Monday, September 20, 2010

Going Small for Big Results

Whatever size prospect list you have, make it smaller. It doesn't matter if your list is 10 names or a database of thousands. You have to start somewhere. And there is no better place than at the top.  

Create your own RFM score to fill in the blanks indicating your donors'
prospect value and loyalty.
Three measurements from your donors' giving histories point the way: recency, frequency, and giving total (RFM).

I have added longevity as a fourth factor in the score illustrated here.

The result ranks (prioritizes) your prospects relative to each other. Such scores are particularly useful at the segment level for prioritizing your direct marketing, phone calls, and personal visits.

Include the RFM score for each donor in gift reports your database, if you are fortunate enough to have such reporting capabilities. If not, create an Excel file to quickly calculate donor scores.

The particular score is less important than having a consistent methodology to compare prospects relative to each other. Create a score that makes sense for your constituency. You may want to add other variables, such as membership, ticket holders, event attendance, volunteer status, etc.

However, keep it simple. Do include hand review of your top scoring donors.

Detailed data on your donors' giving behavior is unique to your organization. Use it to your competive advantage.

1 comment:

  1. What a great post! Very clear and succinct. You don't *have* to spend thousands of dollars on a prospect screening to put a system in place that will prioritize donors. I couldn't agree with you more! Thanks for writing... there aren't enough people saying this stuff well!