4 Ways to Prospect That Will Enhance Your Outreach

ways to prospect

Using wealth and lifestyle insights along with predictive analytics, you can gain a deeper understanding of your current and prospective donors and customers. Our rich data can help you personalize your outreach and improve your sales, marketing, and fundraising efficiency. Here are 4 ways to prospect that will benefit your everyday processes:

1. Use Look-Alike Models to Help Your Staff Understand Your Existing Customers or Donors Better.

Wouldn’t it be nice to better to gain a holistic understanding of your audience with a 360-degree view of their wealth, lifestyle, demographics, and contact information? That’s where wealth models come in.

A model is a custom algorithm designed to uncover what makes your top donors or customers unique. Using a wealth model, you can pick up on the commonalities and characteristics that make your donors unique. There are two ways to prospect with custom algorithms: through descriptive models or predictive models. In the case of wanting to gain a clearer impression of the characteristics of your top donors or customers, descriptive models allow us to take data you already possess and show you commonalities and unique qualities of your donors or customers.

But let’s take this a step further. Using a look-alike model (which would be considered descriptive), you can pinpoint individuals who display similar characteristics to your best donors or customers. This could be based on factors like giving capacity and demographic and lifestyle data. This can help you identify prospects, both within and outside your existing base, who resemble the donors from your chosen segment of ideal existing donors.

2. Screen Your Database to Maximize the Effectiveness of Your Outreach Efforts

Our solutions help you segment our those who have the greatest capacity and propensity to spend or give at your company or organization. This leads us to our second effective way to prospect: wealth screenings.

A wealth screening is the process of attributing wealth-related information to a list of your contacts. In doing so, you gain a greater understanding of their propensity and capacity to give or spend. So, when you append your list of customers or donors with traits related to wealth, you’ll be able to gain a greater sense of who to reach out to.

You can also do this by leveraging WE Analyze. Using Analyze, you can evaluate screening data on your existing customers and donors. This gives you a clearer picture of their distinct characteristics and traits. This will help you easily visualize who your loyal constituents are; help you learn more about them; and create a buyer or donor persona. This will help you identify prospects who would be likely to give to your organization.

In short: wealth screenings provide you with additional information about an individual’s wealth. So, besides gaining a greater understanding of a person’s income, you can also gain insights into their interests, real estate holdings, estimated giving capacity, and giving history. All of these traits give you a better impression of which prospects to pursue. This will further enable you to target the right people with the right ask at the right time.

3. Leverage Predictive Models to Gain Deeper Insights into what makes your audience tick.

Another incredibly beneficial way to prospect is by leveraging predictive models. These models can help you uncover top donors or customers just like your best. This will allow you to personalize your messaging ensuring your communications are resonating with your audience and increasing the effectiveness of your outreach.

Unlike descriptive models (models created using your existing data), predictive models are custom algorithms created by the WealthEngine data science team. With these unique, tailored algorithms, we can predict who is most likely to give or spend to your organization specifically.

So, let’s say (once you’ve used a descriptive model) that you find that your top donors or customers are men over the age of 50 who own two pets. That’s what your best constituents look like. After gaining these insights, you can use a predictive model to find constituents who best match this persona. This can come from within your database or within our prospecting database. So, you can gain greater insights about the interests of your audience and determine which net new prospects would be most likely to give or spend with you.

4. Segment Your Database to Improve your Sales and Marketing Efforts.

Our rich data provides what you need to confidently and effectively segment prospects and personalize outreach. So, once you’ve conducted a screening, you can divide your audience based on different attributes. This can be based on demographic traits or their propensity or capacity to give or spend.  So, by bucketing your donors based on their commonalities, you can figure out effective ways to engage them. In short, this will increase the efficiency of the department and streamline your processes. Additionally, it will help you build pipeline and close deals or gifts quicker.

The Best Way to Boost Your Prospecting Efforts?

Test drive WealthEngine to find your next best prospect! Discover their Propensity to Give (P2G), Estimated Giving Capacity, Connections, and more.

Take advantage of these simple solutions to drive sales or donations. Why continue doing the same things over and over expecting a different result? Instead, take this opportunity for a fresh start and a renewed approach to fundraising, sales, and marketing success.

Giving Day Ideas for Your Fundraising Event

Giving-Day-Ideas

Part of your group’s Giving Day planning should include some activities that create enthusiasm for your fundraiser. Different Giving Day ideas can help put your organization in the spotlight with donors and the media. All that attention can lead to having even more people excited about your cause — and contributing!

What kinds of Giving Day ideas can you implement to increase your chances of success? There are many ideas that could possibly fit in with your fundraiser. It’s a matter of determining which unique activities would most appeal to your target donors. Giving Day ideas are limited only by your imagination, along with your time and budget.

Giving Tuesday Toolkit

WealthEngine’s Giving Tuesday Toolkit can provide you with more information on how to prepare for your Giving Day Event.

Giving Day Campaigns to Build Support

There are plenty of Giving Day ideas that can be part of your fundraiser. Some are more tried and true. Others are a little, well, off the wall, and may not work as well for your group. Then again, you may be surprised. Keep in mind that millennials tend to be generous donors when drawn to your cause. They also like to be part of the activities. So if you can, give them a way to get directly involved. In any case, whatever you can do to build excitement can only help energize your fundraising efforts.

To get you started, here are some Giving Day ideas for campaigns.

Peer-to-peer campaign

A peer-to-peer campaign relies on tapping into personal networks for higher total donations. A $500 personal donation? Maybe not. But how about asking five friends for $100 apiece? Classy, a creator of fundraising software for nonprofits, found the median, nonrecurring donation is $50. Peer-to-peer one-time donations are higher, with the median at $105. And your message will also become known by more people.

