Focus On: Database Analysis: A Closer Look at Models

Although building an effective predictive model requires a trained statistician, the concept is simple:

• Determine your objective (i.e., increase renewal rates).

• Select responders and non-responders from one or more recent renewal campaigns.

• Using available data (behavioral data is sufficient, but third-party demographics can be used to enhance results), build a profile of characteristics that differentiate responders from non-responders.

This combination of characteristics forms an equation, and each variable in the equation is weighted based on its relative importance. The weighted equation is then used to score and rank each individual donor on your database.