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/

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/

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/

Case Studies Offer Fundraising Mail Tips

As nonprofit fundraisers enter their busiest direct mail season, they may want to check out three case studies from the CharityHowTo blog, showing some basic ways to pump direct mail performance. Donor list segmentation is essential, and delivers dividends even for those starting from scratch. For example, the blog post cites the case of a new executive director at a human services organization that lacked results of historical appeals in terms of targeting and pieces sent. The executive director decided to develop a recency, frequency, monetary (RFM) segmentation and so exported the donor base and began to divide it into sections by last gift date, amount of donation (high to low) and most recent to older. In this case, the executive director broke out donors who had given a gift of $250 or more at some point; these "best" donors were going to receive the same appeal as the others, but the new executive director was also going to include a handwritten personal note with each letter and send the appeal by first-class mail. All other donors were broken out by recency, treating the 0-24 months donors as "active" donors, and then further segmenting for those giving below $100 and those giving $100-$249.99. There was a separate segment of "lapsed" donors defined as donors who hadn’t given in the last 3 to 5 years, and even a deep lapsed segment who hadn’t given in 5 years or more. Then all segments, coded for results tracking, were mailed a personalized letter and personalized reply form. Even though just starting out, results improved in terms of total donations and efficiency, with an overall cost of just $0.04 for every dollar raised (compared with an industry average cost of $0.20 cited by the blog). Plus, the nonprofit now had proven segmentation results for use in further improvement of efficiency and targeted messaging. Increased mail frequency is one way to increase donations, but nonprofits worried about costs and donor fatigue often err on the conservative side when deciding how frequently donors should be mailed. The blog cites the case of a homeless shelters executive director who was initially against mailing more than twice a year, even though they had some 65+ homeless people that they were supporting each day. Because they needed to raise more money, they finally tried adding two more appeals per year. Of course, the added appeals increased costs, but they also increased net revenue by 32%. The cost to raise a dollar with two appeals was $0.12, and with 4 appeals went up to $0.20, yet the overall net dollars after costs rose from $51,227 to $67,590. Finally research shows that donors who gave most recently are also most likely to give again. For doubters, try testing a segment of recent donors (0-3 months or 0-6 months). And of course, you will want to segment out those recent donors who give the largest amounts and offer special treatment, such as an appeal with a personal note of thanks for their gift and an indication that you’re just sending the latest appeal for their information only (even though of course you’re going to include a reply envelope). However, the case study of an environmental organization shows why hesitancy to re-mail a donor too soon is often misguided. The organization typically mails about 5 times a year; once someone reaches the $1,000 level, they go into a personal note stream. Results show that while the 7-month-to-one-year donors deliver the most net revenue and average gift, the next best performing segment is the recent 0-to-3-month donors in terms of net revenue and average gift! For a link to more details and charts, go to our website blog post at https://www.acculist.com/case-studies-show-how-nonprofits-can-improve-donor-mail-results/

Industry Trends Help Business Print Magazines

New print publishing trends and innovative marketing options offer good news for business periodical publishers seeking to boost subscribers and advertising for their print versions. The growth of digital readership has not doomed all printed periodicals to declining circulation and revenues, as some predicted. In fact, a recent What’s New in Publishing article cites multiple ways print magazines are adapting for growth. For example, publishers are focusing on niche audiences willing to pay more for a higher grade product and cutting down on frequency. Consider the Harvard Business Review: It grew its subscriber base 10% by reducing print frequency from 10 issues to six a year and using smart positioning, creative new digital benefits, and heavier investment in the quality of the six print issues to increase audience appeal. Printed information is also seen as more reliable by readers and advertisers, according to research, creating a "halo effect" for business publishers with a print edition. "The good news for printed business magazines is that their credibility has a halo effect on their websites, too, which gives them a competitive advantage over digital-only competitors. People may be buying fewer magazines, but they still associate them with quality and reliability," explains the publishing industry’s Dead Tree Edition blog. Plus, despite fears that younger business readers were turning mainly to digital sources and social media for information, publishers can take advantage of continued print readership popularity. For example, the Association of Magazine Media’s "Magazine Media Factbook 2018-2019" shows that, in the United States, "the top 25 print magazines reach more adults and teens than the top 25 prime time shows." Meanwhile, new print technologies and a revival of traditional marketing tools offer business periodicals options for boosting audience and advertiser appeal. A recent article from media agency Mediaspace Solutions cites some ideas that publishers can leverage. With the digital space crowded, noisy and less trusted by potential readers, direct mail campaigns have increased in effectiveness, the post notes. Plus, many publishers have returned to sending printed newsletters to subscribers. Print technologies (QR codes, augmented reality, etc.) are not only tools for better direct mail response but also a way to attract print advertisers by boosting print advertising effectiveness, the post points out. For example, augmented print stacks digital content over a print ad so that when the print ad is scanned by a smartphone, a new digital ad springs to life. Personalization is a must in today’s marketing, and business publishers can combine list segmentation with variable data printing to personalize direct mail campaigns for audience building. Plus, subscriber list segmentation can be offered to print advertisers to help them craft more targeted messages. See the full post on our website blog at https://www.acculist.com/industry-marketing-trends-help-grow-printed-business-publications/

