1. Breaking News: Direct Mail is NOT the Triceratops of Marketing
That’s right, we’re saying it: Don’t believe the hype. While the world has gone online,
using “the Googles” and “the Internets” for everything from shopping to socializing, recent
studies prove that good old‐fashioned direct mail is still an effective and essential marketing
channel.
A 2008 DMNews/Pitney Bowes Direct Mail Survey revealed that nearly 70% of
respondents renewed a relationship with a business because they received a marketing
piece or promotional item on the mail. Nearly 40% of respondents reported trying a new
business for the first time thanks to direct mail. Most importantly, respondents stated that
information they received via direct mail most often led to a first‐time contribution to a
non‐profit organization. The surveyors concluded that “direct mail induces the customer to
touch the offer—recipients of direct mail are receiving, sorting, reading, and using direct
mail to make purchasing decisions.”
The Index of National Fundraising Performance, published by Target Analytics in
2009, analyzed donation channels for 79 of the largest non‐profits in the United States and
found that 78% of contributions were generated by direct mail, making it the top source of
fundraising, well ahead of both Internet (9%) and telemarketing (3%). Most interesting,
direct mail was responsible for 89% of all new donors, while only 12% were acquired
online.
Of course, when non‐profits compare direct mail and email, cost is a factor. Make
sure your organization is not just weighing the difference in cost of distribution, but also the
difference in cost‐per‐response. Although there is currently insufficient data available on
email response rates, the 2009 Global Email Deliverability Benchmark Report, done by
Return Path, found that 20% of emails were undelivered (sent to “junk” or “bulk” folders)
while the deliverability rate for traditional mail is around 88% or higher.
The latest facts show that a well‐planned direct mail campaign can still produce the
most reliable and predictable method of results generation for fundraising. Obviously we
don’t suggest that you rule out email, which can be extremely effective especially once
you’ve established a true dialogue and trusting relationship with your donors and
prospects. The best marketing mix is an integrated approach that maximizes your message
and your budget across various mediums.