The Importance of Segmenting Your Data and Personalizing Outreach
Data helps nonprofits understand their donor base — or rather, their donor bases: Data reveals differences among groups of donors, such as donation history, demographics, engagement patterns, instead of treating donors as a monolith. With this information, nonprofits can craft customized messages for various donor audiences to better match their motivations for giving.
When the American Lung Association looked at its disengaged donors, it discovered differences among audiences. It found four primary motivations for donating: advocacy, clean air, lung health and smoking cessation. From there, the organization was able to shape messaging to better target disengaged donors. The result: Its donor roster grew by 50 percent over two years.
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Predictive Analytics Can Help Nonprofits Plan for the Future
GivingTuesday is a bare-bones example of predictive analytics: Based on the history of GivingTuesday, organizations can anticipate an influx of donations on that day. Now, imagine if nonprofits could have that insight into more complex future donation patterns, or even the identity of future donors.
Predictive analytics models can help nonprofits do exactly that. By scrutinizing data-driven ROI of past campaigns and projecting that onto future programs, nonprofit leaders get a peek into what to expect. They can then tailor campaigns to invest their resources in the programs with the highest returns and toward donors who are likeliest to maximize their giving potential.