Case Study: Direct Mail vs. Email Invoices.
“Certainly one can’t beat the price of sending invoices by email. At least it appears that way, until one captures all the real costs of doing so.”
“When testing the letter versus email question, a Danish utility company was quite enlightened by the outcome. This Fresh Data Case Study will analyze the true costs of both options and present the quantitative results outlining which is really the most cost effective method. Possible spoiler alert, the results may surprise you.”
“The bottom line is that it cost the company $3.25 per customer to get paid by paper invoice and $5.75 per customer billed by email. That’s a difference of 42.8%.”
“Naturally, questions remain about the transferability of this experiment to other markets. For example, direct mail is pricey in Denmark. Each of those invoices cost Kr6 in postage, which is $1.06! But which way does that cut? Doesn’t it make the case even stronger in the US market where the invoice can go for under $.45, perhaps $.75 all in?”
Full article link: http://www.dataservicesinc.com/news/FreshDataArchiveRead.aspx?artid=79
WhosMailingWhat.com maintains what could be the largest and oldest archives of direct mail in the entire world! Check out this video for a sneak peek in their collection…
History of Marketing Infographic
An active and healthy acquisition program means your house list stays ‘fit’ and is likely to be sought after by other mailers.
There are many reasons why your active donor or member file should be available for exchanges and rentals with other mailers.
Here are 6 really good reasons why you should have your list on the market:
- LOWER LIST COSTS: You have the ability to develop exchange relationships between your organization and the lists you are using, or plan to use, in prospecting. This cuts costs for acquisition since exchanges are far cheaper than rentals.
- RELATIONSHIP BUILDING THROUGH RENTALS: Making your file available for rental, in addition to exchange, allows you to maintain positive relationships with core lists, even when the exchange balance gets too high(and their available list universe too low) for you to allow additional exchanges.
- RENTAL INCOME: Renting your list generates extra income for your organization. We recommend keeping your fundraising rates low for your fellow nonprofits, but you can be institute more aggressive pricing for commercial entities. Rental pricing for nonprofits in general is a solid two digit number ($85 per thousand, for example). But when settling on a rate for commercial mailers, you have a bit more room to work with. Aim to never have less than three digits ($150 per thousand is a decent number).
- SAMPLES: These give you an upfront look into what your competitors and core continuation lists are mailing. When organizations approach you for a list rental, they have to submit a mail sample, which is a great way to get insight into their acquisition program. A sample tells you at least three things:
- What their control or test packages look like;
- What their potential donors respond to;
- What they are doing or testing that you may not be.
- TEST IDEAS: When new mailers within your core market ask to rent your list, it opens up the door to new test ideas. Out-of-market mailers using your file continuously could be a sign that you could test into that arena. For example, if The New Yorker keeps renting your file, take a look at their file and see if they have selects available for an intelligent test.
- YOU HAVE CONTROL: Don’t forget—you are in control! You decide who, when and how. No mailer can use your list without your approval. You have the ability to block dates, say no to packages that look too similar to your own, and deny requests all together. The power is in your hands.
NextMark, our favorite source for list information, commissioned research to better understand the core issues related to list acquisition and list fulfillment.
“The Evolution of List Fulfillment” is the first whitepaper of its kind, leveraging the combined experience of seasoned direct marketing professionals (list brokerage and management executives), with technological expertise (NextMark) and qualified third-party editorial (Ray Schultz).
Download your free copy (PDF format) now: The Evolution of List Fulfillment
In his position, Surman will be responsible for growing both the print and digital revenues of the Forward – including both English- and Yiddish-language newspapers and websites – while managing and overseeing their business operations. Prior to joining the Forward, Surman co-founded and led Eye Multimedia LLC, a multimedia startup, and also consulted for a variety of businesses and not-for-profit projects.
Before that, Surman was the vice president of new business and strategic development, and vice president for classified advertising, for the New York Daily News. In those positions he was responsible for strategic partnerships, investment and acquisition activities, as well as leading advertising and classified sales teams. Surman also held a series of management roles at The New York Times in sales and marketing, product development and management, and corporate strategy and acquisitions; he worked in – or closely with – business units in multiple media segments, including digital media, newspapers, magazines, radio, and television broadcasting and production.
