These Extra Steps Will Cut Bad Addresses to Up Mail ROI

Bad address data continue to depress response for a significant chunk of direct mail marketers, per a recent survey. If you're a marketer struggling with addressing and deliverability, AccuList® can suggest three remedial steps, steps that go beyond standard merge-purge processing and USPS National Change of Address (NCOA) updating.

But first the good news for direct mail fans: The channel's superior response and ROI lead 58% of marketers to plan expanded investment in direct mail across industries in 2023, according to a recent survey by Lob and Comperemedia. The bad news: 32% of marketers still worry about achieving response goals because of "bad address data." 

So what can mailers do to cure this "bad address" problem? The initial step AccuList recommends is implementation of a data processing and quality control regimen before merge-purge, hygiene updating or appending of new data, whether for prospecting files or house files.  For example, first and last name on internal and external lists should appear in separate fields, along with the corresponding postal address in separate columns.   

At AccuList, our data experts begin by applying utility programs to individual records before standardizing them to find hidden duplicate or misspelled names, titles and addresses, or other deliverability issues. Next, we use the USPS Coding Accuracy Support System (CASS) certification on individual records to verify that each address matches with the right zip code and delivery route. 

The second step is to update mail files for multiple potential address and deliverability issues. Mailing files should be 1) devoid of house file do-not-mail requests; 2) matched against DMAchoice (the Association of National Advertisers—ANA—mail preference service); 3) updated against USPS NCOA to meet Move Update requirements; 4) address-corrected to meet USPS Delivery Point Verification (DPV) standards; and 5) run against other public source databases for records not found with NCOA, such as deceased or prison addresses.

Because the USPS FASTforward or NCOALink represent only a portion of total US movers, a third step is to initiate more advanced mover hygiene.  At AccuList, we also access the most comprehensive public and private "Mover" databases commercially available to fill in the gaps and identify a much greater number of postal addresses that are verified as Deliverable or Undeliverable As Addressed (UAA). 

In fact, this advanced hygiene allows us to identify up to twice the number of address changes versus matching addresses on the NCOA database. And we can not only confirm if the intended recipient is no longer at that address but help find the new address by comparing real-time information.

Via these extra data processing steps, marketers can eliminate duplicate names and addresses, avoid offending those who do not want unsolicited mail, reduce undeliverable mail and wasted postage, and earn postal discounts. An important "byproduct" of this process for prospecting mail is the identification of "multi-buyers." You can mail them a second time, absolutely free, subject to list owner approval of your mail date and creative!

For more on AccuList data services, see https://www.acculist.com/merge-purge/ and https://www.acculist.com/advanced-data-hygiene/

Strategies Can Bolster Fundraising If the Economy Turns Rocky

Although economic growth and jobs data continue strong at the start of the year, many AccuList® nonprofit clients still express anxiety about the impact on charitable giving of higher inflation or even recession later in 2023. Here's the advice from fundraising veterans: Stay the course and avoid the temptation to cut back on direct mail or digital marketing. When fundraisers reduce the channels and frequency of donor requests, they cut opportunities for giving and erode long-term connections. 

A better way to offset economic drags is to increase the efficiency of donor acquisition and retention programs. For direct mailings, costs can be reduced by tactics such as modified package size and pre-sorting, as well as by greater mailing list efficiency. Using the best-performing vertical lists and modeled data can boost donor prospecting ROI, for example, while house donor lists can select out lower-value or lower-response segments. 

In tougher times, nonprofits also can't afford the waste of bad data. OneCause, a provider of event and online fundraising technology, found that only 18% of nonprofits reported having enough data and insights for cost-effective decision-making in 2022! So fundraisers should prioritize clean data—de-duped, complete, consistent, deliverable and actionable—for cost-effective targeting. 

Fundraisers also can take better advantage of the fact that today's donors are multichannel responders by coordinating direct mail with boosted social media outreach as well as online and mobile giving. In-person fundraising events are expected to make a comeback in 2023, too. OneCause reports 83% of organizations plan to hold at least one in-person event in 2023. Data supports that investment in event and online efforts: Over half of nonprofits surveyed reported generating 21% of operating budget from event and online fundraising in 2022. 

For help with donor acquisition, multichannel fundraising and data management, see https://www.acculist.com/fundraising/

Catalog Marketing Surge Is Fueled by Digital's Tracking Crackdown and Costs

AccuList® has a long list of consumer catalog clients, and we've noted renewed interest in traditional print catalogs, especially among direct-to-consumer (DTC) brands. Why? One reason is Apple's crackdown on the ability of consumer data platforms, such as Google and Meta's Facebook, to track and target consumers, per a recent Ad Age report. For example, Insider Intelligence data shows DTC brands cut ad budgets for Facebook and Instagram by almost 8% between January 2021 and January 2022, and increased offline marketing from 12% to 15% of spending. 

Rising acquisition costs for digital channels are another factor driving expanded catalog budgets. A SeQuel Response survey found 44% of  DTC brands boosted direct mail spending in 2022, with more than half blaming the rising customer acquisition costs of digital channels. 

Catalogs also are seen as better retention tools. Ad Age cites menswear brand Todd Snyder's report that its catalog buyers tend to purchase from the brand for longer periods and to purchase more items, and that its annual holiday catalog is used to "bring back lapsed customers." 

Finally, unlike easily ignored digital advertising, catalogs are more likely to capture and keep consumer attention. Kara O'Brien, head of offline marketing at furniture and home goods retailer Wayfair, explained to Ad Age that their seasonal catalog gives "that extra real estate...to tell richer product stories and invite customers into all that Wayfair has to offer. And it has staying power—a tangible print piece is something consumers can keep, bookmark, revisit and even share with family and friends." 