Game of Tag

This Giving Day idea is intended to grow your donor list even more than gain donations. Here’s where you typically ask for a smaller donation, such as $10 or even $5. The key here is the second “ask.” Have each donor tag a specific number of people to donate the same amount. Say the amount is $10, and you’re asking them to tag four or five of their friends, family or coworkers via personal social media. Everyone who gets tagged must match the first gift to your campaign. (Who would turn down a $10 request from a friend?) Then those people tag four or five more people, and so on. You get the idea.

Giving Day competition

If your group has chapters, departments or teams, you can benefit from a friendly Giving Day competition. For those who bring in the most contributions, award them more than just bragging rights. How about a small prize? Lunch for everyone in the department? A pair of movie tickets for each person? You’ll find something appropriate.

Performance challenge

Get your donors excited about your Giving Day fundraiser when you reach certain milestones. How about having someone perform an unusual activity. What kind of performance might your audience pay to see? Would your donors like to watch as the head of your organization splashes into a dunk tank? Or maybe a local celebrity could perform some kind of activity? Then record those moments and share them online.

Donor incentives

A variety of incentives can help motivate donors to give more. Matching funds are a great way to build excitement and encourage donations. You can either match funds according to a dollar amount (the first $100,000) or a time period (from 1 p.m. – 3 p.m.). Ideally, you’ll be able to get multiple sponsors to provide matching funds. And who wouldn’t want to contribute if their dollars are doubled?

You can also “award” merchandise. Here again, the type of prizes you offer is unlimited. But make it something your donors will actually want or use. This way, they’ll keep the item and be reminded of your group. Even a logo coffee mug could fit the bill.

 Silent auction

Silent auctions can work well for many types of fundraisers. If you can secure unique items and even experiences (as in a travel package), better yet. You’ll be offering donors an opportunity to support your cause and receive some cool merchandise. Here it’s all about creating a bidding war.

Live event

Plan a live event or two to coordinate with your Giving Day. Make it entertaining. Special events can range from a carnival to a Vegas night. And get sponsors to help pay for associated costs.

Put Some Fun in Your Fundraising

Here are some Giving Day ideas more specific to different types of groups. See if there’s one (or more) that will work for you.

Higher Education Giving Days

Branded merchandise

Stir up alumni spirit. Graduates of colleges and universities typically feel a great sense of pride in their alma mater.  Offer T-shirts, coffee mugs and tote bags as an incentive for donors at a certain donation level.

Free tickets

Does your institution have a theatre company or host sporting events? Encourage higher donations in exchange for complimentary tickets.

Buy a brick

Is your institution planning any new construction? Give donors a chance to “buy a brick” for a building, walkway, or whatever structure is in the works. You can also sell the bricks from a historic, razed building.

Campus Giving Day events

Coordinate campus Giving Day events for those who are local. Event ideas should be fun stuff, such as a scavenger hunt or concert. Or how about a more formal, black-tie dinner?

How successful are higher education Giving Days? A Giving Day shared by Cornell, North Carolina State, Purdue, and Notre Dame raised over $60 million in spring 2019. In 2018, Cornell’s Giving Day activities set records by bringing in nearly $8 million in 24 hours.

Healthcare Giving Days

Health-related performance challenge

If you’re in the healthcare business, why not set up some type of a health-related challenge. It could be based on the amount of funds donated. Would a recognized person in your organization be willing to do pushups? Jump rope? Or how about a local celebrity?

Pledge event

A walk-a-thon, bike-a-thon or fun run would be an appropriate event for a healthcare organization. This is where donors “sponsor” participants in the main event, which would take place on Giving Day.

Donation fever

Take the “temperature” of your fundraiser. Show your donation progress visually with some type of thermometer. It’s healthcare, right? Encourage donors to turn up the heat.

Share progress reports by video and on social media so donors can catch your enthusiasm.

Advocacy Giving Days

Sales for the day

Partner with local businesses for a portion of their sales on your Giving Day. A restaurant could share 25 percent of the day’s receipts. Or it could be 10 percent of fuel purchases at a local gas station from noon to 5 p.m. Whatever it is, get the local business community involved and share their offer online. In return, they may get new customers as well.

Themed party

A themed fundraising event can be especially fun. The theme can even relate directly to your cause, such as an animal-themed event if you’re an animal rights group. Or an international cuisine sampling to call attention to hunger.

Success stories

Prepare special videos to run online that highlight those who have benefited from your organization. Have animals been rescued? Have teens assisted seniors? Has a new program helped homeless people get back on their feet? Tell those stories.

Whether you’re advocating for literacy, the elderly, policy changes, or some other issue, incorporate special Giving Day ideas. Tug on the heartstrings and wallets of your donors.

Get Creative for a Bigger Payoff

Giving Day fundraising primarily takes place online. Yet implementing creative Giving Day ideas can get supporters even more involved with your fundraiser and increase donations. And even local activities can be shared visually with those online.

It’s important to engage your donors on an emotional level whenever you can. Make them feel like they’re a part of your fundraiser and inspire them to take action. Beyond monetary donations, Giving Day ideas are designed to raise awareness of your mission.

WealthEngine can help you prepare for your Giving Day activities. Analyzing data related to the interests of your donors can assist you in determining which Giving Day ideas would have the widest appeal.

Our Giving Day Series

This is the fourth article in our Giving Day series. You can read more about Giving Day best practices in our first three articles on 8 Reasons to Hold a Nonprofit Giving DayGiving Tuesday vs. Giving Day: Which Fundraising Day Best Suits Your Needs? and How to Leverage Giving Days for Your Nonprofit Fundraising.

