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An Introduction to Donor Data Segmentation

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Do you communicate to everyone in your database the same way? You can't craft a compelling message or story if you don't know who you're talking to. Effective storytelling starts with matching your message to your audience. When we don't segment our messaging, we set ourselves up for failure. In this presentation, Steven Shattuck - Chief Engagement Officer at Bloomerang - will share some of his favorite strategies for segmenting your donors and other constituents in your database.

Attendee takeaways:

4 basic ways to segment your donors.
How to get off the donor acquisition treadmill
How to improve your donor retention rates
One of Steven's favorite ways to segment donors - one that has the potential to turn casual donors into major donors.

Published in: Government & Nonprofit
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An Introduction to Donor Data Segmentation

  1. 1. An Introduction to Donor Data Segmentation
  2. 2. About Steven » @StevenShattuck Chief Engagement Officer, Bloomerang Co-founder/ED, Launch Cause Contributor: Fundraising Principles and Practice: Second Edition Member: Fundraising Effectiveness Project (FEP) Project Work Group, AFP Center for Fundraising Innovation (CFI) Fun facts: • 1st job: producing fundraising videos • prefers tea to coffee • allergic to rhubarb • won the David Letterman scholarship
  3. 3. @StevenShattuck
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  10. 10. @StevenShattuck Desk purchased, 
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  11. 11. @StevenShattuck Desk purchased, 
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  12. 12. @StevenShattuck Desk purchased, 
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  13. 13. @StevenShattuck Desk purchased, 
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  14. 14. @StevenShattuck Retaining donors (stewardship) can be very difficult without data segmentation.
  15. 15. https://bloomerang.co/blog/infographic-2016-fundraising-effectiveness-project-survey-report/ @StevenShattuck The 2016 results are in »
  16. 16. https://bloomerang.co/blog/infographic-2016-fundraising-effectiveness-project-survey-report/ @StevenShattuck First-time donor retention »
  17. 17. https://bloomerang.co/blog/infographic-2016-fundraising-effectiveness-project-survey-report/ @StevenShattuck Repeat donor retention »
  18. 18. # of Donors Attrition Rate Donors Remaining After 1 Year Donors Remaining After 2 Years Donors Remaining After 3 Years Donors Remaining After 4 Years Donors Remaining After 5 Years 1,000 20% 800 640 512 410 328 1,000 40% 600 360 216 130 78 1,000 60% 400 160 64 26 10 Donor attrition over 5 years » @StevenShattuck
  19. 19. Acquisition alone isn’t a good strategy » # of charities supported annually by household income: • $50K: 2-3 • $100K: 3-4 • +$100K: 4-5 — One is usually their church — One is usually their school Source: Philanthropy Panel Study, IU Lilly School of Philanthropy @StevenShattuck
  20. 20. @StevenShattuck Why do donors leave?
  21. 21. @StevenShattuck • 2001 study by 
 Adrian Sargeant • Survey to lapsed donors of 10 major U.S.-based nonprofits • Respondents were asked to check each reason for stopping their contributions Why nonprofit donors leave » http://www.campbellrinker.com/Managing_donor_defection.pdf
  22. 22. @StevenShattuck • 5% - thought charity did not need them • 8% - no info on how monies were used • 9% - no memory of supporting • 13% - never got thanked for donating • 16% - death • 18% - poor service or communication • 36% - others more deserving • 54% - could no longer afford Why nonprofit donors leave » http://www.campbellrinker.com/Managing_donor_defection.pdf
  23. 23. @StevenShattuck Why do donors stay?
  24. 24. @StevenShattuck • 2011 study • Survey of 1,200 recent (last 12 months), frequent (more than 2 gifts to cause based charities) donors from over 250 nonprofit organizations • Donors were given a list of 32 reasons why they might continue giving • Asked to rank them by order of importance Key drivers of donor commitment » http://www.thedonorvoice.com/national-donor-commitment-study-and-proof-of-link-between-donor-attitudes-and-behavior/
