Getting Donor Data Ready for Year-End Fundraising

Nonprofits are heading into their important year-end fundraising season when donor file prep and targeting can make a big difference in results. We wanted to pass along a recent nonprofithub.org post on key ways to maximize success with donor data, especially since these are areas where clients regularly rely on DBM Designs' data services. The first goal, as the article notes, is to have an accessible, updated, accurate and actionable database and donor management system. Besides name and contact info, it should include strategic targeting factors such as campaign performance, donor history, gift amounts, last gift dates preferred channel and demographics. Data services experts can help quickly aggregate, organize and clean existing donor data, and also help append missing data, such as demographics. The next key task is donor segmentation. Segmentation identifies groups by shared attributes in order to send each group the appropriate targeted message or campaign. Segments can be divided by giving level, last gift date, relationship with the organization, demographic information and more, and the article offers a handy "donor segmentation cheat sheet" for beginners. Of course, the segmented data is useless without a marketing plan, which should include fundraising goals; deployment timings; integrated use of channels such as direct mail, e-mail and phone solicitation; and targeting and creative messaging strategy. Targeted donor data and segmentation will then permit more effective creative via crafting of tailored, personalized communications that tap the donor's personal connection and history with the organization or cause. Plus, data can be used to tailor the rest of the donor experience, from the mailed response device or online donation page to expressions of acknowledgement and appreciation. For the full post, see http://nonprofithub.org/fundraising/5-steps-to-target-donors-for-year-end-fundraising-success/

Fundraising Letter Fall Flat? Check for These Mistakes

Nonprofits around the country are starting to gear up for year-end fundraising campaigns, and that means scrutinizing any disappointing direct mail results from last year for areas to correct. We can help them analyze response by list, segment and package, but when it comes to marketing copy missteps, we'll pass along the advice of Joanne Fritz, nonprofit charitable orgs expert for about.com. In her June online post, "8 Things You Should Never Do in a Fundraising Letter," Fritz starts with a fundamental error that our mailing data services can help nonprofit clients avoid: lack of personalization or faulty personalization. It's hard to say which is worse in the eyes of a donor, an impersonal "Dear Friend," using the wrong name or misspelling a name! Fritz also notes various copy and design flaws that can make the mailing so difficult to get through that potential donors toss it. For example, a mail package overwhelmed by inserts can confuse recipients into inaction. Appeals can sink under the weight of fancy vocabulary, too; the most effective promotions are written at the 4th-6th grade level, say experts. Hard-to-read design elements--such as reverse-out type or small fonts--can frustrate others, especially older recipients. And remember that urgency drives action. If you don't want donors to set aside your appeal and forget it, stress that you need a donation now and what will happen to needy people, animals or causes if those funds don't come. As added incentive, offer to match their gift if they act right away. Fritz provides links to real-life effective mailings as examples of how to succeed with simple yet emotionally resonant appeals. For more of Fritz's fundraising letter taboos, read http://nonprofit.about.com/od/fundraisingbasics/fl/8-Reasons-I-Did-Not-Respond-to-Your-Fundraising-Letter.htm

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