Out of the Box

Marketing by Mail: Old Fashioned or New Opportunity?

By Menachem Lubinsky on July 06 2007

The Yomim Tovim will soon be here and our mailboxes will be stuffed with many letters appealing for money for various charitable causes. As most of us know, the bulk of the solicitation letters will end up in the garbage; most will never be opened. Yet, many institutions will tell you that direct mail is a steady revenue source that is integrated into their annual budgets.

As every expert in direct mail knows, the mailers rely on a statistical formula that offers them some assurance of success. They will obviously first factor in their break-even point, which includes expenses (postage, printing, design etc.), and then rely on a projected response, which might be no more than 2% - 3% with an average gift of “x” to give them anticipated “profits”.

The success of direct mail in the not-for-profit world very much depends on awareness of the cause, effectiveness of the message and presentation, and the quality of the lists. Success here is defined not merely as the conventional minimal percentage response, but substantially higher response rates (perhaps as high as 10%), which can often make the difference between a mediocre response and a significant return on the mailing.

One overseas organization has been soliciting through the mails for nearly 3 decades. The brochure, envelope, cover letter and response card have been the same throughout this period. Everything about this mailing looks antiquated (i.e. logo, colors, and even the wording). Yet, its long-time executive director argues that familiarity is the reason for its success and change would create a negative effect. He admits that while many of the old-timers who automatically stuffed the envelopes for years are no longer alive and that he has not replaced them, he still pretty much enjoys the same revenues.

There is something to be said for familiarity. After all, it is a cardinal principle of branding to achieve name and brand recognition, with an important caveat that the executive director has perhaps missed. He might have simply looked at the Coke logo 20 or 30 years ago and what it looks like today. Major brands constantly update their look even while maintaining the basic look. The idea is to never loose contact with your brand loyal constituency but at the same time to make inroads with a new and younger audience. Failure to make the transition leaves the product and institution at the mercy of only one generation and ends any prospect of continuity.

The message is a key ingredient in the success of a mailing, even if it pertains to a small percentage of recipients. One executive I spoke to had the attitude that no one reads the material in any case, so why bother. The evidence is quite to the contrary. Those who do open the envelope (and a clever teasing phrase on the envelope could help) often make an instant decision on how much to contribute and the message can be the deciding factor.

I recently received a mailing that made me feel more important then I have ever felt. The message on the envelope read: “The future of the Jewish people depends on you”. Inside, was a brochure that included the following introduction: “If you knew that for just $100, you can guarantee the future of the Jewish people in Israel, wouldn’t you immediately write that check?” So I read on and the rest of the copy was to say the least very uninspiring. In fact, it went on to speak about an educational institution that is “on the cutting edge of Jewish education” without ever explaining why, just like all those companies and institutions are always “in pursuit of excellence”.

It is worth the investment of having a well-crafted message if only to raise the levels of giving. Poorly written letters and brochures, irrespective of the intelligence level of the audience, simply diminish the probability of success. Last Pesach, I received a letter that began as follows: “You are known to us as being a very charitable person which is why we are writing you to support Charity A (the name I am giving it to protect the institution) which does a lot for underprivileged children in Eretz Yisroel and is recognized by all the Torah giants in Eretz Yisroel and in this country because they know how important this institution is to klal yisroel and to every single Jew who is a person of tzedaka and chesed”. After I caught my breath reading this run-on sentence, I realized that it took until half way down the second page to read what this organization actually does.

The last ingredient in a successful direct mail effort is the list. I have always believed that the best marketing efforts that include direct mail are those that develop a rapport with their intended audiences. That is why I am such a firm believer in the effectiveness of the newsletter when done properly. The most effective newsletters are those that combine information on the institution or company with some items of interest for the prospective reader. A recent electric company newsletter that accompanied the monthly bill focused on prevention and treatment of Lyme disease in addition to discussing their new usage plans.

The best lists are those that include people who are familiar with the brand or institution. They may be existing customers or supporters. Many institutions build lists by adding to existing donors and then adding the new donors to their lists. They have special programs to go after “dropouts” in much the same way that magazines go after subscriptions that have elapsed and are not renewed. To win new clients, customers, or supporters, I often suggest the “softening up” approach which can be accomplished through a well presented newsletter. In this way, the first point of contact was not a solicitation but an introduction, which ultimately can lead to success. If by now, you are beginning to see direct mail as somewhat of a science, you are correct, but shamefully a great deal of money is thrown away by those who don’t.

Out of the Box is a collection of strategic marketing articles that Lubicom has published on various topics, trends and ideas in the marketing world. The articles have been published in the Hamodia weekly newspaper circulated on three continents to a readership of well over 100,000.

The name, "Out of the Box" is a term used frequently in business nowadays to describe creative thinking that is not the norm. It is meant to help a business pull away from the pack or separate oneself from the competition. It is to some extent fraught with risk, simply because it is not the run of the mill thinking, but it is at the same time the key to reaching the next opportunity.