Direct Mail

Direct mail can be particularly useful for nonprofit organizations, working both as a way to raise funds and a means to update supporters about the work an organization is doing, building name recognition and loyalty. Larger nonprofits sometimes mail to their supporters as often as once a month, working under the theory that even when the supporter does not respond to a particular piece, he or she is being reminded of the organization and primed to respond at a later date. In the last 12 years, money spent on direct mail has increased by 155 percent, showing that, even with the growing popularity of email advertising and other options such as telemarketing, it remains a popular and useful tool.

The first step of any direct mail campaign is to pinpoint a goal and develop a comprehensive plan to reach that goal. Typical goals include the following: acquiring new supporters, building loyalty, or increasing awareness of an organization, program, or product. Next the organization must decide the budget for the campaign. While it may be tempting to keep expenses to a minimum, this impulse must be balanced against the knowledge that a successful campaign will not only bring about a strong return in the short-term but will help lay the groundwork for future donations. It may be useful to build a campaign in stages, with a certain budget for an initial mailing list but plans to expand the mailing if the first group proves receptive.

The next step is to select the list of recipients. Mailing lists for direct mail campaigns may come from existing donor rolls or be borrowed or traded directly with another organization or bought or rented from a list broker. In some cases, the broker has compiled the list, but usually they are acting as a seller's agent. Usually, the broker rents the list for a specific period of time, with a limited number of uses. Depending on whether an organization needs to reach the widest possible audience or a narrowly targeted one, the broker usually can supply lists that significantly affect the level of response. More highly targeted lists tend to have a higher cost per thousand names. Lists can also be compiled from magazine subscription lists, associations and organizations, and public, easily accessible records.

According to experts, the quality of the list accounts for at least 40 percent of the success of a direct mail campaign. Undelivered mail can be a huge waste of money and time for everyone, so lists should be kept up-to-date by running the names and addresses through the National Change of Address (NCOA) file. Of all of the various list-hygiene methods, this is the most crucial, because it will eliminate most of the undeliverable mail from the list. Obviously, the more recent the NCOA check, the more accurate the list.

Then it's time to design the mailing. The sophistication of current desktop publishing software allows almost anyone to construct a mail piece, but most organizations defer to experienced direct mail professionals. While some public relations firms and even some larger organizations have in-house direct mail departments, the work is often done by firms specializing exclusively in direct mail campaigns. Many of these firms specialize further by working only with a particular type of organization, offering intimate knowledge of a specific type of donor that improves their ability to target them.

The average rate of return on direct mail is one to three percent. While this may seem low, the relatively low price of direct mail means that the organization can still get a good return for its expense. The low cost also permits repeated mailings throughout the period of a campaign, which improves overall results. According to the U.S. Postal Service, Americans currently spend $528 billion in response to direct mail, which dwarfs the approximately $30 billion spent by advertisers on campaigns. So, clearly, consumers are getting the message.