Predictive Analytics Can Harness Data for Marketing ROI

Beyond list brokerage, AccuList can support direct marketing clients with “predictive analytics,” meaning scientific analysis that leverages customer and donor data to predict future prospect and customer actions. It will scientifically “cherry-pick” names from overwhelming “big data” lists and other files. For example, AccuList’s experienced statisticians build customized Good Customer Match Models and Mail Match Models to optimize direct mail results for prospect lists, as well as one-on-one models for list owners to help acquire more new customers or donors. Plus, predictive models aid other marketing goals, such as retention, relationship management, reactivation, cross-sell, upsell and content marketing. Below are some key ways predictive analytics will harness data for better marketing ROI.

More Swift, Efficient and Effective Lead Scoring

Lead scoring is too often a sales and marketing collaboration, in which salespeople provide marketers with their criteria for a “good” lead and marketers score incoming responses, either automatically or manually, for contact or further nurturing. Predictive analytics will remove anecdotal/gut evaluation in favor of more accurate scoring based on data such as demographics/firmographics, actual behavior and sales value. It also speeds the scoring process, especially when combined with automation, so that “hot” leads get more immediate contact. And it allows for segmentation of scored leads so that they can be put on custom nurturing tracks more likely to promote conversion and sales.

Better List Segmentation for Prospecting, Retention and Messaging

With predictive analytics, list records can be segmented to achieve multiple goals. The most likely to respond can be prioritized in a direct mail campaign to increase cost-efficiency. Even more helpful for campaign ROI, predictive analytics can look at the lifetime value of current customers or donors and develop prospect matching so mailings capture higher-value new customers. Predictive analytics also can tailor content marketing and creative by analyzing which messages and images resonate with which customer segments, identified by demographics and behavior, in order to send the right creative to the right audience. Finally, analytics can develop house file segmentation for retention and reduced churn, looking at lapsed customers or donors to identify the data profiles, timing inflection points and warning signs that trigger outreach and nurturing campaigns.

Optimizing for Channel and Product/Services Offer

Data analysis and modeling can also be used to improve future marketing ROI in terms of channel preferences and even product/services development. By studying customer or donor response and behavior after acquisition, analytics can identify the most appropriate promotion and response channels, communication types, and preferred contact timing by target audience. Plus, a customer model can match demographics, psychographics and behavior with product and offer choices to tailor prospecting, as well as upsell or cross-sell opportunities, to boost future results.

Committing to a Good, Clean Customer Database

Reliable predictions require a database of clean, updated existing customer or donor records, with enough necessary demographics/firmographcs and transactional behavior for modeling. So, to prevent garbage-in-garbage-out results, AccuList also supports clients with list hygiene and management, including hygiene matching for DO NOT MAIL, NCOA and more, data appending of variables from outside lists, merge-purge eliminating duplicates and faulty records, response tracking with match-back, and more advanced list screening options.

Tech & Data Trends Spur 2019 Fundraising Opportunities

Despite 2019’s many challenges for nonprofit marketers, including competing for attention with political fundraising noise, trends in data analytics and technology offer good news for AccuList’s fundraising clients.

Fundraising Can Leverage Digital Innovations

Consider trends highlighted in this spring’s Nonprofit Technology Conference in Oregon. For example, nonprofit tech pros reported success using Digital Wallets, such as Apple Pay, Paypal and Google Pay, to make donating easier for donors and to increase conversions. AI and chatbots are another boon cited by tech experts, not just because they free up staff from time-consuming interfaces but because they can be used to segment audiences and tailor communications to boost donor acquisition, value and retention. Meanwhile mobile text messaging and mobile giving not only continue to grow in use, but nonprofits are learning to leverage SMS to trigger response, scale donor relationships and engage and motivate communities more fully. Online giving continues its growth path, but there are now more online giving services and their offerings are expanding. For example, Give Lively has free online fundraising tools for text-to-give, peer-to-peer, events, and integration with social media platforms such as Facebook. Finally, virtual-assistant voice services have entered the fundraising arena; for example, Amazon’s Alexa now can help donors verbally contribute up to $10,000.

