Propensity Modelling

Analysing A Donor’s Propensity To Donate

Donor propensity modelling analyses a donor’s propensity to donate – allowing you to target more strategically and efficiently, eliminating budget wastage on those who are less likely to donate, and thereby making your marketing strategy more effective.

– Defining new best-practice in the NFP industry

– Donor-centric mentalities and principles

– First steps in building a more sustainable NFP business model

– Differing significantly from traditional static segmentation

– Incorporation of a series of variables in any combination

– Scores the propensity of an individual, not a group or segment.

CASE STUDY

Mail Makers Integrated worked with a leading, independent, evidence-based cancer organisation that recently tested the efficacy of Predictive Modelling on a campaign’s key performance indicators:

Results produced two distinctive groups for solicitation via Direct Marketing channels:

1

Donors who only get selected under the control (RFM) methodology

50

Half of Total Campaign Cost

could be saved whilst still generating 92% of of campaign responses.

2

Donors who only get selected under the test (modelled) methodology

85%

85% of Responses

come from the top 5 decile bands, 95% come from the top 9 bands!

Model is very indicative of response propensity:

00.00

of responses came from top 9 deciles

00.00

of responses came from top 5 deciles

00.00

of revenue still generated whilst almost halving campaign costs

Selection based on model alone would have a significant impact in terms of performance:

2x+

Assuming the model identifies a pool of high propensity donors not otherwise selected, estimates suggest campaign results may be doubled or more

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