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Are e-mail Recipients Better Direct Mail Givers?
Scientific testing shows that response rates to direct mail fundraising appeals may increase 18-20% when mailed to donors who have also signed up to receive e-newsletters from the nonprofit. NPAdvisors conducted tests in conjunction with an advocacy nonprofit organization and its direct mail agency with a mailing last fall. Results from this test, seven weeks after the mail date, show a strong increase in response rates in test cells that had signed-up to receive regular e-newsletters throughout the year. The test was very simple: after selections were made for a regular mailing to previous donors, those with e-mail addresses were split out from the regular control panel and put into two test groups. One of those test groups received a special e-mail, mailed a few days after the direct mail was sent. This e-mail announced the imminent delivery of the direct mail piece and asked the donors for their special attention to it. The other test group did not receive the special e-mail. All three groups received the same mailing piece at the same time. All had the same selection based on recency, frequency and monetary values. The test group that had e-mail addresses but did not receive the special e-mail had response rates of almost 18% higher among $10 - $15 donors and almost 20% higher among $5 - $9.99 donors. Average gift did not change. The test group that had received the special e-mail saw response rates that were another two to three percent higher than the first test group. Yet income was slightly higher from this test even after deducting the modest cost of the additional e-mail. If your nonprofit gets about a 10 percent response from mailings to donors, and a $10 average gift, then a 20% lift in response rate means additional revenue of $.20 per donor. If you mail eight times per year, then the total increase in results from your e-mail can be $1.60 per donor per year. That's four times the cost of a normal e-mail campaign to the same names. This test points out one of the main benefits of an ongoing e-mail newsletter campaign that is often overlooked by nonprofits hoping to justify increasing their online marketing. It would be interesting to do a longer-term test to see if frequent or regular e-mail contact with the direct mail file continues to boost results over time or whether the lift is simply a result of the "novelty" and thus drops off once supporters become accustomed to the additional e-mails. NPAdvisors helps nonprofits with internet marketing, fundraising and advocacy. To get help in setting up your own test, contact Rick Christ at mailto:rick@npadvisors.com To subscribe to e-fund news, and receive more articles like this one, just sign up here. It's free! January 2003 | ||