If you're thinking of joining the trend by adding or expanding catalogs in your marketing mix, AccuList can help. See https://www.acculist.com/consumer-catalogs/

Omnishoppers Challenge Retail Marketers in 2023

Retailers face the challenge of targeting today's "omnishoppers." Inflation has accelerated the trend toward multichannel comparison-shopping in-store and via online, social media and mobile. In fact, The Harvard Business Review has reported a whopping 73% of retail consumers use multiple channels to shop. According to Nielsen, these omnishoppers will spend over $600 billion on retail purchases by 2025. They already spend 4% more than single-channel shoppers on ecommerce sites and 10% more on every in-store trip. 

To capture these valuable buyers, retailers will need to market via multiple channels, too. The average engagement rate of campaigns using three or more channels was 18.96% across all channels, while single-channel campaigns earned only 5.4%, per a 2019 retailer study. 

While many retail marketers have boosted online at the expense of offline advertising in the past, online marketing faces new consumer data restrictions, falling engagement rates and rising costs (a 2022 study showed the average CPM for Meta was up 61% year-over-year), and that suggests a rebalancing of the marketing mix is in order to cost-effectively woo omnishoppers in 2023 via a bump in offline, including direct mail.  Note that The Association of National Advertisers' 2022 report shows direct mail with an average ROI of 112%, email with 93%, paid search 88%, social media 81% and digital display 79%. 

At the same time, retailers will need to work harder at integrating campaigns and data to create a seamless customer journey across channels, avoiding the kinds of silos that generate customer complaints. For direct mail and omnichannel retail marketing support, see https://www.acculist.com/retailers/

Is Your Marketing Ready for the E-commerce Surge?

Pandemic lockdowns across the nation have turbocharged e-commerce, with online sales growing by triple-digits. Is your marketing ready? Most marketers are not, according to a recent Profitero and Kantar survey of 200 brand executives, which found that only 17% believe their organizations are leading competitors in e-commerce. E-commerce marketers need to quickly prioritize strategies, advises a recent post by Forbes magazine’s CMO Network contributor Sarah Hofstetter. A problem identified by the Profitero and Kantar survey, for example, is that only 11% of organizations have functional-level e-commerce goals in place. Hofstetter urges making e-commerce a part of everyone’s job, from building e-commerce KPIs into bonuses to content accountability on retail websites to overcoming silos with cross-functional goals. Next, marketers should boost online profiles and product discovery efforts. That includes targeted SEO and SEM, strong ratings and reviews, engaging targeted content, and aligned multichannel outreach. Third, shift from offline to speedier online tactics, such as algorithmic matching of competitor price changes and real-time tailoring of product assortments and promotional strategies by audience. Fourth, boost online agility. Note that 63% of brands do not test and optimize their content to improve sales impact (Profitero and Kantar survey). So brands that digitally test new products, new traffic-generating variables and new marketing messages gain an edge. Janet Balis, a principal of Ernst & Young LLP, recently penned a Harvard Business Journal article offering more advice.The nuances of creative messaging have become more delicate, she notes, warning that while exploitative brands will not fare well, organizations that promote doing good, from food bank donations to repurposed manufacturing, can enhance brand image as long as contributions are seen as material and not solely for commercial benefit. Next, since the mix of preferred media platforms has changed, marketers may want to modify the media mix, for example with more ad-supported premium video streaming for spiking digital entertainment, or ads around peak news consumption. Finally, marketers will want to put a greater emphasis on behavior trends and response tracking to better adapt messaging and targeting. Small, less sophisticated retailers can take advantage of Google tools, such as using Google Trends, Google Alerts  and retail-category metrics for Google Search and Shopping campaigns to spot shifts in demand. They can frequently update Google Ads, customer-facing websites and Buyer Profiles on Google Maps and Search, and can enable automatic item updates in the Google Merchant Center to keep product data current. For more, see https://www.acculist.com/has-your-marketing-adjusted-for-the-current-e-commerce-surge/

In Virus Disruption, Direct Mail Offers Advantages

As the majority of American adults hunker down at home, with all but essential businesses closed or working remotely because of the COVID-19 crisis, AccuList reminds marketers of the unique advantages of targeted direct mail, which takes promotions right into homes, has the highest response rate of any channel, and has the ability via print technology to connect with digital, too. A post by direct-response agency SeQuel Response notes that since the majority of American have responded to the crisis by increasing online shopping, many direct marketers have flooded the digital zone with new e-commerce sites, digital advertising, social media promotions, and e-mail. With online channels overcrowded, direct mail offers a way to reach consumers in their homes and rise above the noise. The agency provides some good tips: 1) Ensure creative elements and messaging align with consumer sentiments for positive brand awareness; 2) reconsider mail frequency and timing if warranted but make sure not to lose touch with the audience; 3) solidify existing customer relations, with increased focus on retention and brand awareness to help survive on the other side of the crisis; 4) integrate direct mail with digital marketing, a proven way to boost response and reduce CPA, including use of print technology, such as QR, AR and VR; and 5) plan for the post-crisis world, recognizing that a campaign takes six weeks from list development to mail drop, to make sure messaging can evolve post-crisis. Given current disruption of buying processes, “optichannel” campaigning, meaning supporting a customer’s buying process via the channel best for them, becomes essential for ROI. Direct mail adds special advantages to an optichannel mix, especially when combined with modeling and digital integration, argues a recent Target Marketing magazine article. Among the article’s examples is Galileo Learning, which operates children’s summer camps in California and Illinois. The company used response-lift customer modeling to identify higher-response prospects on external lists and then put the resulting savings toward even better creative. As a result, response surpassed expectations by bringing in 155 new campers and $66,000 in new revenue. In another Target Marketing case study, Meals on Wheels, in the Diablo region of California, mailed a holiday donor appeal that garnered $230,000 in donations and 43% new donors. The charity attributes the 75,000-piece mail campaign’s success to, first, defining more-responsive list segments for existing donors, lapsed donors and prospects via demographics and customer-look-alike modeling, and, second, adding targeted digital advertising (e-mail, social and online display) that delivered a 600% increase in campaign impressions over the mail-only control. For more, see https://www.acculist.com/amid-virus-disruption-direct-mail-has-optichannel-advantages/

