Do you keep mailing to the same number of donors every year, but keep getting fewer responses?

Are you reaching out to people who just won't respond? Do you get the feeling you must have some donors who could give you much more than what you're getting?

Do you find it hard to tell apart those who will give more from those who will give no more?

Well, you're not alone...

But the good news is that you could gain a lot by learning a bit more about your donors' behavior. And some key answers are sitting right there in your database, waiting to be discovered, and used profitably.

How?

One of the simplest tools to identify readily usable data is an R.F.M. analysis.

This method assesses the relative value of every donor in the database by ranking the donor by their giving pattern using three variables:

•

Recency

(donors with a recent gift are more likely to give again than those who haven't given in a while);

•

Frequency

(the more gifts from a donor in the past, the better the chance to get another in the future);

•

Monetary value

(past gift amounts tend to predict future gifts and amounts).

Since each donor is specifically assigned a value index, you end up with practical information that you can put to use right away.

Using these indices, you can easily identify your best potential segments, those that show the most promising growth. You can also determine which donors can be maintained profitably, and conversely, those who are not likely to contribute ever again.

The RFM analysis can be one of your most powerful tools, especially if you use it in conjunction with other segmentation info you might have on your donors: demographic, geographic, etc.