Direct Marketing For Individual Donor Recruitment What Is Direct Marketing

Direct Marketing For Individual Donor Recruitment What Is Direct Marketing It is not just.... Direct Mail Mail Order Tactical Junk It is ....... A key discipline within marketing Key Features Direct Response Measurement Database A Definition “The planned, recording analysis and tracking of customers’ direct response behaviour over time... in order to develop future marketing strategies for long term customer loyalty and to ensure continued business growth” Growth and Evolution Stand-alone direct marketing Integrated direct marketing Peripheral direct marketing Key Direct Marketing Measures Short Term Response levels Campaign break-even Sales achieved Long Term Donor Acquisition Cost Attrition Rates Life-time Values Profit Potential Benefits Of Direct Marketing A Direct Response Media Better Targeting Personal, powerful communications More flexibility More creative opportunities Controllable timing Multi-media planning Supports existing channels Benefits of Direct Marketing Database Profiling and analysis opportunities Better market information Private access media Better segmentation Interactive relationship Reasons For Growth Changing demographics and lifestyles Media fragmentation Decreasing dataprocessing costs Increasing media costs Changing business focus SPIRAL OF PROSPERITY Identify Prospects Target Media Increase Donor Value Sell Products More Profits More Investment Analyse Database Cross - sell, Up - sell, Renewal Get Donor Information Talk to Key Donors Regularly Build Database and Analyse Charity Facts 8-10% of consumer direct marketing generated by Charities Main route to donor recruitment and retention over past 20 years. Donor Recruitment – break even at best Donor Development – Returns of 5:1 Acquisition The core of the direct marketing discipline is the allowable marketing cost per sale. Acquisition Principles Objectives Profiling Targeting Media Selection Message Response Analysis Objectives The budget is built by targeting lowest cost prospects first Lapsed Donors Warm/Enquirer Lists New Business Profiling Geographic Demographic Geodemographic Lifestyle Historic/Lifetime Value Source - Method of Acquisition Database Fields Donor Data Name/Address Date of Recruitment Source of Recruitment Communication History Giving History Attributes Communication Preferences Geodemographic Overlay Type of dwelling Sex TV Area Owner Occupier Mosaic/Acorn Other Overlays Scoring Data Protection Customer Source Warm Lists Reciprocals Selective Media - Prospects Broadscale Media Suspects Recruitment Opportunities Direct Mail Unaddressed Mail Inserts Press Telephone Statement Stuffers Payroll Giving Face To Face Door to Door Television Radio Electronic Product despatches Ticket Media Direct Mail Geo-demographic Lifestyle Reciprocals Rented lists Compiled lists Creative – involvement – regular gift vs one –off ask Recruitment Routes Unaddressed Mail Royal Mail vs. rest Variant of winning cold pack – if weight and size allows Low distribution cost Postcode selection Inserts National Press and Magazines Specialist press vs. broad Design - security Recruitment Routes Press Two stage – or PDD? Emergency or high value product Cost Placement Reciprocal ads. Telephone Recruitment of raffle ticket sellers Recruitment of door to door volunteers Inbound data capture/conversion Limited testing of cold telephone lists Conversion of enquirers, traders, campaigners etc - PDD Recruitment Routes Statement Stuffers Cross-selling to affinity card holders/traders DRTV Falling media costs Niche channels Small monthly regular gift PDD Testing on Interactive TV Recruitment routes Face to Face Regular givers Younger donors Retention/attrition Limited availability Profile Pay per recruit Clawback guarantees Door to Door Attrition rates Direct Debit Target by postcode Limited availability Recruitment Routes Payroll Giving Non direct mail responsive Different profile Crossover opportunities with Corporate fundraising Radio Only as part of multimedia campaign Low media costs Product Despatch Often forgotten Slow programmes Heavily used in Financial Services marketing Recruitment Routes Electronic Websites SMS Text message testing Ticketing Ambient media Evaluating and Selecting Media Size of audience Allowable cost per donor Estimated effectiveness Number of stages required Multi-Media Campaigns Multi-Media Are usually more cost effective than single media campaigns Capitalise on synergy Diminishing Returns Doubling the size of the advertisement weight of the mailing pack frequency of advertising does not necessarily double response!! Message Branding Values Typeface – 12 point size – at least ! Pictures Layout Problem/Solution Gender Specific Copy? Method of Giving One Off Donations Regular Giving Payroll Giving Giftaid Legacies Response Analysis % Response Cost per response % conversion Cost per donor £ Revenue per donor £ Profit per donor £ Lifetime value per donor % Return on investment Acquisition Principles Objectives Profiling Targeting Media Selection Message Response Analysis