There are a number of different research studies that show donors have been looking for personalized and differentiated communication. While this doesn’t really prove that all fundraising efforts suffer from lack of personalization, it does offer some insight into how you can improve your direct mail solutions and reap better results.
Here are the top 7 ways to improve fundraising through donor segmentation:
#1-Frequency of Communication
How often does the donor want to receive communication from your end? While some donors might expect you to stay in touch throughout the year, others might want to restrict communication. Segmenting donors based on the frequency of communication can help you create direct mail pieces that the donors expect and will also help ensure that the donor will accept the piece when received.
#2-Communication Platform
What is the channel that your donors want you to use to communicate with them?
Donors have defined preferences when it comes to communicating and engaging with them. While some don’t want you to overflow their email inboxes, others don’t prefer to receive mail at their homes.
Save your time and money by segmenting donors based on their preferred method of communication. For example, you can reduce postage costs by eliminating donors who don’t want to be contacted through a direct mail service and would rather read emails.
#3-Generation Demographics
What generation does the donor fall into? There is a plethora of information available online about generational giving trends. Most of this information can help you personalize your tactics to target fundraisers toward generational donors. Remember, while something might appeal to donors belonging to the baby boomer generation, it might not necessarily be acceptable among generation Y donors.
#4-Affiliation
How is the donor affiliated with your organization?
At times, the relationship the donor has with your organization goes beyond their status as a donor. Some might be volunteers, others might be staff members. Therefore, the differentiation in how they are connected to your organization gives you a prime segmentation method.
#5-Annual Giving Level
How much does the donor donate to your organization on a yearly basis?
The level of giving can influence a number of things like the “ask” amount and the message. One of the goals of a fundraising campaign is to be courteous and not disrespect the donor’s ability to give.
Segmenting donors based on their level of giving can help you get a better understanding of the donor’s position. At the same time, while it is essential that you don’t ask for too much, it is equally important to not ask for too little.
#6-Entity Type
What type of entity does the donor have?
Determining the type of entity is important for strategic planning, forecasting and managing overall fundraising performance. Each donor can be categorized in the following types: family, individual, corporation, foundation, and government.
With this type of segmentation, you can better determine the effectiveness of your campaign activities for each type of donor. For example, if you are better at bringing funds from corporations rather than individuals, you can create direct mail solutions that specifically target them.
#7-Program Interests
Which program and causes of your mission attract the donor the most?
Your organization may have a number of different programs that aim to solve a particular challenge or need. While your programs might have great diversity, it doesn’t necessarily mean that the donors are interested in everything. Each donor has separate interests— even emotional connections — with some programs, efforts and causes.
These are just some ways you can improve fundraising through donor segmentation. It is always worth partnering with a direct mailing company that can help you make the most of your fundraising campaigns. Get in touch with us today to learn more about how we can help you craft personalized fundraising messages.
