Writing

Direct Marketing for Public Radio, Part 2: Direct Mail By B. R. Forbes Originally published in the Development Exchange journal i.e. development, November 1988. Direct marketing Direct marketing, as presented in last month's installment of this series, refers to a clearly defined cycle of communication which depends on three distinct elements: direct response advertising; direct measurement of responses; and a database of customer and prospect information. This month we examine "direct mail" as part of the direct marketing effort. Four Elements of Direct Mail Direct marketing through the mail entails close attention to four important elements: the list(s) used, the offer presented, the package elements and design, and the actual letter and other written materials. Lists Of these four elements, the selection of the list or lists is the most critical -- all else will be determined by this targeted audience. As with all direct marketing approaches, the more known about the target market and the more carefully it's segmented, the better the response will be. Some of the kinds of lists are: in-house, such as pledgers and current and lapsed members; qualified leads generated from on-air offers of free program guides, ticket give-aways and raffles at special events where the participants have demonstrated some level of interest in the station programming; compiled names, such as people who are credited in other organizations' lists of contributors, neighbors of current members, or professionally compiled from a number of sources; exchanged lists from other non-profit organizations, usually names of comparable worth (such as exchanging current donors for current donors), on a name-for-name basis, and for a one-time use only (see the accompanying "Guidelines for Exchanging Names"); purchased "vertical" lists, which are selected based on a particular interest or buying pattern such as special interest magazine subscribers, "upscale" catalog buyers and contributors to other non-profit organizations or political candidates. Thanks to the proliferation of computerized data available from several list management and market research companies, specific sub-sets of these lists can be targeted. Such firms can provide a demographic, psychographic and consumer-habits analysis based on the census tracts in which members and prospects live. This information can then be used to select specific segments of any acquired list which will both decrease mailing costs and increase response rates. Offer The next important element of direct marketing through the mail is the actual offer -- what prospects are getting in exchange for their support. Offers may include the less tangible "top quality programming," on-air credit, participation in a special event, subscription to a monthly program guide, or a very tangible "thank you gift."The needs and interests of the target audience must be the prime consideration in selecting this offer, and should be clearly indicated throughout the mail package.One of the most important parts of the offer is the price (membership fee). For an example of how one station determined the price of its offer, see the accompanying story about KUSC's direct mail acquisition program. Package Once the target audience and the offer have been determined, develop a mail package that will: reflect the personality of the station; appeal to the targeted audience; encourage the recipients to open the envelope and actually read and understand the offer; present and support the offer as clearly as possible; and make the process of responding as easy as possible. The elements of the mail package may include: carrier (outside) envelope; response card; personal letter; collateral or support material; and various involvement mechanisms (of the "peel-and-stick" and "scratch-off-to-find-the-lucky-number" variety). A direct mail recipient goes through many steps in determining whether or not to read and respond to a package: Checking the carrier envelope: Is his/her name correct? Who is it from, as indicated by the corner-card or return address? Is the name on an address label? Is it typed directly onto the envelope, or is it hand-written? Was it mailed via bulk rate or first class? Stamp or indicia? Reading the reply card: What's the real deal? How much is requested? What do I get? Looking through the collateral material: Is there a picture of the benefit(s) or people involved? Anything else interesting or involving? Browsing the letter: How long is it? Who's it from? What does the postscript say? Do the first few paragraphs sound interesting? Can I skim the letter and still get the major points? Therefore, each of these elements must be constructed carefully in order to "pull" the reader along to the next step -- and finally getting the response you want! Letter If all other elements have been selected with care, the letter may be almost superfluous. Still, the letter is the centerpiece of the package. A good letter will not only motivate the recipient to respond to the offer but tell the "story" of the organization in a compelling way. Some of the points to remember in writing a good direct mail letter are: personalize the letter as much as possible with the recipient's name, address, and any other information known, such as previous giving history and program interests; focus on the recipient's needs and point of view, not the station's needs or perspectives; make the copy "scannable" by underlining key points, using bullets or numbers, writing one-sentence paragraphs, indenting blocks of copy, etc.; use an emotional pull by telling a personal story; always use action words and avoid the passive tense; forget the rules of grammer -- write like you are talking to an individual; include a call to action by describing exactly what you want the recipient to do: write a check payable to the station for a particular amount within a certain time period; and include a postscript which sums up the offer, adds a sense of expediency, offers an additional benefit, or confirms the letter-writer's gratitude. The Importance of Testing Some offers are more appealing to a given market than others. Some lists or packages work better. You'll never be able to find out what works best -- and therefore improve direct mail efforts -- unless these elements are tested. In the accompanying case of KUSC, the �Šstation is assured an improved response thanks to an initial pricing test. So make sure that every direct mail project tests at least one of these elements. Guidelines for Exchanging Names Time and time again, stations have proven that the most responsive and cost-effective sources of prospective members have been