Data Segmentation and Communication
Strategy
Brad Manuel
Analytics Consultant
William O’Leary
Senior Vice President, Strategic Communications
Jeff Bradley
Vice President for Advancement Communications
o Defining Your Goals
OUR AGENDA
TODAY
o Case Study: Communications and Segmentation
at East Coast University
o Collecting Internal Data
o External Data: Overlays, Wealth Screening, and
Predictive Modeling
o Communication Strategy and Examples
o Takeaways and Questions
Page 1
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o Clearly define your objectives before you decide
on a course of action
WHY ARE YOU
SEGMENTING?
DEFINING YOUR
GOALS
Page 2
o Do you have the data to drive this goal?
o Your objective will guide your segmentation
strategy as well as the communication strategy
with your results
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Giving history
WAYS TO
SEGMENT
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• Major donor, high end
annual fund, consistent
donor, LYBUNT, SYBUNT
Demographic • Age, gender, religion,
education
information
Behavioral
• Parent, member, graduate,
visitor, board member
Geographic
• Urban, rural, East, West
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CASE STUDY: COMMUNICATIONS AND
SEGMENTATION AT EAST COAST UNIVERSITY
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EAST COAST UNIVERSITY: OVERVIEW
o Private research university
o Became coeducational in 1969
o Four undergraduate and three graduate/professional schools
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CASE STUDY: EAST COAST UNIVERSITY
Giving behavior
o High value prospects
o Middle market
o Occasional givers
o Never givers
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CASE STUDY: EAST COAST UNIVERSITY
Giving to what?
o Reunions
o Undergraduate department
o Financial aid
o Athletics
o Cultural programs: music,
dance, etc.
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EAST COAST UNIVERSITY: GOALS BY SEGMENT
• Get them to give
every year
• Move up in
amounts
• Keep engaged not giving now, but
high future value
• Get any gift—
amount not as
important
• Get them to give
every year
• Move up in
amounts
Middle
Groups
Young
Alumni
Occasional
Givers
• Maintain the barest
of contacts
Never
Givers
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CASE STUDY: EAST COAST UNIVERSITY
Special consideration: Male or Female?
o Number of alumnae is increasing
o What implications does that have for us?
Alumnae and events:
o How are we engaging
women?
o Does our programming
appeal to women?
o Is it primarily sportsoriented?
o How can we attract alumnae
to reunions?
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CASE STUDY: EAST COAST UNIVERSITY
Attracting alumnae to reunions
o Women with children are less likely
than men to attend reunions alone
o Reunions must be family-friendly
• Events for children
• Fun
o Programming for women: Women’s
Networking Night
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EAST COAST UNIVERSITY: MAJOR GIFTS
Communicating with major gift
prospects
o Identified 3,500 major gift
prospects
o Mailed President’s quarterly
report, like board members
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STRATEGIES FOR COLLECTING INTERNAL DATA
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STRATEGIES: COLLECTING INTERNAL DATA
Common data points by type
of institution
o Higher education
o Healthcare
o Cultural
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COLLECTING INTERNAL DATA: DATA POINTS FOR HIGHER EDUCATION
o Greek organizations
o Dormitory affiliation
o Freshman floor in dormitory
o Student businesses
o Club sports
o Popular professors—survey courses
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COLLECTING INTERNAL DATA: DATA POINTS FOR HEALTH CARE
o HIPAA makes it difficult
o Events
o Fundraising events
o Educational events
o What have they given to previously?
o Could they designate their gifts?
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COLLECTING INTERNAL DATA: CULTURAL ORGANIZATIONS
Performances:
o What events do they attend?
o When: matinees or evenings?
Museums
o What exhibits do they attend?
o When?
o How often?
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DRIVING COMMUNICATIONS WITH THE DATA YOU HAVE
Higher
Education
• Send letters from
a popular
professor or a
dormitory peer
Healthcare
Museums
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• Have they
demonstrated an
interest in a specific
area of research?
• What exhibits or
events have they
attended?
• Do they visit with
kids?
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EXTERNAL DATA: OVERLAYS, WEALTH
SCREENING, AND PREDICTIVE MODELING
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YOU MAY NOT BE A UNIVERSITY, BUT YOU CAN HAVE DATA LIKE ONE
Common External Overlays
o Demographic data
Presence of
children
Married
Vehicle
Left
handed?
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Age
Micro-segmentation possibilities
o Drivers of pick-up trucks
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AVERAGE DONOR AGE BY CUMULATIVE LIFETIME GIVING AND
GG+A BENCHMARK
AVERAGE DONOR AGE BY CUMULATIVE LIFETIME GIVING AND GG+A BENCHMARK
73.7
$1,000,000+
51
$500,000+
89
$100,000+
309
72.7
$50,000+
413
72.8
$25,000+
665
$10,000+
1,175
$5,000+
1,913
$2,500+
3,302
$1,000+
5,883
$500+
8,057
$100+
16,590
$50+
19,984
All Donors
24,102
68.1
All Constituents
25,760
67.6
35
74.0
71.9
72.3
72.7
73.2
72.3
71.6
69.0
68.4
39
43
47
51
55
59
63
67
71
75
Count of Constituents, Average Age
GG+A Benchmark
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79
o Primarily used to identify Major Gift prospects
o Also a useful data set for Communications Strategy
WEALTH
SCREENING
Republicans
Democrats
Female
Entrepreneurs
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PREDICTIVE
MODELING:
PRIZMNE
SOCIAL
GROUPS
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PRIZMNE
SOCIAL
GROUPS:
YOUNG
DIGERATI
Young Digerati
Wealthy Younger Family Mix
Young Digerati are tech-savvy and live in
fashionable neighborhoods on the urban fringe.
