The "Golden Triangle" of Successful Direct Marketing Fund-Raising

Effective direct marketing fund-raising in the non-profit world is based on success in developing three essential ingredients…we call them the GOLDEN TRIANGLE! They are:

1.Make a Strong Offer
2.Have Access to an Available Market of "Direct Response" Donors
3.Develop A Creative Marketing Package - Copy and Design

1. A Strong Offer - The Key to It All!

The key to all effective direct response non-profit fund-raising is the offer. And for non-profits the "offer" centers on the importance of the cause or issue for which you’re raising funds. The more broad-based, relevant, and urgent your appeal, the better. On the other hand charities that raise funds for very targeted interests (children’s relief, seniors’ issues, environmental, relief, patriotic, environmental, etc.) have an advantage too. But in order to successfully promote the cause there needs to be an appealing use of the funds and very attractive benefits to the donor. The benefits can be tangible (premiums, newsletters, decals, etc.) or "psychic" (the good feeling that accompanies a gift to a cause you deeply believe in.)

When considering whether to give or not to give, donors consider this question: "Why are they sending me this letter on this subject today?" And somewhere in the process of giving donors also consider this question: "What’s in it for me?" If it’s not clear that there is an obvious benefit, or a specific need that will be filled, go back to the drawing board and get it right or as right as you possibly can.

Clever marketing techniques can produce results in the short term…but for long-term success, do everything you can to ensure that you are basing your campaigns on a solid program that is getting good results for a well-defined cause.

2. Have Access to An Available Market of Direct Response Donors

Let’s assume you have a strong program…one that is of interest to a number of potential donors. That’s essential…but it’s also critical to have access to individuals who have given to similar appeals by various direct response methods. There may be a large segment of the population that has an interest in the work of your non-profit…but you need to reach individuals within this grouping that have shown a propensity to respond by various direct response methods -- direct mail, telemarketing, print, TV, radio, internet. Your market can be defined as individuals who have an interest in your cause…and who have the habit of responding by direct response.

3. Develop A Professionally Prepared Creative

Here’s where most non-profits begin the creative process…but as you can see there are two critical elements to be covered first - a strong offer and the availability of good direct response lists related to your cause. If you’ve done your homework and have these two key areas covered…you can begin the creative process of writing copy, designing and printing a package, issuing an e-mail, creating a web page, or producing an advertisement. In a sense this is the easier part. There are many direct response professionals (writers, designers, agencies) that have the necessary expertise to prepare an effort based on proven direct response techniques. Typically direct marketing pros know what items are worth testing and what approaches you can follow without testing. But testing is the "name of the game" in direct response and it’s important to test key elements in your creative approach…items such as money amount string, theme of appeal, premium vs. non-premium, 3rd vs. 1st class postage, postage-paid return envelopes vs. non-postage-paid envelopes, lists). Before launching your campaign, do an analysis of necessary results to meet your objective. What kind of a return do you need to get the budgeted "cost per new member." And, of course, once the bulk of your results are in, make sure to review the results and see how close you came to your projections, and what you have learned from the tests.

Three Tips for Wise Non-Profit Marketers!

1. Don’t volunteer to be a "guinea pig!" If there are no other organizations doing the type of promotion you’re considering…think long and hard if you want to proceed. There’s a reason no one else is doing what you plan (and it’s not that they are so ill informed).Let someone else be the guinea pig! Actually the reverse principal is probably the wisest course…see what the major marketers in your field are doing and how they’re doing it, and learn from them.

2. Use professionals. There are people in the direct marketing industry who have a wealth of experience in their respective fields…lists, copy, design, production, etc. Unless you’re the Renaissance Man of Direct Marketing…you are well advised to use professionals and tap into the proven experience they can provide.

3. Follow the three rules of direct response advertising: TEST, TEST, and TEST!

Always try to test important things that have a direct bearing on your bottom line. Is it worth printing your brochure in four-color? What’s the best premium? Is a two-page letter more effective than a four-pager? What money amount string is the best? Questions like these are important. There are a host of other items that professionals can guide you on, and that probably don’t need to be tested. Learn which ones are important and test these elements.

by Roland Kuniholm, NWF fundraising executive and author - April 2010

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Source: http://www.dmaw.org/direct-marketing/fundraising.aspx