WealthEngine CEO Message – Business Continuity Amidst COVID-19

wealthengine covid-19 coronavirus

As organizations brace for the effects of COVID-19, I wanted to share what we are doing at WealthEngine to continue to provide you with our team’s full support and services.

We are monitoring the news carefully and following recommendations by the Centers for Disease Control and the World Health Organization to minimize interactions in group settings.

WealthEngine’s platform runs on the cloud and our staff at all of our locations, including our support team, has remote access to be able to work from home. We do not anticipate any downtime or delays in responding to your support or sales questions.

This is a trying time for our nation and the world. Like many organizations, I have requested our staff to avoid air and train travel for the time being and to schedule meetings online. Our team is also adding more articles, guides, podcasts and webinars in our Resources section to help you with ideas and strategies to achieve your 2020 plans, which may also be impacted.

We will keep you updated through our social channels and email regarding any issues should they arise. Please contact us using the Contact Us button below if you have any questions.

Stay safe!

PV Boccasam
CEO

Questions? Please Ask.

Nonprofit Events: 5 Ways To Transform Event Participants into Donors

nonprofit events

Hosting fundraising events can be a great way to build support for your cause, identify new prospects, build a relationship with new donors, and build your base of support. Whether you work for a charity, hospital, university, theater or advocacy organization, now is the time for you to create a plan for how to transform your nonprofit event participants into donors.

Here are 5 steps to consider when planning your nonprofit event to find new event participants; identify fresh prospects; and maximize your relationship with existing event participants:

1. Promote your nonprofit event via social media to find new participants.

Don’t put on the same event for the same participants who are donating year after year. It’s important to find new constituents to invite to your events. So, by casting a wide net you will find prospects who are interested in your cause or activity and, with the proper follow through, they can be turned into donors.

Publicize your nonprofit event on Facebook, Twitter, LinkedIn, etc. Be sure to include a call to action with every post, either a way to request more information or to register directly on your website.

Have your loyal supporters and advocates publicize your event for you to ensure it is being viewed by as many eyes as possible. By asking existing event supporters and past participants to share the event via their own social networks, they are giving your nonprofit’s event a credible voice by publicly showing their support and also finding you new participants (and new potential donors!).

2. Build out your invitation list and find new high potential prospects to participate.

As you build out your event invitation list, consider ways to expand your universe to include more high potential prospects. Be sure to leverage board relationships, and consider tools that will inform you of who in your board’s circle of friends might participate, as you work to strategically develop this list.  Consider new avenues to pursue as you market the nonprofit event broadly, such as local interest groups and clubs.

Questions to ask yourself might include:

  • How do I find new constituents with high giving potential that might be interested in my event?
  • Which are the most capable prospects to invite to our nonprofit event?
  • Who do our board and other VIPs know that may respond to a personal invitation to our event and who should ask for their participation?

3. Screen event participants before and after your nonprofit event.

It is important to review your event participant list both before and after your event. This ensures that you know the financial capacity of participants and that no wealthy prospects slip through the cracks.

As you get to know your list inside and out and identify the participants with the highest giving potential, develop a plan for your high potential prospects. Consider inviting them to pre- or post- event VIP activities, such as breakfasts or post-event celebrations. If the idea of planning an event around your event is too much for you, consider sending invitations for meetings or “grabbing coffee” a week or two after the event itself. Personal follow through with each high–potential prospect is a must to create ongoing engagement and to understand the individuals’ motivations and interests.

4. Use metrics as you wrap up your nonprofit event for the year.

Applying analytics to your event list for both segmentation and tracking is crucial as you wrap up the event and before you move on to your next big challenge – the ask. Metrics to consider include:

  • Event Return on Investment (ROI)
  • Cost to Raise a Dollar (CRD)
  • Cost per person for event
  • # of gifts received from event
  • % of giving from event
  • Dollars contributed from event
  • Average event gift size
  • Event cost

Be sure to segment your nonprofit event list to determine who needs immediate follow-up, based on their wealth profile. The more active you are in your efforts to stay in touch, the easier it becomes to begin building a relationship with your donor.

5. Once you know enough, make the ask!

Before asking your prospect for a substantial gift, there are a few questions you want to be sure are already answered:

    • What is this donor’s interest or passion and where does it align with our mission?
    • Which project will they be most interested in funding?
    • What is the correct ask amount for this donor? This should be in harmony with the project or need you are seeking funding for. This should also be aligned with your donor’s capacity to give.
    • Who should be involved in the solicitation? The president or CEO? A board member? A friend or colleague?
    • Is this the right time to ask?
    • Who else may be involved in their decision to give? A spouse? Other family members? Financial or tax advisors?
    • How does s/he want to be recognized for a gift? Knowing their stewardship desires before asking for the gift ensures you handle any gift negotiations appropriately, and also that you accomplish post-giving appreciation and recognition in the most meaningful way for the donor(s).

Transform Your Development Program By Growing Individual Gifts

Uncover the most effective tools you can use to expand, strengthen, and track your organization’s individual giving program.

When you know the answers to these questions in advance, you will be making a solicitation that is hard to say no to.

Luxury Consumer Demographics: Mining Your Database to Lower Customer Acquisition Cost

luxury consumer demographics

Everyone is looking for new customers for luxury marketing. What you may not realize is that a great source of new business is your existing customer database. By understanding the demographics of your luxury consumers, you can identify effective ways to strengthen your existing customer base. Here’s how you can mine it to lower your customer acquisition cost.

