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Special Report: Affiliate Marketing
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Executive Roundtable: Best practices to improve donor efficiencies
Vol. 27 • No. 11 • November 2014
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Fundraising supplement
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Gary Tannyan
Vol. 27 | No. 11 | November 2014 EDITOR Amy Bostock - amy@dmn.ca PRESIDENT Steve Lloyd - steve@dmn.ca
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DESIGN / PRODUCTION Jennifer O'Neill - jennifer@dmn.ca
Executive Roundtable Making every dollar count
Advertising Sales Mark Henry - mark@dmn.ca Brent White - brent@dmn.ca
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CONTRIBUTING WRITERS Chuck Longfield Rich Bassett Rich Rindo Jeff Deisner Billy Sharma Steve Falk Jennifer Lee
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Tips to building a successful affiliate program
Targeting & Acquisition ❯❯12
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Ship to car? A drive-thru solution brings a new angle to the intersection of physical & digital commerce
‘tis the season to be printing Print technologies help capitalize on the holiday marketing season
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Defining the role of print in today’s marketing channels
Fundraising supplement ❯❯22
Case study: Stephen Thomas Ltd & Doctors Without Borders
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Operations & Logistics
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free Verus app. Search the iTunes Store if you have an Apple smartphone or tablet. Search Google Play if you have an Android device.
auGmented reality 2 Launch the Verus
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3 When the video
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Scan augmented pages
Discover interactive content
4 You can also
click on the “Accept Your Offer” button to link directly to the ontariocolleges.ca website.
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Bringing print to life How augmented reality is turning printed collateral into a digital asset
Engagement & Analytics
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Cheaper, simpler, faster Postage prices actually going down in 2015
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Direct & Personal Darlene Norris on finding balance
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Case study: Operation Smile
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Four ways retailers use analytics to improve customer loyalty November 2014
DMN.ca ❰
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special Report
Tips to building an affiliate program primed for continuous improvement By Jeff Deisner
M
any direct marketers enlist affiliate partners to promote offers and drive traffic on their behalf, but a common mistake made with affiliate programs is to just “set it and forget it.” The technology available to manage and track performance marketing campaigns makes it easier than ever to keep tabs on affiliate relationships and measure results. It is important to keep in mind that insights should lead to action, however. When marketers learn something significant but fail to refine their programs as a result, analytic investments will fall short in delivering optimal ROI. There are three key areas where having accurate, real-time performance data can have a big impact on a performance program’s success: Set the right price and be consistent. Commissions are what incentivize affiliates to market on another businesses’ behalf, which means they play an important role in the success or failure of a performance campaign. If commissions are too low, it might be tough for a marketer to attract top performing affiliates with access to valuable audiences. But setting payouts too high can lead to a situation where the affiliate program’s costs outweigh the benefits, especially if big commissions entice less-than-reputable players to send irrelevant traffic or even run scams like cookie stuffing. Arriving at the magic number that rewards quality ❱ DMN.ca
without overpaying for traffic of limited value takes some trial and error. Performance data must also be continuously monitored so that pricing can be adjusted according to what the data shows. A good rule of thumb is to only pay for what works, which is why the most popular commission model is a flat rate per action. If a prospective customer fills out a form, downloads an app, purchases a product or registers for a service, the affiliate who referred that customer gets paid a fee. And when setting prices, it pays to do homework on industry standards. What do competitors and in similar verticals pay their partners for conversions? Marketers can also look at how successful programs in other industries compensate their affiliates. Some retailers, for example, prefer to do a revenue share with affiliates, based on a percentage of the total amount of a customer’s purchase. This helps ensure that affiliates are compensated on a scale that correlates with the actual dollar value they are delivering. Commissions based on cost per 1,000 impressions or cost per click are also prevalent, but if affiliates aren’t providing high-quality traffic, the marketer will be left paying for clicks or ad views that never convert. Careful tracking of campaign performance over time can help affiliate program managers determine the best approach. By routinely testing and measuring different pay structures, direct marketers will be able to analyze which types of campaigns are yielding good results and which are underperforming, then adjust their payouts accordingly.
In addition to setting the right price, marketers need to be sure that they are paying affiliates consistently and on time. Affiliates reward the marketers that prioritize payments with loyalty and consistent traffic. Look beyond the “last click. All too often, affiliate performance tracking ends with the conversion. But not all conversions are equal — some may simply be one-time sales, while others may mark the beginning of a long and beautiful customer relationship. Customer Lifetime Value (CLV) — a prediction of the net profit associated with the entire future relationship with a customer — is an important metric to consider. By tracking events like log-ins, app usage and additional purchases beyond the final conversion, marketers can get a deeper picture of the total lifetime value of the customers that are being funneled to them by their affiliates. Armed with more insight into CLV, direct marketers can then identify and reward the partners who bring the most profitable traffic to the business over the long term. Affiliates who continually return repeat customers or big purchasers are the keepers. Identify top-performing affiliates. More often than not, a customer’s path to purchase includes numerous “touchpoints” between first click and final sale. The best affiliates may be the ones who first launch the prospect on their journey, or an important “middle influencer,” but measuring just conversions will keep these gems from getting the recognition they deserve.
More sophisticated tracking that incorporates attribution modeling can show the marketing impact of multiple touchpoints, and this ultimately will help affiliate program managers better understand the value of each and every contributor. On the flip side, good tracking can also be employed to root out poor quality affiliates. When each step along the customer journey is captured and analyzed, it is easier to identify potential red flags. Accurate and timely information about affiliate performance empowers marketers to take action, whether that means blocking a bad player, incentivizing a good one with bonuses or higher payouts, or simply adjusting campaign strategies to take better advantage of each partner’s strengths. Like any marketing initiative, affiliate programs take a little care and feeding to realize maximum success. Being armed with real-time insight and performing ongoing analysis on what’s working and what’s not, direct marketers can make better decisions about how to set commissions, support top-performing affiliates and most effectively allocate their digital spend. Jeff Deisner is Vice President of Operations and leads Client Services for the marketing technology company, CAKE. The company provides a SaaS-based solution to track, attribute and optimize the performance of digital marketing spend, in real-time. Bringing clarity to multi-channel marketing campaigns, CAKE empowers advertisers, publishers and networks with the insight to make intelligent marketing decisions.
November 2014
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Executive Roundtable
Making every dollar count Industry veterans weigh in on best practices and ideas to improve donor efficiencies By Amy Bostock
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ith Canadian charitable organizations fighting for every donor dollar, how they process these donations has become every bit as important as how they procure them. From an operations standpoint, these organizations are facing a number of challenges when it comes to both donations processing and donor outreach. This DM roundtable, sponsored by CDS Global, brought together senior level fundraising professionals who shared their insights on best practices around donor outreach and donations processing - specifically speed of donations processing and turnaround times on acknowledgements (and the effect this has on donations), how nonprofits can effectively incorporate and use both online and offline data when shaping donor communications and how centralization of core back-end processes can improve operational agility and response times. So what keeps fundraisers up at night? According to Mary Lynne Stewart from March of Dimes Canada, it’s getting a lot done with little. “Operationally, it’s how do you run your ship lean? How do you keep your ❱ DMN.ca
cost to raise a dollar lean? How do you give your ROI the impact that it needs? It’s all of those things, because peoples’ expectations are huge when it comes to what you’re doing, operationally.” For Ericka Tovey of the Canadian Diabetes Association, the challenge of being a large organization comes down to donations processing. “We have several branch offices across the country,” she says, “and I think one of our biggest challenges is the speediness of getting the donations into our system, to be able to effectively receipt. This has always been a challenge for CDA.” Daniella Sretenovic from March of Dimes Canada says that budget restraints are what keep her up at night. “That’s the reason why we cannot invest in the operational resources that we need to help the turnaround time improve. When it comes to donation processing, because we use a third-party supplier, we are dependent on what they do and how they’re fast in processing donations that come in at the door. The expectation of donors is quite different now than it was a couple of years ago and the generation of donors is very different.
