Direct mail 21st safrw
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Transcript of Direct mail 21st safrw
Money in the Mail
‘How to’
of Direct Mail!
Presented by Anup Tiwari, Director-Asia, Fund Development & Communications, SOS Children’s Villages International
& Yogesh Aggarwal, MD, Yellow Umbrella
Presented by Anup Tiwari, Director-Asia, Fund Development & Communications, SOS Children’s Villages International
& Yogesh Aggarwal, MD, Yellow Umbrella
Part 1: Introduction to Direct Mail
(45 minutes)(45 minutes)
How long has the Direct Mail been around?
800 Years ago by Eihei
Dogen
800 Years ago by Eihei
Dogen
Probably the oldest Fundraising Direct Mail
Source: Exhibit by Mal Warwick on www.sofii.orgSource: Exhibit by Mal Warwick on www.sofii.org
Direct Mail Now- butt of jokes
But still Direct Mail continues to deliver
What can you use Direct Mail for - 1
What can you use Direct Mail for - 2
Retaining Donors
Retaining Donors
What can you use Direct Mail for - 3
Converting DonorsConverting Donors
Envelope Letter Endorsement or Lift Letter or Lift photo /
leaflet Donation Coupon (Premiums &Mission Premiums) Business Reply Envelope
Key direct mail tactics
Key direct mail tactics - Personalisation
Underlining
Post Script
Questioning
Key direct mail tactics
Key direct mail tactics
Address Labels visible from back
of envelope
Key direct mail tactics
Key direct mail tactics
Key direct mail tactics
Plastic sheetPlastic sheet
Key direct mail tactics
Key direct mail tactics
Measuring success of Direct Mail 1
Response RateResponse Rate
Measuring success of Direct Mail 2
Measuring success of Direct Mail 3
Long-term value of donors
Long-term value of donors
Coding Your Direct Mail
Coding Your Direct Mail
Getting ready to sendGetting ready to send
Manual Mail InsertionManual Mail Insertion
Mechanical Mail InsertionMechanical Mail Insertion
FrankingFranking
Mail Sorting Zip or Pin CodeMail Sorting Zip or Pin Code
Using Postal ServicesUsing Postal Services
Using Courier ServicesUsing Courier Services
Always Seed Your Mail!Always Seed Your Mail!
Part 2: Direct Mail Pros & Cons
(10 minutes)(10 minutes)
Number of new donors brought in
• Does Direct Mail bring in More Donors as Compared to Other Methods?
Average Donation brought in
• Do Direct Mail Donors Give More or Not as Compared with Other Methods?
Quality of donors
• Do Direct Mail Acquired Donors Stay Longer or Not?
Scalability
• Can Number of Direct Mailers to be Sent Increased Quickly as per the Need?
Part 3: Choosing Databases- fluke or science (20 minutes)(20 minutes)
What is more important ?
• Creative design
• Quality of lists
• Mode of delivery
Data Selection
Compiled ListsCompiled Lists
List OwnersList Owners
List brokersList brokers
List vendorsList vendors
Using listsUsing lists
Testing listsTesting lists
Picking up a small samplePicking up a small sample
How big should a test be?How big should a test be?
The concept of random selectionThe concept of random selection
The concept of partial rolloutsThe concept of partial rollouts
Part 4: Direct Mail ResponsesA list owners perspective
(30 minutes)(30 minutes)
ByYogesh AggarwalGlobal Business Director
Yellow Umbrella Group
The Direct Mail Era
Critical success factors
• Realistic Expectations• Relevant Communication • Correct Timing• Correct Mail size• Correct Test Size • Correct Evaluation of Results • Understanding of Profile
Direct Mail Response
A List owner’s Perspective
1.Responds a factor of your knowledge on Chosen segment
2.HNI Syndrome3.Database options and cuts available 4.Living with list owners
Responds a factor of your knowledge on Chosen segment
• Major Flaws – Individual / Corporate misunderstanding on what Works / Worked or Doesn’t..
• Profile knowledge… a Failure in doing Homework before running campaign.
• Segment knowledge: Study Product / Market / Target Segment
• Target those who require / would respond and not to all…
HNI Syndrome
A little bit of TOO MUCH• A segment over-done.• Everyone wants a bit of HNI
– 100% database queries are for HNI– 100% companies wants to target HNI
Is HNI so Important ??Small Test…… Define it…..
Basic Questions to answer yourselfbefore Targeting HNI
• Why HNI?• How Do you connect to HNI?• Is HNI your Target segment?• What is your expectation from HNI?
HNI… HNI… HNI…
HNI SyndromeContinued…
HNI SyndromeContinued…
Purchase Behavior• It’s not the money that responds but the profile
and lifestyle of a person which does.
• Target the group by Profile, Educational balance…..
So how would you select the Data??
Largely a Psychographic study of the TA?Continued..
What is Database????