Reduce Your Customer Acquisition Cost

The key to reducing your customer acquisition cost lies in how closely your past customers match your current target luxury marketing customer profile. The better the match, the more likely you’ll attract wealthy clients and have repeat customers. By evaluating luxury consumer demographics, you can gain a deeper understanding of your existing customers. Correctly mining your current customer list can provide an abundance of prospects for your latest products or services.

Certainly, it’s important to grow your business and increasing your number of net new customers. Yet, the first step in proper luxury marketing is to go back to your existing database, to cultivate and nurture your customer relationships.

Getting Past Customers to Buy

Not only is it less expensive for a business to retain past customers, it’s also more profitable. A Bain & Company study found that just a 5% increase in customer retention can increase a company’s profitability by 7%. Also, the average amount spent by a repeat customer was two-thirds more than a new customer.

According to a MarketingProfs.com article, getting your past customers to buy from you again can also result in more ongoing revenue. If you can convince your customer to make a second purchase, that customer is more than twice as likely to buy a third time. And that customer is more likely to buy even a fourth time! If you’re able to make even a small increase in your conversion rate for second-time purchases, you’ll see serious revenue growth.

So honing in with the right targeted marketing for your one-time buyers will increase the amount of second-time purchases. And once you’ve gotten them to make that second buy, it’s often only a matter of time before they make their next purchase. You’ll also reduce the customer acquisition cost.

Mining Your Luxury Marketing Database

Customers who happily made a purchase from you are more likely to buy again. The question is: what do these consumers look like? Do they have common traits that lead them to make a purchase? Of course, you can start with purchase data to help determine what else they may buy from you. But purchase history alone may not be a good indicator of future luxury purchases.

Say you bought something at a fashion retail store. You’ll be in that retailer’s customer database. They may have your email address. They may have your name. But they have no idea what your potential is to buy more in the future. These are just some examples of luxury consumer demographic information you can leverage to understand how best to reach your customers.

Previous spending is also a key component of luxury marketing, but it should not be the only data point you’re using. Not all existing high net worth customers will have the abilty or capacity to spend more with you. So, identifying those who do is essential to enhancing your revenue and driving a higher customer lifetime value.

Finding Repeat Luxury Marketing Customers

Luxury consumer demographic data beyond income or net worth will be valuable in determining your luxury marketing focus. Besides wealth, there are plenty of other data points to consider.

“We advise our customers to take their database and append it with our Wealth Engine information,” explains Bischoff. ”Appending means we match their records with ours. We have a database of 240 million individuals in the U.S., covering about 85% to 95% of the adult population. We match these individuals with our data and our system. Then we can add to the information that our clients have.”

One person may have a net worth of $5 million. Another person’s net worth is over $500 million. Plus there are up to 1,200 different data points on likes, affinities, donations, causes they support, etc. All this WealthEngine information is reported back to our clients. That allows them to start pinpointing their luxury marketing efforts toward people they already know. They already know to contact these people because a lot of them gave contact information in a prior buying session. That is the starting point.

Locate Your Best Luxury Marketing Prospects

Once you understand all of these things about your existing database, you can then start to make use of other resources. Those include AI, machine learning, and any kind of predictive modeling to score that database. By scoring, you can determine the best of the best luxury marketing prospects.

Should your database be segmented or categorized? Should you not market to the entire database, only two segments of it for certain products or services? The real trick is that score, which is a very unique feature of WealthEngine.

Getting specific about who you’ll be marketing to can make your work much more efficient. It is imperative for brands, both luxury and non-luxury, to prioritize and segment their customer base. Then they can identify who they should focus their time and budget on in their marketing campaigns.

Going Beyond Your Current Luxury Customer List

In addition to pulling your best repeat prospects from your own list, you can apply that modeling score to new prospects. The WealthEngine database is full of individuals with whom you have not had any previous interaction. Combining your data with WealthEngine data will model those potential luxury market buyers so that you can reduce your customer acquisition cost. Luxury marketing is not just about previous buying habits, but identifying others who are most like you past buyers. They are prospects who have the tendency to make purchases and have wealth to do so.

In that case, WealthEngine will give you the most “lookalikes” to your best customers. Those are people you know as your best customers based on how well they fit your target profile. Then, you will actually be marketing to the people who look most like those who already have some relationship with you. That will definitely reduce your customer acquisition cost.

Uncover the Best Ways to Appeal to Millennial Millionaires

Looking to target high net worth customers for your brand? Download our report partnered with Coldwell Banker, A Look at Millennial Wealth, to discover the best ways to engage wealthy millennials.

Comprehensive and informative data is a prerequisite to everything marketing today. It’s the foundation. You need to know demographic information on luxury consumers before you can customize your engagement strategies.

Luxury Lifestyle Marketing: 3 Ways to Appeal to the Lifestyle Consumer

luxury lifestyle marketing

Luxury lifestyle marketing has changed. No longer can you simply market an image of your brand and expect that it will make a great impression on a lifestyle consumer. Today’s luxury buyers purchase items that act as an extension of their values and identity. Let’s explore how best to appeal to them.

What is luxury lifestyle marketing?

Luxury lifestyle marketing is the process of high-end brands forming a relationship with a targeted group on the basis of their shared values and interests. High-end brands use their products as a means of communicating and forging deep emotional connections with their consumers.

Each brand has an identity. For example, Jeep’s identity is the “adventurer”. Adidas’ identity is “athletic”. Each brand has an identity that’s connected to a specific set of attitudes, values, and interests. Consumers, then, want to engage with brands that have a similar identity to theirs. So, when a brand with a particular set of values appeals to a consumer with a similar set of values, that process of influence is an example of luxury brand marketing.