We have donors that are 75 years old and they have a certain expectation about turnaround time and what they expect to see right after they make their donation. Then, we also have the younger generation of donors that will just go online and automatically receive the receipt and expect a different type of communication. So, I think that generational gap also needs to be addressed. I think the budget restraints that every charity faces, in terms of how much money to invest in having the operation up to speed with all this new technology, mobile devices, trying to figure out how to integrate everything together, is the biggest challenge for March of Dimes. And, the staff that is still there, and that was there 10 years ago, needs to be trained, brought up to speed, so it’s all about money.” “At Alzheimer’s Canada, we have 150 different separately registered charities that work together in a federation. And, each one of them has their own database,” says John Andresen. “Within my office, I have at least seven databases that I have to work with, and that is really the time-consuming challenge. It’s the
elephant that’s too big to eat right now, that we’re actually just starting to get into a process of looking at a new CRM. It’s going to be a major difficulty for us, a challenge for us, to be able to be competitive, and really grow as far as we need to grow, with that in the way.” According to Andresen, at Alzheimer’s Canada they don’t face the same challenge of getting donations in or donations out. The challenge, he says, resides more in the outreach, “because I can’t really get to all of those other sources of information, and get out to people, in an effective way. So, I don’t really know what’s happening in 150 different communities in Canada. I do a nationwide program, but my nationwide program sits on top of other local programs. That’s the biggest challenge that we have.” Steve Merker of the Princess Margaret Cancer Foundation cites donor and volunteer fatigue as one of his organizations biggest challenges. “Our Ride to Conquer Cancer, for example, has a lot of triple type A’s, who are early adopters. So, they do the ride, or play in our road hockey event, or do our walk. And, they do it for a couple of years, and then ask, November 2014
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Executive Roundtable
Photos: Gary Tannyan
‘okay, what’s the next new big thing? I want to go try something else’, and so how do we keep them engaged? That’s a challenge for us and we have to be creative and innovative in order to keep our strategic brains humming at that high.” Cutting through the clutter is another problem Merker and his team face. “To go back just in the bike riding space, for example, we caught the wave at the right time. We built our program around the excitement for road biking fundraising. And, now, there are so many very similar events out there so it’s getting more and more cluttered. I’m almost thinking there’s a renaissance in direct mail. Because, years ago, everyone said direct mail is dead, it’s going. And, it still might, but it hasn’t died as quickly as a lot of people thought. We send out emails upon emails upon emails, and people just delete. It gets below the fold in five minutes, and you’ve lost them. But, when you send something in the mail nowadays, I think people are more willing to pay attention to that kind of thing.” Some other challenges that all of our participants agreed on are acquisition of new donors, processing tax receipts and managing the expectations of your donors. But for Patricia Vidov of Operation Smile Canada, the thing that causes her the most worry is escalating postal costs and decreasing service levels of the mail. “Because we’re a very direct-responseheavy organization, our donors are November 2014
primarily 60- 70-plus, they don’t always want an email. They either don’t have a computer or they don’t want to do business using their email. They want to be communicated to by letter. They want to be reached out to. So, there’s not only the cost of the thank you (which is important), there’s the cost of getting their gift back and the time involved. We work with CDS Global for our caging and some of our inbound telephone and outreach and it’s not CDS Global’s processing times and being able to quickly send the thank you that slows us down, it’s Canada Post getting us the gift in the first place.” It’s not uncommon, says Vidov, whose office is in Markham, ON, to receive donations mailed from Toronto, ON (a 30-minute drive from Markham) two to three weeks later than the date of postmark. “Then the donor says ‘I mailed that at the beginning of September’, and they don’t understand that we just received it two to three weeks later. And there’s no alternative for us when it comes to mailing. Then to raise the postage price 23 cents in a year, that eats in to your bottom line. Over half of my fundraising budget is postage, in terms of mail going out and mail coming back, the cost to thank them, in the way they want to be thanked. So, really, that’s my biggest challenge.” It’s also difficult, says Vidov, to explain to donors why organizations have such high fundraising costs. “We’re making almost half of our money through cultivating our donors
in the mail, because they like it. There’s nothing else like the mail to tell your story. But it’s expensive – not to create the mailing piece, it’s a penny to print a pretty package. But then you have to spend 50 plus cents to get it to them, and then another 75 cents to get their gift back, and then another 75 cents to thank them. You can’t ignore the 60-plus, because they’re the ones who are now not afraid to give some of their wealth away to make a difference, versus the young people who will give you what they can, but they’ve got to save it; they don’t know how long they’re going to be working. And, it hasn’t been such a big challenge, because, in the past, there used to be better programs available for charities. And, I find it ridiculously offensive that Canada Post cries about how they’re failing, when if they just gave some support to a charitable sector, we could get more stuff in the mail, and save our donors money.” Operation Smile Canada is not the only organization feeling the postal crunch. At March of Dimes Canada, Sretenovic says the cost of mail campaigns has cut into their ROI as well. “Postage-paid stamps cost over 99 cents now. So, if you’re running an acquisition program and you’re sending out hundreds of thousands of pieces, you’ll probably get at least 5% back. So, just the cost of return mail is excruciating. I don’t know why this has never been addressed properly, not been successful, but we’re now competing with Royal Bank, the big financial institutions that have a lot of money. They’re paying the same rates as charities are.” The waiting game So from a donations processing and donor acknowledgement standpoint, how does the turnaround time impact the donation levels coming in? If it takes organizations a long time to process and say thank you, will donors take their dollars elsewhere? According to Stewart, this is a valid concern for charitable organizations. “Especially if they’re younger donors. They expect a seamless process – ‘I’ve donated online, now where’s my e-receipt?’.” “Certainly, if trust is broken, they will think twice,” says Sretenovic. “So, if you’re not doing the best job of acknowledging donations on time, it will definitely affect if they’re going to give again, or if they’re going to increase or decrease their donation. But, we never had a tool to
John Andresen, Alzheimer Society of Canada John Andresen is the Director of Annual Giving at Alzheimer’s Canada. He is responsible for the nationwide direct marketing and annual giving activities (telemarketing, mail, online, integrated programs).
Patrick Durbano, CDS Global Patrick Durbano is the Director of Business Development for CDS Global. His role is business development, focused primarily on the non-profit and utilities areas.
Steve Merker, Princess Margaret Cancer Foundation Steve Merker is the Vice President, Business Development at The Princess Margaret Cancer Foundation. He helped create The Ride to Conquer Cancer and Road Hockey to Conquer Cancer as well as other corporate engagement programs at Princess Margaret. DMN.ca ❰
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Executive Roundtable
Chris Simpson, CDS Global Chris Simpson is the Vice President and General Manger of CDS Global Canada. She is responsible for both the Markham and Montreal divisions of the company and has spent 32 years in the media space in Canada.
Daniella Sretenovic, March of Dimes Canada Daniella Sretenovic is the Associate Director of Individual Gifts at March of Dimes Canada, one of the biggest charities in Canada for people with physical disabilities. She has spent the last 13 years working on annual giving programs.
Mary Lynne Stewart, March of Dimes Canada Mary Lynne Stewart is the National Director of Fund Development and Communications for March of Dimes, responsible for running a $6 million program. She’s been a fundraiser for 32 years. ❱ DMN.ca
measure that, so I don’t know if that’s something that’s really tangible to measure. But, I’m quite sure that, for myself, if you don’t give me my receipt, or you spell my name wrong or you don’t send it to me, I won’t give to you – I’m just going to go and give it to somebody that’s more worthwhile and does a better job. So, I’m quite sure there is an impact, but I don’t have the report, or stats, to confirm that.” Ericka Tovey and her team at CDA recently launched a new CRM system and have had some delays with receipting due to a blackout period where gifts had to be manually tracked outside of their database before the new system launched. “And, then we’ve had some challenges getting some of those gifts in from all the various branches. Our Donor Relations team have been handling many calls this summer from donors that have made their gifts and asking about their tax receipts, and I think it is really important that you train your team to be able to address it. What will be interesting is when we’re back up to being in a full-production mode again, what these delays are going to do for our long-term retention of our donors. We’re taking measures now to address the delay in the tax receipt mailings. From a donor services perspective, we endeavour to respond to calls and emails within one business day. We make sure at least we’re getting back to our donors in a timely manner. I think that does help to mitigate donor frustration in these types of situations.” Patrick Durbano brings a different view to the table. As Director of Business Development for CDS Global, Durbano has a lot of insight into donation processing from an execution standpoint. “Obviously we have the tools in place to do (donations processing) at any frequency. We can do it the same hour; we can do it the same day; we could do it once a week. It ends up really being what the needs are of the charity and how you want to either improve, or at least stay the same…you certainly don’t want to get worse. But, we’re finding that it ends up being a balance between cost of getting those executed, and desired turnaround time. We can certainly execute on a daily basis, but that comes with a cost. Typically, though, everything goes out on a weekly basis, and we’re finding most charities are happy with that, because that’s often an improvement over what they’ve had before.
“As an extension of that, there ends up being a lot of cost savings in running an annual program, because we can start employing savings on postage. So, when we do the annual tax receipt program, all that mail goes out as Incentive First Class, because volume is high enough that you can get the density rates, and that saves you additional postage money. As well, is you’re printing all of the stock in bulk. We do it all on continuous forms, so we’re getting two images per pass on the stuff. So, from an annual standpoint, you’re saving a ton of money. The weekly correspondence files basically say thank you for your gift, and your tax receipt will be coming. So, you do get that immediate thank you, within a few days of having that gift received, and you’re setting an expectation that the tax receipt comes once we’ve ensured it’s all in the bank, it’s been processed properly. And, we’re actually going to save you money by sending you that tax receipt at the same time, when you’re about to do your taxes. So, there are really good pros and cons to that kind of a process, and that’s where we’re saving some postage money.” The power of omni-channel fundraising The proliferation of channels available has opened up a whole new world of donor outreach possibilities. But how can fundraisers use both offline (mail and telemarketing) and online (social, email) channels in tandem to communicate more effectively with their donors without negatively impacting operational efficiency? “We use mostly mail, and mail is making more money than ever for us right now, so it’s definitely not dead,” says Andresen. “I’ve also really ramped up the amount of telemarketing that we do in the last couple of years and we do a variety of online, social media types of activities. The model I’ve always used was use mail or email to continue behaviour and use phone to change behaviour. And, so that’s why we’ve been really focusing on changing our donors to monthly donors, and we’ve had a real push on that for the last couple of years. Instead of going and trying to find acquisition lists, we’ve gone back into our lapsed files and tried to reactivate donors, and that’s been more effective, actually, than acquisition for us. So, these are the kinds of things we do, and it’s my job to integrate all of those requests.” “We do a lot of everything, a lot of
