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Top Ten Tidbits for Successful Direct Mail Membership Acquisitions October 2007 We all know there is truth to the phrase, “we learn something new everyday”. In direct mail membership acquisitions, we not only learn something new everyday, we gather results of campaigns over time and conduct strategic analyses, which help us detect trends and gain knowledge we use to develop and execute highly effective direct mail membership acquisition strategies. Here are ten of the most consistent and predictable trends we have learned. When incorporated into an organization’s membership cultivation efforts, these tactics maximize results and generate significant income for member-based institutions. Value is king of the jungle. Great value is the number one reason people respond to direct mail membership. Whether it’s discounts, free gifts, free special event passes or a combination of all three, value is the cornerstone of your offer. Shared family experiences are a valuable theme. In addition to value selling memberships, so does the value of families sharing time together. Membership organizations that offer educational, cultural or recreational experiences do well with their campaigns when they promote those family-oriented opportunities as a major reason to join. Pushing and promoting “value” and “family values” is a recurring theme in our successful membership acquisition campaigns. Over the years, we have tested a “value” package against a “support” package for our member-based clients that had no new programs, events or exhibits to promote. The “value” package won the test, as it has time and time again for many of our clients over the years. Integrated campaigns work best. Direct mail packages work better when the copy and graphics tie into your organization’s current branding and marketing efforts. Make your offer clear and simple on your carrier. “Join Today and Enjoy Our Best Offer of the Year!” works better than creatively mysterious teaser copy. Upgrading boosts net income. About 20% to 30% of our clients’ new members join at an upgraded level, most often in response to offering additional incentives including premiums and special opportunities, which increase the perceived value of the membership. More than meets the eye. Direct mail serves as a powerful marketing tool. These campaigns usually make hundreds of thousands of impressions in a community, which has a profound impact on the success of the organization’s overall marketing. Quantifying the overall marketing impact of the membership campaign can, however, be challenging. Schultz & Williams assesses this success by measuring how many people join the organization without using the direct mail reply, but who actually received the acquisition piece at home. Through a match-back process, we have found that a significant number of additional people join an organization as a result of receiving the mail at home. Numbers count. Clients are able to grow their base of support because of their direct mail campaigns—campaigns that range from 100,000 to 1,000,000 pieces annually. One of our clients was frustrated that their membership base would not surpass 24,000 member households. The solution was to increase their annual direct mail campaigns from 200,000 pieces a year to 500,000 pieces a year. In three years this client added 12,000 new members, and they are now generating 76% more revenue from the membership base (through renewals, upgrades and additional gifts.) Discounts make cents. We have tested and retested the offer for our clients and have always found that a discount (traditionally 10% off) on membership will significantly increase results. It’s important to note that the discount does not affect net income because the institution brings in so many more members, which has a positive impact on our ability to reach base goals. In addition, the decrease in the average gift amount is more than returned by the increase in revenue from the additional members. Recent benchmarking from one client showed the following results:
Regionalization boosts response. In order to increase response rates, break into new markets and reduce duplication rates, S&W has been working with several clients to conduct an in-depth analysis into the regions in which they mail. By crafting a unique message on a carrier’s double-window format, which might be—Special limited-time offer for Philadelphia residents only!—regionalizing the offer and targeting only top-performing lists, we can increase direct mail results, especially in far away areas and for deep lapsed members. This strategy has been successfully implemented with many of our clients over the past few years. Knowledge is power. Schultz & Williams conducts member profile studies for its direct mail membership clients, which breaks down many of their member bases by marital status, age, income, profession, adults in household, household children by age/number, home ownership, personal interests and much more. Using a database of self-reported consumer lifestyle data (judged to be the most accurate data available), we match membership files with the database’s 24+ million households. The results of these profiles provide critical information for honing list selections and strategically targeting the best and most cost-effective prospects for our clients. Putting all these tips and tools into place for your next membership campaign will, without a doubt, help you succeed in the competitive mail environment. Schultz & Williams is a national consulting firm based in Philadelphia; providing management, fundraising and marketing consulting for nonprofit organizations, along with full-service direct marketing, database and creative/production services. |
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