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Should you value donors differently?
By Dager | November 24, 2009
Marketing …Differentiated value of customers/donors
There are donors, and then there are donors. It’s a fact, you love your donors — where would you be without them — but they are not all the same, and some can even require what almost amounts to Tough Love.
At the recent Direct Marketing Association’s DMA 09 Conference and Exhibition in San Diego, during a session called “The Global Event for Integrated Marketing,” the differentiated value of customers came under discussion. Although the perspective focused primarily on for-profit entities, there are certain points of interest for nonprofits.
The differentiated value of customers, for example, shows that 30 percent of customers deliver the majority of profits, 50 percent add nothing and 20 percent cost money. What to do with the traditional marketing cascade of TV ads, online search, site traffic and conversion?
The answer was “Hakuna Matata,” a Swahili phrase that is literally translated as “There are no worries,” regarding a marketing database and target segment selection. This means that:
Knowing WHO determines: how much to invest, if anything, and what to say, without guessing.
Media buys are rarely linked to full customer value.
The typical marketing problem: over-investment in low value relationships and under-investment in high value relationships.
TV advertising drives search. One survey showed that television advertising accounted for 37 percent of online users who performed a search because of exposure to offline content.
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Copyright @ 2009 The NonProfit Times.
Topics: Donors, Fundraising |