[eJP note: the following article was originally published March 24, 2009.] How Charities Can Use LTV to Improve their Fundraising by Liesbeth van Uytven Lifetime Value (LTV) of a donor database is a subject that is often discussed amongst charities. SAZ’s experience shows, however, that few charities evaluate this important indicator of a long-term, healthy fundraising strategy on a regular basis. This article hopes to inform those who want to initiate a deeper evaluation of their donor database. The first part will explain the concept of Lifetime Value and its effect on fundraising strategy. Four analyses for you to consider will then be discussed. The article closes with some points for consideration. What is Lifetime Value? Lifetime Value is a valuable database marketing concept … Continue Reading
Making More of Your Data
Lord Leverhulme, head of Britain’s biggest advertiser Unilever, famously said, "Only half of what Unilever spends on advertising actually works. The trouble is, I don’t know which half." So fundraisers are not alone. But what difference might it make, in money saved and raised, if he could answer that question in detail? Data is gold. But only if you can get to its real value. part 2 In part 1, Data is Gold, Chuck Longfield spoke about the real asset value of data for fundraisers. Here, in part 2, he brings us six recommendations for making more use of your organizations' data. 1. Monitor your data quality regularly. Every fundraiser should satisfy himself or herself that their data is spot on. So choose 100 donors at random and review their data. Call donors and check that the … Continue Reading
Data is Gold
Data is gold. But only if you can get to its real value. part 1 [Chuck Longfield’s passion is data and what it can do to make nonprofits more effective. Here, he talks with Ken Burnett about the real asset value of data and how fundraisers can make much more of it and from it, by looking after it better and using it differently.] All fundraisers know that their data is valuable. All fundraisers know that developing an existing donor is many times less costly than recruiting a new one. All fundraisers know that fundraising should be integrated, that focusing on the donor is more appropriate than on the medium of communication, that ... well, that there are a lot of things we all know full well but we still don’t do the right thing by them. Data is one of these, perhaps one of the … Continue Reading
Could e-Services Be the Way for Your Charity?
Charities often don't invest in new technology and online services because of the cost, but software as a service (SaaS) could be the answer. by Patrick Nash Charity websites are big business. Growing an online presence is critical - for fundraising, public relations, marketing and much more. Digital marketing managers command good salaries and there are armies of consultants and agencies. The competition for charity website awards is intense. But despite all this, I would argue that the third sector is, in most cases, behind the curve of the e-service revolution. I’m not sure that many charities know what e-services are and if they do, many reject the notion that their charities service users will access their services online. Charities provide a wide range of services but for the … Continue Reading
Using Technology for Stewardship
Did you have parties before eVite allowed you to invite people for free online? Did you pay your bills before banks offered you online banking? Of course you did. The technologies only made the processes cheaper and easier. Similarly, your organization has been fundraising and building relationships with donors and prospects for years, even before the computer! Stewardship - like cultivation - is really about relationships. Technology will never be used as the primary channel for stewarding your donors. But, like fundraising in general, technology can be used to make your nonprofit’s stewardship efforts more effective and efficient. The following are a few examples of how technology can help you steward your donors: Track donor values and interests Donor Management Systems are great for … Continue Reading
New Guide Looks at Low-Cost Fundraising Software
A new guide to low-cost software systems that help nonprofits manage their donor records was released yesterday at NTEN, the Nonprofit Technology Conference. The report was published by the Nonprofit Technology Network and Idealware, an organization that provides information on software designed for nonprofit organizations. The report reviews 33 fund-raising packages that cost less than $4,250 the first year and compares the features that they offer. The guide also provides in-depth reviews of 12 of those systems. A Consumers Guide to Low Cost Donor Management Systems is available for free download. … Continue Reading
The Value of a Lifetime
How Charities Can Use LTV to Improve their Fundraising by Liesbeth van Uytven Lifetime Value (LTV) of a donor database is a subject that is often discussed amongst charities. SAZ’s experience shows, however, that few charities evaluate this important indicator of a long-term, healthy fundraising strategy on a regular basis. This article hopes to inform those who want to initiate a deeper evaluation of their donor database. The first part will explain the concept of Lifetime Value and its effect on fundraising strategy. Four analyses for you to consider will then be discussed. The article closes with some points for consideration. What is Lifetime Value? Lifetime Value is a valuable database marketing concept that allows a profound evaluation of the return on investment from donor … Continue Reading
Slices of the Same Pie
Segmentation of your database - The key to personalized fundraising When ensuring that your database is well maintained, it is worthwhile to delve more deeply into the donor data. A useful and common approach is segmentation of your database. The idea of segmenting the database can generate enormous profits for those charities that do it properly. People are all different, even though they may support the same charity. Segmentation could be defined as: “searching for groups of donors who resemble each other as much as possible within the group itself and differ as much as possible from other groups.” … Continue Reading
Do-it-Yourself? Some Thoughts About Outsourcing Your Fundraising Database
by Jeanette Eesmann-Foster In the age that everyone can host their own website, create databases, make your own blog or make your own direct mailing, the obvious question is why outsource at all anymore? The tools to do the complete database housing, maintenance and development are readily available. In the last 10 years, very efficient software has arrived on the market in Europe that can in some cases even combine financial and marketing information. After all, if the finance department is happy with any decision we make about a database, then our lives as marketers will be much easier. But is it important to have software that combines financial administration and marketing knowledge? Or isn’t it better to look for the most suited financial software and the best marketing solution? … Continue Reading
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