Back to the Future…

Back to the Future…

Using Hardcopy Mail in a Digital World

-Bob Salvas, Marketing ConsultantCathedral Corporation

Back to the Future

Introductions… Bob Salvas 22 years USPS 10 years private

industry Founded Success Mail in

2003 Acct Advisor to

Cathedral Corp Co-Chair of the PCC

Providence Marketing Consultant List broker Sr Manager in

SendOutCards

Where to begin???

“I keep six honest serving-men(They taught me all I knew);Their names are What and Why and

WhenAnd How and Where and Who.”

-Rudyard Kipling

Direct Mail The deciding and planning Why How The devil is in the details Where When What The key is the WHO (not the band) Who

The deciding and planning

"He who fails to plan is planning to fail.”

-Winston Churchill

Why use direct mail?

Two things to note in the world today: People have too many communication

options and it is difficult to know which channel they are paying the most attention to.

Most marketing/communication today is either invisible or intrusive Cluttered marketing/messaging environment

Too many messages in too many channels To get attention, interruption is used but

people hate getting interrupted

Why use direct mail?

Mail does not interrupt Every one has a mailbox Mail is highly targetable It has shelf life It is tangible

Millward Brown 81% of mail gets open read/reviewed

Mail versus Email 27% of people have 3 or more email

accts and 30% of people change email address/yr

Over 6 trillion emails sent/yr and only 20% of them are legit- 67% are spam

13% of PERMISSION based email goes to SPAM filters

SPAM filters and DELETE keys are used to combat clutter and intrusion

35 To 1 Email Vs. Direct Mail 80% Of All Email Is Deleted Without Opening

Your web page…Build it and they will come?

Number 1 reason donors sighted for giving online was convenience

65% of all donors will check a charity’s website before giving

80% of donors who gave $100+ go online before giving via any means

53% of all people responded to direct mail by going online

The internet and mail work hand in hand..

Charitable Gifts 2010 -almost 80% mail-related

How?

The first thing to do is set our goals.

Common goals of direct mail: Gathering info (survey/self identify) Driving traffic (to a website or event) Get a donation Build a relationship

Planning What are you

trying to accomplish? Set up some SMART goals:

Specific Measurable Attainable Relevant Timeline

The Seven StePs of Direct Mail Plan –’smart’ goals

Consultant? Prospective audience –mailing list

List broker? Proposal –what are you offering?

Copy writer? Piece –what does it look like?

Graphic designer or creative agency? Postage –what kind of postage? Preparation –who is doing what part?

Printers, mail houses, or self-service? Performance –measure your results

Self-service Small quantities are naturally a good fit to

handle on your own (especially for retention): Birthday cards and thank you cards to donors. Save the date postcards.

Piecemeal marketing programs: Standard size postcards are a great value. Greeting cards are frequently opened.

If you are mailing thousands of pieces per year, you should inquire about getting non-profit status from the USPS and maybe a mailing permit.

You may want to consider an online service to send some of those greeting cards or post cards - SENDOUTCARDS can be a solution.

www.sendoutcards.com/bobsalvas

The devil is in the details

“Beware of the person who can't be bothered by details.”

-William Feather

Where?Where will the piece be

in the mail stream? Type of piece:

Standard Postcard Oversized Postcard Self-mailer Generic Letter Personal Letter Flat or catalog Dimensional mailing

Packages

Where? Type of postage

payment: Stamps Meter Permit Imprint

Class of mail: First-Class Mail Standard Class Mail

Non-Profit

When?

"Timing is everything. There is a tide in the affairs of men which when taken at the flood leads on to fortune."

- William Shakespeare.

Timing is often the #1 or #2 reason why people respond (along with recognition of the sender).

Two types: Public timing Personal timing

When? Public timing

Seasonal (weather, holidays, taxes, schools, etc.) Event (one area hit by storm or crime or new law,

etc.) Personal timing

Reminders (maintenance, anniversary date, BD, etc.) Event/triggers (new marriage, baby, house,

business, etc.)

People who contact you for information are the strongest triggers of all!

Follow up!

What? The key thing here is that the

message must be personal and relevant to the receiver. Message should be personal 1-to-1

75% of charitable giving was individual Tell a story Testimonials Freemiums P.S.

