While millions of people across the country refer to this special time of year as the Holiday Season, nonprofits use another term that connotes a rather different kind of significance: Giving Season.
To maximize revenues and achieve growth, businesses need to increase customer lifetime value (CLV). However, aside from the obvious focus on selling more products and services to existing customers, there’s a less obvious – yet potentially more profitable – way to proceed: attempt to win back lost customers.
As Stanford University’s Stanford Social Innovation Review states: “development has become one of the most under-appreciated functions in the nonprofit world”. And yet this task is essential, since it not only supports success, but in the long-run it ensures survival.
As defined by quality management pioneer Joseph M. Juran, data is considered high quality when it is fit for its intended use with respect to: decision making, planning and operations. And were he alive today, there is little doubt that Juran would add “predictive analytics” to the list.
The fundamental promise of Predictive Analytics is that it effectively and efficiently predicts consumer behavior, and ultimately delivers actionable intelligence to optimize marketing and sales campaigns, acquire more customers, and drive revenues. That is the good news.
While selling a product or service in a competitive marketplace can be a challenge, it is a proverbial walk in the park compared to what most non-profit organizations experience as they strive and, indeed, often struggle to capture the hearts and wallets of their donor base.