It All Comes Back to Targeted Data

But for tech innovations to be effective, quality data and data analytics are essential. For example, fundraising efforts can use data to identify and segment those groups of current or inactive donors more likely to increase their donation dollars or flag donors to tap as future legacy donors. And data analytics can combine with real-time marketing automation, triggered e-mail series and variable data printing of personalized direct mail for improved donor acquisition. While the task of data collection and analysis can seem overwhelming, nonprofits don’t need to vacuum up every bit of big data for better results. The key is to collect and track the information in the donor database, or to select the key response factors to target in prospect lists, which are most likely to lead to success. Beyond the basics of name, address/contact, gender, age and date and amount of last donation, data targeting can be enhanced with parameters indicating donor capacity (the ability to give) and donor affinity (the willingness to give). Indicators of donor capacity include personal income/wealth measures, real estate ownership, business title, stock ownership, etc., while donor affinity parameters include the RFM (recency, frequency, monetary) of the donor or prospect giving history, past relationship/interest in a specific cause or affiliated appeal, and political affiliation and giving. Check out this article on donor data from Candid’s Philantopic blog for data management tips.

Beware Assumptions About Donor Data

A good database policy also includes regular hygiene and updating as well as an ongoing check for knowledge/data gaps. Classy, the online fundraising software provider, suggests challenging assumptions of donor knowledge by making sure analytics can deliver on these questions:

  • When are donors most likely to donate?
  • What is the average donation amount?
  • What is the average donation amount?
  • Are there different types of donors?
  • What is the reason for donation?
  • How does the donor liked to be thanked?
  • What is the donor’s communication channel preference?
  • What value does the donor get from donating?

See the rest of Classy’s suggestions on using data for fundraising.

Digital Data Feed Publishers’ Subscription Growth

AccuList helps business periodicals grow audience via direct marketing, and, as always, good customer and prospect data is at the root of marketing success. Consider a case study from The Economist, named one of the eight best business magazines of 2019 by The Balance reviewers. It isn’t only content that makes The Economist stand out. It’s a data-based audience-building strategy that has quadrupled subscription revenue over the last three years.

Customer Data and Predictive Analytics

Facing challenges in growing subscriber and advertising revenue, The Economist contracted with a customer data platform, Lytics, to shift from a print-focused to a digital subscription strategy based on customer data management, per a recent What’s New in Publishing (WNIP) post. For example, the publisher used data analytics to create content hubs, or individual pages that display digital content based on a reader’s interest for particular news topics. Tactics also included displaying offers based on the reader’s subscription status and predictive engagement score, meaning their likelihood to subscribe, derived from other readers with behaviors like theirs. And the online Economist gave readers featured content based not just on topic interest but also on behavioral scoring so readers got the type of content they wanted in the way they wanted to read it. Yet another example was a campaign for a free “Back to School Megatech” eBook, that produced a 9% click-through rate for targeted audiences.

Payoffs in Acquisition and Retention

In addition to a 4X bump in The Economist‘s subscriber revenue, the data-centric effort decreased cost per acquisition by 80%, tripled digital subscriptions, and increased time-on-site and engagement measures, per the WNIP case study post. The development of ongoing and adaptive customer profiles using machine learning went beyond simple demographics to allow for individually tailored and timed advertising and engagement strategies, such as predicting when a reader is more receptive to certain kinds of advertising or content. Retention strategies also were improved by predicting when subscribers were likely to stop visiting or subscribing.