Appealing to the Lifestyle Consumer

No lifestyle consumer is the same. Think about your circle of friends: do all of you hold the same interests? Do you all hold the same values? Today’s lifestyle consumers engage with brands that allow them, or give them the tools, to connect with their ideal selves. In that sense, not every luxury brand will appeal to every lifestyle consumer. That is why it is important to find and forge relationships with consumers whose ideals align with your own, and vice-versa.

In general, lifestyle consumers don’t want to be “sold” anything. They want to resonate with high-end brands on an emotional level, and feel that they’re part of a community that they support, and that supports them.

In order to appeal to the lifestyle consumer, you have to ask yourself two questions:

  • What values do we want to promote?
  • What type of emotional connection do we want to have with our consumers?

By determining what type of relationship you want to have with your consumer, you’re better able to cater to their evolving needs.

Uncover the Best Ways to Appeal to Millennial Millionaires

Looking to target high net worth customers for your brand? Download A Look at Millennial Wealth to discover the best ways to engage wealthy millennials.

3 Keys to Building a Successful Lifestyle Brand

Your consumers’ needs and values is the foundation. So, what can we lay on top of this foundation to create something sustainable and influential? Here are the 3 keys to building a successful lifestyle brand:

1. Understand your Lifestyle Identity

Adidas’ identity is athletic. All Saints’ identity is edgy. What’s yours? Being able to clarify your identity allows you to narrow your focus, and understand what kinds of customers you’ll be forming deeper connections with. In luxury lifestyle marketing, knowing your identity helps you identify the values and products your customers will feel most connected to. By determining your identity as a lifestyle brand, you’ve just opened the door to all the necessary information you’ll need, not only to become successful, but to become influential!

2. Be Personal

If you want to forge emotional connections with potential and existing consumers, you need to know who you’re talking to. You may have people walking through your door with differing needs, yet all of them likely share similar values. It is important to create targeted messaging using hyper-personalization so that you focus on their interests. Each consumer is an influencer. You want to articulate that you hear and see them—and that you are not simply trying to sell them your product.

It’s also important to show them that you’re receptive to their perspectives and ideals. The way they are, and who they are, is of value to you, and you want to cater to that. You can also forge these emotional connections by creating novel experiences for your consumers. When your offerings and your overall branding is striking, the experiences that you’re offering to your existing and potential consumers, will stay with the people who believe in your values.

3. Leverage Wealth Screenings

Correct data tells a story about an individual. Instead of trusting that each of your consumers will find what they need from you, you have to get to know more about them. This all starts with a wealth screening.

With a screening, you can identify, divide, and prioritize your customers and prospects. This can be done bast on demographics or their propensity and capacity to spend. Instead of looking up people one by one in search, you can entire an entire list of people you want insights on which we’ll return to you all at once.  This will help inform and enrich your luxury lifestyle marketing strategy.

When you look at the wealth, age, behaviors, and demographics of individual customers, you are better able to anticipate their needs based on their values. Using a screening, we can then identify their propensity to stay with your brand, and understand what they may want to see or purchase in the future that you could create. Becoming attuned to this information allows you to create a loyal customer base. More than that, you’ve now created something even more integral: community.

Starting a Capital Campaign: What To Do Before You Begin

starting a capital campaign

Even though you have a general idea of what your goal is, and you’re ready to begin reaching out to donors, it’s important to dig into the details of your campaign before you start. Ask yourself: what do we need to do before starting our campaign? What, specifically, is our goal? What’s our budget? Here are some tips and information to help you in starting a capital campaign.

What to do Before Starting a Capital Campaign

Before you begin reaching out to major donors, you need to figure out if you’re ready to start a capital campaign. When planning a campaign, it’s important to conduct:

An internal audit.

Internal audits allow you to evaluate the internal controls of your organization. By evaluating the rules and procedures of your company, and identifying and correcting existing or potential risks, you’re able to assess whether or not you’ve got everything you need to create a successful campaign. If you’re starting from a safe space, you’ll be able to bypass unintended problems.

A feasibility study.  

Feasibility studies help you determine whether or not your campaign is doable. It’s important to bring in an objective, unaffiliated representative to communicate with stakeholders and focus groups. By doing so, you’re able to gauge potential donors’ opinions about your campaign. “Will people donate to your campaign? Is your board supportive of your campaign? How much could you reasonably raise?”

A pre-campaign plan.

Once your campaign’s given the green light, you can begin drafting a campaign strategy. During this time, you should begin identifying major donor prospects you’d like to contact during your quiet phase. Essentially, you’re getting everything prepped and ready to go so your team will be ready to execute your campaign when the time comes.

Answering these questions will help guide your campaign and enable you to determine your fundraising goal.

Setting Campaign Goals

The best way to set a campaign goal is to evaluate your needs as an organization. Common mistakes companies make is setting goals based upon how much is needed for the project, and jumping in immediately. The goal is then meant to serve the immediate needs of the organization, instead of the needs of the community at large. When that happens, your campaign is more likely to fail, and it takes about a decade to regain credibility in your community.

Ideally, you should create a goal that’s based upon your ability to raise the money to pay for your project. In the pre-campaign planning stage, your leadership and volunteers should agree upon the amount of money you’ll raise. It’s important to understand the passions of your donors, and then aligning their passions to specific funding areas.

After setting your goal, it’s important to outline how the funds you raise will be divided to accomplish different parts of the campaign. One way of doing this is by creating a gift-range chart. This will help you break down your goal into manageable donations that can be met periodically, helping you meet the deadline for your goal.  