COVID-19 Crisis Alters Fundraising Tactics

As the coronavirus crisis alters the social and economic landscape for nonprofits, fundraising tactics will need to alter, too. In a recent NonProfit PRO post, two Orr Group fundraising agency executives suggest some quick tactical shifts. First of all, don't panic and cancel events, they advise, but reschedule or repurpose. If an event can be postponed, a nonprofit may be able to transfer tickets/table buyers to the future event instead of refunding, and can add touchpoints along the way. Or, the fundraiser can switch to a digital event, perhaps with livestreaming. Indeed, this is an opportunity to go digital in multiple targeted ways, starting with more social media ads, paid search ads and SEO efforts. For example, now is a good time for a digital forum, such as a virtual “fireside-chat” with a subject matter expert discussing COVID-19 impact on the mission. Or the nonprofit can pen an article to post on social media as well as e-mail to donors and prospects. And don't forget nondigital communications, such as direct mail and phone calls. The authors suggest building out a phone-call list of top funders, for example. Michael Wasserman, CEO of the stream fundraising platform Tiltify, uses another NonProfit PRO post to stress how the crisis should push fundraisers to boost social media use. The potential audience is huge: almost 80% of the population uses social media, with Facebook and YouTube having over 2 billion users per platform. Even newer sites like TikTok boast 500 million, Discord gets 250 million, and Twitch attracts 15 million daily visitors. Note that the Facebook Fundraisers tool has already raised over $2 billion. So charities that still use elementary fundraising pages with a simple donate button, some text and an image are missing big opportunities. He urges nonprofits to focus more on enticing content, such as video, which can leverage YouTube, the No. 2 search engine in the world with 2 billion registered users. Nonprofits should also consider livestreaming events for fundraising, he argues, to raise big sums in a few hours, citing the example of a group that raised in a week the amount it costs to run St. Jude Children's Research Hospital for a day, which is about $2.7 million. What about the impact of "social distancing" on traditional face-to-face connections with major donors? Suzanne Hilser-Wiles, president of philanthropic consulting firm Grenzebach, Glier and Associates, offers some tips in a recent piece in The Chronicle of Philanthropy. Start by showing you care and reach out quickly to ask how the donor is faring and discuss how the nonprofit is responding. Enlist top executives to communicate plans; e-mail can quickly provide a direct but formal assurance, while social-media platforms offer a more human touch. Ad hoc “investor calls” may be appropriate for smaller donor groups. In messaging, highlight the nonprofit's expertise and how gifts support efforts relevant to the COVID-19 crisis. And don't abandon events; get creative with virtual format substitutes, such as a conference call or webinar. For more detail, see https://www.acculist.com/covid-19-crisis-alters-tactics-for-fundraising-success/

Nonprofits Can Weather Pandemic's Donor Impact

Nonprofit fundraising faces a novel crisis as the novel coronavirus pandemic shuts down business-as-usual across America and threatens recession. Based on fundraising experience in previous crises, such as 9/11 and the 2008 recession, AccuList urges nonprofits not to cut back on fundraising efforts during this critical period. Indeed, since event fundraising is likely to be cancelled or postponed, now may be the time to shift resources into high-response workhorses like direct mail. And for some causes directly impacted by pandemic issues (humanitarian appeals such as food banks, homeless shelters, elder care, emergency health and medical supplies), fundraising messages may be especially resonant and effective now. Yes, philanthropy has trended at 1.5% to 2.5% of GDP annually since 1978, and it’s pretty clear GDP (and thus fundraising) is going to take a hit in 2020. But as a NonProfit Pro magazine article by Craig Depole, president of direct-response fundraising agency Newport ONE, warns, organizations that pulled back and stopped soliciting after 9/11 and the 2008 recession took years to recover from their losses, "while organizations that continued to solicit their donors with messages of need and impact emerged stronger and healthier." Depole’s NonProfitPro article goes on to outline a number of steps to make fundraising outreach more successful during a national crisis: 1) Double-down on stewardship of donors (more thank-you phone calls, impact reporting, staff engagement); 2) Keep talking with donors and share compelling stories, with humanitarian charities especially able to cite the transformational impact of donations; 3) Acknowledge the fears of donors who are watching stock portfolios decline and engage with them as partners rather than ATMs; 4) Review messaging for relevance, clarity and appropriate tone; and 5) Have alternative plans ready to go, say in case your mail shop or creative team is quarantined, or you need to substitute for promotional supplies from China. As a Network for Good blog post by Kimberly O'Donnell stresses, "In uncertain times, one thing is certain with fundraising—the more you plan, the better off you will be. Successful fundraising during a recession is two-pronged: 1) Focus hard on donor engagement and retention, and 2) Use intelligent prospecting techniques to recruit new followers and supporters." A poll of fundraising agencies by The Nonprofit Alliance similarly offers cogent responses to how agencies are preparing nonprofit clients for the financial impact of the coronavirus pandemic. One respondent advises, "As this unfolds, my advice will likely be the same as to every other major disruption, including 9/11: 1) Acknowledge the crisis and state how the organization is helping solve it; 2) Stay the course, (and) don’t cut back on acquisition and renewal efforts." For more see our website blog post at https://www.acculist.com/how-nonprofit-fundraising-can-weather-pandemic-impacts/

