1. Lists, Acquisition Planning & Strategy
Presented By:
Jeanette Cassano
Senior Vice President
March 8, 2018
Confidential

2. OVERVIEW First to Last Purpose of Direct Mail
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OVERVIEW
First to Last
Purpose of Direct Mail
5 Factors to Achieve Success
Types of Lists
Sources of Lists
List Ordering Process
Role of the List Broker and List Manager
Planning an Acquisition Mailing
Structure of an Acquisition Plan & Strategy
Attrition & Acquisition of Donors

3. Your organization’s future depends on it.
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FIRST to LAST
DATA
DRIVEN
for Addition and Retention of
DIRECT MAIL
DONORS
A nonprofit’s list of members/donors is its Most Important Asset!
Why have an acquisition program?
Your organization’s future depends on it.

4. The Purpose of Direct Mail is Twofold…
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PURPOSE
The Purpose of Direct Mail is Twofold…
Fundraising & Education
Primary Objectives
Raise Money
Add New Member & Donors
Direct Mail Revenue is responsible for building many of our country’s most important Non-profit organizations
For most small organizations, the many common source of funds is asking large amounts of people for small donations through Direct Mail

5. PURPOSE Creates More and More…
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PURPOSE
Educates prospects on mission of nonprofit
Creates awareness of issue
Increases “brand” recognition
New members/donors can become monthly
givers and/or major donors
Supports other channels of fundraising
New Volunteers/Activists
Donate Goods
Attend an Event
Participate in a walk or run
Volunteer to organize an Event
Promote a charity on line
or send a letter to an elected
Join a social network
More Advocacy
More Fundraising
Creates More and More…
More Fundraising
More Advocacy

6. 5 FACTORS TO ACHIEVE SUCCESS
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5 FACTORS TO ACHIEVE SUCCESS
Lists
Offer
Copy
Format / Packages
Premiums / Benefits
Maximizing Direct Mail Success depends 1st on lists – 2nd on offers – 3rd on copy/graphics.
If the mail piece does not reach the right people, Direct Marketing cannot do its job & will not be successful in meeting its objectives.

7. TYPES OF LISTS Consumer Business & Consumer Commercial Examples
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TYPES OF LISTS
Business & Consumer
Examples
Phone Directories, Credits Records, Deed Registries
Government Data, Warranty Cards, etc.
Commercial
Response
Compiled
Consumer
Fundraising
Consumer lists change at a rate of about 2% per month as people are born, relocate, die or marry. NCOA adjusts for these factors.

8. TYPES OF LISTS – MARKETS & TARGETING
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TYPES OF LISTS – MARKETS & TARGETING
Consumer
Source of Prospecting Files for Fundraisers
Member/Donor files
Subscriber files
Buyers
Co-Op Databases
Compiled
Survey
Direct
Recency
Dollar
Gender
Region
Source
Modeling
Factors to Consider:
When was file last updated
Selects Available
Pricing
Usage
“…better target prospect – lift response”

9. SOURCES OF LISTS; TYPES OF LIST TRANSACTIONS
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SOURCES OF LISTS; TYPES OF LIST TRANSACTIONS
Exchange
Rental
One-Time Use
Broker/List Manager
NextMark/SRDS*
Internet
Direct Connection
Approx. 25,000 Response Lists & 50,000 Compiled Files
* SRDS = Standard Rate & Data Service. Database of media rates & related information – includes approx. 100,000 U.S. & Int’l media properties. Verifies listings 20 times per year. 20,000 list updates every month.

10. CLEARANCE AND ORDER PROCESS
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CLEARANCE AND ORDER PROCESS
Sample, Quantity and Mail Date
Mailer
Broker
List
Owner
Manager

11. WHY USE A BROKER/MANAGER – MACRO PERSPECTIVE
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WHY USE A BROKER/MANAGER – MACRO PERSPECTIVE
Abreast of current & historical trends in the overall direct mail market.
Expertise within your sector such as charitable, environmental political, cultural/arts, etc.
Identifies the lists that are successful for a particular cause or membership offer.
Knows the characteristics and success of lists outside of the core market.
Has the information on how a list was built & how often it is updated.
Mail responsive names that have both the means and inclination to give to your cause.

12. WHY USE A BROKER/MANAGER – MICRO PERSPECTIVE
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WHY USE A BROKER/MANAGER – MICRO PERSPECTIVE
Works with the client to develop an acquisition plan including test recommendations.
Identifies profitable segments on marginal/unlikely lists.
Maximizes exchange opportunities & negotiates the best prices for you with the list owner.
Clears and orders continuation, retest, and test lists within a designated timeline.
Coordinates with list manager for the timely delivery of names to the service bureau.
Invoices the campaign.
Keeps track of the exchange balance between organizations.
Evaluates response rates, average gift and other results.

