Direct mail is alive and kicking
Before you throw the direct mail baby out of the fundraising bath and invest all your budget in social media or face to face, remember that mail is still the bedrock of most charities’ individual income streams.
Two years ago I started working with one charity client to increase the income from their direct mail programme. It was just about the time when the sector was jumping up and down about social media and you couldn’t move for seminars and workshops on ‘the next big thing’. There is a real temptation to lose focus here. The massive increase in the number of so-called social media consultants and digital marketing consultants is not a guide as to how to spend your fundraising budget. It is an additional channel not a replacement one.
In the meantime, direct mail is alive and well. We have seen our clients achieve annualised increases of 15% income growth and more on their direct mail – with careful planning and by focusing on loyalty this is all possible. And you don’t need to be a large brand to achieve this either. There are some charities that are blaming a downturn in mail income on the recession and on the economic climate. But it is possible to find new donors, cultivate them and do so at a profit, even in these hard times. Direct mail is alive and doing well.
How much should I be spending per new donor?
So, there we were in the meeting today talking about which was the best channel for recruiting new donors. Mail is the solid tested route, but should we go for a single gift or a regular bank transfer? And everyone tells me that on-the-page advertising only recruits emergency donors. And what about inserts, and DRTV, and F2F or telephone?
Where do you start and how do you know which channel is the most effective for recruitng new donors?
The answer will be based on a number of factors but primarily the cost of acquisition at the front end, and the value of the donor over their life with the charity. So, although the cost of recruiting a donor on £15 per month direct debit might be £200, the return from that donor might be greater than a single cash donor who only costs £40 to acquire.
Don’t only focus on the cost — look also at the longer term return before making your decision.