Experiential Marketing Turns to Non-Event Options

What happens when experiential marketing—the strategy of engaging customers in branded live experiences—faces a world where events are being cancelled or postponed thanks to novel coronavirus fears? The blow to b2b experiential marketers is significant. Back in January 2020, the Demand Gen Report found that 53% of U.S. B2B marketers surveyed rated in-person events and tradeshows as their most effective channel for driving lead conversions, above digital-only efforts such as e-mail and the company websites. Of course, that was before the coronavirus began to scuttle plans. The event drought doesn’t mean that the power of experiential marketing vanishes, but marketers do have to adapt. As experiential agency Fake Love’s CEO Alanna Lynch explained in a recent AdWeek article, since there’s no doubt experiential marketing will be affected, "particularly around large-scale events with a global audience," the company is "proactively thinking about how our approach to branded experiences may need to evolve in the short term, more specifically, how physical activations could be experienced virtually and then shared virally." In a ClickZ post, Gretchen Scheiman reminds experiential marketers of the potential power of online experiences, ranging from gaming like Fortnite, to educational platforms like Kahn Academy to McDonalds restaurants, where parents who might hesitate to send children into crowded Happy Meal Play Zones can visit happymeal.com for downloadable coloring pages, activities and interactive games. Jillian Ryan at eMarketer likewise urges pandemic-deprived marketers to "go digital and be nimble" as virtual conferences replace physical events, creating digital touchpoints whose content and engagement can still influence the intended audience. Indeed, event cancellations can provide a great opportunity for marketers to A/B test whether their physical event presence is as crucial to conversion as presumed, Ryan notes. Plus, experiential marketers have some good old-school options that have been technogically enhanced for interactive engagement. Ryan urges consideration of direct mail as an experiential tool, for example. In addition to its visual and tactile engagement, direct mail can be highly targeted and personalized, and now, thanks to digital print technology such as QR, VR and AR, digitally interactive as well. Similarly, ClickZ’s Scheiman reminds that targeted e-mail is another great way to create a direct line of communication with people around an event or experience, physical or virtual, with links to interactive digital. For more, see our website blog post at https://www.acculist.com/b2b-experiential-marketers-have-options-to-pandemic-cancelled-events/

Managing Marketing in the Coronavirus Crisis

The global spread of the coronavirus already has caused significant disruptions in supply chains, corporate profits, economic growth and government policy. No one knows how bad things will get before they get better, but marketers need to be prepared. Certain industries are more likely to be significantly affected as people shun travel and large gatherings: airlines, cruises, events of all kinds (perhaps even the Tokyo Olympics), business conferences, hospitality, and even retail venues. Supply disruptions also could affect sectors ranging from auto manufacturing to high tech to promotional products. A general slowdown could cut advertising spend initially, but experts believe it is more likely that there will be a reallocation of dollars to cater to quarantined or self-isolating consumers via mail order, digital marketing and e-commerce product sales; via online video and gaming options; and even via streaming of sports events instead of stadium venues. In a recent blog, AI and data tech company Appier suggested tactics to leverage this rise in online consumption, for example by using online data to identify coronavirus concerns and deliver targeted relevant content and advertising via keyword segmentation, which is especially relevant for health, wellness, medical, and sanitation sectors. Companies can also develop more branded online apps, games, and videos to compete for the expanded online audience. Plus, it will be important to use AI and audience data for contextual targeting and proper placement of advertising to avoid creating a negative brand impression. Because companies may face logistical delays, they need to commit to transparent multichannel communications on product shortages and estimated delivery times, as well as timely response to questions and complaints, advises Appier. At the same time, increased engagement via website, e-mail, social media, push notifications or in-app messaging can bring customers closer and help reduce frustration levels. Appier also stressed that marketers need to set the right messaging tone for an anxious audience, avoiding the hard sell in favor of customer and community support. In a PR Week interview, Priyanka Bajpai, regional head, Southeast Asia, SPAG Group, promoted the company's 3E approach to messaging during the crisis: Empathy to show cautious optimism and trust in the future ability to work together and find solutions; Engagement of internal and external stakeholders to inspire confidence; and Education using multiple channels to outline the criticality of the situation and steps taken by the brand to support stakeholders. Brands may also want to highlight corporate social responsibility efforts such as nonprofit donations to address the pandemic but should avoid marketing around those donations. For more, see our website blog at https://www.acculist.com/managing-marketing-during-the-coronavirus-crisis/

