Database Marketing Strategy Project to determine underlying issues in Christian Resource Center non profit organisation Database. Recommendations made to improve methods of data collection based on primary research and analysis of existing secondary data provided by the Fun Development Manager Bruce Voogd.
This project has been developed by George Brown College students and has been lead by Professor Norm Williams.
3. SituationAnalysis
Organization Overview
CRC (Christian Resource Centre) is a non-profit organization, which started operations in 1964 and
got incorporated in 1965, located at 40 Oaks, Regent Park, Toronto. The objective of the organisation
is to help communities to meet basic needs like food, shelter and clothing
The philosophy:
“To help people to help themselves”
Mission:
Building Lives. Creating Community. TOGETHER
Vision:
CRC is a welcoming place where people work sincerely and effectively to meet their basic
needs, achieve personal growth and help create an inclusive ,cohesive and better community
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4. SituationAnalysis
Pro-bono programs undertaken by CRC
• Community Meals
The organization„s endeavor is to provide fresh, nutritious and warm food. Currently people are
served food with warmth and care five days a week.
• Deeply Affordable Housing
The most difficult challenge is to provide deeply affordable housing to the homeless, CRC worked
day in and day out to build 87 housing units at 40 Oaks, Regent Park
• Clothing Showers Laundry
Individuals are provided access to gently used clothing, a chance to clean their own cloths and an
opportunity to shower
• Community Engagement
CRC encourages people to have a voice through workshops and campaigns and listen to problems
of community members and works with them to reduce poverty
• Community Gardening
People are encouraged to grow and harvest fresh fruits and vegetables
• Worship
Individual and groups of all faiths are encouraged to use new worship space at 40 Oaks
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5. SituationAnalysis
SWOTAnalysis
Strengths
CRC began operating in 1964 and has
been at the forefront of development and
revitalization of Regent Park Neighborhood
A wonderful community building with 87
units of deeply affordable housing at 40
Oaks
Strong support and collaboration with the
existing donors
Successful events: the opening gala had
been attended by 500 people and CRC
received $8000 as donation amount
Implications
The trust and respect the CRC has built
provide a could platform to increase
donations and the impact of people‟s
lives.
Extensive donor network may be a way
to reach new donors
Extent to which lives have been impacted
may provide a more compelling to
potential donors than simply the number
of participants served
Opportunity to evolve events from large
gatherings to ones that become
significant sources of donation dollars
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6. SituationAnalysis
SWOTAnalysis
Weaknesses
No social media strategy:
CRC is presented on
Facebook, YouTube and Twitter, but
goals and metrics are unclear and
managed on an inconsistent basis due
to lack of resources
Database is used as a mailing list
rather than for database marketing
Data is not maintained to ensure
data quality. Data that is captured, is
also limited in scope
Virtually no “test and learn” approach
to improving direct marketing
activities
Sustainability of donations based
solely on donors
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Implications
Understand the role that social media play
and resource if appropriate
Greater understanding of donors would
improve message relevancy and frequency
that should increase retention and
contributions
Improving extent and quality of data capture
would provide a platform for more targeted,
relevant, and compelling communication
Establishing a “test and learn” approach to
marketing efforts would help ensure
continuous improvement in market efforts
Needs strong capabilities to survive and
grow
7. SituationAnalysis
SWOTAnalysis
Opportunities
Attract new donors through
marketing channels
Take advantage of an increasing
youth and working professionals
social awareness and involvement
Pressure on government funding at
all levels
Implications
More funds can be collected by CRC
and heavy dependence on existing
donors will be reduced
New media should be used for
encouraging these segments, it is
advisable to reduce the minimum
donation amount, especially for students
CRC‟s brand will enhance if a
consortium can be created at its behest
for community service in Toronto
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8. SituationAnalysis
SWOTAnalysis
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Threats:
Funding from the Government
have been reduced
Relevant competition
Implications:
Collect and provide proof of
impacts on society for securing
funding
Focus on current existing
donors and retention
9. How to increase donations
Maximize donation amount and number of donors by implementing a
strategic marketing plan
Become less dependent on the few high value donors
Exploit database potential by cleaning, maintaining and updating it on
regular basis
Attract working professionals ( age group: 28-50 ), especially high
earning professionals or business owners
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10. Marketing Objective
To increase the donation amount by 15% from
$739,995.49 to $850,995 by 15th November 2014
(Note: The period from November 15th, 2012 to November
15th, 2013 was considered as the base period for marketing
objective.
