As fundraisers, when we think about data analysis today, we’re likely to drift into the world of complex modeling practices that predict what donors are most likely to give based on a wide variety of factors. Go to any conference and you’re bound to hear about the wonder of Big Data. But if you work in a smaller organization with fewer resources, you may have walked away feeling like none of this was for you. Let’s face it, just in terms of time spent, these projects seem inaccessible.
However, we all need to understand our donors better. The data we keep can unlock critical new insights for our organizations. Data analytics has benefits for all of us, so we all must find ways to sort through the information we have so we can make better decisions. But how to do it?
Kenny Tavares describes how to assess your top donors using three important metrics: recency, frequency, monetary value – an RFM analysis.