mail, a lot of emails,” says Sretenovic. “We actually have a donor thank you program with volunteers and any time there is a donation coming through the system, they will pick up the phone and try to call donors and thank them. But you need to be cognisant of what the peoples’ expectations are when you phone them. The first and the most important thing is if you don’t have the type of relationship that they know who you are then there’s this instant barrier because they think you’re asking them to make another donation. So, my pitch is always ‘it’s Daniella from March of Dimes. I’m just calling to thank you. We’ve received your gift, thank you so much’. What channel you use, says Sretenovic, depends what type of donors you’re engaging. “We send out surveys and we try to get their stories, engage them more, so there’s this really personal touch. We’ve grown so much, from being Ontariobased to national, that that’s a challenge, doing everything with everybody in different channels. So, we’re just creating the calendar, that is updated weekly, with the different things that are done online, offline, in person, on the phone, and it’s a big jungle.” “Like everybody else, we leverage every fundraising channel,” says Tovey. “Five years ago, when I first started at CDA, the direct marketing program was only direct mail, there were no other channels used. So, in my tenure thus far, I’ve introduced telemarketing, mainly for monthly gift conversion. We’ve also introduced direct dialogue as a channel for monthly acquisition, in addition to our grassroots, volunteer driven door-todoor campaigns that take place across the country. “Online integration is something that has been a bit of a challenge for us. We are seeing, year over year, great increases of the number of online donors. Most of them are giving through either general donations or through our events. Our challenge with online donors is retention. Our second-gift rate with our direct mail is about 30%. With online, it’s less than 4%. And, we know that we’re seeing a lot more traffic on our website. We’re looking to leverage the online channel to engage donors and take them on a personal journey with our organization, using the digital space as a focus for stewardship. Direct mail is certainly one of our largest acquisition channels; at least it’s our most viable. We haven’t seen the bubble burst yet, November 2014
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Executive Roundtable so we’re just trying to ride the wave as much as we possibly can.” The key to channel integration, says Stewart, is finding your organization’s niche and staying within it. So what niches have our panelists found? “We do DRTV for acquisition, which I didn’t hear a lot of people doing,” says Vidov. “We’re still in that space, but it’s in the long form space, so we run half-hour and one-hour paid programming, and it’s working quite well for us. It’s returning a lot of donors; and they’re giving us a second gift. We’re not stewarding them through the TV necessarily, we’re bringing them in and we’re stewarding them through the mail.” Don’t ignore the mail, warns Vidov who sees online not necessarily as a strategy anymore, but another channel. “It’s a convenience. It’s, ‘okay, right now, I can do this online, because it’s midnight and I know I’m not going to get a human on the phone’, or ‘I don’t feel like writing out a cheque’. It’s just a way for them to transact with your organization. We’ve actually had really good success getting a second gift from a web donor by mailing them and tweaking the message. We do a lot of segmentation, so we don’t just mail the same people the same thing all the time. We go through the pool; we look at when their last gift was. We do 14 cultivation mailings to the house file a year, which is a little more than one a month. And of course we can customize mail preferences to the donor’s wishes.” How does this proliferation of channels now impact the way companies like CDS Global are handling their side of the business for their clients? “From our standpoint, we have to be able to accept donations in all of those different channels, and then pool those together to present it back to the client,” says Durbano. “You have to have a central database, certainly from a response standpoint. You have to be able to manage an online giver and an offline giver, somebody who phones the call centre, and pull them all together. So, internally, we’ve got one central database of your donor file, which will be accessible over the web, in the mailroom, or in the call centre. We’ve worked with Blackbaud to create import systems that will go right into their system. We’ve worked with some people at Salesforce.com to get data into their system. So, it’s all about working the middle man, which is what we really are, and working both November 2014
sides of the street. We have to get the data in here quickly, fast, efficient, run your business rules, and everyone has separate business rules, we have to run them as if we are actually working for that charity. And then we have to present that data back as efficiently as possible, so that you can do the next step, whether it’s stewardship, whether it’s sending out a thank you, that your tax receipt will be there in a week or it will be there at the end of the year. Or, it’s an instant tax receipt, or there’s a tax receipt with a monthly recurring gift upgrade opportunity. We work outbound and inbound telemarketing the same way. To save postage money, we are putting in systems that, if somebody is giving us an email address, we’ll respond with an e-tax receipt. It doesn’t cost much anymore, no printing or postage, which can save you up to $1.00 or more on sending out that thank you, or that tax receipt. So, we’re trying to use efficiencies in technology to basically pass those savings onto the charity, to get faster response to the donor to help your stewardship dollars go further.” “One of the things that we have not had to come to grips with, fortunately, and as we move into a diversification space, is the timeliness of mail processing and acknowledgements,” adds Chris Simpson. “The terminologies are a little bit different, but our organization has always been driven by service level agreements, stuff in, stuff out the door, they want the money in the bank. At the end of the day, I look at some of what you do as a business functionality, as well as a cause, and the passion that goes behind that. So, your operations, at the back end, have to be considered exactly the way as any other business, because that’s what you do every day. So, that’s one of the things that we have not had to tailor. As an organization, we’ve had to build out solutions, because the world is changing. There’s always going to be a balance, and I think a silo, of how you speak to your donors and how you react to the business condition. So, with the breadth of our organization, we’ve been very fortunate to work for a company that’s out there building solutions as we speak today, to support the things that you need to get done. Because there are less of us and there’s more work, and that’s the way we look at it.” Telemarketing: an oldie but a goodie John Andresen has done a lot of telemarketing in his years as a
fundraiser, having worked either as a consultant or in the charity with about 30 different charities. “I’ve done tons and tons of telemarketing both in-house and externally. Where I am now, my team is me and two people, so there’s no way that we could operate an internal call centre, so I hired out. And, I measure it in the same way that I measure any other program. I know how many donors I put into that, I know how many donors I get out of that. I calculate cost per donor; cost to raise a dollar, gross return, net return, whatever it happens to be. It’s not quite as simple as sending somebody a letter and getting a letter back, and then marking it off that way. What I find nowadays is that I have to look, really, at the end of the line on an individual basis, because they might have got a number of different communications and they may have responded back in any of a number of different channels. So, at the end of the year, I want to see that whatever I’ve spent on that individual has returned more money rather than less, and that could come from a combination of anything So, sometimes it’s not a direct line, and how we measure it, sometimes you have to really look at the bottom line. I’ve been doing this for 20-some years now, and once we introduced the online environment especially, and once web came into the picture, everything blew apart. Nothing was simple to measure anymore. You really had to measure it altogether.” “To John’s point, you really do have to look at the full picture,” says Tovey, “because one program might help support another program, or they work in tandem. “I do have an internal Donor Services team. My team does some outbound calling for things like tax receipt returns, or undeliverable mail that we want to try to get back to the donor or NSF donations. Our telemarketing agency runs our monthly conversion programs to our donor base. The one area that we’ve actually tested outsourcing this year is the monthly donor declines. This process is in place for donors who give monthly and then for whatever reason, their credit card or cheque didn’t go through. We tested a whole variety of different channels to retrieve these donations, but what we found most successful was being able to reach donors by phone as soon as possible after the donation was missed. We’ve actually seen four times
Ericka Tovey, Canadian Diabetes Association Ericka Tovey is the Director of Donor Marketing and Relations at the Canadian Diabetes Association. She manages the mass individual giving programs including direct marketing, membership and tribute programs. She also oversees the donor services area of the organization.
Patricia Vidov, Operation Smile Canada Patricia Vidov is the Director of Operations for Operation Smile Canada, which is a relatively new charity in Canada (launched in 2011). She helped grow the business from $2.5 million in the first year to $6.6 million by the end of June 30, 2014. She is responsible for the day to day management of the organization which includes the oversight of the financial, legal, direct TV, direct mail, and digital channels and related strategies.
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Executive Roundtable
our investment in one year in this area, which has been really fantastic. Overall, we use a variety of both internal and external services; I think it depends on cost and your return. We also measure all of our incoming/ outgoing call statistics through different phone lines on a regular basis to help us continually improve our overall donor experience.” Getting social March of Dimes Canada has a dedicated resource for social media fundraising efforts. “Our department is a combination of marketing, communications and fund development, and we actually have a social media specialist,” says Stewart. “It used to be done out of the corner of the desk of our public relations person but now that there’s a dedicated resource, our president and our COO that we report directly to is really noticing the growth.” She cites the recent Ice Bucket Challenge as evidence of what social media can do for fundraising. “Who’s ever going to top that baby? It blew everything out of the water. So, I think social media is a really good channel. I think it needs to be integrated, and that’s what we try to do, but it’s ❱ DMN.ca
another chance to tell your story.” “The ALS Ice Bucket Challenge and the no-makeup selfie in the U.K., they wouldn’t have happened if it wasn’t for social media,” says Merker. “Those are examples of success in social media integrated into fundraising. But, we spend a lot of energy and resources in developing our social media area at Princess Margaret and we’ve actually
downsized it in the last little while. Everyone was, six, seven years ago, we’ve got to be in that space, it’s the next frontier, let’s get there. So, we hired up, we staffed up, and we did all kinds of stuff with Facebook and Twitter and Instagram, and we’re active, we’ve very active. But, it’s more of a place you need to be, it’s a brand building, it’s marketing. But, unless
Direct mail is NOT dead! Years ago, everyone said direct mail was dying. “And it still might,” says Steve Merker, Vice President, Business Development at The Princess Margaret Cancer Foundation. “But it hasn’t died as quickly as a lot of people thought. “For example, we did a program with one of our sponsors and we offered a special discount. We sent it out via email and a handful of people went into the store and took advantage of the discount, so the sponsor wasn’t very happy. The next year, we did the same discount, the same program, but we sent it out in the mail and created $150,000 of new sales for the sponsor - because it got in the mail, they had something in their hands, a little coupon. It’s just that simple. So, you spend a little bit of money, but it really led to a big gain.”
