4 Ways Your Nonprofit Can Use Predictive Models To Maximize ROI

By eleventy marketing group

Predictive models look at traits that influence the likelihood of future behaviorsIn the old days of mass marketing, organizations would drop their messages down on everyone and hope that it would stick to a few. The key word there is hope. It was an imprecise approach based on reaching the largest possible pool to spark the largest possible response. The problem was, every drop that didn’t stick cost the organization marketing dollars.

These days, marketing needs to be smarter for a couple reasons: (1) in our cluttered culture, people do not have time or tolerance for irrelevant messages; and (2) in an increasingly crowded and competitive landscape, nonprofit organizations need to make it a point to get the very best return on their marketing investment.

Enter the Predictive Model, a valuable marketing tool that addresses and resolves both those issues. In today’s post, we’ll take a look at some of the ways nonprofit organizations can employ predictive modeling to better target your marketing efforts and achieve a greater ROI.

What Is Predictive Modeling?

Predictive Modeling is the process of creating statistical models to determine the likelihood of future behaviors. Predictive models take into account a number of factors that are likely to indicate how an individual will respond or react. Some examples of predictive modeling factors include: gender, age, income, and giving history.

Four Types of Nonprofit Predictive Models That Deliver Results

Today’s philanthropic landscape is more competitive than ever—with more charities fighting for an even greater share from a declining donor universe. For nonprofit organizations, it’s also become increasingly important to maximize ROI because of the escalated scrutiny on nonprofit marketing spending. To put it simply: There are a lot more nonprofit options today and people want to know they are giving to ones that will use their money wisely and effectively.

So how can predictive modeling help your nonprofit more efficiently target donors and volunteers to boost your bottom line? Here are examples of four different predictive models that can be created to help you better reach people interested in your cause, increase the value of your donors, and maximize your marketing expenditure:

1. Current Donor

Predictive models can help you get more value from your existing donors. You can create models to identify donor populations ideal for major upgrades, or to help you target the right donors for specific asks or appeals.

2. Donor Acquisition

Acquisition is an area where data modeling can have a big impact. Your nonprofit can create models to identify non-donors that most closely resemble your current donors. These models will help you better target your acquisition efforts to maximize your marketing spend.

3. Monthly Sustainer

Monthly giving provides a reliable, low-cost income stream for nonprofits. It also enhances the loyalty and value of donors. By developing a predictive model, you can target individuals most apt to become monthly donors based on demographic and psychographic attributes.

4. Lapsed Donor Reactivation

When targeted properly, many lapsed donors will renew their support and even become high-value donors. Predictive modeling will help you identify the lapsed donors with the greatest propensity to return to your organization and assess their potential lifetime value.

Smarter Spending, Better Return with Marketing Intelligence

Predictive Modeling is a powerful tool for helping your nonprofit streamline your upgrade, acquisition, monthly and lapsed donor marketing efforts. Predictive Models can help you spend your money more wisely, while also increasing your response rate. They can also help you cut through the crowded marketplace to connect with donors mostly likely to be interested in your cause and the work you do.

One of the keys to future growth and success for nonprofit organizations is getting the best return for your marketing dollar. And one of the best ways to do that is by incorporating more intelligence (AKA data) into your marketing. Smarter marketing means less waste and better results. The days of mass marketing are over. The nonprofits that will survive and thrive from here on out are the ones that most effectively target and scale their efforts.

Learn more about how eleventy marketing group can help your nonprofit create customized predictive models to maximize your ROI and enhance your donor relationships. Check out our Nonprofit Resources page to get a glimpse of our data-driven marketing solutions in action.