Personalization, Omnichannel Drive 2020 Direct Mail

Direct mail marketers embrace a channel that, despite perennial death notices, continues to outperform in terms of response, but mailers need to rely on evolving strategies for success in 2020. Research consistently shows that personalization bumps up response. Most recently, in a 2019 NAPCO Research report on direct mail personalization, 44% of respondents saw personalized print marketing campaigns increase response by 16% on average, while Canon Solutions research found that adding a person’s name and other personalized database information can increase the response rate of direct mail campaigns by up to 500%! So it's no wonder that the recent Printing Impressions article by senior editor Toni McQuilken finds a number of leading marketing and print industry leaders stressing that data-driven personalization is the route to 2020 direct mail success. For example, Maureen Powers, president, Direct Marketing Group at RR Donnelley, asserts, "Personalization is more important than ever before, including with direct mail...We are using the direct mail channel to drive the customer experience through communications such as coupons and personalized offers. We’re also changing how we help our clients message their clients based on individual customer preferences and their point in the customer journey." Likewise, Jim Andersen, executive chairman of IWCO Direct, stresses the shift toward variable data printing of smaller runs of targeted, personalized direct mail with digital tie-ins: “Today’s direct mail is more effective, relevant, and timely thanks to more sophisticated audience selection and segmentation. This technology uses digital print to personalize every component of a mail piece, including letters, inserts, cards, and call-to-action reply devices that connect the physical mail to an online, digital marketing experience." For Andersen, mail personalization must be part of the omnichannel approach that customers demand today: "One of the biggest opportunities in the direct mail space is providing effective and efficient solutions to consumer demand for personalized, relevant messaging integrated across all channels. Insightful use of data, combined with the flexibility of digital print production, allows marketers to seamlessly integrate tactile marketing in their omnichannel campaigns." Summer Gould, of Target Marketing magazine, has cited three already-proven ways to combine mail and digital: 1) online display ads that match direct mail data files to an IP address to target specific people by displaying cookie-free banner ads on web pages; 2) Facebook ads that match direct mail data with Facebook data to send targeted ads; and 3) e-mail matched with direct mail audience targeting to keep offers fresh, deliver response reminders and make added special offers. These trends to more personalization and omnichannel integration rely on quality marketing data for segmentation and targeting, of course. For links to AccuList Digital2Direct programs combining mail with e-mail and Facebook, as well as data-quality strategy advice, see https://www.acculist.com/personalization-omnichannel-strategies-drive-2020-direct-mail/

Metric, Video, Shopping Lead Social Media Trends

Social media marketers have a busy, changing landscape to navigate in 2020. Among the top trends highlighted in a recent Entrepreneur magazine article by Deep Patel is a de-emphasis of social media “vanity metrics," such as follower counts and "likes," as both Instagram and Facebook trend toward dropping stress on public likes. Hopefully, marketers will take it as a signal to seek more actionable metrics, such as the rate and quality of user engagement, or user demographics and data for audience targeting. While social media management provider Sprout Social's "Sprout Social Index" monitoring still shows likes/comments as the leading measure of social success (72% of marketers), followed by shares/retweets (62%), nearly two-thirds of marketers surveyed felt that social listening will be more crucial in 2020, meaning a greater concern with what’s being said rather than how many people are looking at a single post. Brent Barnhart at Sprout Social joins Patel at Entrepreneur in listing video as a continuing growth trend for 2020, however. Video will make up 82% of all internet traffic in 2020, according to Social Media Today, and, as Barnhart notes, YouTube is second only to Facebook in terms of active users now, with Chinese-owned social video app TikTok bounding up as the latest video market disrupter. Patel urges brand marketers to prepare for video formats with more stress on creative storytelling that engages viewers in seconds and increased use of audience segmentation for "personalized video" content that is customizable and hyper-relevant to specific market segments. Social shopping is now an integral part of the social media experience, per both Barnhart and Patel. Patel advises meeting user expectations by combining creative and engaging storytelling with a frictionless shopping experience where customers don’t need to leave the social media site to buy products. Barnhart likewise sees increased direct business from customers and points to examples such as Facebook’s roll-out of personalized ad experiences and changing formats and call-to-action by audience targeting. Finally, Patel and Barnhart both predict that influencer marketing will increase use of "nano-influencers" with only a couple thousand followers. Their smaller, better-defined audiences allow for greater personalization and stronger audience engagement, delivering more measurable results. For more see, https://www.acculist.com/metrics-video-and-shopping-lead-2020-social-media-trends/

Election Is Double-Edged Sword for Fundraisers

Nonprofit fundraisers are entering a presidential election year, arguably one that is more contentious and partisan than usual. Will that be good or bad for fundraising? What strategies will help navigate the political crosscurrents to reap donations? Research by online fundraising platform Classy has found that an "election effect"can drive an "unprecedented increase" in recurring donations for some nonprofits aligned with politically charged issues. Per 2019 Classy research, 46% of respondents said their political beliefs dictate the organizations or causes that will receive their donations. Classy suggests some basic strategies to use political winds to propel efforts to bump up new donors and recurring donations: 1) go back through donor data from the 2016 election to see how donations were affected before and after election day, taking into account political party as well as demographics and the timing of spikes; 2) pay attention to news about political issues that my relate to your cause for timely and targeted positioning of appeals; 3) reach out to existing donors and ask how the 2020 election is impacting plans to donate in order to decide how and when it's best to ask for a donation; and 4) embrace flexibility in strategy so that you can adjust efforts to shifts in the national conversation. But not all nonprofit causes can be linked to political issues. In a Forbes magazine post, Gloria Horsley, founder of Open to Hope Foundation, acknowledges the positive "election effect" for fundraisers that align with political agendas but notes a potentially negative impact on other nonprofits when more politically charged sectors noisily take center stage and siphon donor attention. One approach for nonprofits that can't leverage political issues is to illustrate how helping the nonprofit can produce tangible results, in contrast to the less certain outcomes of political efforts. Donors with an emotional connection to an organization will dig deeper and stay longer—even in an election year. That's where storytelling content makes a difference. In a post for the Association of Fundraising Professionals (AFP), fundraising consultant Linda Wise McNay cites storytelling as one of the top eight 2020 trends that nonprofits should embrace. She urges fundraisers to collect intimate, personal stories about beneficiaries of the nonprofit's work, and then share those stories in print, online, on the phone and in person. McNay of AFP also sounds a note of caution about politicizing efforts: "Be wary of saying anything too controversial to your constituents that may be considered taking a position on one side or the other....Your goal is to be still operating after the election, no matter which side wins the election in November." See our website post at https://www.acculist.com/election-year-is-double-edged-sword-for-nonprofit-fundraisers/