you’re going to have an Ice Bucket Challenge kind of thing, it’s more of a support vehicle. You need to be there, and it supports all of the other programs that you’re doing. But, I think 10 years from now, who knows where it’s going to go? Everything might revolve around social media, so you need to be always thinking of, and being in, that space. But, I don’t think social media has paid off anywhere near what people thought it was going to be yet. But, like I said, we use it to activate donors, whether that’s through one of our strategic brands or trying to get people to move into that space and just try to steward them and educate them and engage with them in another way, so we’re very active.” “We’re a volunteer-based medical charity, so everyone blogs,” says Vidov. “They’re in the field doing surgeries, they’re blogging about it. And, what Operation Smile globally does really well for us, and shares the content with us on our website and through social media, is on-the-ground field stories, which is like gold to our fundraising efforts. And, so it’s a way for us to engage, but not necessarily a donation channel. We do have a good digital strategy, where we’re doing ads on Facebook and retargeting, and November 2014
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Executive Roundtable that’s working quite well on returning the 2:1 and the 3:1 on our investment on digital, but it’s not money coming through necessarily Facebook. It’s sending people to our online space, finding more donors. And, I think that the blogs from the volunteers, the blogs from the students who go on missions and the donor stories – that’s like gold, because it can make a potential donor feel like they’re really connected to what we do.” “One thing that social media has done really well for our organization is that it opens up that two-way dialogue,” says Tovey. So, rather than pushing information out at people, you’re actually hearing, from your social media networks, how your mission and your work affects them. So, for example, if we’re talking about one of our advocacy efforts, or children in school living with diabetes, and we post that on our Facebook page, we have people that are actually engaging and talking about it. And I think, for us as fundraisers, that’s really valuable, in that you’re opening up the communication doors to having your supporters have that conversation with you. Then, you understand more about what’s important to them; so rather than just pushing information out, you’re getting valuable feedback as well.” Data collection and best practices With all these new channels come many new streams of data, making it easy for the importance of offline data to be lost in the shuffle. So what best practices do our panelists have in their organization for collecting, integrating and using their offline data and how have those best practices helped them become more efficient while increasing donation levels? “Like every charity, we take our privacy and our compliance very seriously,” says Tovey. “When we’re working with third-party vendors, we obviously have to ensure that everything is PCI compliant to protect our donor’s information. “Privacy isn’t only important on the secure collection of gifts, but on solicitation as well. We communicate to our donors about our privacy policy as best we can, and we let them know, in the very beginning how we will use their information. We also work to ensure that anyone who directly deals with our donors knows how to effectively handle donors’ communication preferences and do not solicit requests.” With many organizations working off multiple databases, how do they
ensure that all of those are kept within compliancy, along with the cleansing of those files regularly? “It’s a challenge, for sure,” says Andresen. “One of the ways that we deal with it at Alzheimer’s is that, even though we have multiple databases, at some point, they all get uploaded to one. So, that helps us with keeping the database clean. We do have a number of databases, because we have an advocacy function and we have the online function and etcetera. Each and every one of the companies that we deal with has the proper accreditation for compliance and that sort of thing. So, it’s laborious, but the data is very, very well protected, and we only transfer data in the proper ways. And, there’s a lot of concern and attention to that. Our challenge, because we have so many different offices, is really, because CASL has put the fear of god in everyone again, in the way that privacy did, back in 2003. And, I’m happy to say that we’ve been very proactive around that. We’ve built a working group around that, we’ve engaged legal professionals to help us get all of our privacy statements and practices together, so that we’re really standardized in every Alzheimer’s office there is. So, I think you do what you can. It’s a massive, problem, and really, it’s about training, it’s about standards, it’s about processes that aren’t really that complicated, actually. Once you get down to it, you just have to make sure that everybody knows.” More on privacy & compliance When it comes to privacy, donor expectations have changed over the years, so charitable organizations have had to change as well. “I think, bottom line, you have to make sure that you give people the opt-out. It can’t just be buried at the end of an e-invite or newsletter – you have to make sure that it’s very clear where people can unsubscribe. And, you have to make sure that your website, and all your social media platforms, are updated with the proper privacy options for people, because they have to be there, because people know about this now. As a fundraiser, all this stuff is out there, so you have to be able to respond to it. So, I think it’s just that you have to be up to date on what’s going on in the marketplace, and you have to make sure that you communicate that to your donors.” “Another challenge is how do you keep that paper trail safe and protected, aside from locking it in a
cabinet, and how long do you keep those files for? Because, sometimes people would like proof they really made that donation a year after, when they do their taxes,” says Sretenovic. “They want to know that they really sent you that donation with their signature on it. So, if you destroy the document, paper document, or if you white it out, what is your way of keeping track, and how long do you keep it? Because, for our volunteer door-to-door campaign, we actually give out the tax receipts at the door and, by the same token, we have peoples’ name and credit card information. So, that’s something that we keep as a backup, but then, if we destroy that, we don’t have any way of finding out how to send a copy of that tax receipt.” “I’ve worked in the past with clients who have done the door-to-door campaigns, and you get the little receipt books,” says Durbano. “And, then you’ve got millions of little pieces of paper around, and how do you manage? Yes, you’ve got 47 or more different divisions, each running its own campaign, how do you manage all that paper? This is the benefit of
what we’ve been doing for 40 years in the subscription management and circulation business, is everything that comes in here is scanned, digitized and archived. Once they’re images, the paper can be destroyed. Then, you’ve got secure logins to actually go look at that archived paper anytime you need to and, if you want, you can retrieve it, print it, create a PDF and email it to somebody. So, all of those tools exist outside the non-profit environment which are now coming to the forefront because you need the same level of privacy, but still need access to the original data, in a secure, locked-down, who-looked-at-it, what-time-did-theylook-at-it, what-did-they-do-with-it environment. So, when you do have the auditors come in here, and they’re saying, okay, you outsourced this, so now you need your PCI Compliance and a 5970 or a 3416, or whatever the number is this year, you are able to satisfy them. Now it’s all at your fingertips.”
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Targeting & Acquisition
Plan-Production View Automation Workflow software allows printers to control all aspects of their print job from a single interface, maintaining consistency and providing unrivaled customization potential.
Sonora 08 Process-free plates remove all the chemistry, water and waste from the prepress step – saving time, money, and the environment.
‘tis the season to be printing Print technologies help capitalize on the holiday marketing season By Rich Rindo
T
he holiday season means in an increase in a lot of things – ugly sweaters, family dinners, eggnog, and maybe even snow. It also means a considerable spike in consumer spending, which naturally leads to large increases in retailer advertising. As early as August, printers nationwide start to see a rise in demand for what are known as free-standing-inserts (FSIs), the ads that make the Sunday paper so heavy you decide your New Years’ Resolution should probably be a gym ❱ DMN.ca
membership. Print ads are a critical part of many holiday marketing campaigns, especially the most integrated and successful ones. Picking the right print partner to manage your holiday advertising campaign can be just as important as the content you provide, so choosing one with the right tools to quickly and precisely execute your order is essential. Print: a major influence in purchasing decisions Print ads perform a specific and
critical role in any multichannel advertising campaign, fulfilling a requirement that other media simply can’t. Print is the only advertising channel that a consumer physically interacts with, which means a potential customer has to actively acknowledge the content, whether they intended to or not. This is not the case for television, radio, email, or web-based marketing. Email marketing is so overcrowded that consumers have become desensitized. Television spots are quite expensive,
but with the rise of DVR, no one really watches commercials anymore. On the radio, you can change the channel, and when was the last time you clicked on a website banner? When contrasted with a mostly black-and-white newspaper, color ads naturally attract eyeballs, and combined with the high levels of localized customization print allows, print ads have a unique ability to grab and hold consumer attention. High quality color management, locally targeted content and manipulation November 2014
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Targeting & Acquisition of texture are all distinguishing characteristics of print that drive customer interest. Print ads are quite successful in grabbing attention, generating interest and driving traffic to a retailer’s website. With many marketers understanding the value of print ads, and a fixed number of printers available to handle the increased demand, how do printers accommodate the extra work? Naturally, most successful printers already operate near peak capacity, maximizing their investment in both personnel and assets. This would lead one assume that scaling up to handle a significant spike in demand would either be impossible, or lead to noticeable decreases in print quality. Technology: allowing printers to scale up and down to meet demand In fact, printers are quite adept at handling this challenge. Finishing work is usually the most time consuming part of the process, and dominated by human labor. Therefore, seasonal employees are often recruited to ensure that all finishing work can be done on time. When it comes to increasing the capabilities of physical assets, printers aren’t going to go out and buy new equipment just to accommodate seasonal demand, so it’s the solutions behind the scenes that play the most important part in making sure they can take full advantage of the demand. The key to the busy season is maintaining supreme efficiency, and the machines in operation today are optimized to handle it with ease. Technology such as process-free plates and workflow automation software allow printers to decrease time to press, increase customization, and maintain excellent color management standards, all without having to buy new equipment or even increase hours of operation. Automation Workflow: keeping accessibility and efficiency top of mind Automation is the single most important process for printers who need to rapidly scale up their operation to meet customer demand. These solutions are able to automate every aspect of job management, prep and run a much simpler, faster, and efficient process from creative to output, not to mention the elimination of manual errors. These November 2014
solutions make even the most difficult jobs manageable and flexible with operator control over the smallest details and maintain precision and consistency on variable data print jobs with complex output. Printers who make online portals available to their customers allow a direct, secure, 24/7 access to their projects via workflow software that drives consistency and ultimately more jobs to press. For example, KODAK INSITE Prepress Portal provides customers a way to remotely submit, customize, correct and monitor their print orders regardless of their geographic location and without physical proofs. This shortens the creative cycle and review time but maximizes customer confidence in the quality and consistency of the finished product. Since marketing campaigns are based so heavily on real-time consumer confidence and spending trends, being able to submit jobs later in the season, make changes to the submitted jobs later in the process, and remotely monitor the work gives customers unrivaled control over their order. Because this portal enables worldwide collaboration, competition is much greater for each order, driving down the cost to the retailer and further enhancing their return on investment. Process-free: protecting the environment The ability to eliminate steps and complexity in the prepress stage is critical to consistency, but there is also a responsibility to the environment. In addition to automation efficiencies, printers can now produce their jobs by eliminating all chemistry and support water and energy savings through process-free plates. Printing plates are how the presses “read” the print job, the physical middleman between the design on the software and the press. Process-free technology removes the prior need for printers to use substantial chemicals, and not only completely removes the cleanout step but also addresses the water and energy waste that was a part of that process. As printers become free from chemical use and waste, free from processing costs and variability, and free to be more profitable and sustainable, ultimately so do consumers. Printers are quick to point out the advantages of implementing technologies such as process-free plates and the quantifiable effect that
decision has had on their businesses. Customers such as Ace Commercial have found that process-free plates have benefited their business by making them more efficient as they eliminate a formerly critical prepress step, therefore generating a higher quality of print jobs, but also helping to protect the local environment. They find process-free plates to be an integral part of their operation, helping them match proofs and get to press faster and run more efficiently. Win the Holiday Season Marketers need to make sure their printers are the best possible partners and printers have a responsibility to ensure that every job can be executed and completed to match customer expectations. Where possible, printers need to remove the variability that chemicals and manual control can cause and provide error-free, consistent, and high-quality work is the staple of a printer with the right tools at their disposal. The emergence of
both process-free plates and workflow automation software has made those results much more accessible. The insurance of consistent, affordable, customizable, and sustainable marketing material that catches the eye coupled with first rate quality and content are the keys to successful consumer outreach campaigns. Busy seasons drive high demand and are great for retailers and printers alike. The technology available today makes it even more beneficial to choose print as part of your holiday marketing budget. Find the right print partner, and you too can reap the benefits of the holiday dollar. Rich Rindo is the GM Marketing and VP, Eastman Kodak. He has held multiple leadership positions within the company, specifically within the Graphics and Entertainment Division and is an expert on the development and benefits of process-free plates and automation workflow for printers worldwide.
Connected. Informed. Effective.
It pays to be a NAMMU member. Talk to us: membership@nammu.ca 416-977-3703
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Targeting & Acquisition
Defining the role of print in today’s direct marketing channels Like so many things in life, timing is everything. Rich Bassett reflects back over the past twenty years and looks ahead into the next generation and the role that companies like his will play.