the lists of other similar non-profit orgainizations. We like to call them "affinity groups". So the question should not be "Should we exchange names?" but "How do we exchange names?" The Misguided Concerns of Confidentiality and Competition Some non-professionals may think that exchanging names with other non-profit organizations will decrease the amount of the support they receive from their members. This is bunk. In fact, a donor of one organization is much more likely to support several organizations. "Audience 88" has shown again that a listener to two public radio stations is much more likely to support one or both stations than a person who listens to only one station. Besides, there's no such thing as a "confidential" name and address. Everyone's name appears on some list, somewhere -- most likely on that very public list of the telephone directory. Overcoming Objections to Exchanging Names If a station has never before exchanged names, some persuasion of the top management may be necessary. Here are some points to present: Exchanged names are the cheapest source of prospective members. There's no charge of $70 to $100 per thousand names which would normally raise your break-even threshold. Members of similar groups are the most likely to give. They've already proven that they support non-profit organizations. And by matching appropriate groups to the station programming, such as symphony ticket buyers for a classical music station, their interest in the station's offer would be assured. Exchange would be on a one-time only basis. Many people who are not development professionals think that the station would turn over the entire list to another organization for indiscriminate use! This is clearly not standard procedure for list professionals. Members could opt to be excluded from a trade. All non-profit organizations must maintain credibility. By offering members the option to not be included in name exchanges, the station improves the trust of donors. Presenting these points persuasively and emphasizing the need to complement on-air fundraising should convince management to give the green light for name exchanges. Preparing Internal Procedures Next, the development department should prepare itself to manage names exchanged by: assuring computer capability to flag individuals who do not wish the station to exchange their names and to select segments of the full list to match the characteristics of the exchanged list; notifying members/subscribers of option to be excluded by printing a notice on reminders, pledge forms and/or the program guide (see example below); maintaining notations on the computer database of members who wish to be excluded from name exchanges; and developing guidelines for non-profit organizations who wish to exchange names. Sample copy for notifying members of name exchange Occasionally, WXYZ exchanges names on its mailing list with other non-profit organizations with which we feel you may have an interest. This helps WXYZ decrease its need for on-air fundraising, assists the station in reaching out to potential new members, and provides you with information about some very worthy local non-profit organizations. However, if you wish to be excluded from such exchanges, please send a card or letter to: WXYZ (address). (Or include a check-off box on a renewal or pledge form) Developing Guidelines The guidelines for name exchanges should include the following: the exchanged names will be used only one time; the names will be used within a given time span; the organization should be able to code each lable for tracking purposes; the exchanged names should have been "cleaned" frequently through at least one to two mailings per year which include an "address correction requested" notice; the lists should be of equal numbers, on a name-for-name exchange basis; the names should be of comparable worth such as ticket-buyers for $10 to $50 donors, season ticket subscribers for $100 to $500 donors, and "interested people" for unfulfilled pledgers; and the lists should be presented in a useable format, such as on magnetic tape or four-up cheshire labels rather than on a computer listing or three-by-five cards. The station may also consider: salting the exchanged list with the names of staff members to monitor the actual use of the lists; approving the other group's mail package in advance (and offering the organization the same opportunity with the list the station receives); selling segments of the station list (as does WGBH in Boston); allowing non-profit groups to telemarket to the station list (and also getting approval from the other group to telemarket to their list). A basic rule of thumb is to "do unto others as you would have them do unto you" when deciding station guidelines. So make sure your requirements for other lists are met by your own lists. KUSC Orchestrates Direct Mail Acquisition Test KUSC-FM in Los Angeles is very excited about their recent direct mail acquisition campaign. And with some very good reasons. The station received a "self-liquidating" loan of $28,500 from a local foundation to fund the project to acquire members through the mail. With the loan in hand, the station hired a direct mail consultant to guide them through the process of selecting lists, determining the offer, designing the package and writing the copy. KUSC's first drop of 35,000 pieces on September 7th had attracted 263 new members by the end of November (a 0.75% response rate) for a total of over $10,000. The mailing was divided into two lists, one of which tested the offer of a $25 membership against the control of the usual $35 membership. The station found that the lower amount pulled a 1.0% response compared to 0.5% for the control and actually generated 65% more dollars! Although the size of the test and control samples were small, KUSC feels confident enough with the results to roll out another 65,000 pieces using the offer of a $25 membership.At the least, KUSC had expected to break even with this project. However, the extra "lift" from the $25 membership offer should actually generate some additional funds for the station. Associate Director of Development Brian Levitz would still be pleased even if the mailing did just break even. He explained that the long term support of the renewing members will be well worth their efforts. The next installment of this series on direct marketing will cover telemarketing and take a look at some successful telemarketing programs. The fourth installment will present some guidelines for developing a direct marketing plan. The final installment will put all this information to work by using a case study of a public radio station.