* Why Gift and Prize Draw mailings work so well at CSDM
* 5 Conventional Wisdoms to Ignore
* Makes you think
Why Gift and Prize Draw mailings work so well at CSDM
Why are Gifts (or premiums as they are also called) enclosed with direct mail appeals so effective? And why in these tough economic times are prize draw mailings bucking the trend and producing such striking results? The answer may be found in the field of social psychology. Here we provide an extract from an article published in Scientific American by Robert Cialdini on why it will pay charities to understand how deeply entrenched human behaviours can have a direct bearing on fundraising performance. In this case, it looks very much as though there’s the potential to double response rates by understanding what’s going on in the donor’s mind.
From The Science of Persuasion
When the Disabled American Veterans organisation mails out requests for contributions, the appeal succeeds only about 18 percent of the time. But when the mailing includes a set of free personalised address labels, the success rate almost doubles, to 35 percent. To understand the effect of the unsolicited gift, we must recognise the reach and power of an essential rule of human conduct: the code of reciprocity.
All societies subscribe to a norm that obligates individuals to repay in kind what they have received. Evolutionary selection pressure has probably entrenched the behaviour in social animals such as ourselves. The demands of reciprocity begin to explain the boost in donations to the veterans group. Receiving a gift – unsolicited and perhaps even unwanted – convinced significant numbers of potential donors to return the favour.
Charitable organisations are far from alone in taking this approach: food stores offer free samples, exterminators offer free in-home inspections, health clubs offer free workouts. Customers are thus exposed to the product or service, but they are also indebted. Consumers are not the only ones who fall under the sway of reciprocity. Pharmaceutical companies spend millions of dollars every year to support medical researchers and to provide gifts to individual physicians – activities that may subtly influence investigators’ findings and physicians’ recommendations. A 1998 study in the New England Journal of Medicine found that only 37 percent of researchers who published conclusions critical of the safety of calcium channel blockers had previously received drug company support. Among those whose conclusions attested to the drugs’ safety, however, the number of those who had received free trips, research funding or employment skyrocketed – to 100 percent.
Reciprocity includes more than gifts and favours; it also applies to concessions that people make to one another. For example, assume that you reject my large request, and I then make a concession to you by retreating to a smaller request. You may very well then reciprocate with a concession of your own: agreement with my lesser request. In the mid 1970s my colleagues and I conducted an experiment that clearly illustrates the dynamics of reciprocal concessions. We stopped a random sample of passersby on pubic walkways and asked them if they would volunteer to chaperone juvenile detention centre inmates on a day trip to the zoo. As expected, very few complied, only 17 percent.
For another random sample of passersby, however, we began with an even larger request; to serve as an unpaid counsellor at the centre for two hours per week for the next two years. Everyone in this second sampling rejected the extreme appeal. At that point we offered them a concession. “If you can’t do that,” we asked, “would you chaperone a group of juvenile detention centre inmates on a day trip to the zoo?” Our concession powerfully stimulated return concessions. The compliance rate nearly tripled, to 50 percent, compared with the straightforward zoo-trip request.
Interestingly, at CSDM we find that results from mailings with gifts in are between 100% and 200% higher than just straight asks. And with Prize Draws they are about 150% higher. So we’d say that the principles outlined in the article are borne out in practice, even in these tough times.
5 Conventional Wisdoms to Ignore
The fascinating thing about direct mail is that it almost always does the opposite of what common sense would suggest. For example, common sense would hardly suggest that the people who have just given to your most recent appeal are the very ones most likely to respond to the next, and yet this is exactly what happens. Here we list 5 conventional wisdoms to ignore or apply at your peril.
1. People do not read long appeal letters. WRONG. They don’t read BORING long appeal letters. But if the letter is well written and interesting to the donor, a long letter can often outperform its shorter rivals. One of the things that most interests donors, we find, is the whole story of how the charity got set up. The founder’s motivations, fears of failure, early successes and setbacks, the moment when the charity really turned the corner. The highest response we’ve had to this approach has been over 40% to a warm mailing, with others not that far behind.
2. Letters need to be made to look home made – as if they’ve been done on the kitchen table by a couple of volunteers labouring late into the night. Not true. Every now and again it can pay to send a stamped, handwritten addressed, manilla enveloped mailing. But this technique seldom works if all the mailings are done this way. It’s the change of look cutting across the donor’s expectation that makes this technique work, not the ‘home made’ approach as a right principle.
3. Envelopes need to have a ‘teaser’ message to attract the readers’ attention. Who says? We find that envelope messages that don’t tell the reader anything useful pretty much always reduce response, especially unanswered questions: “ why are we sending you this letter?” and so on. Worst of all are split teaser messages where one part is on the envelope and the rest inside.
4. Donors need a breather before being asked again. Not so. There’s a conventional wisdom that says that, having just ‘mugged’ donors of a fiver you need to let time heal the wound before mugging them again. This turns out to be the very opposite of the truth. The most recent donors are always the best donors at any level. And the longer you leave it the worse response will be. Time doesn’t heal the wound because there was no wound to heal in the first place. In fact, we’d say the evidence strongly suggests that donors really love giving, enjoy the experience and want to repeat it again soon.
5. A higher ask helps to upgrade donors. No it doesn’t. In fact most direct mail donors never give more than £10 as a single gift because, by the time they’ve shared the funds they have available for donations among three or four charities in a month, there’s no more than £10 each to give. So, in practice what happens is that an ask that is higher than their comfort zone simply puts them off donating altogether.
Rob Dyson is the Public Relations Manager at disabled children’s charity 
Joe Saxton is Driver of Ideas at 


Ellen O’Donoghue is Director at 

Trina Wallace is a freelance charity copywriter. Sign up for her top tips on charity communications at 
Vicky Browning is director of 

