G2/Canada Post Aquiring New Monthly Donors Webinar

February 2014

Agenda
Update Direct List

on Canada Post announcement

mail trends and best practices

options offered by Canada Post

Creative

Canada Posts strategic direction

TREND: Letter mail volumes are declining (Parcels and Direct Mail continue to grow) Canadians are relying less on physical letter mail and increasingly using electronic means to send and receive their bills and statements and are shopping more and more online Direct Mail marketing is growing as marketers are finding that e-solutions are not reaching all Canadians and greater targeting solutions are increasing ROI Canada Post is the best B2C solution for eCommerce in Canada seeing 8% growth year over year

FOCUS: Grow our parcel business Growing and simplifying our Direct Marketing mail products Offering strong digital solutions including the most comprehensive up-to-date data lists in the market today

Canada Post unveils Five-point Action Plan

1. 2. 3. 4. 5.

Conversion to Community mailboxes (CMBs) over 5 yrs A new approach to Lettermail pricing Expanding convenience by opening more postal franchises Streamlining operations Addressing the cost of labour For Addressed Admail this is positive news! With Canada Posts POC and data targeting tools, we will enable more accurate addressing from the outset. And with our new equipment, sorting technology, and mechanized delivery (using fuel efficient vehicles) these changes will have a positive impact on Addressed Admail delivery in the future. It could mean a more accurate and faster delivery window with greater visibility, possibly tracking. www.canadapost.ca

Tips on how to minimize the impact of these new changes

Biggest impact of the announced changes for eNGO will be the lettermail rate. Lettermail rate is at 75 cents for metered letters. To keep this cost down consider:
Batching communications (loyalty, newsletters, acquisition etc.) into 1,000 or more at a time. (Addressed admail rate: $0.44/piece) some preparation is required, please talk to your mailshop. Only issue receipts once a year, vs. every donation, or look for electronic means. Ensure your database is clean to ensure deliverability:

Use tools like address complete Smart data cleaner or other address validation tools

Giving in Canada

Source: Imagine Canada

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Why Canadians Donate

Source: Imagine Canada

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Demographics of Donors

Source: blackbaud, The Next Generation of Canadian Giving, 2013

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Donors align to causes

Source: blackbaud, The Next Generation of Canadian Giving, 2013

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Donors respond to

Direct mail is most acceptable behind only being asked by a friend.

Source: blackbaud, The Next Generation of Canadian Giving, 2013

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Donors are going online and to the mail to give

As online donations are increasing, mailed donations are also increasing

Source: blackbaud, The Next Generation of Canadian Giving, 2013

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Donors are going onlinebut why?

Growth in online donations from 2010 to 2013

Who will drive donors online?

The percentage of online donations made in the US because of a message delivered
by mail: 17% by email: 5%

Source: Dunham + Company 2012

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Tips on telling a compelling story Telling a story is a great way to get people engaged. People no longer want to hear a plea but want to be engaged. Tips:
1) 2) 3) 4) 5)

Beginning with a meek opening take advantage of the first glance. Use subheads to break up copy we now read bits Use images of the person you are talking to that could be me. Involve the reader paint the picture and help qualify the need Integrate with other media - drive to website to provide a richer engagement such as a video, or reference other media or events.

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Dataandlists
MostcompleteresidentialandbusinessaddresslistinCanada

Addressedlists
BasedontheCanadaPostoperatingdatabaseplus WhitePages Selfreporteddata Industrydata Census Phone Businesses

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CanadaCompleteConsumerLists
Themostcomplete,robust,andaccurateconsumeraddressdata

Reachandmarketpenetrationis comparabletootherlistproviders 100%AddressAccuracy inaddressdataincludingcompleteapartmentandsuiteinformationwhere available Exclusivetargetingselects frominternalandthirdpartydatasources(includingNewMoversand eCommerce) Incentivesbasedonvolume eligibleat20,000records

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Using Addressed Admail to Optimize your Mailings

For customer retention and cross-sell use Addressed Admail!

X X X

Do Not Mail Does not meet your target profile

Acquisition Infill to connect with the neighbours of your customers!

X X X

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CanadaComplete ListOptions
Therichest,largestrepositoryoflistdataavailableanywhere

+
AddressOnly Direct
AddressOnlyList

Names&Neighbourhood Direct
BlendofAddressOnly andName&AddressList DeliveredwithNameswhereavailable, andCustomGreetingwherenot

Consumers Direct
Name&AddressList

DeliveredwithCustomGreeting DearOccupant

DeliveredwithNames

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Interests
Understanding Consumer Behaviour

AggregatedselfreporteddataatthePostalCodelevel CountsforeachInterestcategoryisbasedonthetop10%ofpostalcodesthat haveselfreportedthatinterest

InterestCategories&Subcategories
Interestscanbeselectedbyhighlevelcategoriesorsubcategories*
Charitable Donors
Animal

