web page. There’s no reason for direct mail to remain stuck in the “Dear FirstName” era of personalization!

Mailers Can Use USPS 2019 Promos to Spur ROI

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

These Tech Trends Likely to Drive 2018 Direct Mail Success

Because direct mail data and support services are at the heart of AccuList USA’s expertise, we are always delighted to pass along tips on how to use direct mail more successfully in multi-channel marketing strategy. A blog post by Postalytics, a self-serve direct mail automation tool, recently mined multiple expert sources for the most influential direct mail trends of 2018, ranging from creative to technology to mailing strategy. If you have any lingering doubt over adding interactive technology to traditional snail mail, just take a look at the article’s top mail technology trends for this year.

Automation and Integration: Speedy, Targeted Production

Unsurprisingly, automation purveyor Postalytics puts mail automation software at the top of the list, but they get plenty of industry support. Automation allows marketers to quickly generate high-quality, personalized and trackable letters and postcards by leveraging templates, digital cues and automated workflows, cutting direct mail production cycles from 4-6 weeks down to 1 week. That automation also allows marketers to maximize response by integrating triggered direct mail into any step in the buyer’s journey, online or offline, so that mail delivery taps into the appropriate timing, content and call-to-action.

Linking Offline to Online: AR, QR and PURL

Interactive, mobile-scanned Augmented Reality apps and QR codes, as well as personal urls (PURLs) linked to targeted content-specific landing pages, allow direct mailers to connect offline marketing’s printed paper with online marketing’s digital pages, images, animations and videos. Studies show that combining snail mail with interactive digital is key to greater overall campaign response and ROI.

Enhanced Data Targeting and Personalization

The magic wand of quality, enhanced data can be waved over direct mail to match the right message to the right people at the right time. Good mailing list data allows for targeting based on shopping habits and needs, retargeting and cross-selling, recapturing and reactivating of lost prospects and customers, leveraging of trigger events and personal preferences, and more–provided there is a commitment to quality database hygiene and processing. Customer and prospect data lists need to be up-to-date, de-duped and accurate, and mailings must use cost-effective advanced postal address hygiene and pre-sorting. In addition to cost-effective, high-response targeting, good mailing data allows for sophisticated content personalization far beyond simply inserting a name, the kind of personalization that has become a basic expectation of customers. Marketers can even create personalized coupon codes that deliver a much higher ROI than generic coupon codes; these unique codes make customers feel valued on an individual level.

For 2018 direct mail trends in creative design and mailing strategies, see https://www.postalytics.com/blog/direct-mail-marketing-trends-for-2018/