One of the most common mistakes made by non-profit groups is their preference to categorize donors into one large group especially in terms of communication. Each and every donor has a unique and diverse background which should help you and your organizations committee members to not only understand why and how each person supports your group but also the way they contribute. While sending our personalized communications is obviously an unrealistic goal especially given time restraints, there is a process that will allow your non-profit group to communicate with donors without sacrificing the efficiency of your charity donor segmentation.
Market Segmentation to Effectively Identify & Group Your Donors
Donor segmentation is a useful tool that can be used to group your donors by a particular set of markers or traits. For example donor level, geographic location, age etc. By identifying and categorizing these traits your organization will have the ability to define the way your group communicates with your donors. While the initial man power of categorizing your donors can be time consuming, it is definitely time well spent. In fact your group will benefit in more ways than one. For example, the process of acquiring auction items for your benefit galas will be streamlined once your database is up and running.
Preparing your Database to Ensure Successful Donor Cultivation Cycle Fundraising
By utilizing the following three tips, you can ensure that your organization will be ready to execute a well-rounded donor segmentation list for your next fundraising campaign!
Standardize & organize your donor database: Think of your donor database as the heart and soul of your organization. A well-organized database can amp up your fundraising efforts to a whole new level. Knowing as much as possible about your donors is the key to effective communication. Keeping detailed records of your donors and your interactions with them can make a difference in the amount of money that the person is willing to give. For example, by entering the name of the company that your donor is employed, you could potentially double the donation should the company have a program that matches gifts. While donor records are vital, your committee members will need to be able to fully understand them so it is important to standardize the process behind the input of the necessary data. By clearly defining the system of collection and recording the necessary information, you and your staff will be able to effectively interact with your donors to raise your non-profit to the next level.
Keep your donor information both current and accurate: The principle of donor segmentation is an impossible prospect if the information that you are utilizing is inaccurate. To be successful, your donation data should be categorized into three components:
• Recent: When did your donor last give?
• Frequency: Does your donor give monthly, bi-yearly or yearly?
• Money donated: The amount of money your donor has given during the support of your organization?
As a general rule, successful organizations will combine all three scores, called the RFM score into a master score sheet to help establish the best way to solicit and customize your personalized solicitation approach for each donor segment. Your donors will appreciate this personalized touch and statistically will reciprocate when it comes to their gift giving.
Cater to your donors for maximum success: By taking the time to segment your donors into groups, you are also ensuring that your organization will effectively maximize the amount of donations that your donors are likely to give. The possibilities for segmentation are varied and should be customized to the preferences of your donors. For example, if your organization doesn’t have a specific home base, you could categorize your donors by geographic location to send out invitations or you could ensure that donor preferences are listed for contacts who prefer to communicate through email rather than via phone conversations.
Fundraising Charity Benefit Auctions in Huntington Beach, San Diego, Los Angeles, the High Desert & Southern California
By using segmentation to effectively cater to your donor base, you will keep your donors happy and increase your success with donor retention. An effective donor segmentation program is about using the information that you have at your disposal to create a platform than will establish the maximum amount of donor support. For information regarding full service charity and benefit auction services and consulting, contact the knowledgeable experts at Auctioneerist Charity Auctions today!