Predicting Weather Is Not Like Predicting Donations
4 types of nonprofit predictive models that deliver results
Predictive modeling is the process of creating statistical models to determine the likelihood of future behaviors. Predictive models take into account a number of factors that are likely to indicate how an individual will respond or react. Some examples of predictive-modeling factors include gender, age, income and giving history.
Today's philanthropic landscape is more competitive than ever — with more charities fighting for an even greater share from a declining donor universe. For nonprofit organizations, it's also become increasingly important to maximize ROI because of the escalated scrutiny on nonprofit marketing spending. To put it simply: There are a lot more nonprofit options today, and people want to know they are giving to ones that use their money wisely and effectively.
So how can predictive modeling help your nonprofit more efficiently target donors and volunteers to boost your bottom line? Here are examples of four different predictive models that can be created to help you better reach people interested in your cause, increase the value of your donors and maximize your marketing expenditure:
1. Current donor: Predictive models can help you get more value from your existing donors. You can create models to identify donor populations ideal for major upgrades or to help you target the right donors for specific asks or appeals.
2. Donor acquisition: Acquisition is an area where data modeling can have a big impact. Your nonprofit can create models to identify non-donors that most closely resemble your current donors. These models help you better target your acquisition efforts to maximize your marketing spend.
3. Monthly sustainer: Monthly giving provides a reliable, low-cost income stream for nonprofits. It also enhances the loyalty and value of donors. By developing a predictive model, you can target individuals most apt to become monthly donors based on demographic and psychographic attributes.
Vice President, Strategy & Development
Eleventy Marketing Group
Angie is ridiculously passionate about EVERYTHING she’s involved in — including the future and success of our nonprofit industry.
Angie is a senior exec with 25 years of experience in direct and relationship marketing. She is a C-suite consultant with experience over the years at both nonprofits and agencies. She currently leads strategy and development for marketing intelligence agency Eleventy Marketing Group. Previously she has worked at the innovative startup DonorVoice and as general manager of Merkle’s Nonprofit Group, as well as serving as that firm’s CRM officer charged with driving change within the industry. She also spent more 14 years leading the marketing, fundraising and CRM areas for two nationwide charities, The Arthritis Foundation and the American Cancer Society. Angie is a thought leader in the industry and is frequent speaker at events, and author of articles and whitepapers on the nonprofit industry. She also has received recognition for innovation and influence over the years.