Brain Science, Industry Data Boost Mail Fundraising

As digital channels expand donor influence, some nonprofit marketers may wonder about direct mail's role as a fundraising workhorse. Both neuroscience and marketing data underscore why it's essential to keep mail in harness. Technology may be changing rapidly, but the human brain hasn’t changed in 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 found 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 and weigh the pros and cons of decisions. Unlike truncated digital messaging, direct mail can engage this part of the brain by describing benefits and citing objective reasons for donor dollars. Plus, research consistently shows people trust print/direct mail information more than digital info. Of course, recall and emotion 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 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 engagement. Next consider recent marketing data. 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; 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. However, direct mail's fundraising success is certainly not a given. Another NonProfit PRO article by Jen Linck, chief marketing officer for Corporate Giving Connection, cites some basic strategies: list segmentation and targeting to avoid sending costly mail to bad leads; creative that captures attention and spurs opens, such as dimensional mail or large-sized envelopes; and the inclusion of added value, say via special offers or promotional gifts. Finally, since direct mail works best when it is integrated into an omnichannel campaign, incorporate digital technology with QR codes, short links or text keywords for use across channels. Plus, link donors to a branded, campaign-specific landing page, since 38% more donations happen with branded, campaign-specific landing pages. For more, see our blog post at https://www.acculist.com/brain-science-industry-data-bolster-direct-mail-fundraising/

Is Your Direct Marketing Ready for Generation Z?

Generation Z is arriving in the marketplace. Gen Z includes young people born in the mid-1990s to early 2000s, who are now graduating and getting their first jobs. They not only make up 25.9% of the U.S. population but will account for 40% of all consumer markets in 2020, with annual purchasing power of $44 billion and growing. But wooing Gen Z will require marketers to amend their playbooks. Oberlo, an e-commerce agency, and IWCO Direct, a direct marketing agency, recently discussed Gen Z marketing challenges in blogs, with similar conclusions. First, Gen Z members have a short attention span; marketers have only about 8 seconds to capture their notice, which is even shorter than the 11 seconds required to grab the attention of the typical Millennial. This means content must be targeted, relevant, to the point and quick to engage. Second, Gen Zers have a higher number of technological devices and are constantly jumping from one device to another. While Millennials bounce between three screens at one time, Generation Z can use up to five screens at the same time. Multi-channel, multi-platform, mobile-optimized campaigns are required. Third, Gen Z young adults have strong opinions and, raised to expect personalization, demand customized experiences. They will be critical of advertising that fails to meet their standards for authenticity and meaningful interaction. For example, Gen Z members want to buy from companies that support their values; 55% of Gen Z chooses brands that are eco-friendly and socially responsible. Yet Gen Z has less brand loyalty than prior generations and is less motivated by traditional loyalty programs, although they can be wooed with interactivity, such as online games or events. And while Gen Zers are definitely social media fans, they use social platforms differently. A study by Response Media found that Gen Z favors Snapchat to showcase real-life moments, gets news from Twitter and gleans some information from Facebook, although they see Facebook as a platform for older people. Market Wired research shows that Instagram is their most popular app for brand discovery, with 45% using it to find new products. YouTube video is another way to reach Gen Z. However, direct mail marketers shouldn't assume only a digital strategy can work with Gen Z. As IWCO Direct points out, Gen Z actually finds print media more trustworthy. An MNI Targeted Media study found that 83% surveyed said they turn to printed newspapers for trusted news instead of the Internet. Gen Z does not trust information on the Internet unless it comes from a website ending in .org or .edu. In fact, since Gen Z is online so often and using multiple devices, the biggest challenge is making a lasting impression, which is where trusted print material, such as direct mail, which can be physically touched and revisited, offers an edge as part of an omnichannel campaign. For more insights, see https://www.acculist.com/is-your-direct-marketing-ready-for-gen-z/

