How to Use Donor Segmentation to Personalise Your Fundraising Efforts

Donor segmentation is a powerful tool that enables nonprofit organisations to personalise their fundraising efforts and strengthen connections with their donors. By categorising donors into different groups based on their interests, characteristics, and behaviours, nonprofits can better customise their communication and strategies to meet the unique preferences and needs of each donor group. 

In this article, we will explore how to fully utilise donor segmentation to personalise programs and fundraising campaigns for more effective donor engagement. 

Identify Your Segmentation Criteria

Before anything else, it is important to define segmentation criteria by using historical data of donors. By mapping out clear segmentation criteria, nonprofits get to know their supporters more personally and get a clearer view of the different donor classifications they currently have. 

Here are some of the most common segmentation criteria nonprofits can use: 

• Behavioural Segmentation - grouping donors based on their historical behaviours such as donation amount, engagement level, and donation frequency. 

• Demographic Segmentation - grouping donors according to basic characteristics like age, gender and location. 
• Donor Lifecycle Segmentation - grouping donors based on their donor journeys, such as new donors, lapsed donors, and loyal donors. 
• Psychographic Segmentation - grouping donors according to their interests, attitudes, and values. 

Collect and Analyse Data

Once nonprofits have identified their segmentation criteria, they can start collecting and analysing their donor data. The essential data to collect ranges from basic information such as name, email address, and donation history to more detailed ones like gender, location, age, interests, and more.
 

Nonprofit organisations can use different methods of collecting and analysing their donor information: 

• Donation Forms - the easiest way to collect information from donors is by adding extra fields on a donation form or website to ask for additional data such as gender and age. Nonprofits can then cross-check the submitted data via forms with their segmentation criteria. 
• Online Surveys - using online survey tools like Google Forms and Survey Monkey is another way to get to know donors personally, and ask them about what interests and motivates them to engage. 
• Social Media - the built-in analytics capabilities of most social media platforms is another effective way to gather donor data. Through these capabilities we can learn specifics about donor demographics, behaviours, and trends. 

• Analytics - website analytics tools and services provide a more detailed and comprehensive way to gather and analyse donor data. Data analytics services like Fundraising Logic have the capabilities to generate insights and reports according to the data collected for easier and highly detailed analysis and segmentation.

Tailored Messaging

After defining the segments and collecting essential information, nonprofits can start personalising communication strategies for each group. This means adjusting the messaging tone, content, and intent to ensure it resonates with each donor group's unique preferences and interests. For instance, if a nonprofit organisation segmented their donors based on interests, they may create content that speaks directly to those interests, and in a persuasive, yet palatable tone for these people. 

Below are some of the other ways nonprofits can tailor messaging: 

• Personalising Emailers - using donors' first names and other personal details on emails makes it feel more personal and relevant.
• Segmenting Mailing lists - make the most of donor segmentation by creating targeted mailing lists and using messaging and content suitable for each of these lists. 
• Customising Landing Pages - creating unique landing pages specific to each donor segment is another way to tailor messaging. Use different content or a call to action that resonates more with that group. 

Create Targeted Campaigns

Apart from tailoring communication, nonprofits can also explore personalising their fundraising appeals to each donor segment. With targeted campaigns, nonprofits can demonstrate their connection and understanding with their donors. The more donors see and interact with goals and causes that resonate with them, the more likely they are to respond and engage.
 

Here are the simplest ways nonprofits can personalise their campaigns: 

• Customise Donation Receipts - by customising and personalising the donation thank you receipts, nonprofits show acknowledgement and highlight the significant impact of the donors' contribution towards the mission. It will make donors feel appreciated. 
• Offer Different Giving Options - offering different giving options is another way to boost fundraising appeals. Here are some examples of giving options to consider: one-time donations, monthly donations, or legacy gifts. 
  

Measure Results

Lastly, make sure to measure the results of every effort made on each donor segment using analytics tools or an analytics service experienced with nonprofit organisations like Fundraising Logic. By analysing the results, nonprofits can gauge how well these strategies are working, or if they need further adjustments. If there are donor segments with a low response or engagement rate, nonprofits can easily refine the segmentation strategy to find out what works best. 

Conclusion

If done right, donor segmentation is a massively beneficial approach to achieve goals and ensure long-term success for nonprofit organisations. Not only will it help create tailored messaging that shows how connected nonprofits are with their donors, but it can also reveal useful insights that help greatly in the overall marketing strategy. 

Learn more about how Fundraising Logic can efficiently help nonprofit organisations narrow their donor segmentation and personalise fundraising efforts by booking a consultation with us today.