There is a common saying in the nonprofit sector that philanthropic institutions lag at least ten years behind private industry counterparts when it comes to implementing new technologies.
Donor retention, for example, is often treated as an art rather than a science. When nonprofits lack the resources to assemble and analyze the hard data necessary for concrete solutions to demographic issues in their donor support base, they necessarily rely on the gut feelings of experienced professionals.
And while there are plenty of stewards out there who get results through skill and experience alone, there are tools available that not only make their lives easier, but that result in game-changing improvements to their nonprofits’ organizational capacity as well.
One firm based in Atlanta, Georgia is working to help nonprofits utilize these tools.
AnalyticsIQ offers comprehensive data analytics services, helping organizations discover important data and make better use of the donor information they already possess.
“One nonprofit client approached us with major issues concerning lapsed donors,” explains Mike Hattub, Chief Operating Officer at AnalyticsIQ. “During our initial discussions we uncovered a number of additional areas where we could also make a big impact on the group’s operations and fundraising.”
The client – a blue chip nonprofit active across the nation – was initially hesitant at delving into compiled data. They opted to move ahead, however, and AnalyticsIQ created a data model that the client used to create a specially tailored mailing that targeted 50,000 households.
The ROI on the mailing was double the client’s initial projection.
From there, AnalyticsIQ developed more models targeting specific age and ethnic groups that resulted in further successes. Eventually, AnalyticsIQ would be responsible for the majority of new donor mailings for the organization, providing invaluable demographic and consumer data that helped maximize the returns on fundraising mailings that ranged from 1-2 million individuals.
“Through our services – including Dynabase, our proprietary database – we help nonprofits achieve maximum scalability for donor mailings in order to meet their goals,” Hattub tells Key Elements Group. “We compile and analyze thousands of consumer characteristics and attributes that help development professionals craft the right language and appeal strategy for the job.”
In an era where information translates into profits and fundraising, nonprofits can’t afford to overlook the competitive benefits offered by data analytics. The world’s biggest brands and most cutting edge companies use analytics to determine consumer profiles and digital behavior in order to optimize user experience and convert interest into revenue. Nonprofits – both big and small – should follow suit.
(Disclaimer: This post contains affiliate links and content from AnalyticsIQ. Key Elements Group LLC did not receive monetary compensation for writing this article or affiliated links.)