Segmentation: it isn’t just for customers

by Chris Wilson on January 1, 2009

Donor ResearchUsing segmentation to better target your donors

One of my favorite marketing blogs, MarketingProfs, wrote today about the importance of segmenting customers in a down economy.  I couldn’t agree more. 

 But this also works for donors, and any organization that is worried about the size or frequencies of contributions in a down economy needs to consider a similar approach.

What are the goals of a segmentation study?

Identify receptive audiences:

  • Using a series of cluster algorithms, you want to identify audiences that will be receptive to marketing efforts by your specific organization. 

  • The segments will take into consideration a measurement of appeal for specific initiatives and programs, allowing you to target, for example, by different goals for the coming year.

  • You will also be able to target thorugh geographic, demographic and behavioral aspects that help classify reachable clusters.

Discover best methods to reach target audiences:

  •  In addition to understanding who the receptive audiences are, you also need to understand the best way to communicate with each segment.  The goal is to deliver your messages in the most effective way for each segment.

In addition to the goals listed above, a segmentation survey should ultimately decrease your overall marketing budget, because the targeting information will allow for precise tactical deployment.

Much like Price Segmentation isn’t for every business, donor segmentation isn’t a marketing tactic for every donor driven group.  However if you’re appeals aren’t getting the type of returns you once enjoyed, a segmentation will align your donor segments with specific messaging and will bring immediate ROI.

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