Using Segmentation to Better Mine Donor Databases

We have helped nonprofit clients boost retention and fundraising response by segmenting their existing donor mailing lists for better targeting and personalization. And we've learned that effective segmentation has two strategic prerequisites: selecting the right segmentation parameters and having accurate data for those parameters. Unfortunately, surveys show that many nonprofits rely on an overly narrow donor segmentation strategy and ignore factors that could really improve response and engagement; for example, Eleventy Marketing Group recently highlighted a survey finding that while 80% of nonprofits segment by donation amount, other significant factors are frequently neglected (less than 15% said they always segment by interest, channel preference or demographics, for example). A January blog post by the Creative Suitcase nonprofit marketing/design agency gave a great summary of important individual-donor segmentation factors: donation amount, of course, but also donation timing (recency, frequency, patterns); area of focus or interest; preferred type of communication (and that means going beyond mail vs. all-or-nothing opt-ins to frequency and content options); age (older donors prefer direct mail, while millennials like a multi-channel approach, for example); and preferred donation channel (mail, event, online, etc.). So how can a nonprofit gather and maintain such information, especially preference and interest data, about donors? Online and mail donation form questions, online thank-you questions, event registrations and donor surveys are some of Creative Suitcase's suggested vehicles. We would add that demographic data, such as age, can be appended. For more on using donor segmentation to improve communications, see http://www.creativesuitcase.com/2016/01/donor-segmentation-leads-to-increased-donor-retention/

Fundraising Success Relies on Good Data Measurement

In providing data services for many nonprofit fundraising efforts, either directly or via their list brokers and agencies, we can vouch for the critical importance of good data measurement and analytics. A recent business2community.com post by William Comcowich, CMO of CyberAlert media measurement service, addressed that key nonprofit challenge. He began by citing six tips for improved nonprofit data measurement courtesy of Katie Paine, measurement expert and CEO of Paine Publishing LLC: Clarifying the mission and the role each activity plays in support; measuring results from all stakeholders (volunteers, sponsors, employees, and the people served as well as donors); selecting at least three specific, quantifiable and time-limited metrics for analyzing communications channels, including direct mail, e-mail and social media; gaining across-the-board leadership support of measurement; taking advantage of existing data and data gathering across departments; and analysis of measured results to improve and repeat good performance. Comcowich also stressed the need to focus on donor preference data. Based on measurable donor preferences, fundraisers can improve response with tactics such as targeting appeals and communications by age to leverage generational differences; adjusting communications frequency; and segmenting for channel and content preference to boost engagement. For the complete article, read http://www.business2community.com/non-profit-marketing/analytics-measurement-can-improve-marketing-fundraising-nonprofits-01362512