Earlier in his career, Surman was a management consultant with McKinsey & Company and a professional journalist. His writing and photography have appeared in The New York Times, the Boston Globe, the Los Angeles Times, Congressional Quarterly, Technology Review and other outlets.
Lautman Maska Neill & Company is proud that three campaigns – which successfully raised hundreds of thousands of dollars for three wonderful organizations – were awarded Silver Maxis by the Direct Marketing Association of Washington (DMAW).
The Physician’s Committee for Responsible Medicine (PCRM) multi-channel Department of Defense Campaign, the Masonic Children and Family Services of Texas acquisition package and the Center for Jewish History Calendar of Events renewal were all recognized by the DMAW for their stellar results and creative excellence.
The Maxi ceremony, held Monday, July 26th at the beginning of the Bridge Conference, was a great reminder that solid fundraising strategy (in a creative package) yields great results!
Congratulations to all of our associates at Lautman, Maska Neill & Company.
For many, it’s simply the beginning of summer.
But for the members of the Jewish War Veterans of the United States of America Memorial Day is a time to remember and commemorate the military service, and sacrifice, of ten of thousands of Jewish Americans.
JWV, with over 154,000 members, is one of the largest and oldest (at 115 years) of the major American Jewish organizations.
Negev Direct is proud to work with the Jewish War Veterans.
You don’t have to be a veteran to support the organization. Just click here.
Happy Memorial Day. And thanks to the Jewish War Veterans who served with pride in the American military since its inception.
At least according to a recent article in the Wall Street Journal.
They call it Snail Mail in the article, a term that I have come to loathe, but am willing to overlook when I hear this sort of good news:
“Looking to cut costs amid the recession, Alicia Settle initially thought it would be a good idea to eliminate her company’s annual direct mailing. Spending about $20,000 on the personally signed letters, which offered customers a discount on early orders, seemed indulgent for Per Annum Inc., which sells city diaries, albums, and planners in the struggling corporate gift market. But after swapping snail mail for email last year, Ms. Settle saw a 25% drop in early orders compared with the same period the previous year.”
“We realized we had made a huge mistake,” says Ms. Settle, president of the New York firm.”
And Ms. Settle is not alone.
Lots of non-profits stopped sending direct mail prospecting in 2008-2009 to cut costs.
Lately they have been back in force, perhaps with a bit more caution than before, but with the realization that if you don’t go out looking for donors, they are unlikely to come to you by themselves.
And as trite as it may sound, you can still hold a piece of mail in your hand, sit down, read it at your leisure and write a check.
It may be a bit old-fashioned, but it still works.
In a world were most of us are inundated with emails and working on a computer
The Letter Lives On…
I receive so many emails and spend much of my time in the office writing to clients and vendors.
Much of our business involves problem solving. And I often find myself in the position of being thanked for something that I, or one of our staff, has done: getting a rush order out, tracking down an answer on an urgent clearance…whatever.
We try and go the extra mile to provide the best service possible and I’m sure lots of our competitors try to as well.
And when thanked, I usually find myself writing “Our pleasure to be of service”. (If i’m in a particularly good mood, I may attach one of my photographs to the email for the recipient to enjoy as well).
The reason I use that phrase so often is that I really mean it. Not just as a slogan. Or a company motto. I really do mean it.
My father was an attorney for some 40 years and when asked what he enjoyed most about practicing law he will always answer “the chance to help people who really needed it”. And he meant it.
They don’t build lawyers like that anymore.
When times are tough, budgets get cut.
“Abandoning acquisition can create catastrophic and lasting financial impacts in the form of depressed fundraising for yesrs to come. Don’t be one of those organizations that scrapes by and survives the recession, only to go under a year or two afterward because it made destructive cuts to its acquisition lifeline.”I couldn’t have said it better myself. Click on this link to read Jeff’s full column.
This is a post from my new blog http://negevwriting.blogspot.com/ that I thought would be particularly relevant for the Jewish Donor Blog audience. Enjoy!