These Basics Help Maximize Direct Mail ROI

Industry data shows that direct mail is still relevant and effective in this digital era, which is why clients continue to come to AccuList for its expertise in targeted direct mailing lists and data services. While postal mail wins a higher response rate than other direct marketing channels, its higher costs also intimidate those wary of ROI stumbles, so as marketers begin to prepare 2020 budgets, we’ll pass along some key tips for making “the most of the post” from Chief Marketer. There is a difference between good and bad creative, for one. Anxious to pack in maximum value for the cost of postage, direct mailers can create counterproductive pieces. Long-winded content and pieces crammed to the gills with words, images and multiple messages actually can create confusion that drives recipients away rather than calling them to action, the Chief Marketer article warns. Instead, use white space judiciously to highlight key content, keep messaging direct and simple, and make the offer and call to action clear and easy to follow. If you have multiple messages, consider multiple mailings. On the other hand, don’t be afraid to look for a wow factor that will stand out amid mailbox clutter. Oversize or dimensional mail pieces, promotions ranging from a personalized item to a free report, or an overnight envelope that sparks open-me urgency are examples that have proven effective in boosting response. Next, direct mail success starts with clean, up-to-date list data and selective targeting of prospects or customers. Just choosing the right targets is not enough, however. They must receive a targeted message. Marketers should use demographic, geographic and psychographic parameters to segment lists and then variable data printing to craft personalized content to send the right message to the right audience. But trying to reduce mail costs by skimping on testing—whether of list, creative or offer—is sure to backfire in terms of ROI, especially when introducing a new brand, product or creative. Always test to optimize response before risking the cost of rollout. Failing to track mail response across channels, especially in today’s multichannel world, also will compound ROI risks. Before you mail, consider how you will measure ROI, such as visits to a unique URL, calls to a dedicated 800 number, mailed reply card, or other response device, advises the article. For more tips, see our website blog post at https://www.acculist.com/basic-steps-help-maximize-direct-mail-roi/

Nonprofits Upbeat on 2019 Fundraising Growth

The most recent survey of nonprofits and donors by the Nonprofit Research Collaborative (NRC), a coalition of professional fundraising associations, finds that 60% of respondents expect to raise more money this year than they did in 2018! That’s encouraging news for fundraisers as they head into their key year-end giving campaigns. Many fundraisers feared the new tax law would undercut giving, but the survey found that only a 17% minority reported a negative impact from tax changes, and only 16% of donors said they would change the amount or method of their gift this year because of tax changes. It is true that since nonprofits rely heavily on year-end giving, certain continuing tax trends prove challenging, such as bundling or bunching, in which donors provide multiyear support but give a large donation in just one tax year and then skip contributions in the following year or years. Still, only 30% of nonprofit respondents reported that some donors were bundling. Based on various reports of reduced giving, many nonprofits also were concerned about fundraising growth, yet the NRC online survey of individual donors in March of this year found 56% said they gave the same amount in 2018 as in 2017, 33% gave more, and only 11% gave less. As a result, 63% of fundraisers said their charities did raise more money in 2018 than the previous year. Overall, 73% said they met their 2018 fundraising goals. It’s no wonder most fundraisers (60%) are confident they will raiser even more in 2019. Not all charities participated equally in 2018 growth, of course. Charities with budgets of $3 million to $49 million reported the most fundraising increases in 2018 over 2017 levels. And environmental and animal charities in particular were most likely to meet 2018 fundraising goals. Melissa Brown, author of the report and manager of the NRC, stresses that the upbeat forecast for fundraising needs to be undergirded by targeted, relevant, engaging direct mail and e-mail contacts. Overall, the survey supports both the need for a multi-channel fundraising strategy of frequent contacts. On average, after the first gift, organizations send about 3 more appeals by mail, an average of 4 appeals by e-mail, and invitations to events, including stewardship/recognition activities. For a link to the full survey, see our website blog post at https://www.acculist.com/most-nonprofits-upbeat-on-2019-fundraising-growth/

Are You Realizing Personalization's Full Potential?