  25. 25. @StevenShattuck 1. Donor perceives organization produces outcomes 2. Donor knows what to expect with each interaction 3. Donor receives a timely thank you 4. Donor receives opportunities to make views known 5. Donor feels like they’re part of an important cause 6. Donor feels his or her involvement is appreciated 7. Donor receives info showing who is being helped Key drivers of donor commitment »
  26. 26. Data Segmentation for stories that retain donors Data Segmentation 
 Powers Stewardship
  27. 27. @StevenShattuck What is donor data segmentation »
  28. 28. @StevenShattuck • Treating donors differently based on: • recency (how long since their last gift?) • frequency (how many times have they given?) • gift channel (how did they give?) • gift amount (how much did they give?) • why they gave (ask them!) • capacity (prospect research/wealth screening!) • geography (for orgs with regional/national reach) What is donor data segmentation »
  29. 29. @StevenShattuck • Reporting: • what has already happened • LYBUNT • SYBUNT • Overdue pledges • Segmentation: • creating opportunities to make what you want to happen — happen! Segmentation vs Reporting »
  30. 30. 1. First-time donors • </> $100 2. Monthly recurring donors • monthly gift x12 < average annual gift amount 3. Lapsed donors (+2 years) 4. Volunteers who have not yet donated 5. Donors who share feedback / criticism 6. Donors who have interacted via social media 6 powerful buckets segments » @StevenShattuck
  31. 31. Data Segmentation for stories that retain donors First-Time Donors
  32. 32. @StevenShattuck Why $100? » Source: http://afpfep.org
  33. 33. • Arrive within 48 hours • Utilize their communication preference! • Thank profusely • Acknowledge the campaign / channel • Tell how gift will be used / how others have been • Preview future communications • Invite for a tour • Ask for feedback / send a survey • Convert into monthly donors (based on gift size) and/or volunteers Gift acknowledgement principles » @StevenShattuck
  34. 34. @StevenShattuck
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  38. 38. @StevenShattuck Thank their socks off »
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  41. 41. @StevenShattuck Communicate their impact later »
  42. 42. @StevenShattuck • first-time donors who get a personal thank you within 48 hours are 4x more likely to give a second gift (Tom Ahern) • a three-minute thank-you call will boost first-year retention by 30%. (Roger Craver / The Agitator) • a thank-you call from a board member to a newly acquired donor within 24 hours of receiving the gifts will increase their next gift by 39%. (Penelope Burk) http://www.nonprofithub.org/fundraising/excuses-need-call-every-new-donor http://www.guidestar.org/rxa/news/articles/2010/how-to-increase-donations-by-39-percent.aspx The personal touch » http://www.clairification.com/thank-you-calls-ebook/
  43. 43. @StevenShattuck
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  46. 46. Acknowledge donors differently » @StevenShattuck Above average gift amount At or below average gift amount
  47. 47. Differentiate the acknowledgement » @StevenShattuck Above average gift amount At or below average gift amount Letter # 1 Phone call (tour invite) Letter #2 Handwritten note Email/Letter #4 (Volunteer request) Email/Letter #3 (survey) (monthly upgrade)
  48. 48. Segment by giving channel » @StevenShattuck Website Direct Mail/Ad Event
  49. 49. Data Segmentation for stories that retain donors Monthly Donors
  50. 50. Monthly giving » Source: Target Analytics, 2015 DonorCentrics US Recurring Giving Benchmarking Analysis @StevenShattuck
  51. 51. @StevenShattuck Monthly giving welcome »
  52. 52. @StevenShattuck Don’t send the same 12 receipts »
  53. 53. @StevenShattuck Don’t send the same 12 receipts »
  54. 54. • Always address them as monthly donors. • Modest upgrade appeal depending on other engagement signals • “Your gift of $x does this. A gift of $x would do this.” • Don’t hesitate to make stand-alone gift asks. • A unique appeal just for them. @StevenShattuck Monthly donors: upgrade » https://bloomerang.co/blog/why-segmenting-your-sustaining-donors-is-crucial-for-growth/
