Direct Mail Marketing at the Art Institute of Chicago

1. Direct Mail Marketing at the Art Institute of Chicago Ralitza Nikolaeva, University of Wisconsin Milwaukee Eunsang Yoon, University of Massachusetts Lowell Ella Carter, Howard University Case Writers’ Workshop, DMEF Research Summit, Las Vegas, October 11, 2008

2. Presentation outline • Introduction to the case • Writing the case • Benefits to student learning

3. Uses of the Case • Can be used as a real-world case on "Direct marketing as a communication tool," "Programming of a direct mail campaign," "Non-profit marketing," etc. for the undergraduate and MBA level courses. • Can be published in a journal on direct marketing, non-profit marketing or other relevant fields.

4. The Problem – presented at the Case Writers’ Workshop 2007 • The number of Members has decreased by 20% over the past five years, creating a need for more effective and aggressive acquisition strategies. • Direct mail has historically been the primary method for member acquisition at the Art Institute of Chicago. • Direct mail for member acquisition has become costly and unproductive.

5. Focus on fixing the controllable factors. Create a mail schedule and process Analyze past campaign results Simplify direct mail components Prioritize tests Use financial data to plan Determine target audience Create package copy and design Select creative and production partners Review results and winning package Determine next test vs. control campaign Over the next year, make the direct mail channel cost-efficient and productive. The Strategy – presented at the Case Writers’ Workshop 2007 5

6. Direct Mail at the Art Institute – Case synopsis The Art Institute of Chicago Case examines the restructuring initiative undertaken by the newly appointed Acquisitions Department management in response to the declining membership of the Museum. The plan to improve the profitability of member acquisition programs requires students to analyze: • the macro environment • museum operations • previous direct mail campaigns

7. Structure of the Case • Introduction of the problem – the new management of the Acquisitions Department discovers that the last direct mail campaigns have been highly unprofitable • Effectiveness of direct mailing campaigns • Approaches to direct marketing program

8. Structure of the Case • Background of the Art institute of Chicago • Analysis of Customers and Census Data • Analysis of Competitors and Economic Census Data • Direct marketing programs at the Institute of Chicago

9. Writing the case • Getting in touch with co-authors – all kudos to Susan and Steve • Communication with organizational representative – benefit of the workshop • Hurdles in the writing process – the legal department!!!

10. Why Write a Case? • Provides a direct opportunity at each step of the process to think how this will benefit the learning process in the classroom. • Get first hand information from a decision maker involved with the case. • Learn about the constraints facing an organization. • Avoid thinking as a professor/consultant.

11. Case Contribution to Active Student Learning • Engages students – e.g. you can share details that did not find their way in the written case. • Encourages role playing – sets the tone using the organizational background information you have gathered; put the students in the decision makers’ shoes.

12. Case Contribution to Active Student Learning • Students acquire skills in analytical and diagnostic thinking • Students learn to make decisions under uncertain conditions • Helps students develop convincing arguments based on solid evidence, good communication skills and strong persuasive skills.

13. Thank you for your attention!