Setting a Campaign Budget  

Now that the pre-planning stage is complete, it’s time to plan your capital campaign. After setting policies in place, and confirming that your Board and leadership team are on the same page, you have to look at your campaign budget.  When looking at your existing budget, to create your campaign budget, you have to ask yourself:

  • Where’s our money coming from?
  • What’s our existing amount of money?
  • What percentage of our budget is coming from individuals?
  • What percentage of our budget is coming from foundation funding?

You also have to consider other factors in your budget such as extra staffing needed during construction; construction costs; material costs; employee salaries; travel; and events. By looking at your expenses, you’ll become more clear about how much money you’ll need to fundraise—not only for your goal but for everything leading up to it.

Finding the Right People to Target for Donations

During your planning phase, it’s important to leverage two tools to ensure that you are reaching donors who will be most likely to give to your campaign: a wealth screening and a major gift model

Screening

Using a wealth screening, you can find, segment, and prioritize your prospects. In short: a screening can help you determine which of your donors has the greatest propensity and capacity to give. So, not only can you group donors based on demographic similarities, but you can also append your donor base with wealth attributes. This can help you more easily understand how much an individual has donated in the past (giving history) and how much they’re likely to give in the future (estimated giving capacity). By gathering these data points, you can clearly determine which of your existing donors is most likely to give to your organization. You can then create a personalized and data-driven approach to your outreach strategy, strengthening your chances to build lasting relationships with your donors–even in the beginning stages of your campaign.

Model

Not only is it important to gain a more holistic view of your existing donors, but it’s also important to determine which prospects would be most likely to give to your campaign. That’s where wealth models come in.

A model is an algorithm, tailor-made to satisfy two needs: to help you identify the unique characteristics among your donors (descriptive models) and to help you predict who’s most likely to contribute gifts to your organization (predictive models). So, a descriptive model allows us to show you commonalities among the individuals who are already in your donor base. For example, you may find that donors in your database who have decided to make major gifts are women over the age of 40 who have cats. So, what if you want to identify potential donors who are just as likely to give as this segment?

Using a predictive model, our data scientists employ WealthEngine data along with your data to create a unique, custom algorithm. Using this algorithm, we can more easily predict which prospects are most likely to contribute major gifts to your organization. This model can also help you score prospects to see how they fare against your best donors. You can then rank your prospect lists by order of similarity to your best. So, you’re able to easily determine who, within your database will contribute gifts to your organization specifically.

 

Uncover More Insights to Boost Your Capital Campaign

Unearth more insights on how to successfully boost your fundraising efforts using our Capital Campaign Guide.

Giving Tuesday vs Giving Day: Which Fundraising Day Best Suits Your Needs?

giving tuesday vs giving day

Your organization would like to participate in a major event fundraiser. The question is: should you take part in Giving Tuesday? Or would it be better for your group to plan a separate Giving Day? Let’s explore the factors you should consider when deciding between Giving Tuesday vs Giving Day.

Giving Tuesday vs Giving Day: Fundraising Factors to Consider

Both Giving Tuesday and designated nonprofit Giving Days hold similarities and differences. To start, both Giving Tuesday and Giving Day are both limited time fundraisers that take place online. The primary goal for both is to collect as many donations as possible within that short period of time. Yet they are as much about raising awareness of good causes as about raising funds. These giving events promote collaboration, encouraging people to come together to benefit the community.

Giving Tuesday vs Giving Day: Which Giving Day Should You Plan For?

A Giving Day can be held on any day of the year. Giving Tuesday (or #GivingTuesday) is a Giving Day, it’s just held on a specific date. Giving Tuesday takes place on the Tuesday after the U.S. Thanksgiving holiday. It was launched in 2012 in partnership between New York’s 92nd Street Y and the United Nations Foundation.

Giving Tuesday is intended to kick off the season of year-end giving. People tend to be feeling grateful after Thanksgiving. Giving Tuesday offers them an opportunity to consider how they can “give back.”

At its core, Giving Tuesday has been described as a “global generosity movement.” Yes, it’s a charitable fundraiser. But it’s also about giving time as a volunteer or sharing talent. It’s about being an advocate or activist. It’s about showing kindness, such as giving a smile or a hug. And it’s also about donating goods in addition to money. The point is that everyone has something to give.

From a fundraising standpoint, the initiative behind Giving Tuesday is to get people excited about giving. The same way they may get excited about holiday bargains. Any Giving Day is best organized and promoted in a way that fosters a similar sentiment as Giving Tuesday. To be most effective, the event should create a sense of community and enthusiasm around a common cause.

The Success and Growth of Both Giving Days

More than 1,400 charities took part in Giving Tuesday in 2012. Since then, Giving Tuesday has become an annual holiday tradition. Over 200 Giving Tuesday movements take place in the United States. And there are Giving Tuesday campaigns in 60 countries. In July 2019, Giving Tuesday even established its own organization.

Giving Tuesday has grown to inspire hundreds of millions of people worldwide to give to good causes. Giving Tuesday efforts have raised more than $511 million online in the United States alone. Nonprofits taking part in Giving Tuesday may even receive matching funds for a portion of their donations. This alone can incentivize donors to contribute.

Giving Days other than Giving Tuesday have also increased in popularity. Hundreds take place in the United States, often in a specific geographic area, such as a state or region. These events typically benefit the member nonprofits of community and civic foundations. And some Giving Day fundraisers are extended to a week or longer so supporters have more time to contribute.

Giving Day in Austin, Texas, for example, raised over $11 million in 2019. A South Central Texas Giving Day pulled in over $4.7 million for 545 participating nonprofits. Several major universities teamed up for a Giving Day last spring and raised over $60 million. Give to Lincoln Day, a Giving Day in Lincoln, Nebraska, broke all records in 2018. The fundraising event brought in more than $4.5 million. New York City’s #NYGivesDay raised $15.7 million in 2017.