– a key component in Direct Marketing
You Buy Customers and not the Mailing Lists
Options & Cuts Available
Databases are available by deep segmentation on Psychographic & Demographic classification
Spending Patterns
Critical factors – Data selection
• What is your current donor profile? – By Location– By Age– By Occupation
– By Availability of Data with List owners
Now Lets understandPsychographic study of the Target Audience…
Psychographic Analysis
• It is a Technique of Geographic & Demographic study on psychological measurement, which includes the measurement of knowledge, value, abilities, attitudes, buying motives and personality traits.
• Gender, Age, income, occupation, Location & even Religion play vital role in any purchase behavior.
• Psychographic data can be purchased from direct marketers or market profiles for general marketers
Database options and surrogates
Segment Surrogate
By Occupation CEO/MD
General Manager +
Business Heads
By Ownership Honda City + cars
Mutual fund owners of High value
By Business Directors , Proprietors
By Credit Credit Limit 1.5 Lakh +
By Residence Residents to Premium localities
By Age High Networth + Age > 40
By Ability to spend High value shoppers High value donors
Living with list owners
List owner is like your doctor • Share the objective• Share the communication• Share the expectations
– What ROI ?Do not look for immediate R.O.I (return on
investment).Building a good relationship with the
customer is possible only by winning loyalty.
Living with list ownersContinued…
– What Media?To maximize your R.O.I, It is vitally important to test your
campaigns.
– What Budget? & What size of campaign?Start small campaigns and test various things to find what
works(Vivid Segments / Different Creative / Different Offerings)
Then, just scale it up, your profit will scale up along.
Living with list ownersContinued…
– Method to measure?A homework on what works and what doesn’t is very
eminent before running a large scale campaign / or to derive at a conclusion
– What Time?Streamline your offers & campaigns with the current
situation / Market Trends
Communicate well- Your segment- Your interpretation of HNI
Last but not Least…
It’s a War..Direct mail vis-à-vis Email/SMS/Tele calling
Choosing Media - Media comparisonComing Soon….
Part 5: The Fundraising Stretch
(10 minutes)(10 minutes)
Scottish Fundraising Guru’s tip on “How to Ask”– Recruit donor, retain donor, convert to major donor– Ask at least 3 times in a letter
Finlay Craig’s Fundraising Stretch
Part 6: Choosing Media- Direct Mail v/s email/sms/telephone
(25 minutes)(25 minutes)
ByYogesh AggarwalGlobal Business Director
Yellow Umbrella Group
Media Comparison
Take a Pick… Its Choosing Media
Direct mail vis-à-vis Email/SMS/Tele callingConcerns• Getting email read is becoming harder and
harder. Bounces are very high• Target High Net Individuals / Premium base
over phone through SMS / Telecalling has almost become impossible due to DND (DoNotDisturb) listing.
• DND ratio is almost 50%
Mathematics
Mail Size Cost
Total cost
Response percentage Response
Cost to acquire
Email 100000 0.4 40000 0.03% 30 1333
SMS 100000 0.2 20000 0.020% 10 2000
Direct Mail 100000 6 600000 0.7% 700 857
Tele Call 100000 6 600000 1% 500 1200
Choosing Media
Advantage Disadvantage
Email Faster and cheaper for tests Primarily reaches to value seekers
Doesn’t covers most of wealthy Has limited shelf life
Reach is limited to individual to whom it is sent
Tele calling More persuasive Negative Image
Slow reach Doesn’t reach welthy DND
SMS Fast & cheaper Negligible shelf life Not enough space to communicate Doesn’t reach wealthy DND
Direct Mail Facts
Advantage Disadvantage
Reaches ALL High Initial Cost
Lot of space to communicate
Cuts clutter
No DND issues
Helps build brand
Read by multiple people at home
Direct Mail Facts Continued…
• Direct Mailer is not an expensive mode but Smart mode of marketing products / services.
• The open ratio of an email campaign / SMS response is far low & in fact equivalent to the volume of Direct Mailer campaign.
• Direct Mailer also works as a Reminder in many cases for recurring sale from same customer.
Mathematics for media option
To make this simple let us check the following:• An email campaign of 1lac with even 95%
delivered rate can fetch you open rate of 5k and unique clicks of 3k. Which simply means out of 1lac Target Audience only 5k have opened your email …
• Whilst a Direct Mailer campaign of just 5k will fetch you approximately 4 times more visibility per household multiplying your Branding.
Fight the Flaws
Understand what works and what doesn’t
Profile Understanding
Target who requires and who doesn’tIts not the Cost… It’s the Mode we
communicate through….
Part 7: Tips on writing a Direct Mail Letter (20 minutes)(20 minutes)
Writing a direct mail letterWriting a direct mail letter
Messages that stick
S
U
C
C
S
E
implenexpectedoncrete
rediblemotionaltories
Tell a storyTell a story
A human interest story
With a before & after
In a first person account
Short Sentences
LanguageLanguage
Story with a ‘still unfulfilled need’
Pitch a small & urgent gap
Key direct mail tactics
Next….
Let’s write one now
Writing- 25 minutesPresenting- 30 minutesWriting- 25 minutesPresenting- 30 minutes
Happy MailingHappy Mailing
For more information visit www.FundraisingAsia.orgFor more information visit www.FundraisingAsia.org
Thank Thank youyou