Mobile, AI Trends Impact E-mail Marketing

E-mail marketers can expect to ride some positive trends into 2020, according to e-mail pros. While continuing to top other channels in terms of ROI, e-mail marketing in 2019 also showed improved delivery rates, rising open rates and increasing click-through-rates, per UK-based Data and Marketing Association. Digital marketing platform Smart Insights recently turned to several experts to find top strategies to help leverage the positives this year. The impact of mobile usage on e-mail can't be underestimated. In 2019, mobile browsing (53% of traffic) surpassed desktop/tablet browsing (47% of traffic), notes Smart Insights. And while mobile still lags in terms of purchase revenue (32%) versus desktop/tablet (68%), it's growing fast, with a 23% year-over-year increase that has helped accelerate mobile optimization across digital channels. Data from Litmus shows that mobile devices also led in e-mail opens (41.9%) compared with desktop opens (18.2%) by Q1 of 2019. Coding e-mail creative for a mobile-viewing format is only the beginning. Changes to copy, images and overall layout can boost click-through by streamlining presentation to place the focus on quick engagement and CTA links, note experts. Concise copy with enough white space for easy reading is a first goal. Other tips include using image dimensions that are small enough to render well and placing images on the "first fold" to encourage scrolling. Using e-mail design with short copy not only leads to quick scanning but also allows the call-to-action (CTA) to be seen early and avoids excess scrolling that loses click-throughs. Finally, make sure that e-mails are rendering correctly across all types of devices, a testing option offered by most e-mail service providers. Artificial Intelligence (AI) is coming of age in marketing, including e-mail campaigns, with 87% of current AI users say they are planning on using it for sales forecasting and e-mail campaign enhancement, per Statista. Connext Digital foresees seven ways that AI will begin to influence e-mail marketing: 1) applying algorithms and data insights for predictive personalization; 2) analyzing demographics, purchasing patterns and online behavior for smarter segmentation; 3) automating workflow for e-mail triggering, tailored messaging and lead nurturing; 4) using natural language technology to find the best words for response optimization of subject lines and CTAs; 5) improving e-mail timing and frequency by specific recipient;6) A/B and multivariate testing to quickly identify trends and develop predictive results; and 7) developing data to enhance broader analyses, for example to predict potential churn. Privacy regulation is another factor for e-mail. Cold e-mailing, spamming and phishing have tainted e-mail’s reputation among consumers (and marketers), but recent privacy regulations, including the European Union's GDPR and California's CCPA, have spurred the e-mail marketing world to go beyond CAN SPAM to focus on privacy, compliance and subscriber trust. See our full website post at https://www.acculist.com/mobile-ai-highlight-e-mail-marketing-trends-for-2020/

Personalization, Privacy Drive 2020 Data Strategies

Multiple data issues face direct marketers in 2020, starting with data privacy. While many of our U.S. clients are not affected directly by the European Union's General Data Protection Act (GDPR), U.S.-based consumer-data privacy efforts have now resulted in the California Consumer Privacy Act (CCPA), with more legislation on the horizon. Meanwhile, omnichannel data personalization has become essential for targeted response and ROI. Companies face complicated decisions when combining first-party data collection, user-level data from the big digital platforms (Google, Facebook and Amazon) as well as second- and third-party data in ways that balance consumer privacy with smart (and customer-demanded) personalization. A post in AdExchanger by Briggs Davidson, a senior manager at Deloitte Consulting, outlined some key steps for coping. He advises starting with a focus on the customer in collecting, organizing, storing, and activating data across all silos that may need to meet data-privacy compliance. When it comes to first-party data, prepare to shift marketing strategies to ensure consumers have a reason to share their data, delivering value to build trust. Davidson predicts creation of data clean rooms, or a separate analysis space for combining first-party data with platform-level customer data under strict privacy controls. Regardless, marketers will need multidisciplinary teams as well as partner collaboration. Meanwhile, prepare for hyper-personalizaton to drive marketing, according to European digital platform firm Qualifio, which found that 83% of marketers say creating personalized content is one of their biggest challenges. Why? Because personalization now requires: 1) new tools to collect and analyze first-party data for compliance with data privacy regulations like GDPR and CCPA; 2) an omnichannel purchasing journey and analytics for a single customer view; 3) incorporation of new technologies such as voice search (50% of Google searches are expected to be voice searches in 2020); and 4) meeting rising customer standards for personalized promotion and service. In fact, 70% of the customers surveyed want an immediate response to their questions or complaints, which is fueling artificial intelligence (AI) and machine learning (ML) initiatives. This means data quality will be even more key. A Forrester Consulting July 2019 report revealed that while 82% of companies place a high priority on refining data quality, more than a quarter of all marketing campaigns were hurt by substandard data in the last 12 months. Plus, a majority of marketers launching artificial intelligence (AI)/machine learning (ML) initiatives (78%) say these projects have stalled—with data quality as one of the culprits for 96%—according to a new study from Dimensional Research. CMO Kristin Hambelton, of Marketing Evolution, urges marketers in a recent Forbes magazine post to take these basic steps for improved data quality: 1) prioritize data quality and create a comprehensive initiative on data verification, collection and cleansing policies; 2) define and verify high-quality data in terms timeliness, completeness, consistency, relevance, transparency, accuracy, and representativeness; 3) organize disparate data sources with unified marketing measurement for a holistic customer view. For more, see https://www.acculist.com/personalization-and-privacy-trends-highlight-need-for-data-strategy/