Leveraging Data and Content for Growth

The Economist is not alone in embracing a digital subscription and data-management publishing model. The New York Times used similar strategies to boost digital subscriptions and revenues last year, even creating nytDEMO (DEMO stands for data, engineering, measurement, and optimization) as a collaboration among members of The Times data, product & design, technology, and advertising groups. The nytDEMO team offers brand marketers AI-based data tools such as “Project Feels” predicting emotional response to content and “Readerscope” identifying reader/interest audience segments. While other print and digital news operations were cutting back in 2018, The New York Times Co. used data-driven strategies to generate more than $709 million in digital revenue, with online subscription revenue up nearly 18% from 2017 and digital advertising up 8.6%. Out of its 4.3 million paid subscriptions for digital and print in 2018, more than 3.3 million people paid for its digital products, a 27% jump from 2017. Those results prompted executives to set a new target of more than 10 million subscriptions by 2025. And since NYT execs believe successful data marketing relies on quality content marketing, the revenue gains will be plowed back into content development via increased investment in newsroom and opinion operations.

 

Personalization Is Now Key to Insurance Marketing ROI

Personalization has become a mantra for all direct marketers, but it is especially relevant to AccuList’s insurance marketing clients. According to an Accenture 2018 study, 80% of insurance consumers are willing to share data to get more personalized offers, messages, pricing and recommendations from auto, home and life insurance providers. Although over 70% of insurance marketing campaigns claim to use some personalization, surveys show marketers are not doing enough to satisfy that customer demand. As a result, marketers can miss out on personalization’s proven power to improve response and ROI, lower acquisition costs, and enhance cross-selling.

Personalization Revs Mail’s Acquisition Power

While digital data often leads conversations, the importance of personalization in traditional direct mail, still an insurance workhorse, should not be ignored. After all, direct mail is considered more personal than digital by 69% of recipients, giving personalized content extra power. Direct mail also gets an average 9% response rate for house lists and 5% for prospects, per 2018 DMA/ANA data, compared with 1% or lower for other channels. Plus, for the digitally addicted, adding direct mail to digital bumps up conversion by 28%. A recent article on insurance marketing from agency Ballantine advised on top ways to maximize mail ROI, and, no surprise, personalization dominated—assuming clean, up-to-date mailing lists with important targeting parameters. First, marketers can use variable data printing and database parameters to personalize content and images to match the consumer’s life stage, so, for example, auto policy creative targeting a young single first-time car buyer differs in messaging and images from the creative for an older couple with a minivan. Next, marketers can personalize rates by taking into account factors such as the age and gender of the targeted recipient. And they can tap personal interests by leveraging affinity relationships, such as a specific sports team or association affiliation, via targeted discounts. Personalization shouldn’t stop with the mailing package but should then continue through the customer journey. Marketers can study the sales funnel to find when leads are most likely to drop out so that processes can be simplified, streamlined and further personalized to boost conversion. Simple examples include pre-filled forms and postage-paid return envelopes.

It’s All About Prospect and Policyholder Data

Meanwhile, One Inc., an insurance software company, offers a helpful roadmap to digital personalization. As with direct mail, marketing begins with quality consumer data and analysis, taking a step beyond age, gender and location to parameters that identify unmet needs and customer value for targeting and prioritization—such as a recent move, a new home, a new baby or an upcoming policy expiration date. Next, marketers need to track lead and policyholder actions to decide on the specific digital behaviors that will trigger a personalized response, say following up an online request for information with a series of lead-nurture e-mails. Then, marketers can design and test small campaigns of personalized content and process before expanding to more channels and audiences. Once strategies and processes have been developed and tested, an investment in marketing automation technology can follow, including AI algorithms using real-time data and behavior to tailor offers, customer service, cross-selling, lead scoring and more. Indeed, the advent of AI in the digital world is accelerating consumers’ personalization expectations, and the impact on the insurance industry is expected to keep rising in 2019, per articles.

Retention Relies on Smart Personalization, Too

Meanwhile, studies show personalization is also essential to cost-effective policyholder retention. One Inc. provides this example: An auto policyholder has a documented poor experience when filing a claim, putting the client in a “high risk” category for churn. Based on industry data that policyholders typically shop roughly two months (60 days) prior to policy expiration and that roughly one-third of shoppers switch carriers, marketers use the policy expiration date and contact information to send a letter 60 days before the policy is set to expire, personalized by the policyholder’s name, of course. The letter includes a personal note that acknowledges the poor experience and pledges to do better, an offer of a discount for renewing early, and rep contact information for quick response to questions or concerns.

