In the age where we are all a string of numbers that can be reduced to categories and patterns through which organisations and politicians target us with their products and agenda, it’s difficult (if not impossible) to stay completely off-the-grid and keep your information private.
At a time like this, it becomes more important than ever to harness the power of modern tools for collecting and leveraging data.
This data is at the core of the web and acts as an information hub through which smart decisions can be made.
NGOs, in particular, must be aware of the best ways to obtain quality, actionable data. Data Mining is a progressive tool that can help draw out relevant data and help segregate and profile the donors effectively.
In this 2-part guide, we will explore the myriad ways through which data mining can help with essential and operative donor profiling.
What is Data Mining?
Data mining, the process of extracting meaningful data on individuals and organisations to find trends, patterns, and characteristics, has become increasingly prominent in today’s macro world.
In simple terms, Data mining extracts patterns and valuable information from large datasets. Organisations collect an immense amount of data, ranging from customer or client information to campaign performance metrics. Data mining helps these organisations make sense of this data, identify trends, and derive actionable insights with the purpose of effective decision-making.
While it is predominantly used to ascertain consumer choices and preferences by large corporations, it can be used for non-commercial purposes with proper implementation. One such cause is philanthropy and charitable giving.
By scrutinizing vast datasets, NGOs can unearth patterns and valuable information that shed light upon peculiar donor behaviours and campaign effectiveness.
This analytical prowess enables NGOs to make informed decisions, optimise resource allocation, and tailor strategies to resonate with their diverse donor base.
What Is Donor Profiling?
While the act of donating may seem linear and straightforward, the process is often tedious and unfeasible. Donor profiling, a process becoming increasingly important to assess which type of donor would be more likely to donate to a particular cause, is often used by NGOs to simplify the ordeal.
Donor profiling involves creating detailed profiles of individual donors based on their characteristics, behaviours, and preferences. Understanding donors on a deeper level enables NGOs to tailor their fundraising strategies, communicate more effectively, and build lasting relationships.
Traditional methods of donor profiling often relied on demographic information, such as age, income, and location. It is common to use data such as income level, religious beliefs, and location to identify donors. it is equally important to determine the underlying psychological traits and categorisations to help provide a comprehensive donor profile.
A more extensive approach to donor profiling includes data mining which introduces the importance of relevant characteristics in donors, allowing NGOs to delve into psychographics for a richer understanding of donors.
Using Psychographics For Donor Profiling
Psychographics, a combination of the words ‘psychology’ and ‘demographics’, can help with creating detailed, relevant donor profiles.
A model developed in the 1970s by Arnold Mitchell called the Values, Attitudes, and Lifestyles (VALS) framework, requires customers to fill in 34 questions to assign them to one of eight profile segments: Thinkers, Innovators, Believers, Achievers, Strivers, Experiencers, Makers, or Survivors.
V – Values
At the core of the VALS framework lies the exploration of individual values. Values encapsulate the fundamental beliefs and principles that guide a person’s decision-making.
Whether it’s an innate hunger for knowledge, a desire for self-expression, or a commitment to community, understanding these values provides NGOs with a profound glimpse into the motivations that propel donors to contribute.
A – Attitudes
Attitudes encompass the evaluative judgments individuals make about objects, people, or situations. In the context of the VALS framework, it delves into how individuals approach and respond to various aspects of life, ranging from their perspectives on tradition to their openness to new experiences to their responsiveness to change.
These attitudes serve as critical indicators, shaping the contours of donor behaviour and influencing their preferences in philanthropy. The information obtained from these attitude studies can be used to identify their likeliness towards contributing to a certain cause or a project.
L – Lifestyles
Lifestyles are a crucial indication of how individuals choose to tread through the journeys of their lives. They encapsulate the patterns of living that reflect how these individuals allocate their time, energy, and resources.
From career-focused achievers to adventurous experiencers, the VALS framework segments individuals into distinct lifestyle categories. These categories provide NGOs with a holistic view of donors, enabling organisations to tailor their campaigns in alignment with the diverse ways individuals lead their lives and their intrinsic motivations.
A psychographic framework such as this one can contribute to donor data and profiling tremendously, especially in India where such data is not maintained diligently.
By delving into the intricacies of individuals’ values, attitudes, and lifestyles, NGOs can transcend cultural and geographical barriers, gaining profound insights into the psyche of their donors.
Conclusion
Data is a powerful ally in the quest for donor insights. Leveraging psychographics for donor profiling allows organisations to move beyond traditional demographic approaches and truly understand the motivations and preferences that drive donor behaviour.
The advancement in the techniques of segregation of data indicates that the synergy of data mining and donor profiling will play a pivotal role in shaping more personalised, impactful, and sustainable fundraising strategies. This, in turn, will help in fostering a harmonious, cooperative community.
In part 2, we will delve into the benefits of data mining for donor profiling when it comes to the non-profit sector.
Note: This blog is written by Juhi Vajpayee, Research Associate at 4th Wheel Social Impact.)