With direct marketing today striving for goals such as"hyper-personalization" and "personalization 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 “Dear FirstName” is enough. 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. 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.” People expect to be recognized by name and to have their preferences remembered so that brands can make suitable recommendations and send relevant offers. Studies find that such 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. While discussions often focus on digital efforts, traditional direct mail also has benefited from technology trends, such as variable data printing, PURLs and QR codes, to enable greater personalization. For more on how direct mail can realize personalization's potential, see https://www.acculist.com/is-your-direct-marketing-realizing-personalizations-potential/

Tech Creates New Breed of Interactive Mail

To help boost direct mailer use of emerging technologies, the U.S. Postal Service offered postage discounts this summer for use of interactive mail tools such as QR codes, Augmented Reality (AR), Virtual Reality (VR), Near Field Communications (NFC), and Video in Print. But taking a new technology from gimmick to ROI booster requires inspiration even more than discounts. So here are some success stories courtesy of the USPS, too. Among the USPS-cited case studies of mobile- or tablet-scanned QR and AR codes is this example of how QR codes proved their value for organized sports marketing. Sports event managers created more than 50 unique codes for signage, publications and e-tickets to provide information, social media sharing, and mobile store access, and succeeded in getting QR-code users to scan event material an average of 1.6 times, and increased downloads of the official app to 15 million. Meanwhile, AR proved its traffic-building value for a furniture retailer's mailed yearly catalog; recipients used the app to superimpose pieces of furniture onto a real-time 360°/180° view of their homes, resulting in both more app and website visits by customers for the retailer. Apps can achieve other retail marketing goals besides traffic and sales, of course. The USPS cites a beauty company's print ad AR that allowed digital trials of nail polish, with the goals of preventing product returns and improving future stocking decisions and color choices. Over 10% of users scanned the ad with their smartphones or tablets to try on 40 different nail polish colors. Near Field Communications (NFC) relies on chips and radio waves to communicate with smartphones and has the advantage of instant access. The USPS notes a movie premiere's NFC-enabled posters that encouraged users to tap an image with their smartphones to access behind-the-scenes footage, and an Uber campaign in England with NFC-enabled coasters in pubs, right on the table with the smartphones--and the drinks inspiring ride requests. Video-in-Print (VIP) uses a video device included in a mailer or print ad and can work well for targeting high-value customers. For example, an auto company promoting a new truck used publisher data to select 20,000 readers who fit the target truck owner profile and sent them a VIP magazine insert. Mobile-in-Print also creates immediate interaction by placing mobile call or text capabilities in print media. Consider the case of a multinational auto insurance company plagued by complaints about help line delays: The insurer sent out mobile-in-print mailers that prompted customers to use the keypad embedded on the page to enter their mobile telephone number and license plate information to receive instant insurance quotes on their mobile devices. For more, see https://www.acculist.com/emerging-technologies-create-new-breed-of-interactive-mail/