Fundraising Challenges Include Gen Z, E-mail, AI

For AccuList USA’s nonprofit fundraising clients and fundraising consultants, 2019 will be another challenging year. Successful direct marketers will need to adapt to changes in demographics, technology and donor targeting, to name just a few trends recently cited by the Donorbox Nonprofit Blog.

Move Over Millennials; Here Comes Gen Z

Donorbox is sounding the alert ahead of the next demographic wave. While the Millennial generation is still the biggest cohort in the workforce, Gen Z is arriving. Born after 1996, they now make up an estimated 27% of the population and will account for 40% of all consumers by 2020. How are they different? The “2017 Global Trends in Giving Report” found that Gen Z members are interested in giving to many different causes, especially those involving youth, animals and human services. But to win the attention of these digital natives, messaging must be concise and engaging, offering an immediate experience that cuts through the marketing noise they routinely filter out. Gen Z is also the first mobile-only generation, so website, e-mail and donation forms must all be optimized for mobile. Plus, Gen Z likes visual-based platforms, so fundraising creative should use photos, videos and infographics to tell stories that grab attention.

Donors Expect Hyperpersonalized, Targeted Messaging

Accustomed to sophisticated digital technology that tailors messaging a la Amazon and Netflix, today’s donors expect a personalized, targeted approach that takes into account demographics, giving history and even psychographics. A generic appeal will fall flat. That means segmenting donor and prospect lists and using variable data printing to specialize messaging to account for generational differences and other demographics. It means tailoring the “ask” to the prospective donor’s income and giving history. It means refining giving/donation pages to highlight projects and wording that will resonate with the target donor group.

Donors Embrace E-mail Fundraising If Done Well

E-mail has gotten a bad rap recently because of crowded mailboxes, spam filtering and low response rates, but there is a lot to be said for revisiting e-mail strategy in 2019. For one, research shows that donors willing to donate through e-mail rose from just 6% in 2012 to 28% in 2018. Second, low-cost e-mail has an ROI of 122%, much higher than direct mail, social media and paid search. Finally, a backlash against social media abuses, including among the mobile-first generation, is improving e-mail’s digital appeal. But e-mail needs to be done well to deliver donors. Personalization and targeted messaging is expected, so, again, segment the audience by demographics, desired communication frequency, giving status, etc. Make sure there is a clear call to action, a compelling subject line, simple attractive visual design, and, most of all, impactful storytelling.

AI Can Help Turn Data Into Dollars

Artificial Intelligence (AI) is on its way to becoming ubiquitous in our society, and that will include fundraising. AI broadly refers to programs, computers and machines that perform “intelligent” tasks such as planning, learning, problem-solving, communication and more. AI can help nonprofits gather more data and use it better to advance missions and marketing. For example, one of the simplest uses of AI is a chatbot that interacts via messaging services like Facebook Messenger, Slack, Telegram, etc. A nonprofit can create a chatbot to handle donations, register members and distribute information about programs and services. AI also can be used to personalize donor journeys with tailored, personal messages based on real-time donor behavior and timed to encourage contributions. Finally, AI can weaponize data for more cost-effective donor development and marketing. For example, a donor’s giving and volunteering history, event attendance, affiliations, relationships, and data from wealth screening tools can all be analyzed to predict a potential donor’s likelihood to give a major gift.

See the complete list of eight fundraising trends identified by Donorbox.



fundraising trends for success

For 2019 Edge, Event Pros Shouldn’t Overlook Direct Mail, SEO, Experiential Marketing

Per the latest industry surveys, AccuList USA’s trade show and conference marketing clients can look forward to solid event industry growth in 2019–along with potential marketing strategy shifts in an increasingly competitive landscape.

