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Back to the Future…

Back to the Future…. Back to the Future. Using Hardcopy Mail in a Digital World -Bob Salvas, Marketing Consultant Cathedral Corporation. Introductions…. Bob Salvas 22 years USPS 10 years private industry Founded Success Mail in 2003 Acct Advisor to Cathedral Corp

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Back to the Future…

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  1. Back to the Future… Back to the Future Using Hardcopy Mail in a Digital World -Bob Salvas, Marketing Consultant Cathedral Corporation

  2. Introductions… • Bob Salvas • 22 years USPS • 10 years private industry • Founded Success Mail in 2003 • Acct Advisor to Cathedral Corp • Co-Chair of the PCC Providence • Marketing Consultant • List broker • Sr Manager in SendOutCards

  3. Where to begin??? “I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who.” -Rudyard Kipling

  4. Direct Mail • The deciding and planning • Why • How • The devil is in the details • Where • When • What • The key is the WHO (not the band) • Who

  5. The deciding and planning "He who fails to plan is planning to fail.” -Winston Churchill

  6. Why use direct mail? Two things to note in the world today: • People have too many communication options and it is difficult to know which channel they are paying the most attention to. • Most marketing/communication today is either invisible or intrusive • Cluttered marketing/messaging environment • Too many messages in too many channels • To get attention, interruption is used but people hate getting interrupted

  7. Why use direct mail? • Mail does not interrupt • Every one has a mailbox • Mail is highly targetable • It has shelf life • It is tangible • Millward Brown • 81% of mail gets open read/reviewed

  8. Mail versus Email • 27% of people have 3 or more email accts and 30% of people change email address/yr • Over 6 trillion emails sent/yr and only 20% of them are legit- 67% are spam • 13% of PERMISSION based email goes to SPAM filters • SPAM filters and DELETE keys are used to combat clutter and intrusion • 35 To 1 Email Vs. Direct Mail • 80% Of All Email Is Deleted Without Opening

  9. Your web page…Build it and they will come? • Number 1 reason donors sighted for giving online was convenience • 65% of all donors will check a charity’s website before giving • 80% of donors who gave $100+ go online before giving via any means • 53% of all people responded to direct mail by going online • The internet and mail work hand in hand..

  10. Charitable Gifts 2010 -almost 80% mail-related

  11. How? • The first thing to do is set our goals. • Common goals of direct mail: • Gathering info (survey/self identify) • Driving traffic (to a website or event) • Get a donation • Build a relationship

  12. Planning • What are you trying to accomplish? Set up some SMART goals: • Specific • Measurable • Attainable • Relevant • Timeline

  13. The Seven StePs of Direct Mail • Plan –’smart’ goals • Consultant? • Prospective audience –mailing list • List broker? • Proposal –what are you offering? • Copy writer? • Piece –what does it look like? • Graphic designer or creative agency? • Postage –what kind of postage? • Preparation –who is doing what part? • Printers, mail houses, or self-service? • Performance –measure your results

  14. Self-service • Small quantities are naturally a good fit to handle on your own (especially for retention): • Birthday cards and thank you cards to donors. • Save the date postcards. • Piecemeal marketing programs: • Standard size postcards are a great value. • Greeting cards are frequently opened. • If you are mailing thousands of pieces per year, you should inquire about getting non-profit status from the USPS and maybe a mailing permit. • You may want to consider an online service to send some of those greeting cards or post cards - SENDOUTCARDS can be a solution. • www.sendoutcards.com/bobsalvas

  15. The devil is in the details “Beware of the person who can't be bothered by details.” -William Feather

  16. Where? Where will the piece be in the mail stream? • Type of piece: • Standard Postcard • Oversized Postcard • Self-mailer • Generic Letter • Personal Letter • Flat or catalog • Dimensional mailing • Packages

  17. Where? • Type of postage payment: • Stamps • Meter • Permit Imprint • Class of mail: • First-Class Mail • Standard Class Mail • Non-Profit

  18. When? "Timing is everything. There is a tide in the affairs of men which when taken at the flood leads on to fortune." -William Shakespeare. Timing is often the #1 or #2 reason why people respond (along with recognition of the sender). Two types: • Public timing • Personal timing

  19. When? • Public timing • Seasonal (weather, holidays, taxes, schools, etc.) • Event (one area hit by storm or crime or new law, etc.) • Personal timing • Reminders (maintenance, anniversary date, BD, etc.) • Event/triggers (new marriage, baby, house, business, etc.) People who contact you for information are the strongest triggers of all! • Follow up!

  20. What? • The key thing here is that the message must be personal and relevant to the receiver. • Message should be personal 1-to-1 • 75% of charitable giving was individual • Tell a story • Testimonials • Freemiums • P.S.