By Rich Bassett
O
n reflection, it’s an entirely different world today than it was in 1994. In particular, the incredible growth of the internet, digital communications, social media, mobile communications and a host of new communication channels is astounding. Adding to these changes is tomorrow’s “bright, shining, new solution” that will once again change the marketing mix. Indeed, the marketing community is facing incredible challenges and at the same time, fantastic opportunities.
Variable digital print was in its infancy. Variable printing in colour was merely a possibility, sometime in the future. This new discipline required skills in data and composition management. Laser imaging and letter shop services were necessities that were foreign to most printers. The real benefit for marketers was the ability to target their marketing message to the right audience, at the right time with complete measurability. Marketers and their CFOs required ROI on every dollar spent. In today’s world that requirement is a necessity, not merely a nice to have. Many printers that couldn’t adapt
competence and timely response to manipulating data. Corporate infrastructure and IT priorities are not as flexible or agile as most service providers. We’re used to an 11th hour sense of urgency and have to respond immediately. That’s how we add value. While print is still a very important component of a multi-channel marketing strategy, relevance of that print component is critical. No one wants to produce 100,000 brochures and have them sit on a shelf and become stale dated. What does work is to produce 84,365 targeted, relevant, customized brochures where you can track and measure your response rates.
Gutenberg invented a fantastic communication tool that has changed mankind. Our responsibility is to make it relevant for the next century.” Twenty years ago, commercial printing was a mature 525 year old industry. You needed to print 100,000 generic brochures, no problem. There were literally hundreds of “printers” available to help you. But as “static” print declined in value and relevance, a new generation of print was emerging. ❱ DMN.ca
and change fell by the wayside. The remaining companies that embraced change and recognized this brave new world grew and are much closer to being marketing services providers. They add value over and above just printing services. An excellent example would be in the immediacy,
Thus the real growth in print lies in the industry’s ability to change and adjust to the marketing realities of today and tomorrow. We believe there is real tangible value in targeted print communication. In fact, the future is very bright for print as a “carrier”
or a “link” to other multi-channel platforms. Technology such as near field communications (NFC), augmented reality and 3D printing are available today to bridge the gap between the physical and the digital world. Emerging technology will only enhance the value of the printed product. As marketing service providers continue to add value through innovation, responsiveness and agility their partnership with their customers will grow. Print is not dead, actually it isn’t even sick, however its future lies in our ability to embrace and adapt to the rapidly changing communications landscape. Gutenberg invented a fantastic communication tool that has changed mankind. Our responsibility is to make it relevant for the next century. Rich Bassett is the President of Bassett Direct
and one of Canada’s most experienced direct marketers. Prior to founding Bassett Direct in 1994, Rich held executive positions at Yorkville Press and the Maclean Hunter Group. Recognized as one of Canada’s 50 most influential graphic arts professionals, Rich has always embraced innovation as an opportunity to provide great customer service. Among his innumerable industry awards, Rich has received the CMA’s Lifetime Achievement Award, Queens Diamond Jubilee Medal and Direct Marketer of the Year (DMAT). And because he can’t stop helping, Rich also serves on a number of charitable boards and committees. November 2014
INTRODUCING DATA MINING FOR MANAGERS New from Boire Filler Group Co-Founder and Direct Marketing magazine Regular Columnist, Richard Boire.
AVAILABLE ONLINE AT CHAPTERS INDIGO AND AMAZON Praise for DATA MINING FOR MANAGERS “Business Managers and decision makers have been in need of a book on data mining, and-voila! This industry overview is unique in serving the needs of the consummate businessperson, differentiating it from the many introductions for would-be hands-on, technical practitioners. Boire has formed a conceptually rich and insightful compendium that delivers a pragmatic perspective on both the tactical and strategic value of data mining and predictive analytics.”
- Eric Siegel, founder of Predictive Analytics World and author of Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die
“Boire provides a straightforward and disciplined overview of the practice of data mining. Whether you are dealing with large or small data sets, tomorrow’s business leaders will be the ones that extract the most value from their customer information. Boire leverages his extensive experience as a practitioner to help the reader take a measured approach while providing a unique view of data mining.”
- Bryan Pearson, President and Chief Executive Officer, LoyaltyOne
For More Information on how to apply these principles to your business,
Call Boire Filler Group Today at (905) 837-0005
Cover Story
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ConGratulationS
Bringing print to life
! welcome to Geor
ge Brown College
How augmented reality is turning printed collateral into a digital asset ▲
Bring this picture
really, it’S a vid
aCCept your oFFe
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to life with your mo
bile device.
eo… not juS
t a photo. It’s called Aug mented Reality and it’s a new Follow the inst way to connec ructions to see t photos in prin and hear why t to videos. these students love George Bro wn. how to uSe 1 Download the
free Verus app. Sear ch the iTunes Store if you have an Apple smar tphone or tablet. Sear ch Google Play if you have an Android devic e.
auGmented rea
lity
2 Launch the Veru
s app and hover your mobile device over the photo. Tap to scan.
3 When the video
appears on your screen, tap the image to go full-screen.
Download the free Layar App
Scan augmented pages
Discover interactive content
4 You can also
click on the “Accept Your Offer” button to link directly to the ontariocollege s.ca website.
By Amy Bostock
I
magine flipping through a retail flyer, seeing a great piece of clothing and scanning the flyer to see that item in different colours. Now imagine buying the piece from the comfort of your own home. Or scanning a movie poster to watch the latest trailer and then purchasing movie tickets on the spot. With augmented reality, print collateral can now be brought to life in these ways and more. Augmented reality (AR) is the process of superimposing digitally rendered images onto our real-world surroundings, giving a sense of an illusion or virtual reality using a tablet ❱ DMN.ca
or smartphone using AR apps such as European-based Layar. With Layar, any image can be enhanced with digital content and marketers can easily place links, videos, slideshows and more on top of everyday print materials. One of the first Canadian licenses for Layar went to AIIM Group in Aurora, Ontario. Mario Giorgio, Chairman and CEO of The AIIM Group saw the potential for AR to breathe new life into a struggling print industry. “Augmented reality takes a printed piece and turns it into a digital asset,” says Giorgio. “It’s completely
customizable and really is only limited by the client’s imagination.” Another advantage to adding AR to your campaigns, says Giorgio, is that you can use existing printed materials. “You don’t have to print new flyers or marketing collateral,” he explains. “We can use your existing pieces, import the digital image into Layar and augment it. Then, when the image is scanned with the Layar app, it triggers the video or the buttons or whatever the client wants built in.” Some background Augmented reality has been around since the 1950s and has progressed
with virtual reality since then. But its most significant advances have been since the mid 1990s. The technology has been around for many years, used in CAD programs for aircraft assembly and architecture, simulation, navigation, military, and medical procedures. It allowed complex tasks including assembly and maintenance to be simplified and assisted in training and product prototypes being mocked up without manufacturing. Augmented reality has proven very useful on a day-to-day basis when used in conjunction with location-based technology. Several apps are available November 2014
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Cover Story that will show consumers their nearest food outlets or subway transport stations when they raise the app and view their surroundings through the camera. But it is AR’s marketing applications that have recently come to the forefront. Now additional, detailed content be put within a traditional 2D advertisement and the results are interactive, cool, engaging and due to the initial novelty - have high viral potential. “With the newest techniques and technology, print is once again emerging as the new media,” says Giorgio. “A printed catalogue, packaging, in-store posters, direct mail or LED displays all come to life via your smart phone, tablets or personal computers.” Studies have shown that consumers react positively to fun, clever marketing, and brands become memorable. In fact, the statistics show that when viewing interactive print content, users click the items 87% of the time. How it works…the nitty gritty Due to the number of calculations a phone must do to render the image or model over the marker, only smartphones, tablets or Google Glass are capable of supporting augmented reality. To view augmented pieces, phones need a camera, and if the data for the AR is not stored within the app, a good 3G Internet connection. The potential audience varies depending on the application of AR. Through a smartphone, it is limited to an audience with suitable handsets, and those willing to download an app. With printing a marker for use with a webcam, it is limited to those willing to follow through these steps, though often opens a wide demographic
including children (printing an AR code on a cereal box to play a game for instance). Luckily, as the smartphone population is rising so is the level of processing power. More and more consumers are carrying phones capable of displaying augmented reality and once an app is downloaded and they have scanned their first code, they are far more receptive to future appearances of a code as long as the resulting augmented content remains engaging and innovative. So who is using it…and how? As an AR trailblazer in the Canadian printing and marketing landscape, The AIIM Group has brought print to life for a number of large brands. Perhaps the most notable is the Hudson’s Bay Company, a Canadian icon and marketing juggernaut. HBC has augmented their flyers as well as their print advertisements and have taken their marketing efforts from 1:1 to 1:1: many. By scanning the images in the ads/flyers, customers are led on an online journey that allows them view inventory and buy from the comfort of their home. “When we first pitched the technology to HBC they were amazed at the possibilities and couldn’t wait to get on board,” says Ron Giorgio of The AIIM Group. “They have embraced the Layar app and see the possibilities that it offers. Thus they have implemented it more into their marketing efforts and are testing the social sharing buttons with Facebook. They also added a shop now button taking you directly to their e-commerce site pertaining to the item(s) scanned on the particular page.” HBC use their existing e-commerce site, which is optimized for mobile, so
Highest user adoption
no new investment into the site had to be made. “They can track the activity of their users’ interactions, page views, total purchases. This offers great analytics opportunities,” he says. Using Layar offers marketers comprehensive statistics that allow them to track, analyze and optimize their campaigns at both a macro and micro level. It gives them a bird’s-eyeview of their campaigns and drills down to analyze performance. It also offers contextual statistics which allow marketers to determine which pages are performing the best. “AR really has brought life back into flyers,” says Mario Giorgio, citing his company’s slogan “Bring Print Back to Life”. Other companies throwing their hat in the AR ring are Swedish furniture manufacturer IKEA and George Brown College. Marketing in the wake of CASL According to Mario Giorgio, AR offers a very viable alternative to email campaigns in the wake of Canada’s new anti-spam laws and will make direct mail a popular choice for marketers once again. “We believe that AR will be a great tool to replace email campaigns,” he says, “and we’re starting to see it used in a number of new verticals. Recently I saw it used by a condo developer in a newspaper ad. Scanning the ad brought you to a virtual tour and then to registration button.” Agencies, he said, are also starting to sell their clients on the benefits of AR and some Canadian publications are augmenting their covers. “AR allows additional creative elements to be added that don’t show up in the printed piece so it cuts down on the visual clutter,” says Giorgio.
