Just like in marketing, utilizing analytics for donor campaigns is essential in analyzing effectiveness and maximizing ROI. Technology affords us a myriad of options for manipulating data to identify trends, formulate strategies, and predict outcomes.
An example of how technology comes into play is growing average gift size in donor campaigns with the use of predictive analytics combined with personalization.
• Predictive Analytics uses data to analyze individual donors and estimate the amount that they are likely to give. Using predictive analytics software, the process involves aggregating data among many sets and platforms, like length of engagement, donor history, survey responses, social interaction, and email marketing.
• Personalization is not a new concept, though it is still underutilized in marketing campaigns. Technology makes it possible to personalize your messages to individual recipients, both electronically and in print. Email messages that contain personalization have a 14% higher click through rate, and print that contains personalization can see response rate increases of 135%.
Studies have shown that when you ask for a specific amount on a call-to-action (CTA), donors are 50% more likely to participate. Using predictive analytics can give you the correct amount to ask for, and personalization gives you the ability to do that on an individual basis.
This is just one example of the use of analytics in campaigns. Interestingly, though, only one in four non-profits make informed decisions about their campaigns using data about their donors. And, even though 90% of giving today is still done through direct mail, many organizations don't take advantage of the ability to combine the data they do have with personalization.
Clearly, though, institutions that are using analytics and personalization in print, direct mail strategies, and electronic communications are better positioned to retain, reactivate, and grow donors.