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Wisconsin Public Radio Volume 1 Brilliant on the Basics Number 12 Newsletter September, 1998 A Project of Written by The Station Resource Group Mark Fuerst, Public Radio Management, Inc. Acquisition Mail Applied with Success: Planning and Practices at Wisconsin Public Radio In public radio, the words “direct mail” renewal rates improve and membership often refer to the letters we send to revenues become more stable. current members for renewals or Recognizing this fact has been one of the additional gifts. But in the wider world most important achievements of the BoB of fund raising that term usually means Project. “cold mail”— large drops of mail sent Still, many people in the field question the to rented mailing lists with the aim of efficiency and effectiveness of acquisition recruiting new donors. Until recently, mail when applied to public radio. More very few stations used “cold mail” to importantly, most of us don’t even know acquire members. The convenience and how “cold mail” works. effectiveness of pledge drives stunted To get some perspective, this issue of the the search for alternative techniques. BoB Newsletter examines the work of Recently, stations have started to Peter Wallace, Development Director of question the use of “drives” as the Wisconsin Public Radio. Last year, Peter exclusive source of new members. used acquisition mail to recruit 3,185 new Programmers have become aware of members—equivalent to the recruitment and concerned about the impact of impact of a five-day drive. Building its drives on listenership. Development file with cold mail, WPR ranks #1 among staff are illuminating the link between the 18 BoB stations in member conversion recruitment methods and retention rates. (13% of cume) and #3* in overall Specifically, fewer than half of the renewals (65.1%). As you will see, Peter donors recruited through “pledge” does this with inexpensive materials, renew for the next year, while donors clearly defined message points, and well recruited through direct mail renew at chosen mailing lists. significantly higher rates. Thus, when * N. B.: The two stations with better renewal stations recruit members off-air, rates also use acquisition mail for recruitment. Brilliant on the Basics is financed by participating SRG Licensees with support from the Radio Future Fund at The Corporation for Public Broadcasting Page 2 Brilliant on the Basics Newsletter Direct Mail at pledge drives. Then I got responsibility for the full membership area. At that time, Wisconsin Public Radio I had not thought a lot about acquisition An Interview with mail. There was a woman on our staff, Joan Zieger, now at WPTV, who had been Peter Wallace, in development for a long time. She rec- Director of Development ommended to the Board that they begin investing in acquisition mail. She made a Activities, WPR very strong case for doing that, and that sold me on the concept, but we didn’t start doing it in a big way right away. MF: Peter, many people know about Wisconsin Public Radio, but they don’t One of the things that distinguishes know about your work. What is your WPR’s development operation is your use background in direct mail marketing as of acquisition mail. What's the size of it applies to acquisition mail? your acquisition program? Wisconsin Public Radio Direct Mail Plans PW: My first job in fund raising was It's grown substantially over the last few with The Muscular Dystrophy Associa- years. I would say that five years ago, we tion. Even though they are best known were mailing about 400,000 pieces per for their telethon, during the years that I year. I just finished my plan for FY99 and was there, they invested in direct mail the total pieces is up to 870,000. This as an adjunct to the telethon. They does include some lapsed donors, which I began to realize that a large majority of put in my acquisition program because it's the people who would pledge to the a much more systematic way for me to telethon one year would not pledge the stay in touch with lapsed and prospect next year. people. I found that the response has been pretty good for both lists. Out of 870,000 So, they were having a renewal problem we might have 70,000 pieces to lapsed based on a pledge structure-- much like and prospects. the one in public radio? How do you come to a number like that? Yes, and in fact they had not spent What goes into the calculation? Why much time thinking about renewals. choose that number instead of 500,000? Then, they began to see that they were turning over a tremendous