The nonprofit and for-profit sectors can learn a great deal from each other. For example, there are three powerful insights from the for-profit sector about direct mail and email marketing that fundraising professionals can certainly benefit from.
In a never-ending search for the latest, greatest tactics and ways to cut costs, the nonprofit sector has embraced email fundraising while frequently questioning whether direct mail is dead.
So, what can the for-profit sector teach us?
Lesson 1: Direct Mail is Alive and Well
For both customer acquisition and retention, the for-profit sector knows that direct mail still works. That’s probably because 73 percent of consumers prefer direct mail, according to Epsilon. Furthermore, Interquest Digital Direct Mail Printing reports that direct mail delivers 30 times the response rate of email.
While the numbers will be somewhat different for the nonprofit sector, or for particular organizations, the reality is that consumers (also our donors) like direct mail. That’s why they respond to it. While direct mail is not as effective as it was several decades ago, it remains a powerful fundraising tool.
Now, I’m talking about high-quality, well-crafted direct mail, not something you just throw together. I’m talking about direct mail that is donor centered and touches the prospect’s emotions. I guarantee you that bad direct mail will produce poor results. However, a good direct mail appeal will still achieve meaningful results.
Lesson 2: Direct Mail and Email Work Better Together
It’s not just chocolate and peanut butter that go together. The marketing agency Merkle has shown, in a study for one of its pharmaceutical clients, that email can produce a greater response than direct mail. However, when direct mail and email were used together in a multi-channel marketing campaign, the result was a 118 percent lift over direct mail alone.
For a wealth management client, Merkle found that it could generate a call response that was 1.5 to 3.8 times greater when using email and direct mail together rather than direct mail alone.
Sometimes, nonprofit organizations think of their fundraising efforts in silos. “Let’s plan our direct mail appeal. If people don’t respond, we can call them later to renew. But, we’ll need to make sure the timing doesn’t interfere with our email appeal.” Sometimes, I’ll see charities that will exclude people from the direct mail pool who are in the email pool; it’s often seen as a cost-saving tactic.
The reality is that multi-channel, coordinated marketing (and, yes, fundraising) works. Some people are more direct mail responsive (whether or not you have their email address in your system). Other folks are more email responsive. Some individuals need to hear from you a couple of times before you capture their attention. For all of these reasons, multi-channel fundraising could help you get better results. By the way, it’s not just a matter of coordinating direct mail and email. You can also coordinate direct mail and the telephone, email and advertising, etc.
Lesson 3: Test!