..
Boosting Fundraising Efforts
NGO
(1-2 minute read)
Situation:
A non-profit organization that provides medical aid to people affected by war, natural disasters, epidemics, and other crises worldwide. Like many other non-profit organizations, the NGO relies on methods such as direct mail and telemarketing to raise funds.
However, the NGOs were facing challenges in finding a better audience for their fundraising campaigns and thereby boosting their donation rates. The NGO needed an even more targeted and effective approach to reach potential donors and increase their results.
Complication:
Having worked with segmentation for years, the NGO had optimized to the point where further gains were hard to come by. With every rule/segmentation there is a gain and a “pain” – meaning every time you add a criteria, you are getting more targeted but that also means that you are filtering potential donations out as not all end up in the segmented group.
Non-Profit organisations operate on a fine line. On one hand, you want to get as many donations as possible, but on the other hand, you do not want to annoy people and cause brand erosion.
The organization has a large database of donors and potential donors, but overall they were struggling to increase their results.
Opportunity:
The non-profit organization needed a fast and easy way to analyze their database and provide insights into their donors and potential donors.
Age being one of the determining factors within the non-profit world, the NGO also needed a solution that could predict the age of their leads in order to help them target the right audience with the right message through the right channel.
Allyy.io was the perfect fit for their needs. Allyy.io’s machine learning algorithms provide an actionable prediction, based on analyzed donation history, response types, demographics, and other data points. Allyy automatically identified patterns and insights that can be used to execute targeted campaigns.
Together we found 3 use cases:
1. Telemarketing Audience- Single or sporadic donation upgrade to the monthly donor.
2. Telemarketing Audience – Monthly donor upsell to a higher amount.
3. Direct Mail Audience – Encourage a one-off donation.
Resolution:
Allyy.io helped the non-profit organization in multiple ways.
Allyy analyzed their database and provided insights while also enhancing the data available on their donors and potential donors.
In cases like this, Allyy divides the leads into 4 segments (A, B, C, D) based on their likelihood to convert. “A” is the best lead with the highest likelihood and D is the least likely to convert. The groupings correspond to the following % amount of the total list:
A = Best 10%
B = Next 20%
C = 30%
C = 40%
The Use Cases & Results
Telemarketing Audience – Single donation upgrade to the monthly donor.
A: The top 10% of the audience accounts for 51% of all conversions, with a conversion rate of 61%.
B: The next 20% of the audience contributes to 31% of all conversions, with a conversion rate of 19%.
C: The subsequent 30% of the audience is responsible for 15% of all conversions, with a conversion rate of 6%.
D: The remaining 40% of the audience yields only 3% of all conversions, with a conversion rate of 1%.
In summary, the first 30% of leads account for a whopping 82% of conversions. This means resources can be reallocated from the less productive 70% to activities like fostering donor loyalty. By focusing on the top 30% of leads, the NGO can optimize resources and prioritize effective strategies such as strengthening relationships with current donors.
Telemarketing Audience – Monthly donor upsell to a higher amount.
A: The top 10% of the audience accounts for 13% of all conversions, with a conversion rate of 35%
B: The next 20% of the audience contributes to 25% of all conversions, with a conversion rate of 30%
C: The subsequent 30% of the audience is responsible for 30% of all conversions, with a conversion rate of 25%
D: The remaining 40% of the audience yields 32% of all conversions, with a conversion rate of 21%
While the results are not as astounding as the first case, it shows that Allyy predicts and identifies the best leads with high conversion rates.
Direct Mail Audience – Encourage a one-off donation.
A: The top 10% of the audience accounts for 39% of all conversions, with a conversion rate of 24%
B: The next 20% of the audience contributes to 46% of all conversions, with a conversion rate of 14%
C: The subsequent 30% of the audience is responsible for 12% of all conversions, with a conversion rate of 3%
D: The remaining 40% of the audience yields 3% of all conversions, with a conversion rate of 0.2%
Similar to the first case, the A+B group account for a fantastic 85% of the total amount of conversions meaning that the efforts that before were spent on the low-converting C+D groups, can be redirected to more valuable activities.
As a result of using Allyy.io, the non-profit organization were able to reach the right audience and increase the return on investment of their DM and TM channel, all while reducing the risk of brand erosion. A win-win-win if you will.
With the optimization of their fundraising efforts, the non-profit organization can go further providing medical aid to people affected by war, natural disasters, epidemics, and other crises around the world.
