Donor segmentation — defining, differentiating, and grouping donors by certain characteristics — is key to long-term gains in fundraising.
You can sort donors by the amount of their contributions, ZIP codes, ages, or the ways they give (online, peer to peer, email, mail, etc.). Sorting donors enables you to create campaigns and tailor communications for specific groups to increase the likelihood that they’ll give or get involved.
Here are three ways to increase your odds of success when segmenting donors:
Keep your data clean. Make sure you update your data regularly and use unique codes for each of your donor segments if possible. This ensures that anyone with access to your database knows your segments and strategies.
Don’t leave out lapsed donors! Oftentimes you can create one appeal for active donors and then tweak it to send to those who recently stopped giving. This helps you reconnect with those donors, and if they give again, you can keep track of how they give to inform your future efforts.
Tailor appeals to different groups of donors. A one-size-fits-all approach doesn’t work. Studies show that personalization has a positive impact on how donors perceive an organization and influences whether they give. Consider testing different messages to learn which works best with each group, and apply those learnings to future appeals to foster donor loyalty.
Avoid Common Pitfalls
Plan ahead to address the following common challenges before you send out your appeals.
Using unreliable data. Updating donor profiles and running reports on different giving patterns can help ensure the right appeals reach the right people in the right way — to increase the odds they’ll make a gift.
If you don’t know how to get some of the missing data, consider surveying donors for information while also asking for their feedback. Doing so provides the details you need for segmentation and demonstrates that you value their opinions.
Relying too heavily on one form of communication. If your donors represent a range of ages, don’t put all your eggs in the online basket. For example, traditional mailings can attract new donors, especially to annual fund campaigns and capital campaigns. Try to use as many communication channels as you can while still ensuring high quality.
Failing to show impact. Be sure to notify donors throughout the year about your accomplishments. Then, at year’s end, create a summary of them all. Include key statistics that demonstrate your results in a social-media campaign to showcase them. Create customized campaigns for first-time givers, monthly givers, and loyal annual donors, and request a gift before the year ends to keep the work going strong in the year ahead.
Ignoring Tracking and Analysis Donor segmentation may feel like a massive, intimidating project, but with the right planning and framework, it can pay off in a big way. Consider conducting A/B testing on messages. For example, you would split your distribution list and choose a different subject line for each half or a different introduction paragraph to see which text leads to better results. Then look for patterns among different messages or campaigns. Identify trends and capitalize on them. Here are a few ways to find patterns or trends:
- Look at the timing of gifts, and see if there are any demographic patterns. For example, perhaps people of a certain age or gender tend to give at certain times of the year.
- Create monthly reports that track those patterns, so you’ll be poised to ask for gifts at optimal times.
- Talk to donors and ask about their interests. Keep track of their responses, so you can send information that will help them feel connected, engaged, and enthused about your work.
- Ask about and track preferences, such as whether a donor prefers small-group events, gives only during capital or annual campaigns, or simply wants to stay updated on your work.
Fundraising strategies often focus too much on the amount someone gives instead of the length of time someone has contributed, volunteered, or advocated. Long-term supporters deserve to be invited to all events and thanked whenever they give or participate. They also can be excellent ambassadors to attract new donors and volunteers. Use donor segmentation to help stay on top of these opportunities and cultivate strong long-term relationships.
You also can create a list of donors who participate in company gift-matching programs, identify their employers, and build a list of potential corporate donors. If you don’t participate in any matching-gift programs, try to identify potential corporate supporters based on the volume of donors coming from the same company.
By incorporating much of the above, you can better see and track your successes and keep more motivated donors in your pool. You’ll also foster stronger relationships and inspire donor loyalty. You work hard for your mission. Make that hard work go further.
