Advanced Topics in Direct Mail Fundraising, Part 3

Transcription

1 Advanced Topics in Direct Mail Fundraising, Part 3 A workshop with MAL WARWICK AFP Winnipeg Winnipeg, Manitoba, September 27, 2007 Copyright 2007 by Mal Warwick

2 In this session... 1) Test your creative head! 2) Testing, Testing, 1, 2, 3 3) 6 guidelines for successful testing

3 1) Test your creative head

4 Ask amount test Will a lower entry-level gift boost response without comparably depressing the average gift amount? Credit: Bill Rehm Mal Warwick Associates for Save-the-Redwoods League

5 Be careful what you ask for Longstanding control package: $20 Annual Membership offer Test: $10 Individual Member offer A/B split, two panels of 30,000 names each

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8 Which Ask won? $20 Individual Membership? $10 Introductory Membership?

9 Ask amount test Package # gifts Response Avg. gift $20 Ask % $28.47 $10 Ask % $24.02

10 Package enclosure test Will a bold enclosure delivering big news lift response over that of a simple letter package containing the news within its text? Credit: John Genette - Black Mountain Communications, for United Way of Greater Los Angeles

11 Convey breaking news In the main letter copy? or In an enclosure ( Emergency Bulletin )? Mailed: 49,000 with bulletin 49,000 no bulletin Bulletin added cost of $25/m

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15 Which version won? With the enclosure? Without the enclosure?

16 Package enclosure test Package # gifts Response Net/new Bulletin % ($26) No bulletin % ($8)

17 Cost efficiency test Will emphasizing an NGO s cost-efficiency boost response? Credit: Susie Fink DeCarlo - Adams Hussey & Associates, for Project HOPE

18 Creative test design OSE teaser changed to read, 94% of All Contributions To Project HOPE Go Directly To Those In Need! Inside OSE, new copy, dollar bill graphic All other package elements the same Control mailed to 784,000 names Test mailed to nth select of 35,000 names Rollout cost of $270/M same for both packages

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20 Test package

21 Which version won? With the dollar bill? Without it?

22 Cost efficiency test Package Response Avg. gift Cost/donor Control 0.84% $19.89 $12.15 Test 0.87% $27.24 $3.71

23 Makeover test Will an improved and redesigned package outpull a weak control without requiring a completely new package? Credit: Bill Rehm - Mal Warwick & Associates, for the Center for Victims of Torture

24 The challenge Dynamic organization, compelling cause Limited creative budget Longstanding (but flawed) control package Declining acquisition results

25 The response A package makeover Essentially the same contents Same copy Subtle changes in format, design A/B split, 40,000 packages each

26 Control

27 Test

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34 Which version won? The control package? The makeover?

35 Makeover test Package # gifts Response Avg. gift Control % $19.91 Test % $19.81

36 Insert Test Will a simple insert boost acquisition results? Credit: John Genette - Black Mountain Communications, for Mama s Kitchen

37 Is this insert necessary? New client; new acquisition package Included a mission-related insert Strong results, but... Insert adds $78/M Next mailing: 15,659 control (with insert) 15,657 test (no insert)

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41 Which version won? With the insert? Without it?

42 Insert test Package # gifts Response Net/new Control % ($9) No insert % ($2)

43 New-package test Credit: Susie Fink DeCarlo - Adams Hussey & Associates, for NARAL Pro-Choice America

44 Control Who decides, the govt. or women? #10 white standard window OSE 4-page letter, petition reply, small insert Message is institutional, focus on mission 50,000-name nth select

45 Control

46 Test #10 personalized OSE with large back window showing letter and clinic ad 4-page letter Focus on fake clinics the deceptive practice of luring pregnant women into clinics for support and then forcing them to read anti-choice materials 50,000-name nth select

47 Test

48 Which version won? The control: govt vs. women? The test: fake clinics?

49 New-package test Package Response Avg. gift Cost/donor Control 0.57% $22.62 $35.49 Test 0.20% $28.77 $218.06

50 2) Testing, testing, 1, 2, 3

51 Why should you test? Everybody tells you so? It s really cool? You don t have anything better to do?

52 Testing is... What makes direct response unique The way to gain incremental improvements A straight path to frustration Not within reach for most small mailers

53 Types of package tests A/B split 3-, 4-, or 5-way split Multivariate testing

54 Technical stuff Test results require interpretation! All is not what it seems. The confidence level is key. Cheat-sheet:

55 3) Six guidelines for successful testing Ignore them at your peril!

56 (1) Select statistically valid test panels Compare apples to apples Compare against a control ZIP code order, not alphabetical Nth name select

57 (2) Mail to all panels on the same day from the same place Can t compare summer and winter Can t compare one mailing with another Variations in seasonality, days of the week, postal efficiency, current events

58 (3) 100+ responses per panel Not 10% or 20% of a list! No fixed quantity Depends on response rate Statistical validity requires either: Large numbers of responses, or Huge differences in results

59 (4) Don t t trust other mailers results Question authority! Don t believe everything you hear. Study others work, but verify. Cast around for ideas but test!

60 (5) Above all else, test lists! Package testing is fun but secondary. The list is the most important element. Constantly test new lists and retest!

61 (6) Retest if confidence level is below 95% 80% confidence is meaningless. 90% confidence is suggestive. 95% confidence gives confidence. Then a rollout will probably work.

62 My 5 testing priorities 1) New packages 2) Telephone follow-up 3) Offer tests: premiums 4) Offer tests: involvement devices 5) Ask amounts... but ALWAYS test lists!

63 About list testing... If membership numbers are key, then % If net revenue is key, then Acquisition Cost If Long-Term Value is key, then compare Acquisition Cost to Long-Term Value

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65 Your turn now! For more information, contact: Mal Warwick Associates 2550 Ninth Street, Suite 103 Berkeley, CA (510) Copyright 2007 by Mal Warwick