  21. What? • What is the action you want them to take. • 75% of those who gave to charities listed as their reason: “they were asked” • 42% of those who did not give to charities listed as their reason: “they were not asked”

  22. Call to action is the most critical point Keep it simple Give options of how to respond Web site always! Some people like an email or call option. A new exciting response mechanism is the QR code What?

  23. The key is the WHO(not the band) "You cannot motivate others to want something they don't already want. You can't create motivation. It must already be there.” -Harry Browne

  24. How important is a good mailing list? • What if you sell dog food?

  25. But I own a parrot?

  26. Is this someone who will give to a Christian cause?

  27. Is the owner of this company giving to environmental groups?

  28. The four groups - CAPS • Current donors – the most important list • A-list • Former clients/donors • Personal association • Prospects • Hand-raisers • Suspects • Lists you would buy

  29. The single most important list • YOURS! • If you do not have your donors in a list, get them there. • Offer value to get their information (email, phone, address). • Compile as much as you can (purchase data append). • Remember that 40% of errors occur during data entry.

  30. The single most important list THE NUMBER ONE PROBLEM: CHANGE! • Up to 20% of people move in year. • A new business opens every minute. • A company changes names every two minutes. • A company closes every three minutes. • The USPS changes streets, routes, etc.

  31. This is what you want…

  32. Not this…

  33. Undeliverable As Addressed.. • 6.9 billion pieces of mail UAA in 2010 • Almost 60% of total was destroyed • Move update is now required to get postage discounts • 40 million people move each year • The number one reason for UAA • Many mailing addresses contain input errors (about 12% of UAA in 2010)

  34. Two data bases at USPS… • Address file • CASS • DPV • COA file • NCOA (premail) • ACS (postmail) • Ancillary Service Endorsements

  35. The difference it can make… • ARC mailing list of 69,826 • 15% of those were UAA • 10,493 pieces not reaching intended audience • Per piece value of 94 cents = wasted cost of $9863.42 • After cleanup- 7,553 donors back to receiving mail

  36. The difference it can make… • Cost of cleanup for the list was $500 • Given a 3% response rate and $30 per donor the recovered addresses could generate $6,800.00 in additional donations • Adding the savings in wasted cost to additional revenue = $16,800.00 • ROI of 34:1

  37. The ABC’s of mailing lists • All Addresses • Occupant/Resident • Business • Consumer • ‘specialty • Response • Subscriber • Profiled

  38. All addresses… • Let’s begin with 300 million people… • …at 150 million addresses

  39. Geography • States • Counties • Zip codes • Carrier Routes • Center points

  40. Occupant/Resident • Targeting is strictly geographical • Usually broken up by carrier route • Going to an entire carrier route can garner you ‘saturation rates’ • Mail is often addressed ‘CURRENT OCCUPANT’ or ‘POSTAL CUSTOMER’

  41. When is this appropriate? • Neighborhood shops like pizza places or a community event… • Lower postage rates allow you to go to a greater number of people with the same budget. • These lists are also the least expensive to buy…may even be FREE! (EDDM)

  42. Businesses Lists • Businesses are often looked at by the number of employees- the smallest category being 1-9. • Businesses are divided up categorically by industry using Standard Industry Codes (SIC).

  43. Consumer lists • Non-business lists (with exceptions) • You get the name of the person(s) • Target data such as: • Age or age of children • Male or female • Income level • Homeowner or renter • Type or value of home

  44. How to use consumer data… • Community causes can target high value homes in certain zip codes. • Children’s causes can target adult WOMEN with children under a certain age present in the house. • How do you think the AARP finds you the second you turn 50?

  45. specialty Lists • Magazine/newspaper companies often sell their subscriber list to gain more revenue. • Response lists are marketing data about people who have responded or shown an interest in a certain thing. • Certain organizations may even sell their member lists. • Specialty lists often cost more.

  46. Dealing with list brokers • What is the deliverability of the list? • Should be 90% or above. • Are duplicates removed (one per house)? • Is the list CASS certified (contains +4s)? • How often is the info updated? • Monthly for most lists is OK. • Do they use NCOA for updates? • This is the USPS move database.

  47. Dealing with list brokers • Tell them your list idea – they may offer a better suggestion. • Ask them about suppressing your current donor list within the prospect list. Especially important if it is a prospect message that you don’t want existing donors to see. • Purchase just before you are ready to use. • Trust your source (buyer beware).

  48. Questions? Please contact: • Bob Salvas • Marketing Consultant, Cathedral Corp • 401-359-1602 cell • bob@successmail.net Thank You

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