Personalization is an important strategy in direct marketing, for both mail and email, which can significantly boost response. But for direct mail, in particular, where personalization carries an added production cost, it is not always cost-effective to get personal with your prospects.

Where Personalization Counts

Personalization nearly always counts when soliciting your current base of support, be it for renewals, upgrades, annual funds or capital campaigns. Getting personal with your members and donors is not only appropriate, but essential, in maintaining a strong relationship and achieving a high response to your solicitations. Bottom line—it is what your constituents expect.

These days, the use of personalization extends beyond the salutation— “Dear Mr. and Mrs. Smith,” —and includes variable information drawn from a member’s or donor’s record. At its most basic, this will be a last gift amount, specific ask amounts, and date of expiration.

More advanced personalization may invoke length of support, prior transactions or attendance, preferences, family profile, or even personalized URL’s that help organizations identify those that go online for more information.

Almost without exception, the additional cost of personalizing direct mail appeals to current members and donors will more than pay for itself with higher returns.

Where Personalization May Not Count

As you move away from recency of giving, the economic case for personalization in direct mail grows weaker.

The dividing line is often with lapsed members and donors. Be sure to test the use of personalization in your lapsed recovery mailings. While personalization will certainly increase your returns, the increase is not always high enough to justify the added production costs. The same is true for “warm” acquisition targeting prospects that have some prior affiliation with your organization, be they visitors or ticket buyers. This is almost always true for “cold” acquisition where prospects are exchanged with other nonprofits or drawn from the commercial list rental market.