Donor segmentation has become a thing in the fundraising sector. Fundraisers get to segment donors using variables such as donation frequency, demographics, loyalty level, medium of acquisition, preferred communication, etc. It is hard to see any top fundraiser or non-profit that does not adopt segmentation [of donors] as they run their campaigns.
More importantly, donor segmentation has often led some fundraisers to tailor their fundraising approach to specific groups. This customization, in itself, has undeniable advantages attached to it. This is what we are going to be dwelling on in the ensuing discussion.
Focused Strategy/Donor-Centred Fundraising
Customizing your fundraising approach will help you develop a focused strategy for your (fundraising) appeals. With this strategy, activities will follow a structured pattern, and you can get things sorted out as soon as possible. As a result, you will be able to save time and energy in the long run.
A donor-centered fundraising approach can be developed on the back of this focused strategy. In this regard, every donor segment will be duly considered while crafting your messages. This is how an appreciable degree of personalization is injected into fundraising communication. It will be rare to communicate amiss if your fundraising messages are donor-centered – this takes us to the next point.
Improved Communication Efficiency
There is bound to be improved communication efficiency if the customization of a fundraising approach has been adequately done. Your communication will be on point and relatable to the group you’re reaching out to. For one, the content of fundraising communication sent out to younger people should vary from that for older donors.
Again, you will be more direct in drafting an appropriate call to action for each segment. It’s not all the time you will need donors to contribute money; you may also recruit volunteers in some instances. More so, it’s vital that your fundraising approach has some degree of flexibility about it.
Besides this, you can easily choose the best medium of communication for every segment if you adopt a customized approach. While potential Gen Z donors may find it very convenient with social media, the older generations may find direct mail more appealing.
Donor-Fundraiser Bonding Is Realizable
A strong bond between donors and fundraisers is more feasible as you consistently relate with them in a personalized manner. This way, it will be easy to have the donors feel they are a part of the organization. Potential [and loyal] donors can seamlessly align with your non-profit’s vision.
A good donor-fundraiser relationship will have a massive impact on your fundraising campaigns. However, to achieve this, you should be mindful of collecting relevant details from potential donors – using a donation form. Plus, you should consider integrating a dependable customer relationship management (CRM) tool into your operation. With this, you can automate some processes, thus increasing your efficiency level.
Another advantage you get from customizing your fundraising approach for different donor segments is sustained loyalty. It will be easier to retain donors as they continually see themselves as an integral part of your organization. So, you can be assured that a blossoming donor base is available to rely on as your fundraising campaign sets in.
However, you have to dot some i’s and cross some t’s to keep a vibrant donor base. This is primarily about you appreciating and communicating with them regularly. Remember to develop the content of your communication in reference to donor segment attributes and send them accordingly. Also, you should be intentional about urging them to follow your non-profit’s social media pages.
Donors Becoming Advocates/Volunteers
When donors flow along with your non-profit’s vision, there is a tendency that they will desire to do more. For one, the donors can eventually become volunteers on the frontline of the fundraising campaigns while directly giving to the cause.
By this, donors will be able to give your fundraising campaigns a broad wing to glide on. This is actualized as they tell others about your (fundraising) objective. Individuals, who were once out-and-out donors, can become great advocates for your non-profit.
You may consider putting up a prompt for loyal donors to volunteer in your organization. Besides, new donors can be asked to signify their interest in volunteering activities. The onus is, however, on you to communicate how volunteers can help your cause.
Increased Revenue Opening
What makes customization rewarding is the increased opportunities for revenue it presents. Here is a very good reason you should give it a try. This particular advantage is the fallout of the other points raised above. For one, you can look to generate more revenue as your donators spread the news about your donation campaigns to their friends, colleagues and families.
Plus, having a thriving donor base also gives you good leverage that advances the realization of your fundraising goals. The fundraising target can be reached in a quick time when you have a sound donor base in place. Adopting an efficient communication framework and donor-centered approach would have taken care of some bottlenecks that usually stymie fundraising progress.
This allows you to focus on other aspects to create more funding opportunities. It would be best if you learned to maximize the resources – and people – you have on board. To this end, you may need to regularly organize different fundraising events that will appeal to potential donors within a specific segment.
Fundraising revolves around several strategies embraced by non-profits and charities as they strive to put smiles on the faces of more vulnerable people. The customization of the fundraising approach in relation to the donor segment is a valuable strategy explored in the non-profit sector.
The reason for its increasing popularity in the sector is tied to the advantages that are attainable from it. Having read this article, you should have a rethink about implementing this strategy if you haven’t done so before. It should be seen as the first step towards building an effective donor-fundraiser relationship. Plus, it gives you an excellent avenue to raise your revenue base.