Affluent, highly educated, and ethnically mixed,
Young Digerati communities are typically filled
with trendy apartments and condos, fitness clubs
and clothing boutiques, casual restaurants and all
types of bars--from juice to coffee to microbrew.
2010 Statistics:
US Households: 1,403,157 (1.21)
Median HH Income: $91,104
Demographics Traits:
Urbanicity: Urban
Income: Wealthy
Income Producing Assets: High
Lifestyle Traits:
Age Ranges: 25-44
1. Order from expedia.com
Presence of Kids: Family Mix
2. Go water skiing
Homeownership: Mix, Owners
3. Read The Economist
Employment Levels: Management
4. Watch Independent Film Channel Education Levels: Graduate Plus
5. Audi A3
Ethnic Diversity: White, Asian, Hispanic,
Mix
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TAILORING YOUR MESSAGE
Who is already communicating successfully with these people?
o Can their messaging be re-used?
o Young Digerati and the Audi A3: “style, function, performance, and efficiency”
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GIVING BY PRIZMNE SEGMENT
Top PRIZMNE Segments by Cumulative Giving: Living Donors, Pledges and Gift Payments
PRIZMNE
Segment
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Constituents
Cumulative
#
%
$
%
1 (Upper Crust)
23,005
3.8%
$60,739,649
6.5%
10 (Second City Elite)
15,864
2.6%
$49,151,089
5.3%
9 (Big Fish, Small Pond)
21,058
3.5%
$48,458,876
5.2%
7 (Money & Brains)
20,668
3.4%
$48,207,040
5.2%
28 (Traditional Times)
14,721
2.4%
$35,915,855
3.9%
4 (Young Digerati)
9,692
1.6%
$27,331,288
2.9%
11 (God’s Country)
14,445
2.4%
$24,734,985
2.7%
5 (Country Squires)
23,080
3.8%
$19,355,166
2.1%
3 (Movers & Shakers)
19,843
3.3%
$17,055,881
1.8%
2 (Blue Blood Estates)
18,082
3.0%
$14,773,728
1.6%
12 (Brite Lites, Li’l City)
13,636
2.2%
$14,594,901
1.6%
27 (Middleburg Managers)
11,401
1.9%
$13,018,710
1.4%
13 (Upward Bound)
13,876
2.3%
$12,727,111
1.4%
6 (Winner’s Circle)
15,186
2.5%
$10,602,148
1.1%
38 (Simple Pleasures)
10,117
1.7%
$10,348,004
1.1%
The top five PRIZM segments
represent 26% of cumulative
giving
Comparisons among
segments of similar size
shows how much better
some perform than others
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SEGMENTATION: WEALTHY TOP TO BOTTOM
Institution (A) PRIZMNE Segments Relative to US Population
PRIZM
Segment #
PRIZM Segment
Nickname
Percent of
Households
Percent of U.S.
Population
Index
Number of
Donors in
Last 5 Yrs
Participation
Rate Last 5
Years
1
Upper Crust
8,399
14.7%
1.5%
959
2,372
28.2%
2
Blue Blood Estates
3,932
6.9%
1.0%
707
943
24.0%
14
New Empty Nests
3,797
6.6%
1.1%
625
889
23.4%
3
Movers & Shakers
3,796
6.6%
1.6%
420
883
23.3%
7
Money & Brains
4,380
7.7%
2.1%
363
1,004
22.9%
6
Winner's Circle
1,907
3.3%
1.0%
333
411
21.6%
15
Pools & Patios
2,111
3.7%
1.2%
297
466
22.1%
26
The Cosmopolitans
2,063
3.6%
1.2%
294
388
18.8%
10
Second City Elite
1,782
3.1%
1.2%
260
456
25.6%
4
Young Digerati
1,638
2.9%
1.3%
225
361
22.0%
21
Gray Power
1,333
2.3%
1.1%
220
276
20.7%
17
Beltway Boomers
1,160
2.0%
0.9%
214
255
22.0%
8
Executive Suites
1,092
1.9%
1.1%
181
184
16.8%
13
Upward Bound
1,390
2.4%
1.5%
158
333
24.0%
29
American Dreams
1,822
3.2%
2.3%
141
322
17.7%
9
Big Fish, Small Pond
1,530
2.7%
2.1%
126
469
30.7%
40
Close-In Couples
752
1.3%
1.2%
109
130
17.3%
12
Brite Lites, Li'l City
883
1.5%
1.5%
104
211
23.9%
16
Bohemian Mix
1,005
1.8%
1.9%
95
142
14.1%
18
Kids & Cul-de-sacs
801
1.4%
1.5%
93
136
17.0%
High PRIZM
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Number of
Households
Secondary PRIZM
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DIFFERENT ANNUAL STRATEGY?
