New research from clothes collection company Clothes Aid shows that direct mail is one of the least cost effective forms of fundraising. However with industry sources revealing that despite the recession, charitable giving by the public seems to be one of the only income streams keeping many charities running, David Murray of The Software Bureau argues that with the right donor data behind campaigns, direct mail can deliver an impressive ROI.
Whilst the majority of organisations have noticed a fall in donations, it’s not the public’s waning generosity that is hitting charities the hardest. Indeed, industry sources reveal that charitable giving by the public seems to be one of the only sources of income keeping many charities running. This is testament to the hard work and time spent by organisations in forging close relationships with supporters. But if this income stream is to remain, charities urgently need to re-evaluate the quality of the direct mail they use to communicate with their supporters. And this process starts with assessing the donor data they hold.
Data is the backbone of all charities. But often the care of that data is tucked away and dismissed as a luxury, rather than a necessity. At a time when close attention is being paid to costs, the risk is that charities will stop investing in the upkeep of their data altogether. However considering the increasing cost of donor acquisition and retention, and the negative press coverage that “junk” mail has received in recent times, not only do charities have to stop ignoring the subject of data quality, they must invest in reliable and accurate data management.
Never before have charities had so many options available to them but exactly what are these options? The “bury your head in the sand” option and do nothing and hope that your supporters will send or phone in with their new contact details (good luck). Go to a traditional bureau. Use an online data cleaning bureau. Or as a lot more charities are seriously considering, do it in house, using data management software. But which option delivers accurate data cleansing most effectively within time constraints, and importantly in the current climate, with cost savings and within budget?
When looking at the options, cost is too often overlooked. Many charities are choosing to outsource their data management requirements, and could be paying well over the odds for the privilege. While bureaux can produce accurate results and effectively take responsibility for the process, they simply cannot keep up in terms of competitive costs, timings and the unique insight that a charity has on their data. Online data cleaning, arguably the cheapest method allows speed and convenience for the user but can be a ‘blunt tool’, with the general rule being that one size fits all. So with the pressure on to find a method which is cost effective and produces quality data, taking data processing in-house has also become a serious option. The benefit of bringing data processing in-house is that it also allows charities to have complete control over their data as well as the ability to reclaim gift-aid and other donor additions in a more efficient (and cost-effective) manner.
Whichever option you choose, clean data has to be the starting point for any charity. Data is such a valuable asset and can directly affect how you are viewed by your supporters. A charity that constantly bombards prospects with an inappropriate message will soon experience supporter fatigue. Excessive or incorrect mailings portray an organisation as sloppy and wasteful – a cardinal sin in these environmentally aware times. With the plethora of suppression files available in the market place and the ease that a charity can access them, mailings ‘goneaways’ or worse, deceased, shows a complete lack of competence or even sensitivity.
Direct mail has always worked well for charities and still does; it is non aggressive, targeted and is able to communicate a strong, well thought out message. If the creative is right it can appeal to all demographics. It is measurable and effective in generating response from the recipients. But it is also in danger of becoming over used and ill targeted.
To put it simply they need to mail less but mail smarter. Effective data management enables costs to be cut, best practice to be adhered to and warm and cold mailings to produce winning results.