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.
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:
Donors who only get selected under the control (RFM) methodology
Half of Total Campaign Cost
could be saved whilst still generating 92% of of campaign responses.
Donors who only get selected under the test (modelled) methodology
85% of Responses
come from the top 5 decile bands, 95% come from the top 9 bands!
Model is very indicative of response propensity:
of responses came from top 9 deciles
of responses came from top 5 deciles
of revenue still generated whilst almost halving campaign costs
Selection based on model alone would have a significant impact in terms of performance:
Assuming the model identifies a pool of high propensity donors not otherwise selected, estimates suggest campaign results may be doubled or more