number of I am in a slightly better situation than donors. some development directors in that I have a lot of freedom in coming up with my How long were you there? budget. But here's the way I do it: First, Seven years. When I came to WPR in when I mail, I try to make a little more 1984, I started in underwriting. After than I spend. Not a lot. But virtually about six months to a year, I started every year, there's some profit in our mail- moving into membership, mostly in ing. Second, we try to do the mailing Brilliant on the Basics Newsletter Page 3 inexpensively. Third, I try to have a This year it does. I tested this for the first Wisconsin Public Radio Direct Mail Plans quality message and low priced mate- time last fall, and I was surprised to find rial. With that in mind, it's a matter of that the follow-up mailing performed as investing. The more acquisition mail I well as the initial list. When I saw that, I can do, the easier it's going to be to realized that this process was like our make my overall membership goal next renewal series. We send five or six or year and the year after, because those seven renewal hits to the same list, be- mail-acquired donors are going to help cause we know that when somebody my renewal program. doesn't respond to one letter it doesn't So, it's not just a matter of saying: mean the final answer is ‘No’. Some "Okay 800,000 seems like a good people just didn't get around to respond- amount." It's also a question of "How ing... much physically and financially can I The main thing is this: For any marketer, do? How many lists are there that I there are a finite number of good names have confidence in?" and lists. It's silly to mail to them once There's no disincentive for doing more. and then move on to a list that is less The way I do it, if I spend $150,000, I'll productive. make $160,000. If I were losing After our May meeting, I talked with money, it would be a different story. Catherine Sercl-Harvanko, who runs the As I understand it, not everyone in di- direct mail program for Minnesota Public rect mail sees it that way. radio. She believes in mailing deeply to some lists... as many as five mailings to a I've heard it said "If you're making single list may be worth the return. money on direct mail, you're not doing enough." And I understand that view. That doesn't surprise me. Because if You're not doing it for the current year, you’re picking your lists correctly, there is you're doing it for future years. But I going to be a large overlap among the think that break-even is a good target lists. Over the course of the year, you may for first year response. Because when be sending five pieces of mail to many you mail more, you start getting dimin- individuals, even if you're only mailing ishing returns. By the time you start twice to what appears to be the same list. mailing to Road and Track Magazine or Because I haven't done any of this, I didn't Boys Life… you start getting a half- realize that, for example, if you send three percent response, you have to think different batches of acquisition mail to "Why bother." three different list sets in the course of a Does your mailing total—870,000 year, you probably have some duplication pieces—include follow-up letters, between the batches, right? where you mail several times to the There is something in the direct mail busi- same list? ness called "multi-buyers." What happens Wisconsin Public Radio Acquisition Mail Schedule Aug Mail Pcs Sep Mail- Pcs Oct Mail Pcs Nov Mail Pcs Dec Mail Pcs Feb Mail Pcs Apr Mail Pcs Discover 10000 AAAUW 4000 ASCPA 6000 AAAUW 3608 ASCPA 5412 Bicycling 5000 Bicycling 4882 Page Psychology 5000 Amnest Int. 3000 Alzheimer 10000 Amnest 4500 Alzheimers 9020 Considg/yomo 20000 Considg/yomo 8136 4 Backpacker 5000 Atlantic 7500 Arch Di- 7000 Atlantic 6765 Arch Di- 6314 Discover 20000 Discover 5695 BrilliantontheBasicsNewslette Pet Sub- 5000 NY Review 2000 Audubon 7500 NY Re- 1804 Audubon 6765 Organic Gard 5000 Organic Gard 6102 Covenant 5000 Nature 13000 Bon Apetit 1300 Nature 11726 Bon Apetit 1173 Sat Eve Post 10000 Sat Eve Post 1058 Planned 10000 New 7000 Gourmet 8500 New 6314 Gourmet 7667 Vegetarian Times 5000 Vegetarian 6916 Nutrition 5000 Popular 6900 GreenPeace 7500 Popular 6224 GreenPeace 6765 Walking 14000 Walking 6102 Wisconsin 20000 Smith & 5000 Handgun 5000 Smith & 4510 Handgun 4510 Wis Demo 12000 Wis Demo 4068 PRMS 589 Scientific 7100 Planned 7500 Scientific 6404 Planned 6765 Eddie Bauer 20000 Eddie Bauer 6102 Lapsed 10000 Sierra Club 7000 J.
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