Lowest cost of ownership
“We believe the existing physical infrastructure of printed materials is ready and waiting for augmented reality. “Using AR, marketers and brand managers can quickly and easily activate their static print material with digital experiences – all without hiring developers or installing software. In an age where online consumption is skyrocketing, print material must find a way to communicate in new and interactive ways. AR merges the online and offline worlds, bringing new levels of engagement to a previously one-way conversation.”
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the Layar App for Apple iOS, Android, BlackBerry and Google Glass has been downloaded over 38 million times, and more than 90,000 publishers, marketers, brands and agencies are using the selfservice Layar Creator to build their own AR and Interactive Print campaigns statistics show that when viewing interactive print content, users click the items 87% of the time.
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Engagement & Analytics
Four ways retailers use analytics to improve customer loyalty By Shawn Smith
W
hat do bigname retailers like Chico’s, Tesco and Staples all have in common? They’re all using analytics to forecast demand and determine the best marketing and merchandising strategies – and they’re all seeing impressive results. The reason is simple: Strong forecasting and planning technology allows forward-thinking retailers to determine the right time to change prices, update promotions and improve inventory capabilities. The result? Shoppers are happier and more loyal, and operational systems run more effectively. Here are four ways analytics and forecasting can help you build a strong, long-lasting retail future: ONE: Improving price to boost the bottom line. As shoppers have access to realtime information, retailers must be prepared to make quick price-change decisions. To remain competitive, retailers are turning to price forecasting and optimization to stay on top of trends and the competition. Pricing solutions also can help retailers and their CPG partners make more educated decisions based on calendar events, products listed in store circulars, media campaigns and seasonal activities, then feed that information into the overall operation
and replenishment plan. Apparel retailer Chico’s is benefiting from advanced analytics and pricing. When a new strategy executive came on board, Chico’s was able to tap analytics for success. “He was very comfortable with analytics and saw the power of it, so we worked very closely with him to find new sources of internal and external data that we hadn’t previously used to price product,” explained Barb Buettin, Director, Customer Relationship Management and Enterprise Information Management at Chico’s FAS Inc. “We worked together to figure out how to tie all of these disparate data sources together — coupled with the necessary historical trending — to see how we should be pricing….This gave us an opportunity to show how analytics can take the organization many steps beyond where we had been previously.” TWO: Updating promotions in response to customer demand. Retailers know that their marketing and promotional strategies will benefit greatly from the use of business intelligence (BI) and analytics. In a January 2014 Retail Systems Research (RSR) study titled Retail Analytics Moves to the Frontline, retailers chose Marketing (55 percent) as the numberone internal organization that would gain the most from these tools. Identifying the need is the first step. Then, organizations with all available customer data in hand
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are ready to move to the next step: implementing the solutions that will elicit positive change. Today’s marketing optimization solutions can help retailers identify the right campaigns for each shopper and the most effective channels for delivery of promotional offers. THREE: Delivering more efficient inventory turn. Shoppers these days aren’t even walking through the door of a store to find out if a product is in stock. They’re searching online first, and if they see that the item they’re searching for is out of stock, they’re unlikely to visit that retail store, according to the Forrester Research report Customer Desires vs. Retailer Capabilities: Minding the Omni-Channel Commerce Gap. Once in the store, consumers have high expectations. They want sales associates to be experts on the products in-store (68 percent) and online (45 percent), according to the report. To deliver on these expectations, retailers must have a clear view of inventory across all channels and the ability to fulfill orders on the spot. A number of different technology solutions can play a role in reaching these goals. A demand signal repository (DSR), for example, can provide access to all the data needed to fill store shelves and shoppers’ carts, including POS, supplier, shipment, replenishment, pricing as well as distribution. When Tesco, one of the top three revenue- and profit-producing retailers in the world, was facing significant inefficiencies in its distribution centers (DCs), they were holding on to hundreds of millions of dollars’ worth of inventory, inhibiting the company’s ability to increase its product range. To reach its service-level goal of 90 percent, Tesco needed to reduce stock on certain items and open space for faster sellers. Instead of building bigger DCs, the retailer has been able to order the correct quantities of inventory, decrease slow-selling inventory and increase service levels with new technology solutions from SAS.
FOUR: Boosting merchandise capabilities. Although most retail organizations say they want to be “customer-centric,” many merchandising decisions are still very product-focused based on negotiations with vendors. But if merchants are willing to make a different type of decision using advanced analytics, “the data can be at their fingertips,” noted Wanda Shive, Retail Solutions Product Manager at SAS. Then, “merchants can see that when they promote Product X over Product Y, the total basket effect is very different.” Today’s merchandise managers also need to look deeper into the marketplace to identify the direct-toconsumer promotions being offered, in addition to mass promotions. Advanced analytical solutions can determine the effect of one versus the other and help managers make better decisions moving forward. The bottom line is that forecasting solutions can predict the lift of one merchandising decision over another. Staples is realizing the benefits of this type of strategy in determining how to merchandise products through various channels. “Staples sells certain products that buyers would be reluctant to buy online, such as chairs,” explained Jim Foreman, Director of Circulation and Analytics at Staples. “Most people want to walk into a store and sit in it, try it out and see how it makes them feel. Ultimately, it’s not a trade-off between the retail stores and online shopping. It’s a matter of finding the best way to leverage both of those valuable channels to work together for the best result.” Shawn Smith is a Sr. Solutions Specialist
currently employed in SAS Canada’s Retail Practice. In his current role, he is responsible for helping clients gain value from current and future investments in analytic retail technologies. Shawn has extensive knowledge and deep domain expertise in retail analytics and in devising and executing strategies to better understand shopper behaviour and Omni-channel evolution.
November 2014
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Operations & Logistics
Ship to car? A drive-thru solution brings a new angle to the intersection of physical and digital commerce By Jennifer Lee
C
onsumers have sparked dramatic changes in the Canadian retail landscape in recent years, and it’s not over yet. Omnichannel is quickly becoming table stakes as more and more retailers strive to deliver a seamless brand experience and the shopping flexibility that consumers demand. Now consumers want convenience, too. Suddenly, the ‘last mile’ is becoming a major competitive battleground—and innovators are already seizing the high ground. In what seems like the blink of an eye, the Canadian consumer has changed profoundly. We watched the rise of the Connected Consumer, who demanded the ability to connect with brands when, where and how they wanted. Then, the Empowered Consumer emerged, overturning traditional assumptions about how people buy and following their own winding path to purchase. Now we are witnessing another consumer evolution: today, the Consumer-inChief demands choice, flexibility and personalized attention after the purchase is made. The last mile a key factor in online sales growth Canadian online retail sales are growing rapidly—from $15.3 billion in 2010 to $20.6 billion in 2013. Forrester predicts online sales will grow 10% annually and reach $33.8 billion by 2018, far outpacing total retail growth.1 It’s possible that online sales could grow even more, were it not for key last mile challenges. Shipping costs continue to plague Canadian retailers and consumers alike: Canada’s smaller population size and lack of density makes it challenging for retailers to provide free or expedited shipping options comparable to those offered ❱ DMN.ca
by their U.S. counterparts. According to Deloitte analysis, 75-85% of shipping costs are associated with the last mile to the customer. Forrester study showed that 59% of consumers cited shipping costs as their biggest consideration when buying online.2 Consumers’ reluctance to pay for additional shipping charges may cause some to hold off on their online purchases—thus inhibiting what is clearly retail’s growth engine. How to improve the last mile: convenience Canada’s geographic characteristics present a logistical and shipping challenge for retailers. Retailers get economies in dense cities, but very little in non-urban locations. This creates costly last mile shipping and delivery challenges and retailers have now shifted their focus to winning the last mile. In addition, they are operating in a highly competitive retail environment with a highly savvy consumer. The answer? Convenience. A recent study found that convenience—not price—is the leading reason consumers choose to shop in-person or online. Forty percent of consumers surveyed said convenience was the top reason they shopped in-store, and 43% said it was the top reason they shopped online. 3 For retailers, convenience comes down to delivering speed and ease throughout the shopping experience. We’re already seeing convenience spur new thinking around diversification in terms of brick-and-mortar store formats and locations. Some of the most exciting innovations, however, involve the consumer experience post-purchase. A number of retailers across Canada have introduced programs to make online purchases even more attractive, by making the postpurchase experience as easy—and convenient—as possible. Consumers are seeing a plethora of options – ‘click
and collect’ in store, ship from store, return to store, return to distribution centre, now the other option is ‘click and deliver to car’. Who is the unlikely provider? A real estate developer, SmartCentres. Penguin Pick-Up: A new take on click-and-collect and the last mile experience Click-and-collect is popular among Canadian shoppers: Deloitte’s recent Holiday retail outlook survey found that 68% of shoppers like the idea of being able to pick up their online purchases in person on their own terms. That same survey found that 61% of consumers aren’t so sure about picking up their purchases in secure delivery lockers outside of traditional stores—but a Canadian real estate developer and operator of unenclosed shopping centres may have a winning compromise. SmartCentres recently announced the launch of Penguin Pick-Up, a network of free, convenient pick-up locations for online purchases. The network will start with piloting three locations in the Greater Toronto Area. Two of the locations will be in SmartCentres parking lots. How does it work? When shopping online, consumers are given an additional delivery option to have their purchases delivered to the Penguin Pick-Up location of their choice. Once their purchase arrives, Penguin Pick-Up automatically notifies the customer by email, text or voice. Customers simply visit their chosen location and Penguin Pick-Up staff bring it out to their car and put it in the trunk. The new service is free to consumers. It’s the first time such a concept has been introduced to Canada. Similar click-and-collect services have already been introduced in Europe and elsewhere. A hypermarket chain in France built 352 drive-through pick-up locations for online sales.