Businesses Are Bullish on Event Marketing

Event software firm Bizzabo’s survey of over 1,000 mid- to senior-level marketers at major companies in 2018 found good news for the event industry: Most respondents (41%) consider live events to be the most critical marketing channel in achieving business outcomes (out of 9 possible channels), a 32% increase from 2017. Business execs are also doubling down on live events. Between 2017 to 2018, the number of companies organizing 20 or more events per year increased by 17%. Additionally, the vast majority of respondents (95%) believe in-person events provide attendees with a valuable opportunity to form connections in an increasingly digital world. This reflects a 12% increase compared to 2017.

E-mail & Social Media Remain Favored Promotion Channels

Meanwhile, Eventbrite, an online event management and ticketing firm, surveyed 1,200 event professionals last year to see how marketers are likely to spend in 2019. Word of mouth, an effective tactic for 63% of event marketers, is bolstered by investments in social media marketing, which 49% of event creators placed among the top three most effective drivers of ticket sales. They cited Facebook and Instagram as the top social platforms for reaching event-goers. E-mail rounded out the top marketing channels per those surveyed, with 38% of event professionals relying on it.

Trends Encourage Growth of SEO & Direct Mail Use

However, with 89% of attendees using search for purchase decisions, Eventbrite foresees a necessary expansion of SEO efforts. There’s definitely room for growth, with almost half (46%) of event professionals saying they aren’t using SEO. And, while e-mail is cited among the favored marketing channels, direct mail continues to turn in higher response for the 41% of event pros who use it. Eventbrite thinks the 50% who cite competition as their biggest challenge will want to reconsider the edge offered by adding mail to their arsenal, urging the hesitant to take a trial run by segmenting mailing lists and sending flyers or save-the-date cards to a test portion.

Experiential Marketing Is 2019’s Hot Buzzword

Experiential marketing is a hot new trend for trade show exhibit providers, brand marketers and event planners. It is a strategy that engages attendees by using branded experiences at an event, as part of an event, or in a pop-up activation not tied to any event. It’s all about immersing people in memorable live experiences to create more lasting and positive brand impressions. Yet Eventbrite found that close to 60% of event creators are not using experiential marketing. Acknowledging an intimidation factor, Eventbrite urges starting small, for example by promoting a pop-up shop (temporary retail space) grand opening at an event, by offering a smaller experiential activation like an on-site art installation, or by using a partner on-site sponsorship to enhance the event experience.

Download the Bizzabo report “2019 Event Marketing Benchmarks and Trends” for more details on event industry trends.

2019 Trends Open Doors for More Direct Mail Success

Direct mail lists and data services are core to AccuList USA’s business success, so each year we research which trends our direct mail marketing clients will want to embrace for maximum response–and which trends are fading in effectiveness.

Digital Ad Tune-outs Offer Mail Opportunities

Digital issues can create direct mail opportunities, points out direct mail agency Inkit, noting that customers are tuning out digital advertising, whether e-mails, banners or social media promos. In fact, eMarketer estimates that 30% of all Internet users will use ad blockers in 2019. One way to offset the drop in digital ad effectiveness is to beef up direct mail campaigns. Note that ANA-DMA research shows that 84% of millennials take the time to look through their mail and 64% would rather scan for useful information in the mail than e-mail. Plus, 41% of millennials and 53% of Gen Xers report enjoying catalogs. That engagement translates into higher response rates for mail than for any other media, per the 2018 ANA-DMA Response Rate Report, with 9% for house lists and 4.9% for prospect lists.

Snail Mail Can Join the 2019 Video Boom

While digital ads are being ignored, digital video is booming; Inkit reports that Cisco projects video will encompass more than 85% of all Internet traffic in the U.S. by 2020! Direct mail doesn’t have to be left out. Thanks to print technology–QR, AR, Video-in-Print and Near Field Communication (NFC)–paper promotions can jump on the video bandwagon and further boost their own mail response.

2019 Demands Personalized, Cross-Channel Campaigns

Customers in 2019 will expect marketers to personalize offers and deliver a seamless experience across channels, Inkit asserts, requiring integration of online, e-mail, direct mail, social media, mobile, and in-store campaigns. In fact, retailing research recently found that close to 90% of retailers say integrated cross-channel or omnichannel marketing is key to success. AI is one way marketers are getting a handle on messaging across channels and at different points in the buyer journey, which can help decide timing and targeting of direct mail. Meanwhile, for mail, variable data content printing and enhanced database targeting and segmenting can deliver the personalized relevant messaging that will be a basic of 2019 marketing.