For 2020: Clean, Personalized, Predictive Data

As 2019 closes, marketers have a year's worth of multichannel customer, campaign and sales information to analyze for 2020 plans. So what are the big data trends that will maximize ROI? Clean, up-to-date, quality data is still the basis for effective marketing. So start by monitoring data for issues such as duplicates, missing information or bad records to figure out how and where they are occurring. Then standardize processes at each data entry point. Next validate the accuracy of data via data tools or expert data services. Identify and scrub duplicates. Once data is standardized, validated and de-duped, improve its analytic value with third-party data appending. Establish a feedback process to spot and update/purge incorrect information, and communicate standards and processes so all teams understand the value of clean data in segmentation targeting, lead response, customer service, etc. Meanwhile, the 2019 Martech Conference highlighted other trends, such as the role of data in personalization. Expect to see increased use of Artificial Intelligence (AI) and machine learning (ML) for personalization. For example, for more personalized acquisition, ML can recognize if people from certain areas are more likely to respond to a specific offer or which past high-response special offers may resonate in future. When personalization is combined with elimination of data silos and creation of a single customer view across channels, marketing becomes especially powerful. Indeed, data integration and elimination of data silos are key to the growing "agile marketing" trend, which breaks down team silos to focus on high-value projects collectively. Marketers should also boost use of predictive modeling. Why? A study by ClickZ and analytics platform provider Keen found that 58% of marketers using predictive modeling experienced a 10%-25% ROI lift, while another 19% saw more than a 50% uplift. While retroactive campaign data can be very useful, it’s not as good at informing future multichannel directions. Standard data analysis often mistakenly gives most credit to last-click channels such as search or transactional activities. The Keen/ClickZ survey found marketers using predictive modeling boosted results in multiple areas, including better understanding of the target audience (71%), optimizing touchpoints on the customer journey (53%), and improving creative performance (44%). For more detail, see https://www.acculist.com/prep-for-2020-marketing-with-clean-personalized-predictive-data/

Promotional Products Face Changes, Challenges

Promotional products suppliers and distributors have been able to ride corporate buyers’ profits to an average 1.3% annual growth rate in the last five years through 2019, reaching $17 billion in U.S. revenues this year, per IBISWorld market research. But a number of challenges, requiring innovative solutions, lie ahead. Continuation of the tariffs imposed in the U.S.-China trade war are likely to have a direct impact on the promotional products market, where the vast majority of products come from China, creating rising product prices and uncertainty. One of the options that some companies are already taking is a shift to sourcing from countries outside of China, such as Vietnam, per the Advertising Specialty Institute (ASI). Meanwhile, the promotional products market is facing competitive challenges from the entry of big online competitors such as Amazon. Market execs have told ASI that they believe the e-commerce power threatens to potentially cut out suppliers and distributors by positioning itself as the lowest-cost provider from a product and freight perspective. Their worries include Amazon opting to partner with only select suppliers and distributors; selling direct through its platform; and/or using its search presence for rankings that create winners and losers, and force up advertising expenses for all. Finally, the potential of an economic slowdown or even recession has some nervous. ASI recently interviewed 10 leading suppliers and distributors in the promotional products market for their visions on handling such challenges over the next 5-10 years. The good news is that all foresaw continued growth, albeit with increasing consolidation and online dominance. Among their predictions is that technology will be a key driver of every aspect of how buyers select and purchase products, of fulfillment and delivery, and of customer service through the order life cycle. Second, e-commerce will be the standard, benefiting big online players that provide fast, accessible solutions and inexpensive drop-shipping for some clients, as well as a suite of features to meet the complex needs of other more sophisticated clients. In that expanded digital environment, data management and analytics will loom large, tracking orders in production, materials used, items ordered, customer profiles and contacts, etc. Up against Amazon, personalized customer experience will be key to making an e-commerce presence into a true online buying experience. Competition will also drive the growth of creative promotional agencies that are not price-focused but seek to help clients build brand name. For more on leadership predictions, see our website blog post at https://www.acculist.com/promotional-products-market-faces-new-challenges/