13. Planning your Acquisition Mailing Who is your donor? . . .
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Planning your Acquisition Mailing
Who is your donor? . . .
. . . What organizations have an affinity to yours? . . .
. . . What is your GOAL?... Increase revenue…Increase Membership…

14. STRUCTURE OF ACQUISITION PLAN AND STRATEGY
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STRUCTURE OF ACQUISITION PLAN AND STRATEGY
Organization’s budget & goals determine the quantity to be mailed
Prospecting is an investment
Factors that determine the timing & number of mailings per year:
Expenses/Budget
# of new Members/Donors to be added
Timing of Cash Flow from New Donors
Seasonality
Objective - High value long term donor
Most significant quality variable is the average gift amount
Average gift is also a key indicator of a donor’s upgrade potential & measurement of a stronger commitment

15. STRUCTURE OF ACQUISITION PLAN AND STRATEGY
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STRUCTURE OF ACQUISITION PLAN AND STRATEGY
Continuations, Retests, & Tests
Know your primary, secondary & tertiary markets
Maximize the use of your core files
Better target your marginal lists
10% to 20% of plan should be devoted to testing
List/Package optimization – Traditional/Mission - Hybrid - Premium based packages
The List Mix:
Member/Donor lists are generally most responsive
Hotline selects – great tool to get unique names & increase response rates
Commercial files - Catalog Lists – low response rate; high average gift
Cooperative Databases – modeled donor names
Test lists including those of Nonprofits whose mission is similar
Must Lay a
Solid Foundation for your plan

16. STRUCTURE OF ACQUISITION PLAN AND STRATEGY – KEY METRICS
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STRUCTURE OF ACQUISITION PLAN AND STRATEGY – KEY METRICS
Understand & reach the benchmark metric(s) established in your budget…
…# of new members, CP$R, Net/Donor, Income/M, etc.
Cost/M:
= (Total Cost/Qty Mailed) * 1000
= Indicates cost per thousand
Net/M:
= Revenue - Cost = Net Income. Formula=(Net/Income/Qty Mailed)*1000
= Shows net productivity
Cost Per Dollar Raised (CP$R):
= Total Cost/Total Revenue
The lower the better.
Net/Donor:
= Net Income/# of Donors
= Important prospecting metric because it takes into account donors, revenue & cost.
LTV = Long Term Value (Life Time)
Key retention metric for long term planning.
Response Rate:
= (# of Donors/Qty Mailed) * 100
= Success in matching target audience, package & program.
Average Gift:
= Gross Income/# of Donors
= Higher gift - better upgrade potential
Gross Income or Total Revenue:
= # of Donors * Average Gift
= Shows productivity of mailing
Income/M:
= (Gross Income/Qty Mailed) * 1000
= Key in list evaluation

17. STRUCTURE OF ACQUISITION PLAN AND STRATEGY
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STRUCTURE OF ACQUISITION PLAN AND STRATEGY
Use historical results and current trends to develop projections for each list…Rigorous Process to determine Quantifiable Metrics to develop plan with best ROI.
List selection is data driven.
Not only qualify but must also quantify the viability of the acquisition plan and strategy.
Defend projections with objective data.
$$$
CAUSE &
EFFECT
Response Rate and Average Gift act like a weighted scale.

18. STRUCTURE OF ACQUISITION PLAN AND STRATEGY
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STRUCTURE OF ACQUISITION PLAN AND STRATEGY
Specifics of Mail Plan Development
Results: Plan is built on response information from previous mailings.
Quantities per list/select are input into the mail plan according to performance and most recent usage.
Universe counts - Is the universe large enough to omit prior usage?
Strategize placement of list…how many mailings a year? Take all available and wait several mailings to mail again or take an nth amount so some quantity of list will be in each mailing.
Improve results by refining select segmentations
12 months instead of 24 months; 6 month instead of 12
Dollar amount of gift ($5+ versus $10+)
Male versus Female
Geo/SCF/Zip
Usage

19. STRUCTURE OF ACQUISITION PLAN AND STRATEGY
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STRUCTURE OF ACQUISITION PLAN AND STRATEGY
Environmental Impact
When the right audience is targeted, a critical component of Environmental Best Practice standards is met.
Returned, unwanted and undelivered mail produces vast amounts of waste paper.
Plan and implement the “Golden Rule” every step of the way: Reduce, Reuse, Recycle.
Direct Mail Targeted Marketing Strategies
The ability to deliver your message to a precise audience - produces cost effectiveness & environmental stewardship.

20. ATTRITION AND ACQUISITION OF DONORS
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ATTRITION AND ACQUISITION OF DONORS
Prospecting is an Investment.
Most clients keep 25-35% of new donors in the 1st year; Multi-year donors usually retain between 65-75%.
Over the course of time if prospecting is not done in some manner– natural attrition will continue to exponentially reduce the size of your donor base.
A nonprofit’s most important asset is it DONORS!
Invest in Acquisition
Don’t allow your member /donor base to shrink

21. FINAL WORDS
“Even if you are on the right track, you’ll get run over if you just sit there.” – Will Rogers
Thank you!
Speaker Contact Information:
Jeanette Cassano