Take Variable Data Printing to the Next Level in 2019

Yet when it comes to printing and personalization, there are some popular direct mail practices that need to be ditched this year, advises direct marketing agency Darwill. For example, using a 4-color master shell on which variable content is laser-printed in black and white has become old-hat given that new inkjet presses can create endless 4-color versions for a more targeted and engaging campaign. Along the same lines, the custom maps laser-printed in black and white can be replaced by full-color variable maps that are more personalized, eye-catching, and likely to drive leads.

Use Envelopes to Intrigue Outside; Put Tailored Offers Inside

This year, instead of revealing all details of a promotional offer on the outside envelope to drive opens, Darwill advises that a promotional pitch that is visible but not fully revealed on the envelope is likely to work better–a sneak peek at a personalized offer. Then once the recipient opens the envelope, he or she better not find one-size-fits-all content! Luckily, with today’s full-color inkjet technology, a letter or a coupon can now be varied based on a recipient’s past shopping patterns or demographics.

 

 

 

Is Your E-mail Optimized for Best 2019 Performance?

E-mail marketing is constantly evolving, and AccuList USA tries to keep our e-mail list and e-mail marketing services clients up-to-date on the latest tactics and best practices. A good overview of trends for 2019 was recently supplied in a Business2Community post by Rohit Munipally.

Targeted, Segmented and Automated Marketing

The value of e-mail targeting and list segmentation is so clear that it will be a given for smart marketers in 2019. Munipally cites HubSpot research showing that e-mails that are relevantly segmented and targeted account for 58% of all e-mail earnings and increase profits up to 18 times more. When combined with automation, e-mail content power is further enhanced. Munipally gives examples of how e-mail marketers can track behavior to boost response and conversion. For example, if a contact hasn’t opened an e-mail for an extended period, the contact can be dropped from deployments, while a contact who has visited a web page several times or opened multiple e-mails can receive relevant automated e-mails prompting action. In fact, global automated e-mail marketing alone is expected to account for $2.7 billion in spending by 2025, Munipally reports.

Text-Only, Interactive & Story Content

Watch for acceleration of the trend away from graphics-heavy e-mail designs in 2019. Research shows e-mail users prefer plain text over HTML-style e-mails because plain text e-mails resemble a personal message that would be sent by a family member or friend. So marketers now use plain-text e-mails to create a more personable, sincere and less sales-oriented brand. Also expect to see interactivity dominate over product display and sales pitches in e-mails next year. Response data favors interactive e-mails that encourage engagement through quizzes, surveys, games, contests, GIFs, and call-to-action messaging that lets recipients shop, edit an order, update a wish list, send a shipping confirmation, etc. Story-telling also has proved itself as another content-engagement tool. E-mails that begin with a story that grabs the reader and then leads into the value and services/products offering have been shown to be highly influential–if delivered to a relevant audience (again underscoring the value of targeting and segmentation).

Focus on Mobile, Personalization and AI

Mobile optimization of e-mail will be essential for success in 2019, with 53% of e-mails opened via mobile devices and 75% of gmail users viewing accounts on mobile devices. Meanwhile, consumers demand content that is relevant and personalized whether they view it on a computer or mobile device, which means using data to go beyond the first name in the second paragraph to delivery of information unique to the reader’s account or buyer persona. Plus, next year should see growing use of AI for everything from targeting, subject line choice, image selection, unsubscribe prevention and more. To illustrate the power of AI, Munipally reports that Adobe recently developed an AI technology with a series of sophisticated algorithms based on e-mail campaigns and audience behaviors, resulting in e-mail users opening nearly 80% of work and 60% of personal e-mails.

For the complete post, see https://www.business2community.com/email-marketing/7-email-marketing-trends-for-2019-02120824