  55. 55. Data Segmentation for stories that retain donors Lapsed Donors (+2 years)
  56. 56. • Isolate donors who haven’t given in 2+ years • Remove from direct mail sends • Send a lapsed donor survey • Invest in data services: • NCOA (they moved) • Deceased Suppression Processing 
 (they died) Lapsed donors » @StevenShattuck
  57. 57. 2 common “one and dones” » @StevenShattuck
  58. 58. • Memorial donors • Thank (if you can), then isolate • Peer-to-peer donors • Have first gift acknowledgement come from fundraiser, not benefiting org • (Re)introduce the charity • Explain why fundraiser supports it • Ask for donor to continue support @StevenShattuck https://bloomerang.co/blog/3-tips-for-improving-p2p-donor-retention/ 2 common “one and dones” »
  59. 59. Data Segmentation for stories that retain donors Volunteers Who Have Not Yet Donated
  60. 60. Lowest of low-hanging fruit » @StevenShattuck http://www.fidelitycharitable.org/docs/Volunteerism-Charitable-Giving-2009-Executive-Summary.pdf • Volunteers are 10x more likely to donate than non-volunteers. • Get to know their goals for volunteering, then translate it into donation impact. • Ask for an appropriate amount (can be a monthly commitment). • Convert into fundraisers!
  61. 61. @StevenShattuck http://www.slideshare.net/socialogilvy/why-do-people-share-on-social-media-global-survey-results Use social media to say thank you »
  62. 62. Use social media to say thank you » @StevenShattuck
  63. 63. @StevenShattuck Use social media to say thank you »
  64. 64. @StevenShattuck Convert into fundraisers »
  65. 65. Data Segmentation for stories that retain donors Donors Who Have Shared 
 Feedback / Criticism
  66. 66. Keep donors happy » @StevenShattuck Source: Target Analytics, 2009 DonorCentrics US Recurring Giving Benchmarking Analysis
  67. 67. • Send a survey to new donors • Boosts retention even if they don’t respond • Respondents signify high-engagement • Email confirmation is a great place to include • Google Forms or SurveyMonkey Survey » @StevenShattuck http://t.co/XMUTnvjThP https://bloomerang.co/blog/23-questions-to-ask-donors-and-prospects/
  68. 68. • “Why do you give?” • “What’s your connection to the cause?” • Group similar answers together into segments • Tailor communication accordingly Secret sub-segment » @StevenShattuck
  69. 69. Data Segmentation for stories that retain donors Social Media Users
  70. 70. Proactively collect social contact info » @StevenShattuck missed opportunity?
  71. 71. Encourage bragging » @StevenShattuck
  72. 72. Respond to their bragging » @StevenShattuck
  73. 73. Ask for likes in confirmation » @StevenShattuck
  74. 74. Save social info in database » @StevenShattuck
  75. 75. Leverage them later » http://socialmediatoday.com/sashattuck/2431046/how-college-used-social-media-raise-465k-one-day @StevenShattuck
  76. 76. http://socialmediatoday.com/sashattuck/2053261/how-nonprofit-raised-41k-twitter-24-hours-without-trying @StevenShattuck Leverage them later »
  77. 77. Other engagement signals » @StevenShattuck • Upgrade / 
 Downgrade + - • Event attendance + • Opens email + • Clicks emails + • Unsubscribes 
 from email - • Volunteers + • Fundraises for you + • Changes communication preferences + • Changes contact info + • Changes payment method + • Has soft credits + • Has inbound interactions + (calls you, emails you)
  78. 78. • Treat your constituents differently! • Multiple versions/variations: • thank you letters (outcomes) • appeals (uses) • newsletters (interests) • stewardship pieces (stories) • Survey early and often • Data is king Final thoughts » @StevenShattuck
  79. 79. https://bloomerang.co/resources •Nonprofit Wrap-Up •Bloomerang TV •Bloomies •Daily blog post •Weekly webinars •Downloadables
  80. 80. Questions? steven.shattuck@bloomerang.co @StevenShattuck Free eBook » @StevenShattuck https://bloomerang.co/resources/guides/beginners-guide-to-nonprofit-data-segmentation/

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