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/

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/

Brain Science Finds Mail Bests Digital With Buyers

The latest brain science explains why direct mail maintains its role as a multichannel marketing linchpin. In fact, direct mail beats or ties digital advertising in almost all the ways marketers seek to woo buyers, per a recent Temple University neuromarketing study sponsored by the U.S. Postal Service Inspector General's office. As reported by Direct Marketing News, the study, which showed a mix of 40 e-mail ads and postcards to laboratory subjects, found that a digital approach bested snail mail in only one area: grabbing customer attention. However, postcards outperformed e-mail in five other areas: holding customer engagement longer, generating a greater emotional reaction, generating speedier recall, and creating subconscious desire and perceived value for a product or service. And the two methods tied in three categories: engagement in terms of the amount of information absorbed, memory accuracy, and willingness to purchase and pay. The Inspector General's office is hoping the findings will inspire marketers to make better use of mail's power to win customers. Among its suggestions are increased marketer testing of mail creative, sequencing, and digital print technology, such as augmented reality and QR codes. For more details, read http://www.dmnews.com/postal/direct-mail-has-a-greater-effect-on-purchase-than-digital-ads/article/423292/