What is direct mail?

“Direct mail” is the term used for impersonal letters sent by bulk mail (in the US, the Post Office has dropped the term “bulk mail” and is now called “Standard Mail A”). For the sake of understanding, we will refer to it as direct mail or direct advertising in this section, since it is still known by that name and may be easier to understand in other countries as such.

Direct mail marketing is not propaganda; it must convey a message from the advertiser to a wide population. In general, advertising is not individual; its message is intended to create awareness or demand for a product. The purpose of direct mail is exactly the opposite – the goal is to obtain information or a donation from the person to whom it is addressed. Moreover, unlike mass media, when using direct mail there is only one opportunity to contact the intended audience.

Letters addressed to a particular person (e.g., “Dear Ms. Alvarez”) or sent first-class mail are not technically called “direct mail” even though they have similar qualities in appearance or writing style. Direct mail is clearly related to two stages of fundraising: recruiting new donors and retaining current ones. A third step (enhancement --- increasing individual giving) is accomplished through more personalized mail and personal contact.

Direct mail advertising (200 or more identical mailings), which are pre-sorted by post office code and are not considered priority mail, is a relatively new fundraising strategy used in the US. It was first used on a large scale in 1964 during Barry Goldwater's presidential campaign. In the following decade, mass mailing became a very popular fundraising method, being responsible for much of the financing of many businesses.

Because of market saturation and people becoming accustomed to it, direct mail is considered less effective than it once was, but it is still relevant. Forty percent of U.S. mail deliveries are direct mail. In 1988 alone, the U.S. Post Office delivered 63 billion pieces of direct mail. Its effectiveness as a fundraising strategy has been questioned over the years, but it remains the most cost-effective way for organizations to communicate their message to many people who are likely to read it at their leisure. It can be very effective because it is a targeted, personal, and immediate message.

Direct mail is one type of direct marketing. Other types are direct sales (e.g., selling vacuum cleaners door-to-door) or so-called telemarketing (selling long-distance service, gym memberships, credit card services, etc.). There are seven reasons to use direct marketing:

• The sale of a product or idea
• Conducting a market study
• The creation of an image
• Awareness
• Generation and evaluation of initiatives (for sales or donations)
• Presentation of new products or ideas
• Submission of special offers or requests

Direct advertising is part of “social marketing.” Social marketing is defined as the application of commercial advertising techniques to the analysis, planning, execution, and evaluation of programs designed to influence the voluntary behavior of a group of people for the purpose of improving their personal and societal well-being. The goal is to make the desired behavior fun, easy, and popular. Unlike the way some products are sold to the public, social marketing does not involve malicious manipulation or selling a product—that is, the organization and its goals—“by force.” It does not involve compromising the organization’s ethics, services, or budget—but it does help reach the desired audience and encourage the necessary support—financial or otherwise.

Along with special events, direct mail is one of the best strategies an organization can use to reach out to its donors. A closer relationship means the donor will be more interested in the organization's work and possibly increase their financial investment in the company.

Why use direct mail?

It is difficult to get people's attention these days, as they are bombarded with messages from TV, newspapers, magazines, radio and the Internet. Direct mail is one way to do this. Direct mail builds relationships that result in ongoing financial support, which can bring about long-term change in the community.

Here are some reasons why you should use direct mail to promote your project. The reasons often given refer to “selling,” but this should not be misleading. You need to remember that you are trying to “sell” a kind of “product” to past and potential donors.

• It is cost-effective. Studies have shown that every dollar spent on direct mail increases its value tenfold in donations or sales of a product. The profits are more than double those generated by TV advertising.
• You reach an audience that is interested in listening. It's surprising but true. Many households want to receive more direct mail or at least, they would like to receive some.
• Consumers are receptive to direct mail. In 1996, more than $244 billion was spent in the United States on direct mail responses.
• Businesses are receptive to direct mail. In 1997, more than $145 million in business-to-business sales were attributed to direct mail.
• It is a powerful tool with growing potential for increasing revenue. By using direct mail to reach consumers, companies estimated an increase of more than 7 percent between 2000 and 2002.
• It's true. In 1996, nearly 57 percent of the U.S. adult population ordered a product or service by mail order.
• It is flexible. A message can be sent to anyone, at any time, using any format. Postcards, letters or leaflets can be sent – ​​depending on what the organisation wants to use and its budget.
• It is targeted to a person. Mass media is an approach to a vast and diverse universe of potential consumers. Direct mail, on the other hand, is targeted to a person, at a specific address. You know exactly who you are speaking to. You can select the audience to whom you will be advertising and contact them individually. You should not spend money on mailings to people who are not interested in receiving your organization's message.
• It is predictable and measurable. Nothing is done at random. By testing mailings within the organization on a small scale and tracking them, you can effectively predict the profits that will result from a large-scale campaign. In addition, the results of a direct mail campaign can be accurately measured. You know exactly how many mailings were sent, who received them, how much it cost to send each mailing, and how many responses were received. This information makes calculating the cost per response a simple task. You can also establish how many repeat donations were made and how much money was generated over a given period of time.
• It is a private, exclusive message that the consumer can save for later action.  It is a message to read at any leisure and to think about for more than a few seconds. Because people receive it through their personal email and not in a “public” environment, such as radio or TV ads or the Internet, it offers a “private” message. Other messages that are not in writing can be fleeting – and much more costly. If the message doesn’t arrive, the consumer will not respond.

What to send in a direct mail package?

The classic direct mail package consists of five components, which will be described in detail later in this section. These are:

• The envelope – determines whether the letter contained will be read or not. The purpose of the envelope is to make it look like it contains a personal letter.
• The Letter – There are some simple principles on how to craft an effective direct mail letter.
• The response mechanism – This is usually a card for the donor to send their check with their details; their name, address and the exact amount of the donation.
• Response Envelope – A business envelope with the organization’s information already printed on it can be used to make it easier for the donor to respond.
• Other packaging : These may include a note, article, memo, information sheet, or brochure.