How Segmenting Donor Data Can Make Your Fundraising Soar
Segmentation. It's a word fundraisers love to throw around...although very few of us do it well. So, let's put our money where our mouths are, and start segmenting our data.
So what is segmentation? When we segment our data, we're able to group our supporters based on shared characteristics (e.g. age, donation history, geographical area, etc.) Doing this gives us a deeper understanding of donors and what drives them to give. As a result, we can send more tailored messages that appeal to each group, which creates more value for our nonprofit.
Getting Started with Segmentation
So why does this matter? Like, really matter?
A very common mistake we make is that we blast out one generic message to all of our donors, regardless of who they are. Stop. Don’t do that!
Put yourself in your donor's shoes. How many emails do you get on Giving Tuesday? How many direct mail letters do you get that say “dear friend”
A good fundraising campaign cuts through the noise, and there is a lot of noise this time of year, particularly this year. Our job is to cut through the noise so that you can share your story with the folks that want to hear it, and that starts with SEGMENTING!
First off, if you don't have much of a mailing list, this is still important. You want to focus on building that list, and one of the most effective ways to do that is by segmenting your donors and constituents from their first touch point with you.
Segmenting your list may sound like some big fancy industry tool but it’s really just breaking all of your donor information and creating different lists of donors and constituents. Think about it: you don’t want to talk to your top donor or volunteer the same way you talk to someone who has never given to you but came to an event once.
Read more: Donors are People Too: Bringing Your Work to Life When You Write Grants
The Importance of Segmenting Your Donor Data
Why am I telling you that you need to spend your afternoon poring over an excel spreadsheet, and running reports from your CRM? Well, there are several benefits of segmentation, including:
1. Personalized outreach - Segmentation allows you to create personalized messages for each group of supporters, which shows that you care about them as individuals.
2. Increased efficiency - With segment nation, you can send one email to a group of people rather than crafting individual messages. This saves you time and energy so that you can focus on other tasks.
3. Improved relationships - When you segment your data, you're able to understand your supporters on a deeper level. As a result, you can develop stronger relationships with them based on shared characteristics and interests.
4. Greater ROI - When you segment your data, you're able to send more targeted messages to each group of supporters. This leads to increased engagement and, ultimately, a higher return on investment for your nonprofit.
How to Get Started with Segmentation
Now that we know the benefits of segmentation, let's talk about how to get started. The first step is to identify the characteristics that you want to use to segment your supporters. Some common examples include:
Age
Gender
Location
Interests
Donation history
Once you've identified the characteristics that you want to use, you can start segmenting your data. There are a few different ways to do this, but the most common is to use a CRM or excel spreadsheet. If you're using a CRM, you can create segments based on the criteria that you've selected. For example, you might create a segment for donors who live in New York City and are interested in environmental causes.
If you're using an excel spreadsheet, you can create segments by sorting and filtering your data. For example, you might filter for donors who have given more than $100 in the past year.
Once you've created your segments, you can start developing targeted messages for each group. This is where the real fun begins! When you segment your data, you can get really creative with your outreach. For example, if you have a group of young donors who are interested in social justice, you might send them information about an upcoming event or campaign.
The Pitfalls of Poor Segmentation Practices
Now that we've talked about the importance of segmentation and how to get started, let's talk about some of the pitfalls of poor segmentation practices.
Not Defining Your Goals - The first mistake that nonprofits make is not defining their goals for segmentation. Without goals, it's impossible to measure the success of your outreach. Make sure to take the time to define what you want to achieve with segmentation before you get started.
Not Identifying the Right Characteristics - Identifying the right characteristics to use for segmentation is a crucial step in the process, so take your time and think about which characteristics will be most useful for your nonprofit.
Not Creating Targeted Messages - The third mistake is not creating targeted messages for each group of supporters. Remember, the whole point of segmentation is to send more personalized and relevant messages to your supporters. If you don't take the time to do this, you're not going to see the results that you want.
Actually Starting to Segment Your Data
Segmenting doesn’t have to be overly complicated. If you're feeling overwhelmed, one easy way to start is to create a list of everyone who has given to you in the past. Call these your lapsed donors. Create another list of people who are in your database but who have never given. Call these your donor prospects. Now, when you talk to these two populations, you can tailor your letter to acknowledge their relationship with you.
Depending on your mailing list your segments could also be as simple as people you have physical mailing addresses for those people you only have emails for. There is really no hard-and-fast rule about how you segment your list. Just think about who your nonprofit talks to, and how you want to talk to them. and start segmenting!
This might sound daunting but it really isn't. Worst case you're going to need to spend an hour or so working on some spreadsheets, so go pour a fresh cup of coffee, download those reports and start segmenting.