Companies Retain Embrace of Recognition Products

Recognition and incentive products marketers will be happy to know that the market is strong and stable, per the most recent data. A 2019 survey of employee recognition programs, conducted by rewards association WorldatWork and underwritten by Maritz Motivation, found the programs overwhelmingly common (87%) among organizations surveyed, typically companywide (88%), and almost all in place for more than five years. But there are details and shifts worth noting. While most companies surveyed are seeing the same level of use for recognition and incentive products as last year, one in three are seeing an uptick. In fact, the study found growth at both ends of the corporate commitment spectrum, with an increase in deeply-embedded recognition programs (17% in 2019 compared to 10% in 2015) but also an increase in companies who say they have no employee recognition policy, strategy or philosophy (19% in 2019 compared to 12% in 2015). Survey respondents agreed that their programs are meeting goals for the most part (48%) or somewhat (31%), but there is room for improvement and change since only 18% said they are definitely meeting goals. Program administrators may come from the Human Resources (50%), Compensation (25%) and Benefits (8%) departments, but the key to growth is likely to be more senior executive support, increasing the 52% of senior executives who now support recognition programs as an investment. Indeed, companies without recognition programs cite cost and lack of leadership support as the main impediments. The average organization uses eight separate recognition programs. The most typical programs reward length of service (72%) and above-and-beyond performance (62%). Programs to motivate specific behaviors or outputs such as customer service (34%), productivity (27%) and quality (27%) are lower on the list. Meanwhile, biometric/wellness programs are the ones that impact the highest proportion of the workforce today (40% of workers in the last 12 months). What recognition and incentive products top the survey? Gift cards lead (62%), followed by cash (50%), clocks/watches (49%), plaques/trophies/certificates (47%), apparel/accessories (46%), jewelry (46%), sporting/recreational goods (44%), electronics (42%) and luggage/leather goods (41%). Popular goals of recognition programs include motivating high performance, creating/maintaining a positive work environment and increasing engagement, with 24% using recognition to support a culture of change. But the study found that organizations tend to measure the success of those programs and goals by employee satisfaction/engagement surveys (65%) or employee involvement (47% use number of nominations and 37% count employee usage or participation rates). There is a lot lower use of external performance data such as customer surveys (24%), employee turnover (23%), productivity (12%) or profit (12%). Unsurprisingly, recognition programs that could lead to higher, measurable ROI (error reduction, safety, waste minimization, etc.) remain relatively rare. For details, see our website blog at https://www.acculist.com/employee-recognition-programs-remain-organizational-mainstays/

Event Marketers Bet on Data, Tech, Personalization

For AccuList's trade show and conference marketing clients, the good news is that, even in a digital world, live events and face-to-face experiences retain their power, with over 40% of marketers saying live events are their most important marketing channel. Plus, event marketers have more tools (and challenges) as they move into 2020. A post by marketing guru Michael Brenner for Marketing Insider Group cites a number of technology trends that event marketers can use to boost attendance, engagement and ROI, including artificial intelligence (AI) for everything from ticketing and sales to personalized promotions and automated event follow-up; augmented reality (AR) and virtual reality (VR) for immersive and engaging experiences; and interactive video. Meanwhile, as marketing technology provides access to real-time event data, many marketers find their biggest problem is being overwhelmed by a flood of data, ranging from audience attraction (website visits, social media clicks, registrations); on-site engagement (RFID metrics, mobile app engagement); post-show follow-up (attendee opinions, costs, ROI); and auxiliary data (CRM, membership data, attendee interests). The key to prioritizing and analyzing, notes event marketing and tech agency Freeman, is to 1) centralize, standardize and integrate data; 2) decide on goals (such as attendee satisfaction, exhibitor ROI, or reduced attendee and exhibitor churn); and 3) define the metrics that best measure achieving those goals. Based on analysis of attendance or exhibitor patterns, marketers can then segment data lists for better targeted response and ROI. For all marketing channels, personalization is the new requirement. As Brenner’s post notes, because they believe it’s so effective at increasing event marketing ROI, 9 in 10 event planners use some form of personalization. His article includes a useful infographic from a 2017 Eventsforce study on the ROI of personalization which shows that not only do 73% of event planners believe that personalization and data-driven marketing are a priority but 89% personalize event invitations via names, content and links; 71% personalize event communications via e-mail content and landing pages; and 58% personalize registration via different forms for different audiences. As far as collecting the data needed for personalization, the most effective tools are rated as registration systems (84%), CRM/marketing systems (62%), surveys (29%) and event apps (29%). For more, see our website blog post at https://www.acculist.com/data-technology-personalization-top-event-marketing-trends/

Ticketing, Giving Trends Boost Performing Arts

Heading into 2020, performing arts marketers can take advantage of positive trends in both fundraising and ticketing sales according to recent studies. While the Giving USA 2019 report released in June showed declines for many charitable-giving sectors from 2016 to 2018, arts fundraising stood out by remaining relatively flat. Adjusted for inflation, giving to arts, culture, and humanities increased 11.1% between 2016 and 2017, declined 2.1% between 2017 and 2018 (though a 0.3% increase in current dollars) and ended up with a cumulative increase of 8.7% between 2016 and 2018, thanks to 2017 donations that reached the highest inflation-adjusted amount for the sector on record. Underneath the numbers are three important lessons for our performing arts clients, as fundraising counsel Alexander Haas points out in a recent post. First, a focus on high net-worth individuals via upper-level membership programs, project-related major gifts, and targeted marketing campaigns is likely to pay off, as proven by 2018’s 2.6% increase in gifts of $1,000 or more, and the fact that, of the 90% of high-net worth households giving, a quarter focused on arts donations. Second, targeted campaigns and quality donor lists are essential as fewer individuals give and a greater percentage of philanthropic revenue comes through larger gifts. Finally, online giving can be a boon to performing arts; for example, the Blackbaud Institute’s 2018 Charitable Giving Report showed that online gifts represented 9.5% of overall giving to arts organizations in 2018, and the 5.8% growth in online giving to the arts outpaced other nonprofit sectors by four times. Making online giving a convenient option for donors and members is one way to offset the decline in smaller gifts. Meanwhile, an October Reportlinker market research report forecasts a 5% compound annual growth in ticket sales from sporting events, movies, concerts, and performing arts events in the 2020-2024 period. While sporting event and concert popularity is a key driver of growth, the research also credits a number of innovative marketing strategies for pushing ticket revenue, such as flash sales, early-bird offers, access codes, public discounts and adoption of mobile applications to make tickets more readily available to consumers. For more, see our onsite blog post at https://www.acculist.com/ticketing-and-giving-trends-are-positives-for-performing-arts/