What are the best practices for donor segmentation and targeting?

1 Define your goals and objectives

Before you start segmenting and targeting your donors, you need to have a clear idea of what you want to achieve and how you will measure your success. For example, do you want to increase retention, acquisition, or upgrade rates? Do you want to boost loyalty, engagement, or advocacy? Do you want to raise more funds for a specific program, campaign, or cause? By defining your goals and objectives, you can align your segmentation and targeting strategies with your desired outcomes and indicators.

2 Use multiple data sources and methods

To segment and target your donors effectively, you need to collect and analyze data from multiple sources and methods. For example, you can use transactional data, such as donation amount, frequency, and recency, to segment your donors based on their giving behavior and patterns. You can use demographic data, such as age, gender, location, and income, to segment your donors based on their characteristics and attributes. You can use psychographic data, such as values, attitudes, and beliefs, to segment your donors based on their motivations and interests. You can use behavioral data, such as email opens, clicks, and responses, to segment your donors based on their engagement and feedback. You can also use qualitative methods, such as surveys, interviews, and focus groups, to gain deeper insights into your donors' needs, preferences, and expectations.

3 Create donor personas and journeys

One of the best ways to segment and target your donors is to create donor personas and journeys. Donor personas are fictional representations of your ideal donors, based on the data and insights you have gathered. They help you understand who your donors are, what they care about, and how they interact with your nonprofit. Donor journeys are maps of the steps and touchpoints your donors go through from awareness to action, and beyond. They help you understand how your donors move along the giving cycle, what triggers their decisions, and how you can influence them. By creating donor personas and journeys, you can personalize your communication and cultivation strategies, and optimize your donor experience.

4 Test and refine your segments and targets

Finally, you need to test and refine your segments and targets regularly, as they are not static or fixed. Your donors may change their behavior, preferences, or circumstances over time, and you need to adapt accordingly. You can use various tools and techniques, such as A/B testing, analytics, and feedback loops, to monitor and evaluate your segmentation and targeting performance. You can also use experiments and pilots, such as testing different messages, channels, or offers, to discover new opportunities and challenges. By testing and refining your segments and targets, you can improve your relevance, responsiveness, and results.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?