How Social Media and Mail Can Partner for ROI

Social media and traditional "snail mail" seem a marketing odd couple, but they can work well together to deliver improved response rates, customer insights, creative testing, targeting and branding. Mail lists can build social audience, and social ads can build mail names. In fact, Facebook, the biggest consumer social media platform with more than 2 billion users a month, actively encourages marketers to upload direct mailing lists for matching against user information in order to run hyper-targeted paid social ads. Plus, Facebook ads can drive prospects to a landing page that offers an incentive to capture a physical mailing address in order to build up mailing lists. Social geo-targeting can be used to tailor mail geo-targeting, too. Before prospecting in a specific geographic area with a costly mailing, try inexpensive research using social media. Send a promotion to a social media platform's users in targeted zip codes and review the analytics to see which areas responded to which messages most favorably and then tailor direct mail list and creative. Social media also can help optimize direct mail via social apps and ad analytics that provide demographics, interests, and response data for targeting consumer and business audiences. Those insights can be applied to mailing list segmentation and targeting selections to increase direct mail response. Plus, social media ad creative can be tested and tracked to see which messages and images perform best with which audience segments, with the results used to inform the messages and images used in physical mailers. Finally, marketers can merge social insights and data from social media profiles with CRM and marketing automation to craft direct mail triggers and to create personalized mail content. Marketers can cross-promote on social media and direct mail to marry social media's ability to generate engagement and excitement with mail's ability to deliver personalized, lasting, tangible information. Of course, the creative and offer should mirror each other in both channels for consistent branding. For example, marketers can pump a product launch on social media and then mail brochures when product hits stores. Vice versa, direct mail pieces can include social icons and QR codes linked to a social page to recruit social media followers or promote social sharing incentives. For more, see https://www.acculist.com/social-media-allied-with-direct-mail-delivers-marketing-wins/

Why Use Modeled Cooperative Databases for Mail?

Today's modeled cooperative databases offer big advantages for B2C and B2B direct marketers, which is why AccuList now represents 18 private modeled cooperative databases that clients can use to optimize direct mail results. These databases include millions of merged, deduped, and "modeled and scored" hotline names from thousands of commercial and nonprofit participants. At no charge, each can match the client's database, model client postal addresses, and deliver optimized “look-alike” names. The database will prioritize those modeled names by decile or quintile to help clients further identify targets most likely to respond to an offer or fundraising appeal. Marketers sometimes hesitate to participate because of unfounded fears of sharing exclusive/unique customers, catalog buyers, subscribers or donors with membership-based database participants. Note that these databases generally match a marketer's names against the cooperative database files and share transactional data. If there are matches, only transactional information is added to the cooperative database records; and if there are no matches, the unique names are not added to the pool. Why do cooperative databases opt to incorporate only multi-occurring or duplicate records? Because that is data that tends to be far more predictive, with proven response. Plus, the reality is that very few names are unique to a firm, publication or fundraiser. About 80% to 90% of consumer prospects are multi-buyers, and 90% of nonprofit donors give to two or more organizations, so these names are already included in cooperative data. On the other hand, by participating to access a huge pool of names rich with demographic and transactional information, marketers reap many gains. Acquisition campaigns clearly can benefit from netting look-alike prospects from the large cooperative database pool, a real boon for regional or niche mailers who struggle to find acquisition volume. The large universe also allows for more segmentation to target not only higher response groups but more valuable response segments. In the case of nonprofits, that could be high-dollar donors, for example. Profiling and modeling can create better results from house names, too. Instead of mailing the whole house file, current customers, subscribers or donors can be flagged for likelihood of response and upsell, for channel and messaging preference, for risk of lapse/attrition, and more. Plus, modeled databases offer cost efficiency via an attractive list CPM; recent, clean, deduped records that lower mailing costs; and optimization selects (or deselects) that also boost mailing efficiency and ROI. For more, see https://www.acculist.com/why-participate-in-modeled-cooperative-databases/