What?

What is the action you want them to take. 75% of those who gave to charities

listed as their reason: “they were asked”

42% of those who did not give to charities listed as their reason: “they were not asked”

What? Call to action is the

most critical point Keep it simple Give options of how

to respond Web site always! Some people like an

email or call option. A new exciting

response mechanism is the QR code

The key is the WHO (not the band)

"You cannot motivate others to want something they don't already want. You can't create motivation. It must already be

there.” -Harry Browne

How important is a good mailing list?

What if you sell dog food?

But I own a parrot?

Is this someone who will give to a Christian cause?

Is the owner of this company giving to environmental groups?

The four groups - CAPS Current donors – the most important list A-list

Former clients/donors Personal association

Prospects Hand-raisers

Suspects Lists you would buy

The single most important list YOURS! If you do not have your donors in a

list, get them there. Offer value to get their information

(email, phone, address). Compile as much as you can

(purchase data append). Remember that 40% of errors

occur during data entry.

The single most important list

THE NUMBER ONE PROBLEM: CHANGE! Up to 20% of people move in year. A new business opens every minute. A company changes names every two

minutes. A company closes every three minutes. The USPS changes streets, routes, etc.

This is what you want…

Not this…

Undeliverable As Addressed..

6.9 billion pieces of mail UAA in 2010 Almost 60% of total was destroyed

Move update is now required to get postage discounts

40 million people move each year The number one reason for UAA

Many mailing addresses contain input errors (about 12% of UAA in 2010)

Two data bases at USPS…

Address file CASS DPV

COA file NCOA (premail) ACS (postmail) Ancillary Service Endorsements

The difference it can make…

ARC mailing list of 69,826 15% of those were UAA

10,493 pieces not reaching intended audience Per piece value of 94 cents = wasted

cost of $9863.42 After cleanup- 7,553 donors back

to receiving mail

The difference it can make…

Cost of cleanup for the list was $500 Given a 3% response rate and $30

per donor the recovered addresses could generate $6,800.00 in additional donations

Adding the savings in wasted cost to additional revenue = $16,800.00 ROI of 34:1

The ABC’s of mailing lists All Addresses

Occupant/Resident Business Consumer ‘specialty

Response Subscriber Profiled

All addresses…

Let’s begin with 300 million people…

…at 150 million addresses

Geography

States Counties Zip codes Carrier Routes Center points

Occupant/Resident Targeting is strictly geographical Usually broken up by carrier route Going to an entire carrier route can

garner you ‘saturation rates’ Mail is often addressed ‘CURRENT

OCCUPANT’ or ‘POSTAL CUSTOMER’

When is this appropriate? Neighborhood shops like pizza places or

a community event…

Lower postage rates allow you to go to a greater number of people with the same budget.

These lists are also the least expensive to buy…may even be FREE! (EDDM)

Businesses Lists

Businesses are often looked at by the number of employees- the smallest category being 1-9.

Businesses are divided up categorically by industry using Standard Industry Codes (SIC).

Consumer lists Non-business lists (with exceptions) You get the name of the person(s) Target data such as:

Age or age of children Male or female Income level Homeowner or renter Type or value of home

How to use consumer data…

Community causes can target high value homes in certain zip codes.

Children’s causes can target adult WOMEN with children under a certain age present in the house.

How do you think the AARP finds you the second you turn 50?

specialty Lists

Magazine/newspaper companies often sell their subscriber list to gain more revenue.

Response lists are marketing data about people who have responded or shown an interest in a certain thing.

Certain organizations may even sell their member lists.

Specialty lists often cost more.

Dealing with list brokers What is the deliverability of the list?

Should be 90% or above. Are duplicates removed (one per

house)? Is the list CASS certified (contains +4s)? How often is the info updated?

Monthly for most lists is OK. Do they use NCOA for updates?

This is the USPS move database.

Dealing with list brokers Tell them your list idea – they may offer a

better suggestion. Ask them about suppressing your current

donor list within the prospect list. Especially important if it is a prospect message that you don’t want existing donors to see.

Purchase just before you are ready to use.

Trust your source (buyer beware).

Questions? Please contact: Bob Salvas Marketing Consultant, Cathedral

Corp 401-359-1602 cell [email protected]