Direct Mail Is Dying. Again!

June 1, 2009      Admin

Here’s another prediction of the death of direct mail, as reported on frogloop. Says research firm Borrell, spending on direct mail will decline by 40% over the next five years. Get a move on direct mail fundraisers! In five years your medium will be dead.

Just like radio.

Forget this prediction. In fact, ignore all the "death" and "next big thing" predictions.

Focus instead on the direct response fundraising results of your own organization. Let the hard data drive your program … not anyone’s predictions (including The Agitator’s).

If you have a reasonably sophisticated direct response fundraising program, you are probably using direct mail, online solicitation, and telemarketing … each to varying degrees of success in different fundraising contexts. And if you’re really on top of your game, by now you’ve noticed how these approaches can reinforce and lift one another. And, beyond that, you’ve probably noticed some important patterns — like the irritating fact that first-time online givers don’t make as many repeat gifts as you expected, or that, lo and behold, they prefer to make repeat gifts via mail.

That’s plenty of hard data to absorb and use to optimize your fundraising program. Sure, watch for the trends and adapt your media mix accordingly. And lift your heads above the weeds from time to time to scan the horizon and consider changing demographic and media usage trends.

But until you see evidence of the various trends — or the next big thing — happening in your own returns, don’t panic … and especially … don’t throw away your postage meter!

Tom

P.S. In fact, we have a DonorTrends white paper that examines donor preferences across generations in terms of giving channels. It’s called Postage Still Dominates, But Mouse Gaining. You can get it here.

P.P.S. OK, I’ll make a prediction. If all your competitors spend 40% less on direct mail over the next five years (spending the "savings" however they like), and you continue spending on mail at your current rate, you’ll have the better returns. So spread the word … Direct mail is dead!

3 responses to “Direct Mail Is Dying. Again!”

  1. Allyson says:
    June 1, 2009 at 3:50 pm

    Thanks for the shout out Tom. I agree that a multi-channel approach is the best way to raise money online BUT I do predict that direct mail will eventually phase out over time. As a new generation ages and earns more income they will choose to give online to their favorite orgs because online is where they manage their iife – from paying bills to chatting/texting their friends to signing petitions. It’s important that orgs position themselves to be where their donors and future donors are.

  2. Allyson says:
    June 1, 2009 at 3:52 pm

    BTW – you will probably find Mal Warwick’s response interesting too.
    http://www.frogloop.com/mel

  3. Ted Grigg says:
    June 4, 2009 at 5:06 pm

    We hear you loud and clear.

    Direct mail continues to pull like no other medium if the targeted markets are available on quality mailing lists.

    This is true of acquisition and retention not only in fundraising, but BtoB lead generation and a multitude of BtoC driven industries.

    You might find the post I published today validates some of your points made here in your excellent post.

    My post is here if you are so inclined to review the interview.
    http://www.dmcgblog.com/journal/2009/6/4/the-role-of-online-marketing-in-btob-lead-generation.html

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