Institution (B) PRIZMNE Segments Relative to US Population
PRIZM Segment
Nickname
PRIZM Segment #
Percent of
Households
Percent of U.S.
Population
Index
Number of
Participation
Donors in Last Rate Last 5
5 Yrs
Years
10
Second City Elite
2,167
3.8%
1.2%
321
2015
93.0%
14
New Empty Nests
1,707
3.0%
1.1%
285
1608
94.2%
61
City Roots
1,543
2.7%
1.2%
224
4
0.3%
39
Domestic Duos
1,306
2.3%
1.1%
213
14
1.1%
21
Gray Power
1,163
2.1%
1.1%
194
1125
96.7%
15
Pools & Patios
1,356
2.4%
1.2%
194
1259
92.8%
17
Beltway Boomers
980
1.7%
0.9%
183
928
94.7%
1
Upper Crust
1,548
2.7%
1.5%
179
1363
88.0%
40
Close-In Couples
1,182
2.1%
1.2%
175
6
0.5%
9
Big Fish, Small Pond
2,033
3.6%
2.1%
169
1917
94.3%
27
Middleburg Managers
1,604
2.8%
1.9%
150
47
2.9%
13
Upward Bound
1,271
2.3%
1.5%
146
1173
92.3%
2
Blue Blood Estates
762
1.4%
1.0%
139
641
84.1%
46
Old Glories
774
1.4%
1.0%
138
12
1.6%
49
American Classics
789
1.4%
1.0%
135
16
2.0%
12
Brite Lites, Li'l City
1,111
2.0%
1.5%
132
1005
90.5%
34
White Picket Fences
837
1.5%
1.3%
119
18
2.2%
26
The Cosmopolitans
788
1.4%
1.2%
114
12
1.5%
5
Country Squires
1,101
2.0%
1.7%
113
957
86.9%
3
Movers & Shakers
979
1.7%
1.6%
110
810
82.7%
High PRIZM
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Number of
Households
Secondary PRIZM
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COMMUNICATION STRATEGY AND EXAMPLES
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Non-donors
DRIVE YOUR
STRATEGY
WITH DATA:
MESSAGING
BASED ON
GIVING
• “Every gift helps”—pushing ratings
Lapsed donors
• “Your last gift helped accomplish…”
Last year donors
• “On your way” to giving club
Two-year donors
• “Almost there” to giving club
Three-year plus donors
• Most Valued Donor
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POTENTIAL INCREASES IN THE ANNUAL FUND
• Using the GG+A Annual Giving Rating and assuming that 10% of underperforming households
upgrade future gifts, the can expect an additional $673,112 in annual gifts.
• If 25% of the pool upgraded, new gifts can total $1,678,505
Illustration of Potential Increases in the Annual Fund Based on GG+A Ratings, All constituents
Annual Giving Rating
1
($5,000+)
Total Number of Constituents
Donors Below Level
2
($2,5004,999)
3
($1,000-2,499)
4
($500-999)
5
($100-499)
2,208
2,436
1,845
5,400
22,911
817
1,688
1,015
3,438
2,404
Average Largest Giving Year
$1,901
$1,123
$449
$165
$38
10% Donors Upgraded
82
$5,000
169
$2,500
102
$1,000
344
$500
240
$100
$254,109
$232,642
$56,228
$115,197
$14,937
204
$5,000
422
$2,500
254
$1,000
860
$500
601
$100
$632,174
$580,916
$140,018
$287,993
$37,404
Dollars Gained
25% Donors Upgraded
Dollars Gained
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Total Gained
Total Giving
$4,563,503
$673,112
$5,236,615
$1,678,505
$6,242,008
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USING NEW KNOWLEDGE ABOUT DONORS
Determine where to invest greater
resources
o More frequent mailings
o Mailings with more material
More material might include
o Newsletter
o Academic paper written by
faculty/physician
o Wow factor: CD, DVD, flash drive,
library access
o Special phone calls
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BEYOND DEMOGRAPHICS: REACHING THOSE 1,000 WHO AREN’T GIVING
TO YOU
Wealth Screening data can identify outside
philanthropic activity
o Giving to other organizations
o Membership on boards
What is the focus of the medical groups to which they are giving?
o Research?
– Talk about your own research or studies in which your
physicians or staff are involved
o Patient care?
– Talk about your charitable care
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TAKEAWAYS
Page 33
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o External data is inexpensive and integral to
understanding the people in your database.
TAKEAWAYS
o Begin collecting your own data, and use external
sources to supplement it.
o Dovetail your communication plan with your
strategy.
o Tailor your messaging when communicating with
your segments.
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QUESTIONS?
Page 35
Brad Manuel
William O’Leary
Jeff Bradley
Analytics Consultant
GG+A Philanthropic
Analytics
Senior Vice President for
Strategic
Communications
Vice President for
Advancement
Communications
bmanuel@grenzglier.com
woleary@grenzglier.com
jbradley@grenzglier.com
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