Nonprofits Using Data Analytics For Greater Impact The idea of nonprofits using data analytics is nothing new. Nonprofits have been gathering data for as long as they have had a donor base. From records containing personal information to gift size and preferred method of payment, nonprofits have known how to collect data. With a bit of help from data analytics, nonprofits can harness that data for greater impact. And, here's how to use it: Analytics can help nonprofits plan ahead, improve their internal budgets, and increase transparency. Using this information to optimize marketing campaigns and forecast future revenue can help nonprofits identify and analyze their target audiences. For example, predictive modeling can identify what type of marketing campaigns will be most successful in attracting donors. Marketing campaigns should also include data analysis to find the best content for the target audience. Using analytics to target audiences can make content more relevant and effective. Donors will have different lifecycle stages, and nonprofits using data analytics should understand this dynamic. Some donors will be brand new and require heavy engagement, while others will be loyal, long-term donors. With data analytics, nonprofits can predict which donor segments will give money and which actions will help build long-term relationships with these donors. With this knowledge, they can better tailor their fundraising campaigns to suit each donor segment. Ultimately, this information will allow nonprofits to increase their overall income. Big data analytics is an essential part of fundraising strategies for nonprofits . Big data analysis helps nonprofits anticipate patterns and power dynamics. For example, predictive models can identify potentially relevant communities and individuals. A case study from the University of Chicago's Data Science for Good program used predictive modeling to identify homes with lead-based paint. This exposure to lead is a known cause of neurocognitive deficits and developmental delays in children. This type of analysis is also important in predicting future donations. Nonprofits are not generally given unlimited resources for fundraising. Charity watchdogs often rate nonprofits based on their ability to raise funds and use that money wisely. Therefore, it's critical to direct outreach resources to donors and keep them engaged even after they've made their first donation. Using data analytics tools, nonprofits can better target donors, conduct better outreach, nonprofits using data analytics and identify their most effective fundraising tactics. If done correctly, data analytics tools can help nonprofits make better decisions about their fundraising strategies and maximize their results. Using data analytics can be an essential part of fundraising campaigns. Even small changes can make a huge impact. For example, nonprofits that use data analytics to target donors can increase their retention rate by nearly 20 percent. Additionally, data analytics programs can reduce direct labor costs associated with fundraising. Using data analytics can help nonprofits survive the toughest times in their history. The benefits of nonprofit data analysis are numerous. So, why should nonprofits use data analytics? In terms of email marketing, a nonprofit's website is an important source of online
donations. It is also a place for engagement. It's crucial to track and measure its performance to understand whether it's improving its effectiveness. Thankfully, you can use a free Google Analytics account to measure the metrics of your website and track your performance. In fact, it's so easy to use that nonprofits shouldn't overlook it.