Drakes Bay Fundraising
A Next Generation Fundraising Company

Archive for April, 2012

Swiss Army Knife – Part 2

Posted by Christopher Dann
Wednesday April 18, 2012
Categories: Fundraising, Modeling, Target Analysis, Uncategorized
Share:

The Swiss Army knife is Target Analytics’ new Loyalty Insights modeling utility described in our last post. It’s a utility with a host of varied potential applications to both on-the-ground fundraising campaigns and, as explained in the last post, to individual support business modeling.

We had Target Analytics model donor bases across a variety of sub-sectors: health, human services, public broadcasting, conservation, and cultural-humanities. That there would be differences was predictable. But the nature of the differences was intriguing and truly demonstrated how different individual support models are.

Our next step was to validate the Loyalty Insights model, and we are doing this in several ways.

First, we compared modeling results across that spectrum of organization donor bases to prior research. Those who remember our ground-breaking demonstrations of altruist and values paradigms (if you haven’t or if you have but want a refresher, click here to download a copy), would expect we’d refer back to the findings of that massive data analysis undertaken with Target Analysis six years ago. Four of the seven Loyalty Insight model groups and those organization types that can inarguably be characterized as altruist or values donor-oriented again demonstrated our hypotheses that altruist donors retain less well and provide less value over time than values donors.

Second, we validated a selection of the donor bases modeled through our Donor Base Trend Analysis (DBTA). DBTA gives us very comprehensive assessments of donor base values and trends across six years. It also has capacity for such special analyses as comparative valuations of discrete groups within a donor base.  In this way we have been able to verify Loyalty Insights typecasting through measures of donor loyalty and giving across eleven years of data. We could see, for example, that donors characterized by Loyalty Insights as, to use their terms, “Truly Connected” and “Best of the Best,” had the highest values in terms both of retention and annual cumulative giving, and that the two could be distinguished between them. On the other hand, those characterized as perpetually low-dollar donors could be shown over the years to have deserved that label.

We have begun to validate the model through fundraising campaigns and will have that data in due course. Validation through fundraising campaigns is a two step process. The first step is to simply examine campaign response from the perspective of the Loyalty Insight model’s seven group typecasting. This step is underway in spring and summer campaigns, and it will be followed by tests specific to each of the Loyalty Insight model groups.

A New Swiss Army Knife – Part 1

Posted by Christopher Dann
Tuesday April 17, 2012
Categories: Fundraising, Modeling, Target Analysis
Share:

Because we believe loyalty is the single most important attribute of ultimate donor value, we were excited to explore Target Analytics’ new Loyalty Insights model and assess its value to our clients’ fundraising programs.

Essentially, Loyalty Insights examines the giving of an organization’s 24-month donors to the subject organization as well as to organizations in Target’s huge donor database, sorts them into seven groups defined by patterns of giving behavior and consequent value and tags them accordingly.  The Loyalty Insights report also sub-sorts the seven model groups by age ranges and various measures of giving behavior and value.

It’s a campaigner’s tool in a metaphorical way the Swiss Army Knife can be used for wood carving. It is most readily used for shaping campaigns by refining donor selections through an array of new measures.

But its utility extends to such applications as major donor portfolio planning and planned gift prospecting.

Its ultimate value, in our view, is in the several ways Loyalty Insights facilitates individual support business modeling, a practice in which we all need to get very skilled.  Individual support business modeling answers these critical questions:

  • How do I manage the asset my donor base represents for maximum yield and value?
  • How can I maximize return-on-donor base development investments?
  • What share of donors’ wallets can I expect in my sector?
  • What does the Loyalty Insights profile of my sector and my donor base look like?
  • Am I competing as well as I can expect to compete in my sector?

Like the Swiss Army knife, Loyalty Insights is designed for a scalable market. Some of its pieces may not be perfectly suited to all situations and applications, and we’ve found a couple really esoteric examples.  That said, we can’t think of any organization to which this new service wouldn’t be very valuable.

For information, contact Kathy Gallagher at Target Analytics:   kgallagher@targetanalysis.com

Next Generation Fundraising and Drakes Bay Fundraising merged in the fall of 2013, bringing the longstanding professional acquaintances of their four principals – Tim Oleary, Carol Leister, Cindy Germain, and Christopher Dann – into a single company and combining the special resources and experiences of each to provide clients greater breadth and depth of service.

For more information about Next Generation Fundraising, click here.