Responding to the financial crisis, American companies sharply reduced their spending on direct-mail marketing last year, according to the Winterberry Group, a marketing consultancy. Winterberry said this was the first such decline in more than 60 years of record-keeping. The company arrived at the figures by surveying 305 companies in the direct-mail industry.
With the tightening of budgets, some large charities are scaling back on direct mail efforts, especially large scale donor acquisition mailings. However, the authors of a new book contend that it's important to keep direct mail as a fundraising strategy - just refine it so that it's more effective.
Rising postage rates and fewer solicitations from banks and credit-card companies have conspired to drive down direct mail in 2008.
Postal angst? Here are four mailing trends to watch.
2009? Recession? Bah. Don’t give me any of your whining. I have aches and pains, too. Oh, my back hurts … oh, I have a bum knee … oh, I just dislocated my shoulder … hey, my appendix just burst …
You don’t hear me complaining do you?
My advice: Tough it out, baby — and get back in the driver’s seat. I don’t think the plan really was for the meek to inherit the earth — at least not when it comes to direct marketing.
The Governors of the U.S. Postal Service have approved new prices for mailing services, including a 2-cent increase in the price of a First-Class Mail stamp to 44 cents. Prices for mailing services are reviewed annually and adjusted each May. The new prices will go into effect Monday, May 11.
Anemic acquisition results. Sinking response rates. Shrinking average gifts. Serious budget shortfalls.
Aside from looming postal issues, the future of direct mail looks increasingly bright because of an inevitable massive expansion of your prime audience. It is well-known that among the various fundraising channels, direct mail appeals mostly to the oldest demographic. Your files typically have a median donor age of mid-70s.
We’ve dedicated four issues in 2009 to our Fundraising 101 series, which we hope will offer a solid look at some of the more fundamental issues involved in nonprofit fundraising. We start this month with a look at direct mail. In April, we tackle acquisition; in June, it’s special efforts, including monthly giving, lapsed donors, capital campaigns and planned giving; and, finally, we look at
e-philanthropy in October.
Whether you’ll be reading as a fundraising newbie looking for some entry-level guidance or as a seasoned professional looking for a refresher course to smooth the waters in this tough economic climate, we hope you’ll find these special reports immensely helpful.
All donors are not created equal. As in the for-profit world, the most financially valuable ones are the ones who undertake long-term relationships with an organization — those who embrace a nonprofit’s mission and make donations again and again. In a perfect world, fundraisers would be able to discern these individuals from the 70 percent of newly acquired donors whose first gifts are also their last, and invest in them accordingly.
