Advances in technology and rapid digitization of information have made data more accessible, setting a new expectation for the collection and sharing of information. Constant connectivity has transformed the nature of interactions, resulting in pressure for nonprofits to reach constituents in new ways and communicate impact. These movements, coupled with emerging curiosity about artificial intelligence (AI), can paint an overwhelming picture on how to advance in data and analytics.
In an industry where one of the biggest concerns is decreasing revenue and budget cutbacks, finding ways to acquire donors for less is becoming increasingly more difficult.*
According to Charity Navigator, the majority of donor contributions continue to come from individuals. While it is easier than ever before for organizations to market, the channels are becoming saturated and potential donors are developing an immunity to marketing messages.
The increased volume of marketing messages, being distributed by companies makes it even more important for nonprofits to be smarter. This means scaling outreach through targeted and personalized marketing programs.
The data nonprofits have about their supporters, volunteers, activists, members, and other constituent groups are arguably their most valuable asset. Using this data is the clearest path to realizing a huge ROI and the best way to break through the abundance of competing marketing messages. However, many nonprofits aren’t sure how to manipulate their data. Often, they know how to derive insights, but don’t take the next step to driving action with those insights.
In order to answer the question, “So what?” and improve performance, nonprofits must move from just generating insights to taking action, using advanced analytics.
At this point, data analytics is table stakes for companies. Today’s marketing stack must include advanced analytics. The world is seeing a shift to the democratization of advanced analytics and nonprofits are in an excellent position to take advantage of this.
Nonprofits Using Advanced Analytics See Higher Campaign Effectiveness
With tight budgets and pressure to counteract the “overhead” challenge in a reality where revenue-targets aren’t being hit, nonprofits have a set of real challenges in pushing their analytics capabilities forward.
However, a recent study by IBM* found that the advancement of data and analytics in nonprofits matters. 78% of nonprofits with advanced analytics capabilities indicated higher effectiveness in performing their mission among other key metrics. Yet, 67 percent fall in the early stages of the analytics journey – with an overwhelming 74 percent of respondents indicating that budget was a primary barrier to advancement.
With increased competition in the nonprofit space, investing in advanced analytics is a clear way to start getting more out of marketing efforts and hitting donation targets.
The World is Better With Advanced Analytics
|Before Advanced Analytics
||After Advanced Analytics
How to Get Started
Ultimately nonprofits must align leadership and advocate for a data-driven culture in order to make meaningful progress in the future. So where to start?
- Commit to being data-driven – make sure your entire team is onboard for this transition to a new culture
- Set clear goals with defined expected returns and design a strategic plan
- Define actionable metrics approved throughout the organization
- Seek internal and external commitment to data – upskill your team, leverage your board and volunteers, and outsource external experts
- Invest in the requisite technology and expertise – onboarding a full-service advanced analytics solution, like Lityx, empowers every level of your team with the capacity for predictive analytics, optimization, and automation
Today, the advanced analytics that was out of reach yesterday are now accessible to the companies and the team members that need them.
See how one large nation-wide nonprofit put advanced analytics to work for them and realized remarkable results, like 90% improvement in acquisition rates.