Demise of the #10 Envelope

Since year one in professional fundraising, I have often come across a maverick who dares ask the question whether direct mail is dead; or at least dying. Undoubtedly even the most rebellious response eventually spins some hope for direct mail; most likely to avoid offense. Unfortunately a great many organizations have evolved their direct mail programs into a cash cow only now to secretly dread when and where the cow becomes a dead dog.

I suspect that times ahead will finally lead a few, maybe more, to that breaking point where they finally give the #10 envelope mail the pink slip. The few will finally admit that the decline they have experienced for years cannot be reversed and that generations to come will cease to use mail as previous generations once had. The few will acknowledge that the internet and e-mail technology really does have the potential to completely replace the envelope and it’s travel companion; the BRE.

Like many things in our world, death is often slow and painful. And sometimes we can ignore our mortality until it is right in front of us. Fortunately, the #10 envelope has a great many friends; friends that will stop at nothing short of life-support to keep the mail following. Unfortunately, as many organizations are beginning to discover, envelopes trend towards flowing in one direction.

Just consider this article I read today in Fundraising Success. According to a report, the recession mixed with rising postal rates and preference to digital communication is having a definite effect on direct mail. Jonathan Margulies, director of Winterberry Group, said that while the numbers represent a significant drop-off, no one needs to be making funeral arrangements for the direct-mail industry just yet.

“Direct mail is not dead or even dying,” said Mr. Margulies. “The nature of how people use it is changing fundamentally. And over the long term the dollars and volumes may never come back to the levels we had over the last few years, but there will be sustained and increased marketer attention in the things direct-mail media can do.”

Ramesh Ratan, exec VP-chief operating officer of the Direct Marketing Association, said the association’s numbers show a decline in direct-mail spending, down from $54.8 billion in 2007 to just slightly above $54 billion in 2008. Mr. Ratan said he anticipates the figure will drop again next year, and he thinks a lot of the issues the direct-mail industry is facing are due to the fact that it’s currently in a state of flux.

To wrap this up, these guys suggest that direct mail is not dying and instead that the flux requires that marketers develop multi-channel, multi-media marketing campaign (direct mail + online, for example). I say that online fundraising will eventually, maybe sooner than later, completely replace the envelope method of fundraising. This leads me to suggest that the direct-mail is not so much in trouble as much as they need to reinvent themselves. Many of the same techniques that have historically worked so well in direct mail can easily be converted to online. And best of all, online fundraising offers much greater efficiency- less paper, swifter response, and easier analysis.