Why Direct Mail is Still Essential for Direct Marketing Campaigns
Data-driven ROI is central to what we do at NMBL Strategies. We use it to offer insights and make innovative decisions for our clients and ourselves every day. Without looking at the data, many people tend to think that direct mail is obsolete or a waste of money when social media and email offer fast, cheap, and direct paths to audiences. The data comparing the two campaign strategies says otherwise.
Because there is a lot of confusion surrounding the effectiveness of direct mail compared to digital marketing, we want to share our data concerning ROI and offer strategies on making the best of both options. Getting caught up in what is new is not necessarily the same as getting caught up in what is successful. Alicia Lifrak of the Gabriel Group, a company dedicated to providing high-impact results through direct marketing, illustrates how a narrow vision can leave nonprofits ill-equipped for a fundraising campaign: “Digital channel marketing continues to grow in all sectors and nonprofit is no exception. But it is very often over-focused on and under-invested in as a strategy. Organizational leadership (both executive and boards) gets very excited about “doing more digital” but don’t always understand that to do it correctly, an investment in both the data and the strategy execution are required.” Considering strategy and data helps nonprofits make a proper investment into a digital marketing campaign and avoid taking a narrow approach to an incredibly broad challenge. Tossing out direct mail because social media is trending immediately lessens the potential of your marketing strategy. Luckily, there are numbers and strategies that show why and how direct mail still works effectively when incorporated into a direct marketing campaign.
The Data on Direct Mail
When building a strategy for fundraising, marketing, or even a full-scale strategic plan, using solid data as a starting point is key. Starting to develop direct marketing or fundraising campaign strategy can be difficult. With solid data figures, organizations can have a solid foundation from which to start. ROI is a simple but informative metric that immediately bolsters the confidence a nonprofit has in its decision-making. It not only informs us of the effectiveness of direct mail, but it comparatively shows that both strategies are connecting with audiences.
ROI on Direct Mail vs. Social Media
Is direct mail obsolete? As you can see above, not even close. With a lower cost per newly acquired donor and a greater ROI, turning to social because it is easier and more affordable does not align with the data. Additionally, social media may be free, but it is not a show-up and win situation. Finding success takes time, and of course, if your organization wants to market through ads, those are not free. Direct mail is still effective because there is both an audience that it engages, and it works in concert with other marketing mediums. Likewise, social media is effective because there is an audience that it engages well. Sticking to absolutes such as, “direct mail is outdated” is how many organizations miss out on viable strategies for connecting with donors.
What type of responses are nonprofits getting from social media & direct mail
For many organizations, it can be daunting to choose the option that costs money when social media is a free resource. Unfortunately, social media requires the same amount of diligence as any other marketing strategy. In other words, it is not a quick, free resource. Nonprofits have to be willing to take the hard road and spend money to make money. In 2020, many were tempted to step back during the pandemic and not add increased spending to an already difficult year. Those who chose to make the investment in effective direct marketing strategies, including direct mail, in the midst of the pandemic reaped the long-term benefits. Courtesy of The Fundraising Effectiveness Project via the Gabriel Group, we know that both “dollars and donors were up in 2020 demonstrating that when asked, Americans stepped up to support the organizations that gave them the opportunity.” Nonprofits need to make sure they are stepping up to the challenge with the right strategies. As we see above, the right strategy is not one or the other. Both direct mail and social media offer significant engagement both in impressions and average gift response.
Why You Should Still Use Direct Mail
As we mentioned before, direct mail still generates significant engagement, gift-giving, and ROI compared to digital marketing. Should you throw out social media and only send direct mail? Of course not. Each strategy is a piece of the whole. Each campaign is best suited to create a connection and build off the previous gifts, conversations, and marketing strategies. It is important to think “and” rather than just “or.” Describing the way in which a narrow-minded approach can adversely affect nonprofits, Alicia Lifrak explains that “studies indicate that multichannel donors — those who give and engage online and offline — are 300% more generous than their online-only or offline-only counterparts. Far too frequently, organizations do not employ an integrated approach to these touchpoints and that disjointed strategy leads to donor (and prospect) disengagement.” Leaving one strategy off the table will fail to activate these specific audiences, leaving your organization missing out on considerable support.
Leaving out direct mail will ensure that your organization misses out on fundraising potential. There are two key lessons for nonprofits in Alicia’s advice and the data offered above. Organizations must use data to inform their decision-making, and they must consider “and strategies.” Sticking to absolutes means that you are leaving something out. In this situation, nonprofits can find value in direct mail as a part of a multichannel marketing strategy by considering all factors of direct marketing.
How to Move Your Organization Forward with Direct Marketing?
It may seem too simple, but stepping back to look at your goals and audience is key when crafting a marketing or fundraising strategy. All too often, nonprofits get caught up in the immediate moment and miss great, long-term opportunities for generating fundraising and engagement. As we see above, direct mail still offers a greater return on investment. Furthermore, it drives significantly greater gifts. Holding back on that investment will never lead to growth. When asked about what nonprofits should consider when approaching a direct marketing campaign, Alicia Lifrak left us with a strong foundational response: “Digital channel marketing continues to grow in all sectors and nonprofit is no exception. But it is very often over-focused on and under-invested in as a strategy. Organizational leadership (both executive and boards) gets very excited about “doing more digital” but don’t always understand that to do it correctly, an investment in both the data and the strategy execution are required. A multichannel approach is still the best course of action and when it comes to fundraising, direct mail is the largest driver of gifts by a large margin when it comes to direct response. I think a reasonable breakdown of the fundraising budget for direct response should be 85% mail, 10% email/social and 5% on data hygiene.”
With this in mind, make sure that your organization remains open-minded and approaches direct marketing with strategy and commitment. Proven strategies, data, and expert advice offer your organization the proper foundation to launch a fundraising campaign and grow your mission.
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