While donor segmentation is a routine part of fundraising (e.g., segmentation by gift size or recency), effective donor-focused segmentation goes beyond the basics to identify distinct combinations of qualities that define a specific organization’s subsets of donors. The segmentation process should take into account a variety of individual characteristics, such as:
- Reason for engagement with the organization
- Existing relationships with the organization or its members
- Geographic location
- Demographics (e.g., age, sex, marital status, ethnicity)
- Donation method (e.g., online, paper, in person)
- Communication preferences (e.g., social media, email, post)
- Timing of donations
- Donation amounts
Useful donor segments form true “culture groups” with whom fundraisers can establish lasting and fruitful relationships using culturally appropriate communication, cultivation and solicitation methods. Robust and accurate donor and prospect segmentation is absolutely essential to a data-driven, donor-focused fundraising strategy because segmentation allows a fundraiser to understand and connect with donors and prospects on a human scale. Ideally, all data analysis and research projects should reflect and inform an organization’s understanding of its donor segments.