The Red Cross holds its own Giving Day in March, as part of Red Cross Month. March 25, 2020 is this year’s official Red Cross Giving Day. However, donations accepted throughout the month will count toward the March 25 goal. Besides raising funds, the Red Cross works to increase awareness of its needs.

Excellent Fundraising Opportunities

Should your organization plan for Giving Tuesday, or a different Giving Day? Any group desiring to raise funds and awareness should consider at least one of these events. Either giving event can benefit a nonprofit organization in a number of ways.

Giving Tuesday is a specific day for contributions. For most organizations, there is room for another special Giving Day. Partnering with foundations especially can be a smart way to bring in dollars with the help of others. Your common mission is to get people to think about charitable giving in a different way. Everyone then benefits.

  • Participating in Giving Tuesday and/or Giving Day can increase the visibility of your organization. Having a foundation promote the event will help spread your message far and wide.
  • Giving Tuesday or a Giving Day provides an excellent way to reengage with your current donors. This is an opportunity to get your donors excited about your fundraising efforts.
  • Equally important, a major fundraising event will put your cause in front of new potential donors. And you’re very likely to add some new (and potentially regular) supporters to your Giving Tuesday list.
  • Your group can use the data collected from a Giving Day event to learn more about your best donors. You’re also bound to learn new fundraising kills you can implement during future events.

Don’t look at Giving Tuesday or any other Giving Day as a single event. Think of them as part of a year-long integrated fundraising plan.

Leveraging Wealth Screening to Find Your Best Giving Day Donors

So, whether you choose to participate in Giving Tuesday, a separate Giving Day, or both, a wealth screening can help you identify potential major gift donors. So, what is a wealth screening exactly? A wealth screening is the process of applying wealth insights to a list of contacts to better understand their propensity and capacity to give. In that sense, wealth screening can help you identify your best prospects and donors with accuracy and precision. So, screenings help you find, segment, and prioritize your prospects so you can focus on the right ones.

To do a screening, all you have to do is upload your list of contacts and select the attributes you want to apply to them. We will then screen your contacts accordingly and provide you with new information on those individuals.

When you append your database with wealth attributes, you’ll know who within your list you should reach out to. These insights will also give you an impression of their interests. This will help you create hyper-personalized messages that speak to your donor’s needs and inspire them to give, now and in the future. If anything, screenings give you a good impression of who you should cultivate and nurture relationships with. Especially if they’ve donated to you in the past, but have the ability and the inclination to give even more. This is an opportunity for you to pursue those donors further, and possibly triple or quadruple the value of gifts you receive from them.

The Best Way to Boost Your Giving Day Efforts?

Test drive WealthEngine to find your next best Giving Day prospect! Discover their Propensity to Give (P2G), Estimated Giving Capacity, Connections, and more.

Our Giving Day Series

This is the second blog in our Giving Day series. Read our first blog on the ins and outs of nonprofit giving days and stay tuned for our next blog that discusses how to leverage Giving Days as part of your nonprofit fundraising strategy!

Redefining “Luxury Brand” for Luxury Brand Marketing

luxury brand marketing

Why do consumers consider one brand to be a “luxury” brand and another brand not? Exclusivity? Performance? Quality? Innovation? Heritage? For the most part, those all have been defining characteristics of a luxury brand, and they still are. However, there’s been a shakeup underway. The traits that carry the most weight with consumers in today’s luxury market have changed. Let’s explore the ways different brands are redefining what it means to be a “luxury brand” when it comes to luxury brand marketing.

“The definition of ‘luxury’ is undergoing a paradigm shift in the consumer market,” said marketing expert Pamela Danziger. Unity Marketing and Luxury Daily recently surveyed over 600 luxury retailers and marketers. They found that the definition of luxury is the “number one disrupter of the luxury business.”

What does this mean for how businesses approach luxury brand marketing? If you know how consumers think of luxury, and what drives their purchases, it can help you determine the best strategy to attract wealthy clients. You can also reduce the cost of acquisition.

The Prioritization of Quality for Brands

Ask any Apple buyer how well they like their Mac or iPhone. They’ll undoubtedly tell you they believe Apple products are far superior to any competitor. It doesn’t even matter if competitive products offer better features. Apple may got its start by launching a unique computer product to compete against Microsoft. But Apple’s following has grown far beyond disgruntled PC users. There may be a certain “status” to owning an Apple product. However, the company built its brand on a reputation of quality and performance.

Now consumers are defining luxury differently. Just a few years ago, quality took over as the leading characteristic of luxury. Data from a recent major report confirms that quality, not exclusivity, is now the key definer of luxury for consumers globally. According to Albatross Global Solutions and Numberly’s fourth annual “The Journey of a Luxury Consumer” report, 85% of luxury consumers say quality is the most important characteristic.

“What separates true luxury from the idea of luxury is quality,” says Javier Calvar, chief operating officer at market research firm Albatross Global Solutions.

Younger Consumers Are Playing a Bigger Role in the Luxury Market

A change in the demographics of today’s luxury consumer is behind the shift in what defines luxury. Traditionally, the luxury market has been made up of older consumers, many with inherited wealth. Baby boomers and those older still make up 60% of the total global luxury market. But the other 40% is made up of Generation X and millennials. So younger consumers are representing an increasingly significant portion of the luxury business.

Younger people, with newfound wealth, are not only moving into the luxury market, they’re redefining it.

