woods valldata

6 steps for effective data segmentation in charity fundraising

Data segmentation helps us answer fundamental questions

Data segmentation is not just a buzzword; it's a must for charity fundraisers looking to answer fundamental questions about their programme. Questions such as:

  • Who are our supporters?
  • How are they engaging?
  • Who among them are delivering most value?
  • How are our campaigns performing?
  • Who should we be communicating with for which campaigns and which products?
  • How do we increase engagement?
  • Which of our products perform the best? And who to?
  • Which communication channels are most effective? Do different people respond differently?
  • Where should we invest our budget?

Are these the questions you’re asking today as a fundraiser?
Perhaps the most pertinent of those questions is where to invest budget. How can you use that precious budget to yield more income to advance your charity’s mission?

Data segmentation can help. Here’s 6 steps to set up your data segmentation strategy…

6 steps to setting up your data segmentation strategy

1. Define your objectives

First and foremost, you need to think about what it is that you’re you trying to achieve. Is it increasing donor retention, boosting response rates, or expanding your supporter base? Whatever you’re looking to achieve, clearly defined objectives will guide your segmentation strategy.

2. Identify your segmentation criteria

Next, what information do you hold in your database and what will help you to form the basis of your segmentation to meet your objectives?
Your segmentation criteria may include demographics (age, gender, location), giving behaviour (donation frequency, gift amount), engagement level (number of gifts, number of products, volunteer activities, event participation), motivations for giving (cause affinity or personal connection) or event something else.

3. use data analytics

Data analytics tools can be invaluable for uncovering patterns and insights within your supporter data. These tools can help your explore your past donation history, engagement metrics, and other relevant data points to inform your segmentation strategy. Your database might have tools in it to help you do this, or you can work with data specialists like Sequoia Insights to help you analyse your data.

Young happy asian student sitting at the table

4. Consider what matters

Effective segmentation often requires a multi-dimensional approach, combining various criteria to create distinct supporter segments. For example, you might segment donors based on both their donation frequency and their level of engagement with your organization. BUT...

5. Keep it simple

... even though you have a multitude of attritutes to use for your segmentation, it's often best to keep it simple. The ultimate goal of segmentation is to deliver more relevant and personalised communication to your supporters. Keep this in mind when defining your segments. You don’t want so many segments that you’ll never have the resource to tailor campaigns to each one, or so few segments that there’s no true differentiation

6. Test and refine

Segmentation is an iterative process. Continuously test and refine your segmentation criteria based on performance metrics and feedback from your supporters, as well as keeping an eye on your changing supporter base. This means that your segmentation strategy will stay effective and relevant over time.

Finding the right data segmentation partner

If you’re wondering how to get going with segmentation, talk to an expert.

Charity partners of Woods Valldata benefit from the expertise and advice of our data strategy team to support data-based decisions and strategic direction. But if you're not already working with us, our sister company, Sequoia Insights, provides impartial data-informed engagement strategies for charities and membership organisations to step up the value they get from their data. Building a deeper understanding of supporters or members and creating a self-sustaining data powered engagement strategy.

Why not reach out today and start your data segmentation journey to success?

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