Latest Data Proves Direct Mail Is Alive & Well

Some marketers theorize that "direct mail is dead" about as often as "Game of Thrones" fans theorize about the fate of favorite characters. So for all current and future direct mail marketers, here is the latest proof that direct mail is alive and well, and still a key direct marketing tool. For example, the U.S. Postal Service reports that revenue for the first quarter of fiscal 2019 (October-December 2018) was up 2.9% to a $19.7 billion total over the same prior-year quarter. A decline in First Class Mail dollars and volume was more than offset by Marketing Mail’s 4.9% increase in revenue, up by $218 billion, and 4.8% bump in volume, up by 1 billion pieces, combined with Shipping and Packaging revenue growth of 8.7%, up by $516 million, and a 5.4% volume bump, up by 93 million pieces. Why is direct mail still thriving in a digital age? We’ve reported it before, but it bears repeating: The 2018 DMA/ANA Response Rate Report shows an average direct mail response rate of 9% for house lists and 5% for prospect lists, stellar rates compared with response rates of 1% or less for e-mail, social media, paid search and display ads. In fact, lower mailbox volumes actually have helped turbocharge mail response in an era of digital promotional bombardment. Consider that, each day, an average of 107 e-mails per person are received globally and an average 63 ads per person are viewed, but only an average of two pieces of mail are received per person. It’s clear which channel gets the audience attention and why 75% of households read or scan their direct mail ad materials daily, per a USPS 2016 study. Not only was direct mail the top purchase influencer among Baby Boomers, per a 2015 MarketingCharts study, but even younger, digitally addicted generations are fans of direct mail. According to USPS studies, 77% of Millennials pay attention to direct mail advertising, 90% think direct mail advertising is reliable, 57% have made purchases based on direct mail offers, and 87% of Millennials say they like receiving direct mail. Direct mail works for an even younger group of consumers as well: 69% of 18- to 24-year-olds prefer reading print and paper communications over reading from a digital screen, per paper-producer Sappi. Direct mail work so well across generations of consumers because it has some key advantages. In an age when trust in advertising is at a minimum, 76% of consumers say they trust direct mail when they want to make a purchase decision, and trust it more than digital channels, per a 2016 Marketing Sherpa study. Direct mail is also more engaging, memorable and persuasive, per neuroscience studies. In fact, a 2015 Canada Post neuroscience study of direct mail found that direct mail’s motivation response, its persuasive power, is 20% higher than digital media’s motivation response. Finally, direct mail can harness multi-channel databases to machine learning/AI, variable data printing and behavior-based triggers to produce timely, highly personalized messaging. For more, see our onsite blog post at https://www.acculist.com/latest-data-shows-direct-mail-is-still-alive-well-and-effective/

Personalization Is Key to 2019 Insurance Marketing

Personalization has become a mantra for all direct marketers, but it is especially relevant in insurance marketing. According to an Accenture 2018 study, 80% of insurance consumers are willing to share data to get more personalized offers, messages, pricing and recommendations from auto, home and life insurance providers. Although over 70% of insurance marketing campaigns claim to use some personalization, surveys show marketers are not doing enough to satisfy that customer demand. As a result, marketers can miss out on personalization's proven power to improve response and ROI, lower acquisition costs, and enhance cross-selling. While digital data often leads conversations, the importance of personalization in traditional direct mail, still an insurance workhorse, should not be ignored. After all, direct mail is considered more personal than digital by 69% of recipients, giving personalized content extra power. Direct mail also gets an average 9% response rate for house lists and 5% for prospects, per 2018 DMA/ANA data, compared with 1% or lower for other channels. Plus, for the digitally addicted, adding direct mail to digital bumps up conversion by 28%. A recent article on insurance marketing from agency Ballantine advised on top ways to maximize mail ROI, and, no surprise, personalization dominated—assuming clean, up-to-date mailing lists with important targeting parameters. First, marketers can use variable data printing and database parameters to personalize content and images to match the consumer's life stage, so, for example, auto policy creative targeting a young single first-time car buyer differs in messaging and images from the creative for an older couple with a minivan. Next, marketers can personalize rates by taking into account factors such as the age and gender of the targeted recipient. And they can tap personal interests by leveraging affinity relationships, such as a specific sports team or association affiliation, via targeted discounts. Personalization should then continue through the customer journey. Marketers can study the sales funnel to find when leads are most likely to drop out so that processes can be simplified, streamlined and further personalized to boost conversion. Simple examples include pre-filled forms and postage-paid return envelopes. Meanwhile, One Inc., an insurance software company, offers a helpful roadmap to digital personalization. As with direct mail, marketing begins with quality consumer data and analysis, taking a step beyond age, gender and location to parameters that identify unmet needs and customer value for targeting and prioritization—such as a recent move, a new home, a new baby or an upcoming policy expiration date. Next, marketers need to track lead and policyholder actions to decide on the specific digital behaviors that will trigger a personalized response, say following up an online request for information with a series of lead-nurture e-mails. Then, marketers can design and test small campaigns before expanding to more channels and audiences. Once strategies and processes have been developed and tested, an investment in marketing automation technology can follow, including AI algorithms using real-time data and behavior to tailor offers, customer service, cross-selling, lead scoring and more. For more on personalization in insurance acquisition and retention, see our full blog post at https://www.acculistusa.com/personalization-is-now-key-to-insurance-marketing-roi/