“When money goes into the hands of people that didn’t have much of it before, the relationship those individuals have with luxury brands is very different from those who have been exposed to luxury brands for a long time,” said Calvar. “A really large percentage of our top-end product customers are between the age of 30 and 50. It’s no longer a retirement plan to buy yourself a yacht to enjoy in your golden years. ”

Millennials in particular are a luxury marketing segment growing in importance and wealth. They see exclusivity as less important. Instead, they prefer to “belong,” and have little interest in something that separates them from their peers.

Connecting with the New Luxury Brand Consumer

How can you connect with this new luxury market customer? Identify the specifics of your target customer’s profile. Once you know about their likes, dislikes, and best methods of contact, you can build a more effective luxury marketing strategy.

So it’s more than demographic data, it’s about understanding your customer’s mindset, whether your luxury customer is 35 or 65. Appealing to a baby boomer is different than connecting with a millennial, though both may have interest in the same product. Knowing the buying motivations of each allows you to tailor your message to that niche segment.

“Quality always will be essential to luxury, said Lyle Maltz, a director with Kantar Vermeer, WPP’s global marketing consultancy. “But now emotional value and a strong, personalized relationship with consumers are of great importance in luxury marketing.”

Today’s luxury marketing is “highly personalized marketing. It has a very specific and defined message that resonates with an individual’s affinities, interest, and wealth capacity,” agrees WealthEngine’s Patrick Bischoff, president of the Commercial Markets Group at WealthEngine. You need to build that one-on-one relationship with your customer to make them feel they are being treated as an individual.

Uncover the Best Ways to Appeal to Millennial Millionaires

Looking to target high net worth customers for your brand? Download A Look at Millennial Wealth to discover the best ways to engage wealthy millennials.

Following a Customer-Driven Approach to Luxury Brand Marketing

The new luxury market consumer will define what makes a brand a luxury brand, not the other way around. Today it’s less about marketers and more about consumers. That can make it more challenging for luxury marketing strategy, as the definition of “luxury brand” continues to shift. Still, to truly prosper in the luxury arena, luxury marketers will need to follow the lead of their target luxury consumer.

“The change in how consumers define luxury and the new path to purchase is dramatically redefining the marketing strategy,” said an unnamed marketing industry insider in a Forbes article. “Luxury brands must be very agile and innovative in order to gain the favors of the new luxury consumer.”

Giorgio Armani is a brand known globally for its high-end designer men’s clothing. It began by targeting the ultra high-end professionals who desired a high quality product. Since then, Armani has gradually expanded its brand scope with products aimed at broader customer segments. Armani launched a line of jeans in the U.S. market for fashion seeking, price-sensitive youths in urban metro areas. This is an example of a luxury brand creating sub-brands to capitalize on and cater to a different customer segment.

Leveraging Wealth Insights to Appeal to Luxury Brand Consumers

Since the traditional luxury model has been challenged due to the rise of digital platforms, social mobility, the emergence of ‘affordable luxury,’ and other preferences of millennial shoppers, it is necessary to leverage new methods of appealing to today’s luxury consumers. Here are a couple ways you can leverage wealth insights to boost your luxury brand marketing strategy:

1. Use a Wealth Screening to Inform Your Outreach Strategy

With more younger luxury buyers who grew up in a digital world, you must also change your approach to luxury brand marketing. Part of building a luxury brand involves communicating with customers in the way they prefer. So it’s important to have a keen understanding of their interests and appeal to those preferences by creating forms of tailored outreach. Years ago, that may have been print ads or direct mail. Today it’s more likely to include social media, apps, and other digital means that provide a “total customer experience.” The question is: how do you go about hyper-personalizing outreach today?

Using a wealth screening, you can apply wealth insights to a list of contacts to better understand their propensity and capacity to spend. Wealth screenings, in that sense, can help you identify your best prospects with accuracy and precision. All you have to do is upload a list of contacts or consumers, and select the attributes you want to apply to them. Then, you’ll get a fresh set of information on those clients in relation to those attributes. So, when you append your database with wealth attributes, you’ll know who within your list you should reach out to. Additionally, the insights you gain will help you create hyper-personalized messages that speak to your donor’s needs and inspire them to make purchases, now and in the future.

2. Generate Wealth Models to Find New Consumers

Apart from finding the best ways to market to your existing luxury buyers, it’s also important to find more consumers who are just as likely to spend as your best. But, as the paradigm continues to shift, and as we continue to reconfigure our impression of luxury, how do you predict who will spend on your products?

Descriptive Models

Using a wealth model, you can predict which luxury consumers are most likely to spend on your products. Using a Look-Alike model, you can uncover the unique qualities of your best customers. This will help answer questions like: What do my best customers spend on? How old are they? What are their interests? If anything, a descriptive model such as the Look-Alike model, will help you develop a customer persona. You’ll gain clarity on their interests and demographics. These insights will help adapt to their behaviors more seamlessly.

Predictive Models

But, let’s take this a step further. Let’s say you want to find more customers just like them. Specifically, customers who are just as likely as your existing, loyal customers to buy products from your brand. By generating a predictive model, our data scientists employ WealthEngine data along with yours to create a custom algorithm. Using this, we can predict who’s most likely to purchase items from you. Harnessing the power of wealth models allow you to see how likely your prospective customers are to make a purchase. It helps you target the right customers and focus on appealing to them so they will make recurring purchases. Not only will this inform how your brand should appeal to them now, but it will also help you determine what your customers will want from you in the future.

Looking for Love: Wealth Insights on US Singles

WealthEngine Valentine's Day 2020

They may be single, but they’re not alone! Check out our breakdown of the United States’ most eligible bachelors and bachelorettes, across generations. Learn more about their interests, where they live, what they drive, and much more. Using our wealth and lifestyle insights, you can search, screen, model, analyze, and segment to identify and engage with the best donors, customers, and prospects across the nation.