In 2013, nearly one in five U.S. shoppers clicked-and-collected their holiday purchases. It’s likely that once Canadian consumers have the opportunity to try a made-in-Canada solution, they too will eagerly embrace it. Have screaming kids in the backseat but need to pick up your s purchases? No problem – Penguin Pick-Up is now an option. The introduction of this kind of solution illustrates how fast retail is changing and how the omnichannel ecosystem is not just tied to retailers. Now all companies are touched by the Consumer-in-Chief – tech companies, suppliers, specifically manufacturers, consumer package goods companies, logistics, real estate companies and transportation companies are affected. All businesses are affected by this fundamental shift - not only in Canada, but around the world. Retailers should congratulate themselves on their efforts to embrace an omnichannel approach, but they can’t rest on their laurels. To stay competitive, they need to turn their attention to improving the postpurchase experience – in particular, the last mile experience—and delivering the choice, flexibility and convenience today’s shoppers demand. To make it even more complex, to win the consumer, retailers may have to create partnerships with unlikely suitors within the omnichannel ecosystem to succeed. Jennifer Lee is a partner and the national omnichannel and digital leader at Deloitte. She helps retailers build eCommerce and mobile strategies to drive revenue growth and operational efficiencies.
1 Forrester Research, Canadian Online Retail Forecast, 2013 to 2018. 2 Forrester Research, Customer Desires vs. Retailer Capabilities: Minding the Omni-Channel Commerce Gap, 2014. 3 Continuum Survey Design Report.
November 2014
FUNDRAISING Supplement INside • Case study: Stephen Thomas Ltd & Doctors Without Borders • Are you reaching your fundraising potential? • Cheaper, simpler, faster • Case study: Operation Smile
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Case study: Stephen Thomas Ltd and Médecins Sans Frontières/ Doctors Without Borders Canada (MSF) ‘Walk Without Borders’ peer-to-peer fundraising campaign The challenge “As a fundraising department, we’re always looking for ways to maximize revenue and acquire new donors,” says Rebecca Davies, Director of Fundraising at MSF Canada. “We’ve had a lot of growth in our program from both annual gifts and monthly donations but what we didn’t have was a coordinated peer-to-peer fundraising campaign where some of our most loyal supporters could become fundraisers. According to Davies, the missing piece in MSF’s fundraising puzzle was
giving their most loyal supporters the chance to do something simple and tangible to help the cause. “What I see with every level of donor,” she says, “is that the more passionate about the cause a donor is, the less satisfied they are with just writing a cheque. They want to do something to feel engaged in the cause. For Doctors Without Borders our work is on the frontline of emergencies – but donors can’t go there.” The solution Working with their Agency-of-Record
The players
MSF is one of the world’s leading independent international medical relief organizations, helping people suffering because of armed conflicts, natural disasters, epidemics and malnutrition crises in more than 70 countries around the world. To ensure its independence, the majority of MSF’s funding comes from private donations. Stephen Thomas Ltd is a full-service agency specializing in providing marketing and fundraising services exclusively to the non-profit sector. Founded over 33 years ago, their vision is to continue growing to solve the ever-changing challenges of clients by connecting supporters to the causes their clients represent. ❱ DMN.ca
Stephen Thomas Ltd, Davies and her team launched the Walk Without Borders Challenge/ Le défi Marche Sans Frontières. It’s a branded six-week peer-to-peer fundraising campaign that encourages MSF supporters to walk a distance of their choosing in solidarity with a patient or field worker who travel long distances to receive or give lifesaving medical care. Those supporters then recruit friends, family members and colleagues to sponsor them as they complete their personal walk challenge. Peer-to-peer fundraisers succeed because people are more likely to give to causes when a friend or family member supports it. They also allow organizations to tap the network of every supporter, removing a barrier that many charities are challenged to overcome. “ST has been working with MSF since late 2008 and we’ve worked collaboratively to build a robust fundraising program,” says Taslim Somani, VP Digital and Marketing
Services at Stephen Thomas. “Our relationship has been based on continuous improvement and the integration of different fundraising channels to boost their revenues within the direct, digital and integrated marketing channels. “Charities in general are always looking for new ways to engage donors with their brand while at the same time bringing in additional dollars,” she says. “We know from our research that people who support MSF are very loyal and we wanted to be able to tap into that loyalty for this peer-to-peer fundraising event.” The ‘Walk Without Borders Challenge’ campaign presented an opportunity for engagement and brand building as well as a chance to raise awareness of the work MSF does with a much larger audience. The campaign had to feel like it was organic to the MSF brand but also stand on its own merits as a sub-brand. “In developing a brand within the brand,” explains ST Vice-President November 2014
and Chief Creative Officer Bryan Tenenhouse, “it was necessary to bring all the messaging and creative back to a focus on the beneficiary while making all of the fundraising activity as relevant to the MSF brand as possible.” Key to being able to achieve that objective, Tenenhouse says, was developing a storytelling approach that establishes a clear and distinct connection between the core activity of the Challenge and one of the more common daily experiences of the people for whom MSF cares, in more than 70 countries around the world. “We decided to make that connection quite literal,” he says, “by asking participants to actively select one of the personal stories profiled on the Walk Without Borders Challenge website and be inspired by that story as they choose the distance they’ll walk. That allowed us to point all of the creative elements to the human journey experienced by both the supporter and individuals touched by MSF.” “The strategy was to put both the cause and the participant at the centre of the campaign, so it’s a win-win,”
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says Somani. “Participants feel great about putting their passion for MSF into action and showing their networks they care about the world’s most troubled places, all while raising awareness and funds.” The case for digital “Based on metrics and trends we’ve seen in the sector generally, we can see where fundraising dollars are coming from,” Somani says. “It has been plain to see, for the last several years, that direct mail fundraising is declining across the entire charitable sector due to demographic shifts, so acquiring new donors is an ongoing challenge.” That’s why Somani and her team made a business case for MSF to use digital as the cornerstone of the campaign in order to reach new donors. “Online communications play a huge role in the campaign too. It’s as much about encouraging the participant and giving them the tools to succeed throughout the Challenge as it is about the work of MSF,” Somani explains. In addition to the Challenge microsites at www. walkwithoutborders.ca and www.
marchesansfrontieres.ca, a fully bilingual outbound promotional email campaign was executed, along with digital advertising, personalized fundraising pages, a Facebook app, a social media push to known supporters, and digital communications with participants throughout the challenge, all of which incorporate the new Walk Without Borders Challenge brand. The results The Walk Without Borders digital marketing campaign saw almost 2,000 clicks on over one million impressions with a very modest $2,953.15 spend. Since this was MSF’s inaugural walk event, the remarketing portion of the campaign was a particularly important componant of the event, and it delivered amazing results: 387 onetime donations, 12 monthly donations and 6 WWBC registrations. Although the majority of donations were post impression, the remarketing campaign still generated 11 onetime and one monthly post click conversions which means that these users actively redirected themselves to
MSF’s main site to donate. WWBC campaign highlights: 1,083,418 impressions and 1,890 Clicks ❯❯ Spend: $2,953.15 ❯❯
Conversions: There were seven WWBC Registrations and 399 Donations ❯❯ Over 96% were Post Impression conversions as most of them were driven from the Remarketing campaign (14 PC conversions vs. 392 PI conversions) ❯❯ Only 1 conversion came from the Search campaign, and the keyword was a brand term “walk without border challenge” ❯❯
“Raising funds to allow MSF to keep doing its work around the world is obviously the main objective of this program,” Davies says. “But the fact that this campaign has been able to so effectively bring everything to life and highlight the emotional connection between being an MSF supporter and actually helping people in crisis is extremely powerful.”
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Supplement
FUNDRAISING Are you reaching your fundraising potential? By Chuck Longfield
I
f you had time to ask 100 nonprofits what they would recommend as a successful fundraising strategy you would probably hear 110 different answers. Over my 35 years of working with nonprofits I have witnessed a lot of variability across non-profits, both similar and different, when it comes to “best fundraising practices”. Yes, there are a few that seem to be getting it right, but there are too many that are falling short. As a fundraiser, what are you really doing today? What should you be doing differently? What would these changes equate to in additional revenue? Smart fundraisers should be asking themselves these types of questions constantly. To add to this challenge, when you ask, “What can I do better?” consider whether you even know what “better” is? And if you do find out, how do you implement the necessary changes to get you there?
First, look at potential. Perhaps the best way to see where you can improve is to look at your peers to see what they are doing and the results they are generating. If they have better results, you shouldn’t be too quick to dismiss them as unique to that organization. For the past three years I have been conducting research comparing the fundraising practices at 100+ public television stations. Some are good at what they do. Some are great. Yet all of them, without exception, have the opportunity to improve. In fact, our research has discovered that by implementing practices that have already been shown to be successful, these stations could be raising an additional $220 million/year - a 55% increase. That’s a lot of money, especially in light of the fact that the practices are already known and proven. One example is the practice of calling new donors to thank them for their first gift. Penelope Burk
has shown that this simple act of stewardship lifts second year revenue retention by 40%+. Three years ago very few stations thanked their new members in this manner. Today however, public television collaborates to call more than 200,000+ new donors per year and generates millions of additional dollars. Similar results have been realized in areas as diverse as monthly giving, residential canvasing and vehicle donations. We all know that change is difficult. A fundraiser’s job is hard enough. Resources of time, money, and people are limited. The fundraising economy is a little better, but it is still not great. And there are constant changes in technology, donor expectations and business practices. Yet this is when you need to critically assess your current practices. Are your scarce resources being tied up in unproductive silos? Can some work be outsourced more effectively? Can you partner with
other organizations with which you share a mission or close proximity? Change may be difficult but now is the time to start! So ask yourself, is your program reaching its fundraising potential? It is a tough question to ask and even more difficult to answer. The smart fundraisers know there is always room for improvement. ❯❯ To realize your potential, remember: ❯❯ Benchmark with your peers. ❯❯ Don’t quickly dismiss differences in performance – you’re not as unique as you may think. ❯❯ Critically assess current practices “what can we do better?” ❯❯ Partner with your peers and consider outsourcing. ❯❯ Become a master at managing change. Chuck Longfield is the founder of Target
Software, Inc. and Target Analysis Group, Inc., and is now the Chief Scientist for Blackbaud.
