Focus On: Database Analysis: A Closer Look at Models

Unlike predictive models that rank each donor relative to one another, RFA segmentation models rank groups of donors relative to other groups. No distinction is made between donors within each group. For instance, John Sample and Jane Doe share the same RFA ranking even though Mr. Sample upgrades every year, participates in special events and recently volunteered. By definition, RFA ignores a considerable amount of important information regarding a donor’s relationship with the organization. The resulting lack of precision can translate into thousands of misdirected dollars per direct mail campaign.