Netflix: “75% of what people watch is from some sort of recommendation”Amazon: “35 percent of product sales result from recommendations”. 20-30% from other sources
We are doing three types of segmentations at Michigan. The first one is using market basket analysis.
This is exactly what the Amazon’s of the world do. When you buy items in a market, if you buy bread, cheese, you’re likely to buy butter or milk. Perhaps, donors exhibit similar behavior. For non-degree granting, this is an easy way to expand the constituency base.Next slide: Third one is demographic + giving history segmentation
Here we show the characteristics of three clusters. Once we know what type of attributes each cluster has, we label them as “Best, Better, Good”. % Managed is an important factorNext slide: geographic segmentation
Based on the “best” prospects data, we create segments for the whole country, so that the regions can be created optimally. In this case, there are six regions were created based on proximity of the constituents.
Let the fundraisers drive the process.
Added last bullet here per team request in presentation
CASE V and VI Presentation on Alumni Segmentation
Developing Donor Segments: A Scientific and Social Approach to Effective Multi-Channel Communication Strategy Advancement Services track sponsored by BlackbaudFollow the Better Together Conference on Twitter #CASEV+VI
Our Time Together• Trends impacting fundraising• National Study on Donor Motivation• Segmentation’s Importance• Case Study• Discussion
Trends Impacting Communication with Alumni/Donors• Rise of the non-profits• Non-funded written marketing plans• Younger donors• Female donors• Technology
How are you using information aboutyour alumni to segment thecommunications that they receive?
How to Create Personas• A number of sources can be used: – Database information (engagement and participation metrics) – Past giving behavior (LYBUNTS, SYBUNTS, etc.) – Prism cluster – Ability to give – Attitudinal Data • Surveys • Focus groups • Social Media
President Hennessy, “I have more in commonwith someone who is a young alum living in LosAngeles than I do with someone living in myneighborhood.”We need to develop personas based on whatpeople care about and how they want to beengaged.
Today’s session evaluations will be e-mailed to you. Session handouts are available at www.casefive.org/conference/presentations/ Username: CASEV-VI | Password: Chicago 2012Follow the Better Together Conference on Twitter by using the #CASEV+VI hashtag when you tweet!