4 Donor Segmentation Strategies for Better Communications
Your nonprofit’s current and potential donors are constantly bombarded with messages. From ads and texts to emails, phone calls, and videos, different types of organizations compete for their attention with a variety of communications.
That’s why it’s so important to ensure that your nonprofit’s messages stand out from the crowd. Improving your giving results relies on your ability to reach prospective and current donors on a personal level and form genuine relationships.
One of the most effective ways to reach donors on a personal level is to create donor segments. Segmentation is the process of grouping donors based on the characteristics they have in common so you can send unique, tailored messages to each group.
Let’s take a look at four strategies to help your organization create and leverage donor segments more effectively:
Create groups strategically.
Develop unique communications for each segment.
Find a healthy communication frequency.
Build a sense of community.
Donor segmentation is an essential strategy to include within your larger donor management approach because it allows you to create more personalized communications without having to develop individual messages for every single person in your contact list. Let’s begin by reviewing how to assign donors to groups.
1. Create groups strategically.
The first step of the donor segmentation process is choosing the criteria you’ll use to group donors.
Choose criteria that support your marketing and communication goals. For example, if you’re looking to improve your relationships with new donors, you might create a segment for first-time donors who have given in the past three months to start building connections with these individuals.
Bloomerang’s donor segmentation guide recommends launching your segmentation strategy by creating groups based on the following criteria:
Recency: When did donors start giving? Developing segments for new and long-time donors lets you send introductory information to new donors and general updates to long-time donors.
Frequency: How regularly do donors give? It can be helpful to create different groups for monthly donors, annual donors, or irregular donors. Forming these groups allows you to send relevant thank-you messages or donation requests to each group.
Reason/interest: What motivates donors to give, and do they give to specific programs that are personally meaningful to them? By creating segments based on donors’ interests, you can send each group updates on the specific areas or projects they’re most interested in.
Type: Do donors give online, in-person, or by mail? Identifying donors’ preferred giving methods can reveal information about the best channel to use to stay in touch with them.
Amount: How much do donors give? Creating groups for small, mid-tier, and large donors can help you develop appropriate future donation requests.
These criteria are just a starting point. Your nonprofit may create other segments based on what is most relevant to your outreach strategy. For instance, you might also have groups of lapsed donors, volunteers who also donate, volunteers who haven’t yet donated, highly engaged social media followers, and so on.
2. Develop unique communications for each segment.
Once you’ve determined your criteria and assigned donors to groups, it’s time to put that information into action. Use what you know about each segment to craft tailored communications that speak to their interests, needs, and motivations.
Personalize donor communications using varying:
Imagery. Different types of visual content might appeal to different audiences more effectively. For example, let’s say you’re sharing information about your nonprofit’s finances to promote transparency. Some donors might appreciate viewing graphs and charts that depict your financial situation, while others might interpret the information more easily in video format.
Platforms. Determine the preferred communication platform for each donor segment. For example, you might reach out via email, direct mail, phone call, or text. Understanding donors’ preferred outreach methods lets you meet them where they are and increase the chances that they’ll see your messages.
Ask amounts. When you create segments for different giving levels, you can send each group more appropriate donation requests that align with their giving potential. You may also tailor your online donation page to display a different suggested donation amount based on each donor’s giving capacity.
Personalize your messages even further with each donor’s name and references to specific contributions they’ve made. For example, you can create an email template for each segment and automatically input specific information pulled from your donor management system.
Keep the information in your donor management software updated by regularly auditing your database, eliminating duplicate or inaccurate information, and conducting data appends as needed. A data append involves pulling information from third-party databases to fill gaps in your donor data, such as phone numbers or email addresses.
3. Find a healthy communication frequency.
When it comes to donor communications, timing is everything. Communicating with donors too much or too little can inadvertently cause them to tune out.
That’s why it’s essential to strike a balanced communication approach. Figure out which donors would like to hear from you more frequently and which are more content with the occasional update, and set up a unique communication cadence for each group.
For example, you might send a monthly newsletter to your monthly donors and a quarterly update to your major annual donors. Other donors may appreciate a monthly phone call or bi-weekly mailed newsletter.
Donors will appreciate your efforts to keep them in the loop using their preferred communication platform and communication frequency.
4. Build a sense of community.
It might feel difficult for some donors to feel connected to your organization, especially if you’re a larger nonprofit. Fostering a sense of community within your donor segments can help supporters feel more in tune with your organization and allow them to build relationships with other donors.
Build community among your donor segments using the following strategies:
Create special online groups for different donor groups. For example, you might create groups for monthly donors, long-time donors, or donors who also volunteer. Members can share photos and videos from events, peer-to-peer fundraising tips, or information about other ways to support your mission.
Invite groups to special events. For example, you might host a meet and greet for your new donors or an auction for your loyal long-term donors. NXUnite’s event planning guide recommends creating an event attendee persona based on your donor segments and ensuring that the event experience is tailored to their needs and interests.
Ask for feedback from each group. Show donors that you appreciate their input and want them to feel like equal partners in achieving your mission by asking for their feedback. Create tailored surveys for each group based on their experience with your organization. For instance, you can ask donors who also volunteer to provide insight into your volunteer experiences, or ask major donors how they feel about your communication frequency.
When donors engage with these opportunities, they’ll feel more connected to their fellow supporters and your organization as a whole. This can encourage them to maintain their involvement or increase their giving amount over time.
Practicing donor segmentation is just one way to improve your communication strategy. The more you can tailor your outreach to your unique audience, the better responses and engagement you’ll get, helping your nonprofit thrive.
Don’t hesitate to reach out for help if you need more support building a sustainable strategy for your organization. Nonprofits and foundations in the Central Texas area can reach out to the Mission Capital team for support with building meaningful connections and lasting relationships in your community. Our resources and thought partnership can provide your nonprofit with the structure it needs to be resilient and form strong community bonds.