Total donation received in this period is $739,995.49 )
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11. Strategy
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3.
Tailor relevant and personalized communications to the
identified segments
2.
Clustering them in different groups based on specific
attributes
1.
Focusing on existing donors
12. Segmentation
The Database will be segmented on the basis of following
attributes
Number of Donations
Amount of Donation
Last Date of Donation
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13. Segmentation: Lifetime Donations
Individuals vs. Organizations
All Donors
Donor Type # of Donors $ Donated Avg. Donation
Individuals 1255 1605612 1279
Organizations 225 13899164 61774
Total 1481 15504877 10469
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0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
Individuals Organizations
Total Donations ($)
14. Individual donors –Two major Segments
1 – Individuals who donated more than $550 (High Value Donors)
2 – Individuals who donated less than $550 (High Potential Donors)
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The difference is $ 5748
So our suggestion is to
retain High Value donors
and get more donations
from high Potential Donors
15. Segmentation
Frequency Of
Donation
Recency of Donation
<6 mos. ago
6 mos.. - 2 yrs.
ago
> 2yrs. ago
High Value-
Total donation
more than
$550
1 to 3 times
More than 4 times
High Potential-
Total Donation
less than $550
1 to 3 times
More than 3 times
12 segments based on:
• Donation Amount
• Frequency of Donation
• Last Donation Date
17. Tactics - Messages
1. Thank you mail
2. Event Invitation
3. Preauthorized Payment Suggestion
4. Phone Call
5. Referral Message
6. Gift Announcement
7. Information about Activities
8. More Detailed Information (Numbers + Activities)
9. Thank you Hand Written Letter
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18. Tactics
High Value( $550 Plus ): Targeting and Messaging
Frequency Of Donation Recency of Donation Approach Methods
1 to 3 times Within Last 6 Months
1. Event Invitation
2. Encourage for Referrals
3. Thank you hand written letter
More than 4 times Between 6 Months & 2 years
1. Thank you mail
2. Event Invitation
3. Encourage for Referrals
4. Inform about activities going on
Doesn‟t matter More than Two years ago
1. Thank you mail
2. Event Invitation
3. Announcement about gifts
4. More Detailed Information
(Numbers + Activities)
5. Pre Authorized payment
recommendation
Pre Authorized Payments Pre Authorized Payments
1. Thank you mail
2. Event Invitation
3. Encourage for Referral
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19. Tactics
High Potential( $550 Less): Targeting and Messaging
Frequency Of Donation Recency of Donation Approach Methods
1 to 3 times Within Last 6 Months
1. Thank you mail
2. Encourage for Pre Authorized
Payments
3. Inform about CRC activities going
on
4. Encourage for Referrals
More than 4 times Between 6 Months & 2 years
1. Thank you mail
2. Encourage for Pre Authorized
Payments
3. Inform about CRC activities going
on
Doesn‟t Matter More than 2 years ago
1. Thank you mail
2. Inform details about CRC activities
with numbers
Pre Authorized Payments Pre Authorized Payments
1. Thank you mail
2. Inform about activities going on
3. Encourage for Referrals
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20. Database Requirements
• Communication tracker (providing data about the dates
and methods of communications)
Preauthorized payment start and end date.
Data about, how many times the donor was contacted,
what was the response.
Tracking donors behavior can help to make better
decisions in future.
Updated database can prove very helpful in making
communications strategies.
(A fulltime coop student can be hired from different colleges
and universities to maintain & update the database)
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21. Expected Result
• A total donation amount of $850,995 from individuals by
November 15th, 2014.
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22. Conclusion
• The Database Marketing project analyzed the existing
donor database and identified areas of improvements to
increase the donations.
• We segmented the donors as high value and high
potential based on the recency, frequency and monetary
values of the donations.
• Target the donors with tailor made approach methods.
• If the strategies and tactics are followed, a 15% increase
in total donations can be achieved by November
15th, 2014
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