Direct Marketing. It s a process. What is direct marketing? from Basic to Insights Linwood Direct Communications 1
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1 Direct Marketing from Basic to Insights Pam Linwood, PDM Linwood Direct Communications Alan Weber Data to Strategy Group, LLC Adjunct Professor, UMKC It s a process Today A proven creative strategy guide to Determining where to start How to manage priorities Why direct marketing and creative belong together Making sense to management and patrons Some important creative stuff with samples! What is direct marketing? Response-driven focus Quantifies success (or failure ) Drives a patron-centric focus (vs. org. focus) What we ask them to do Which offers they find appealing When they want to respond It s all direct format/medium/message 2011 Linwood Direct Communications 1
2 The process, in steps The Audience The Offer The Creative (message/format/timing) How do you weight each one s importance? (Ed Mayer/Bob Stone) (Ray Jutkins) /15/10 (Ron Jacobs) What Matters 100% 80% 60% 40% 20% 10% Timing 15% Design 15% Copy 20% Offer 40% Aud/List 0% Start building, from the bottom up What has the most impact, first What s the campaign objective? Build awareness Familiarity with the organization Understanding the mission Embracing the vision Generate involvement Participate / volunteer / organize Develop financial support 1-time appeal On-going or regular support Major gifts 2011 Linwood Direct Communications 2
3 The Audience What has the most impact? Acquisition new patrons, supporters, volunteers Retention keep or reactivate patrons Growth build involvement with patrons House file or cold list? First know your best patrons Profile to find what they look like demographically Research to find what do to find better response-generated files The hierarchy of a customer Identify Problem Learn Solution Develop Opinion Stimulate Trial Product Use/Conviction Usage Repeat Usage Loyal 0 Over Time Where are your audiences, right now? Build the relationships Touch points A single contact? Most campaigns require 2 to 3 touches before they will respond to your message (mailings, telemarketing calls, sales call) Touch in multiple ways social mktg phone calls events postcards Single step or multi-step Lead generator and fulfillment 2011 Linwood Direct Communications 3
4 Audience motivations - the big 5 1. Fear The dangerous one, use with care 2. Greed (or Desire) Discounts = Greed, Benefits = Desire 3. Guilt A powerful motivator in NFP Work it from a positive perspective 4. Exclusivity Recognition, being value or special 5. Popularity Showing or feeling I am a good person Mayer s motivators 1. To make money 2. To save money 3. To save time 4. To avoid effort 5. To get more comfort 6. To achieve greater cleanliness 7. To attain fuller health 8. To escape physical pain 9. To gain praise 10. To be popular 11. To attract the opposite sex 12. To conserve possessions 13. To increase enjoyment 14. To gratify curiosity 15. To protect family 16. To be in style 17. To have or hold beautiful possessions 18. To satisfy appetite 19. To emulate others 20. To avoid trouble 21. To avoid criticism 22. To be individual 23. To protect reputation 24. To take advantage of opportunities 25. To have safety in buying something else 26. To make work easier Emotion & Logic Uncover problems Define the problem Describe how they can be part of the solution Ask for their involvement Grab with emotion, reinforce with logic, close with emotion Financial benefits are logical (lower costs) Personal benefits are emotional (recognition) People want to fit their actions to their self-image Emotion is more powerful than logic Facts and statistics alone have little persuasive value Never make a point without telling a story, never tell a story without making a point 2011 Linwood Direct Communications 4
5 7 key offer components What you are willing to do/give in return for their response 1 Product/Service the result of their donation 2 Price donation level & what comes with that 3 Unit of sale/credit/payment options 4 Incentives 5 Time limits 6 Response options 7 Guarantees How to build an offer Two ways: Traditional 1. Relevant to the donation With every dollar you give, you help solve More Audience-centric 2. Relevant to audience and their interests With your donation, you ll receive a coupon for 2011 Linwood Direct Communications 5
6 Ultimate offer filters Will this make sense to my customers/patrons/prospects? Does the offer enhance the proposition? 3 key offer attributes: Make it believable Get the reader involved Think creatively Consider formats Classic packages are the top performer 2011 Linwood Direct Communications 6
7 Formats Newsletters build credibility positions as the resource no more than 40% promotional 2011 Linwood Direct Communications 7
8 Formats Self-mailers & postcards Formats Limited by readers/ spam filters/mobile screen sizes Social marketing Burgeoning technology Can exclude Natural audience selection Affordable but requires dedication Timing How quickly to send a patron another offer? New or first time Occasional, annual, or seasonal Regulars Event calendars Activity and event cross-over and involvement-building Volunteers Subscribers, buyers, event-goers Donors 2011 Linwood Direct Communications 8
9 Testing Testing is an investment in learning Test the big things first It s a process There are no failures, just learning experiences Some tests cannot be done without changes in advance those we must build toward Drive testing toward your long-term goals Simple Test Matrix Client: An online tax company 8 cells of 2500 ea. (10,000 total qty) 3 variables: age, offer, format/sequence Tests: 1 Age Group (which offer worked best within an age group) 2 Offer (which offer pulled best overall) 3 Format/Seq. (which format seq. performed best over or by any sub-category) Text Matrix Offer A Discount Offer B Info / Tips Mail (only) Age Mail and Mail (only) Age Mail and Control (only) 2,500 2,500 2,500 2,500 40,000 2,500 2,500 2,500 2,500 40,000 Making your campaign a success Work the process Steward ROI, don t waste funds Not all goals are short-term financial, some may target involvement Use a logical flow, planned and measured at intermediate steps and over time 2011 Linwood Direct Communications 9
10 The Process 100% 80% 60% 40% 20% 10% Timing 15% Design 15% Copy 20% Offer 40% Aud/List 0% Do what has the most impact first Thank you Questions? Pam Linwood Linwood Direct Communications Alan Weber Data to Strategy Group, LLC Linwood Direct Communications 10
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