Trendwatch | Direct Mail for Nonprofits

Mark Twain said it first, but authoritative research studies are saying the same thing about direct mail. Yes, mail volume is down and will likely drop further. Yes, there is contraction among producers of high-volume direct mail. Yes, the United States Postal Service will certainly continue to raise postal rates. However, mailers who are smart and selective are not just surviving, but thriving. And that trend is unlikely to change in the near term, particularly for nonprofits that need the support of committed donors.

The Direct Marketing Association's recently released 2009 Response Rate Report indicates that response rates overall to direct marketing media are up, suggesting that "better list management and more sophisticated targeting" are the drivers of this upward trend.

In A Channel in Transformation: Vertical Market Trends in Direct Mail 2009, the Winterberry Group, a marketing services strategic consulting group, reports, "... direct mail, still commanding over $50 billion in U.S. marketer spending, remains viable. In place of old methods, a wide variety of new mail applications will continue to emerge. The Winterberry report continues, "The ultimate goals tend to be universal: Grow the return on investment generated by every dollar of direct mail spending. Offset the marketing threats posed by higher costs and diminished available budget. And maintain "place in the mailbox" - and a place in the forefront of consumers' (or donors') minds ..."

These comments are especially relevant to nonprofits, who must maintain their connections with donors in difficult times. According to a survey done by Advertising Age for the United States Postal Service, many marketers are convinced that direct mail makes sense in a down market. Two-thirds of the respondents cited direct mail's ability to provide measurable ROI. Nearly 65% said it helped build relationships.

High volume mailers and their production resources have been adversely affected by the economy and the growing popularity of digital media, but selective, highly targeted mailers continue to do well. While fundraising organizations are experiencing the same pressures as the commercial world, it is especially important for them to remain in the forefront of donors' minds.

"Reports of my death have been greatly exaggerated!"

Gabriel Group Chairman Bill Ziercher comments, "While the economic downturn hastened the shift from volume to selectivity, Gabriel Group has preached and practiced lean marketing for years, and we've seen positive results in our own business. Others may be making radical adjustments; but for us, marketing smart is business as usual."

Ziercher points out that Gabriel Group is well positioned to help its clients - in both the nonprofit and commercial markets - benefit from the convergence of a number of long-growing trends:

1. The increasing sophistication of database technology. "We can now fine-tune analytics to a point only wished for just a few years ago, and our clients are reaping the benefits. They may not be mailing as many pieces; but their mailings are more productive."

2. Proliferation of channels. "Just a few years ago, we were wondering how to use this thing called the Web. Now, we're looking at Web 2.0, with its consumer-driven content. Social Media Marketing (SMM) and mobile marketing are all relatively new frontiers as marketing applications, and we are working on ways to make them a part of our clients' communications mix.

3. Improved production technology. With new and highly sophisticated imaging equipment, personalization is no longer a black-and-white thing. Four-color brochures, postcards and annual reports can be fully personalized and customized. Gabriel Group recently made a significant technology investment with the addition of a Xerox iGen4™ and other print software applications. "These additions are helping us reduce costs by optimizing workflow and assuring high, very consistent production output."

4. Lean marketing. In today's economic climate, nonprofits are seeking consultants who can help them better manage their marketing resources. "We've invested in very sophisticated tools to help us do just that. Thanks to improved workflow, we're able to keep costs in line and help clients save in subtle ways - like eliminating the time and travel costs of press checks. Solid database management combined with faster, better, smarter production makes for lean marketing that gets results," Ziercher says.

5. Green 2.0. Lean and green go together. Even though green initiatives have, in some quarters, moved to the back burner until the economy recovers, Gabriel Group regards green as a logical outcome of lean marketing. By cleaning databases to ensure mail deliverability and by targeting only the people most likely to respond, paper that would end up in the landfill is simply never used. That's Green 2.0, driving out waste before it ever gets started.

6. Cross-channel integration. To maximize response, nonprofits must effectively synchronize multiple channels, capitalizing on the unique strengths of each. "Gabriel Group clients use mail as the centerpiece of a cross-channel effort, building end-to-end plans involving high-tech options such as PURLs (personalized URLs), plus automated and personalized fulfillment, and supplementing them with telephone
and email."

7. Continued demand for positive donor experience. "Donors have a huge number of choices. (According to the Internal Revenue Service, there are now more than 1,000,000 nonprofit organizations and foundations.) Those organizations that provide donors with the best experience - mail, Web, mobile
or wherever - will be the winners in these challenging times. Gabriel Group is committed to helping nonprofit organizations provide their constituents with good experiences, just as we are dedicated to providing them, our clients, with attentive, proactive service and results-oriented programs. "In these highpressure economic times, some companies have lost sight of the fact that it's not about them. It is always about the client and what's best for the client. But at Gabriel Group, it is one of our enduring core values," Ziercher said.

"There are tremendous pockets of opportunity even in tough economic times," said Ziercher. "Our role is to help our clients take advantage of these opportunities by making prudent use of the marketing tools available to them - and undeniably, well-targeted, one-to-one personalized direct mail is still one of the most effective. Mail is definitely alive ... and kicking!"

About Gabriel Group
Gabriel Group is a full service fundraising company engaged in smart deployment of traditional and emerging technology tools. The company serves its clients' needs from acquisition through retention and fulfillment. It is headquartered in St. Louis, Missouri.

For more information on Gabriel Group's work for nonprofits, please call or email

Elsie Listrom, CFRE
Vice President
314-743-5710
elsiel@gabrielgr.com

Sources:
The Winterberry Group, A Channel in Transformation: Vertical Market Trends in Direct Mail 2009
The Direct Marketing Association, 2009 Response Rate Report 2009 Marketing in a Down Economy Survey, Advertising Age Custom Research