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Triple Your Net Income on Your Next Mailing

Triple Your Net Income on Your Next Mailing

July 27, 2008

Quick quiz: What are the two most powerful words in the English language? Here's a hint. It's not the words 'free' or 'you.'

Give up? The words 'free' and 'you' are in the top five, and you'll kick yourself when I tell you. It's your first and last name!

When you use a prospect's first and last name in a marketing letter or in a conversation, you begin a relationship with that person. The relationship doesn't just happen overnight, but it lets a prospect know that you see them and know who they are.

Using a person's name in your marketing can be a very powerful tool. One not-for-profit organization that protects animals nearly tripled its net income when they tested this tactic in a direct mail letter.

How one firm increased funding 130%

The control package had worked for many years, but response and donations had been declining for some time. The organization was desperate to find a new angle that would raise funds. They looked at many options, some of which were totally different than what they had done in the past, and they came up with a new package. They put it out right before the holiday season. The result was a 130% increase in donations and a 379% increase in net income even though it cost more per piece.

Here's what they did. They included an offer for a personalized photo album as a premium and increased their response rate to 10.77% from 4.64% compared to the control. They also increased the average gift they received to $11.90 from $10.32.

The key is that they doubled their response rate by offering the premium that included the two most powerful words in marketing: the donor's first and last name. Although the average gift increased just slightly, they increased their revenue substantially because of the increased response rate.

Advertising Age magazine also used the two most powerful words to increase its response rate for a subscription offer. When prospects responded, they received coffee mugs with their names on it. I see so many businesses offering mugs with their company name on it. What a mistake! Which mug do you think a customer will grab from the cupboard? One with his or her name on it or one with your company name on it?

Find ways to personalize your gifts and the manner in which you contact your prospects so you can continue to build your relationship with them and turn them into buyers!