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November 2014
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FUNDRAISING
Cheaper, simpler, faster Postage prices actually going down in 2015 By Steve Falk
T
here are a number of nice Canada Post rate and service surprises coming up in January, but the most unexpected is the reduction in Admail rates. This will be especially important for mailers currently using LCP (Letter Carrier Presort)-Admail rates. If you are a fundraiser, financial institution or other large-scale user of LCP-sorted Admail, you can reduce your postage budget next year. Making it cheaper I took a look at half a dozen LCP-sorted mailings we did recently and compared them to the rate for 2015. It looks like they would be 3.5% less expensive with the new pricing. That’s good news, but there’s more. Every year for decades we’ve simply assumed that postage goes up and lately budgets have been planning for somewhere around 2 to 3% increases. So if you don’t have an increase, and postage will be 3.5% cheaper, you’ll have postage costs that are more than 6% lower than you might normally budget. Making it simpler The new rate is even simpler to estimate, and more accurate. It’s just $0.45 per piece under 50g. No more unknown postage rates based
on density of the mailing list and pre-sortation outcomes. Up until 2015, a single piece of mail sent to a lonely back road PO box cost more than 20 pieces delivered to the same condo building in the city. Now we will have one price for everyone. Nice and simple. Simple seems to be the new rule with Canada Post: ❯❯ You only have to look at the Admail rates sheet to see how simple the rates are now – just two lines, compared to dozens in the past. ❯❯ The new minimum is just 500 pieces, which can be handy for small organizations or regularly scheduled daily or weekly mailers. ❯❯ The machineable requirements have been broadened too. No longer are you required to have massive quiet zones. Canada Post has realized the sorting equipment does a pretty good job in a wide range of situations and they can soften the puzzling requirements. This is good news because machineable is the best deal and it offers the quickest delivery. Making it faster Did I mention mail will arrive faster? We just took our staff and some clients on a tour of the million-square-foot Canada Post sorting centre (Gateway) in Mississauga last month. It was great to see the way mail moves through each day. It’s a massive logistics game.
After all, there are 9 billion pieces of mail still in the system each year. We actually saw a few things we had entered in the system moving through the trays and conveyors. Our mail would all be out of that building the same day and on its way down the line to the more local stations. It looks like they have finessed things now and most Admail will get into homes in no more than 5 days in most major centres. And that reliability makes it much easier to use Admail for planned multi-channel marketing or invitations to time-sensitive events. You can expect 3 to 4 days within your province. All the details are available online if you search “Overview of Rates and
Changes for 2015”. I hope this article will whet your appetite for all the details that may make your direct mail cheaper, simpler and faster. Steve Falk is president of Prime Data , whose
clients benefit by bringing technological innovation and marketing automation together with variable data printing and direct mail.
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DMN.ca ❰
// 26
Supplement
FUNDRAISING
Darlene Norris Finding balance By Billy Sharma
D
arlene Norris loves a challenge. She has just been hired as Director, National Accounts for Heart and Stroke Foundation. In her new role, Darlene will use her expertise in strategic cultivation, solicitation and stewardship to grow the portfolio and secure new partnerships for the Foundation. What she does best is what the late great writer, Maya Angelou, described as: A person who tries to be a rainbow in someone’s cloud. Specifically the people she helps raise funds for are personified in this moment of epiphany she related to me: “I was participating in meals on wheels as part of United Way Days of Caring Program and we drove up to this house and there was an elderly man standing at the door waiting for us to arrive. “He led us inside his home and I saw
North American Direct Marketing provides list brokerage, list management and direct marketing services including data processing, printing and mailing services to various Organizations which includes Consumer Mailers, Business Mailers, Advertising Agencies, Government, Financial Services and Non Profit Organizations in North America and Internationally. Our Customer Acquisition solutions include List Brokerage and List Management services of Postal Lists, Telemarketing Lists, CASL Compliant Email Lists, Alternative Media Programs, Prospecting Database Development Services and Modeling and Profiling services. Our Customer Retention Solutions includes Data Append Services, Telephone Append Services and Email Append Services. Our Customer Asset Monetization Solutions include Prospecting Database Participation Development, CASL Compliant Email Lists Deployment and Co-registration programs.
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he had the table set in anticipation of the lunch we were bringing him. That was when I could really feel what our efforts meant to people like him.” With over 15 years of industry experience as a fundraiser, Darlene has honed her skills in a variety of non-profit settings including educational institutions: Centennial College, George Brown College, University of Toronto—Rotman School of Management. As well she has worked for the Toronto Humane Society and the United Way of Greater Toronto. Her track record speaks for itself. Darlene said, “It all started when I was working at BMO Nesbitt Burns in their Corporate Communications department. My boss, brought to my attention the opportunity to participate in United Way of Greater Toronto’s Loaned Representative program. “I remember the high energy and excitement of the team at United Way who were all working together to achieve a common goal: raising money for other people instead of for their own material wealth, I realized this was the career for me. “One of my fondest triumphs was while I was working for The Toronto Humane Society. I pitched for and secured a $100,000 grant from The Ontario Trillium Foundation. It was a landmark achievement because it allowed accessibility to everyone to the premises, including the disabled, for the first time in its 121-year history. “One of my strengths is my
interpersonal skills. I’m very comfortable building rapport with corporate contacts and key decision makers. I am also able to relate to people from diverse backgrounds, a variety of different organizational levels and industries in a tactful and diplomatic way. “My capacity to motivate volunteers and donors to invest time, energy and money in the organizations I’ve worked for, is a direct result of my persuasive sales skills, dedication to customer service and attention to detail. I have the flexibility to shift from strategic thinking to hands-on execution.” Darlene in 1987 holds certificates in Fundraising Management from Ryerson University, Life Skills Coaching, Communications and Practical Management Strategies from George Brown College. Darlene has also completed the Public Relations Diploma Course at Humber College. Darlene confessed, “I give a lot of credit for my work ethic to my dad, Philip Edward, from when I worked with him. He taught me the value of hard work and integrity. I also owe a lot to Carol Oliver, a senior fundraising consultant, who I worked with at George Brown College Foundation and who freely shared with me her vast experience which showed me how to achieve goals in a complex environment.” “However, for me, it is not about my accomplishments, nor is it about the size of the gifts. It’s about the immense generosity of individuals, foundations and corporations who give far beyond what they get back in monetary terms.” Billy Sharma is president and creative director
of Designers Inc. He can be reached via email at designersinc@sympatico.ca or by telephone at 416-203-9787
Successful fundraising is built around authentic, compelling conversations. Let’s talk. theoffordgroup.com
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❱ DMN.ca
November 2014
// 27
Supplement
FUNDRAISING Case study:
Operation Smile Canada CDS S
ince 1982, Operation Smile has provided more than 2 million patient evaluations and over 220,000 free surgeries for children born with cleft lips, cleft palates and other facial deformities. These surgeries are performed by a worldwide network of more than 5,400 medical volunteers. Started in the United States, the organization is now active in more than 60 countries, including the addition of Operation Smile Canada in 2011.
The challenge Operation Smile Canada has seen great success from their DRTV appeals and direct mail strategies. In fact, Canadians have responded so generously that gifts overwhelmed their initial donations processing provider, resulting in service delays. “It was a big challenge and our aggressive direct mail growth and the ability to adequately handle it was causing concern,” says Patricia Vidov, director of operations at Operation Smile Canada. The initial vendor was a call centre that also managed donations processing, reporting, donor stewardship activities and record keeping. But Operation Smile Canada’s needs grew too quickly for the vendor to keep up. With another large mailing scheduled, Vidov needed to make a change quickly to ensure accurate, prompt donor communications and data capture. The solution Vidov met with several potential vendors, but when she visited the CDS Global facility, the difference was obvious, she says. In addition to the donation processing expertise she needed immediately, CDS Global demonstrated the capacity to increase services during peak donation periods and to scale with Operation Smile Canada as their operational needs grew. CDS Global was quickly able to provide a comprehensive solution that directly addressed the immediate and long-term needs of Operation Smile Canada. It leveraged a broad portfolio of services to centralize donations processing, call centre services and direct mail services. November 2014
Of special value was CDS Global’s development of a custom Raiser’s Edge™ plug-in, which allows constituent data captured by call centre specialists and from direct mail responses to be regularly uploaded into Operation Smile’s Raiser’s Edge database. This prevents duplicate data and reporting errors and gives Operation Smile Canada a more holistic view of their donors using all data available, whether it’s obtained from inbound mail or telephone calls. Operation Smile Canada’s package of CDS Global solutions also includes: ❯❯ Rapid donations processing, daily gift deposits, timely donor thankyou’s and annual tax receipts. ❯❯ An inbound call centre with customer service agents knowledgeable about Operation Smile Canada. ❯❯ Precise, immediate reports on details of donations and any other revenue. ❯❯ A team of specialists delivering regular data transfers into Operation Smile Canada’s database.
The results Vidov credits CDS Global for two areas of significant improvement. First, Operation Smile Canada’s relationship with donors is enhanced. Instead of waiting weeks, donors are thanked within days. Communication with donors has also been improved, thanks to more accurate data capture from direct mail and calls and elimination of duplicates via regular Raiser’s Edge data transfers. Additionally, thanks to these regular data transfers, Operation Smile Canada now has a consolidated view of online and offline donor data to enhance donor communications. Professional customer service specialists in CDS Global’s call centre use these detailed data records to ensure that any and all subsequent interaction with donors is expertly managed. The other significant area of improvement, Vidov says, is in the efficiency of centralized services. By taking advantage of CDS Global’s bundled solutions, Operation Smile Canada now has donations processing, direct mail services and
call-centre services in one nearby site, CDS Global’s facility in Markham, Ontario. Centralizing is not only more convenient than dealing with multiple vendors; it is more efficient, allows quicker access to resources and has lowered overhead expenses. Combining operational services also gives Operation Smile Canada the ability to respond more quickly to business challenges. CDS Global’s capabilities and expertise give Operation Smile Canada confidence in having sufficient scalable resources to manage backend operations as the organization grows. Another confidence builder is the detailed reporting Vidov uses daily. To demonstrate, she clicks a few keys and finds that the previous day produced 340 donations totalling $21,000. That’s more than helpful; it’s empowering – and a reason to smile in the offices of Operation Smile Canada.
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// 28
Resource Directory
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// 29
Resource Directory FUNDRAISING
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// 30
Resource Directory LIST SERVICES
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