Mail Order Buyers

Books Clothing Cosmetics Gifts Magazine #

Common Ailments
Allergy,

Reading Preferences
Best-sellers Bible/devotional Business Cooking History Medical Sports

welfare Children Environment/wildlife Health Religious # of donors > 2

sinus or nasal Arthritis Diabetes High cholesterol Respiratory

of mail orders > 2

Travel
Preferences Destinations Reasons Frequency

Finance
Credit

Extra-curricular Activities
Cooking Crafts Sports Woodworking Theatre Gardening

Pets
Pet

card spend Credit card features Payment patterns Investment Loyalty card holders

owners

Cats Dogs

* Full list of Interest categories available refer to PDF

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AddressComplete
Thedaysofincorrectaddressinginformationareover

*CanadaPostParcelSurvey2011**PCAOnline CONFIDENTIAL ShoppingSurvey2011

Creative
Theother30%ofyourmarketingpie

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Customization and Personalization

The Plan The Toronto Humane Society has been collecting pet names from their donors for quite some time. In each mailing sent (including acquisitions) theyve been askingTell us what kind of pet you have: dog, cat or other; and what are their names. Initially they segmented the database by type of pet and including pet names. All this was also segmented by the type of donor that THS was talking to loyal, new, lapsed, etc. The Results As this initiative was being measured against the previous years Renewal (nonpersonalized) it was a resounding success. It achieved double the response, the cost to raise a dollar dropped and overall revenues increased.
Source: direct marketing magazine
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Urgency

Make your prospect feel the urgency of the situation. Show someone's life or welfare hanging in the balance. Make it clear that this person needs help now, not a month from now. Talking about past successes is fine, but the current problem must remain unresolved, needing immediate action from your prospect. Explain the consequences if help doesn't arrive in time. When someone fights the urge, the result is guilt. Use it to your advantage. Don't lecture or chastise, but do be explicit about what is about to happen if the person doesn't get help soon.
Source: nthfactor
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Utilize multi-channel strategies

Convert individuals who were not current donors, but had an established online relationship with the Foundation The mailing yielded exceptional results in terms of response rate and average gift. By combining the strengths of physical mail and online media, the Foundation was able to turn engaged individuals into financial supporters.

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Maximize Donor Value

Retain Top 20%= 80% Grow value Manage cost

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Encourage second giftsquickly

Source: Grizzard
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Convert to Monthly donor

20 % of Canadian donors said they have given a monthly gift in the last two years.

Source: blackbaud, The Next Generation of Canadian Giving, 2013;

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Convert to Monthly donor - Example

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Be Unique and relate to the cause

Targeting businesses in the Philippines to increase participation in Earth Hour Result: 260% increase in participation over previous year

Source: Leo Burnett

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Make donors feel included

Summary/objectives: This special appeal, directed at existing donors to the International Campaign for Tibet, was intended to reinforce their commitment to the Free Tibet cause and to generate significant net revenue for the Campaign. Special Characteristics: A black-and-white yarn freedom bracelet included as a front-end premium.
Source: Mal Warwick
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Have Presence

Target: Working with a direct-mail consultant, the organization established a multi-year strategy that aimed to increase private donations to 50 per cent of all revenue. Results: Today, the organization typically runs acquisition campaigns in Spring and Fall, and solicits active donors up to seven times a year. Acquisition mailings have yielded an overall ROI of 86% and retention mailings have yielded an ROI of 248%.

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Thebestsnowisatyourdoorstep
Monarchairlinesgoalistogetmorepeopletotheslopes.After targetingspecificpostalcodesthat matchMonarchcustomerprofiles,theyidentifiedaspecificmessageforeachprofile.Eachairport participatinginthecampaignusedtheirownareainsighttodriveeffectivemessaging. Afterdownloadinganapp,userscouldsnapashotofthedirectmailpieceandbetransportedtoa 3Drenderingofresortsservedbytheairline.

Personalization&augmentedreality
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Longlivediversity IKEAcampaign

Directmailcanpushthecreativeboundariestoreinforceyourbrand
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Interact
WithDirectMail,YouGetToCreateanExperience

DieCut

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Interact
WithDirectMail,YouGetToCreateanExperience

DareThem

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MakingtheMostoftheMailMoment
CustomizedAddressedAdmailIndicia

Optics
Similartotoday,the newtemplateswillbe printedontheenvelope buttheywillgivethe appearanceofastamp.

1:1
Therightsideofthe indiciaallowsyouto makeyourAddressed Admailmoretargeted &morepersonal.

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Use the front of the envelope to get noticed

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Summary
Donors

are looking for relevance and a cause to rally behind.

Personalized Using Keep

mail is still one of the most welcome and highest responding mediums data insights to understand your customer is key to positioning your cause your data clean mail does not need to be expensive, it needs to be part of a strategy, not a one-of.

Direct

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Thanks for the support of:

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