Direct Mail Still Core Medium for Fundraisers

Written By Ted Grigg

As one of its goals, this blog site explores trends in the direct marketing discipline. One such trend is the fast growing importance of the email media channel.

This phenomenon affects every industry, but at different speeds.

The growth of spam, unfortunately, has grown even more rapidly than email marketing. Spam has severely constrained the growth and effectiveness of the channel. In fact, email marketing has not delivered on its original promise as the low cost and most efficient acquisition channel for many marketers.

Opt in and double opt in as well as the growth of registration schemes reflect the industry’s effort to legitimize email marketing both as a an acquisition and retention tool.

Spammers will ultimately prompt more restrictive government regulation as a way to control the abuse. But it is unlikely that future regulations or even technology will control the spam curse.

In spite of these challenges, marketers have given email a significant role in their retention programs. Once a relationship is established, companies successfully build that relationship with ongoing email contact. No other medium offers better cost efficiencies, speed and personalization as the email medium for this specific application.

On the other hand, the low cost of entry into email marketing combined with the abuse of spam have increased the allure and pulling power of its older cousin --- direct mail.

In a November 1, 2007 FundRaising Magazine article entitled “What Does Your Board Need to Know About Direct Mail?” the writer, Willis Turner drew this conclusion.

“Even in this e-mail age, direct mail remains the foundation of a strong fundraising program. The surprising industry study shows Generation Y, the youngest generation of donors — those who theoretically are the most computer-savvy — actually is the fastest growing group of direct mail readers.

Direct mail is even the preferred choice of e-mail donors. A study by McPherson Associates showed that of people who first contributed online, 70 percent renewed. But of that 70 percent who renewed, 80 percent renewed by mail. And, according to an InfoTrends, Research Group study, nearly 70 percent of people prefer direct mail to e-mail or phone-based marketing.”

Traditional media continues to contribute significantly in the multichannel strategy. The wise marketer will remain media agnostic responding to the needs of his target audiences and drawing conclusions only after rigorous testing.

Ted Grigg

Ted Grigg is a direct response strategist who helps growth-focused companies reduce risk by identifying weak assumptions before they become costly mistakes.

Over the course of his career, Ted has evaluated several hundred million dollars in direct response testing across direct mail, digital, print, television, telephone, and other channels. His work combines direct response strategy, acquisition economics, customer analysis, creative evaluation, offer development, and disciplined testing.

Ted has worked on both the client and agency sides of the business. That experience gives him a practical understanding of the pressures facing executives, marketing teams, agencies, and service providers—and of the problems that arise when activity, media volume, or creative preference replaces a clear economic objective.

His consulting work helps organizations examine such questions as:

  • Are acquisition goals economically realistic?

  • Is the allowable Cost Per Sale supported by customer value?

  • Are targeting, offers, creative, media, and response paths working together?

  • Are tests structured to produce reliable business decisions?

  • Are unproven assumptions being treated as facts?

  • Is the organization measuring sales outcomes rather than convenient proxies?

Ted’s experience includes the development of direct mail and multichannel acquisition programs for insurance, healthcare, financial services, technology, nonprofit, manufacturing, retail, transportation, communications, government, and business-to-business organizations.

For a national direct-to-consumer insurance company, he developed a direct mail format that defeated established controls and helped expand the productive use of compiled prospect lists from less than 10 percent to more than 30 percent of total direct mail circulation within one year. He also planned Medicare lead-generation programs for more than 60 regional and national HMO and PPO organizations, with some programs exceeding sales projections by as much as 60 percent.

Ted founded Wyse Direct, a direct marketing division of Wyse Advertising in Cleveland, where he developed acquisition programs and helped launch a new technology product for Seiko Instruments by generating a predictable flow of qualified sales leads for its national sales organization. As vice president of new business development for the Grizzard Agency, he helped broaden the agency’s strategic capabilities and pursue new commercial and fundraising opportunities.

He is the author of The HMO/PPO Marketing Plan—A Step-by-Step Guide, published by Executive Enterprises, and has written numerous articles and conducted webinars on direct response strategy, testing, creative development, and marketing economics.

Ted earned a Bachelor of Arts degree from Abilene Christian University and completed two years of graduate study at Texas Tech University. He is the founder of DMCG, LLC.

http://www.dmcgresults.com
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