Data Smackdown: Direct Mail vs. the Net
It was the fight of the century! In one corner we had direct mail — steady, consistent, predictable veteran of the ring. But in the other corner was our challenger — the Internet. The ’net is quick, young and full of potential. Was this DM’s final fight?
Clint O’Brien, vice president of business development at Care2, served as referee between the two fierce combatants as they duked it out for six rounds. Trish “Strongmire” Longmire, director of donor development for Habitat for Humanity, spoke on behalf of direct mail, while Lisa “East of the Rock” Sock, online outreach and fundraising manager for the ACLU, represented the online world.
Longmire scored points for outlining several advantages of direct mail, including:
1. It’s tangible. For example, it is impossible for e-mail to generate the same donor experience created by a cuddly premium like a teddy bear.
2. It’s proven and has a track record of successfully raising money.
3. Mail gives you the chance to develop a full story for the donor; online communications must be brief.
4. Even today, not everyone is online. Direct mail has the ability to reach more people.
Longmire continued her assault by pointing out some deficiencies in online fundraising:
1. Spam — Longmire dared to invoke the dreaded “S” word, emphasizing her argument further by presenting Sock with an actual can of SPAM!
2. Direct-mail donors tend to be more loyal, and it’s difficult to renew online-only donors.
But Sock retaliated with a strong attack pointing out key advantages of online fundraising:
1. Speed — Especially in the case of an emergency or hot issue, nothing beats online fundraising in its effectiveness.
2. Message flexibility and testing — It’s simple to test a message via e-mail on a small sample and tweak it before roll-out.
3. Lead ownership — Once someone has signed-up for your list online, you own the lead and can solicit that person multiple times.
4. Average gifts tend to be higher online.
5. Customization is more cost-effective online.
Sock also pointed out some faults with direct mail including:
1. High cost of testing — It’s expensive to test in the mail, and often you can’t risk your income with message and creative tests.
2. Wasted resources — Direct mail requires a lot of paper, much of which is thrown out by the donor or lead.
3. Performance is declining — Across markets, nonprofits continue to experience declines in direct-mail acquisition and retention. Our donors are moving online, and we have to follow!
The audience voted via applause after each round, with the results evenly split throughout the event. Longmire scored well with the audience with her Spam comments, but Sock came back strong by emphasizing the quick return produced by online fundraising, especially in the case of an emergency or hot news issue.
Who was declared the final winner? Neither and both. Sock and Longmire agreed that the important question is not e-mail or mail, but how to best integrate both mediums (or all three, counting telemarketing) to recruit and retain donors, and promote your organization’s message.
Karen Taggart is the director of nonprofit services at Care2.
