donors

Annual Giving Segmentation: A Puzzle Worth Solving

How can you speak to each donor in a way that has meaning when you have to appeal to so many people? It’s not easy, but it is essential to your success. Segmentation of large populations by giving behavior, age/stage, interests, activities, giving level, geography, liquidity, occupation, and connection to your cause can be like putting together a large and complex puzzle.

Like any 1,000-piece puzzle-solver knows, breaking the puzzle down into strategic and manageable steps is the way to go.

First, puzzler solvers sort by color and pattern. We can do the same for donors by defining the largest possible buckets by giving behavior – lybunts, recently lapsed, long-lapsed and never donors.

Next, find the edges and corners. The corners are the loyal leadership donors and the edges represent the loyal lybunts – there are fewer of them and they are important to the framework.

Next, begin further segmenting your color and pattern groups. Sometimes sky and water pieces look alike. It may be hard to see the pattern of non-donors or those who give to unrestricted, but it’s there. Dig deeper for the clues. Which behavioral characteristics and patterns are common? Which details are distinct? Use those to inform your communication.

Although every piece in a puzzle is made to fit, not all donors and prospects will fit neatly into a pattern. Prioritize your work into manageable segments starting with those that will yield the greatest return – from loyal leadership, to loyal, to slightly lapsed, to long-lapsed, to never donors. Within or across these larger segments, look for patterns and create sub-segments. Use variable text to craft messages with meaning to the donor.

Here are some sample appeals for scholarships using segments and variable language.

THE FUNDRAISER’S VIEWPOINT

Dear Donor, it’s been nearly a year since we’ve heard from you. We’re trying to retain you.

Dear Sometimes Donor, have you found someone else to support? We’re trying to reactivate you.

Dear Never Donor, will you ever support us? We are trying to acquire you.

THE DONOR’S VIEWPOINT

Identified Segments: Loyal, Leadership, Scholarships, Nursing <variable text>

Dear <Mary>,

Your <loyal> support of <first year nursing students> has helped <Christine> pursue <her> passion. <She> has benefitted from your <generous leadership gift> and intends to use <her> skills to become a <pediatric nurse>. The compassion you have shown to students with financial challenges means that <Christine> can test <herself> academically without worrying about overwhelming debt when <she> graduates. What a gift!

When you consider your philanthropic choices this year, we hope that you will continue to support scholarships for <first year nursing students like Christine>.

Identified Segments: Lapsed, Scholarships, Business <variable text>

Dear <Sally>,

Your <past> support of <scholarships> has helped <Michael> pursue <his> passion. <He> has benefitted from your <support> and intends to use <his> skills to become an <accountant>. The compassion you have shown to students with financial challenges means that <Michael> can test <himself> academically without worrying about overwhelming debt when <he> graduates. What a gift!

When you consider your philanthropic choices this year, we hope that you will continue to support scholarships for <business students like Michael>.

Identified Segments: Never, Scholarships, Business <variable text>

Dear <John>,

Your support for <scholarships> can help <Michael> pursue <his> passion. <He> has benefitted from <financial support> and intends to use <his> skills to become an <accountant>. The compassion shown to students with financial challenges means that <Michael> can test <himself> academically without worrying about overwhelming debt when <he> graduates. What a gift!

When you consider your philanthropic choices this year, we hope that you will <consider supporting> scholarships for <business students like Michael>.

You can adapt any of the variable language to incorporate different levels of giving or designations. This example focused on scholarships with the variable language reflecting the giving behavior and academic interest of the donor or prospect.

Take the time to segment by giving behavior and giving level, look for patterns and use variable language to focus on the donors’ interests within the scope of your fundraising priorities. If you like solving puzzles, this will prove to be satisfying to you and to your donors who will receive messages that are meaningful to their experience.

For help with solving the segmentation puzzle, please reach out. Theresa@TJLPartners.com

MEMBERSHIP + GIFT = THRIVING NON-PROFIT

Non-profits who rely on memberships are often challenged to convert those members into donors. The conventional wisdom is that members derive a benefit while donors do not. Organizations are reluctant to ask members to give believing members won’t give without a direct benefit.

When stewardship is done well by telling your story, donors receive the greatest benefit – supporting the cause they care about and seeing it thrive. If donors are shown how their gift is impacting the organization, they will understand the value of giving.  

So why not approach members with the same value proposition? Make a gift to keep the cause you love thriving and growing so your membership will ultimately hold the greatest value. All of your members have a connection to your organization and some of your members are philanthropic. There is a way to know who among your membership is philanthropically-minded. You can learn about your members by tracking their activities – how long they’ve been members, how often they are visiting, and what events they attend. Your data, along with third-party data can be analyzed to help you understand who among your members will make the most likely donors.

Need help focusing on which members to approach? Data analysis can help you target members who share similar characteristics to your donors. You can begin to convert members to donors. You can improve your fundraising while better understanding your membership base.