Why your charitable or non-profit organization needs a target market

Put yourself in your “donor mode”. You are a philanthropically minded consumer, you’ve either worked at a charitable or non-profit organization for a long time, been a donor yourself, or rigorously volunteered. In the materialistic and capitalistic society, marketing is much different in the charitable and non-profit world. Understanding the psychographics and consumer behaviour of your consumer, or in the charitable and non-profit world; donor or volunteer, is crucial if you want your target donor or volunteer to respond to your marketing efforts.

The marketing and “business” term of a charitable donation is classified as an “unsought good”, which has been identified and studied in many marketing classification systems. Unsought products in terms of a charitable donations are where there is little or no direct benefit to the consumer (in your organizations case, donors are your consumers). What does this mean for your charitable or non-profit organizations? Unfortunately, it means that the average consumer may not actively seek out to donate to your organization specifically, as it doesn’t reflect on a direct benefit to the average consumer in the “philanthropic marketplace”. Yes, your cause is a way to attract donors or volunteers, but the picky-choosy consumer needs to choose YOUR organization over another organization.

So how can your organization directly target potential donors? Your organization must be proactive in your marketing tactics and will need to consider a direct marketing program to reach out to each segment of donor(s). Additionally, taking careful consideration different characteristics of psychographic marketing segments to help you direct your marketing and get the right response for the type of donor your organization is seeking. The online Market Segmentation Study guide identifies 4 cucial segmentation practices that could help your charitable or non-profit organization target the right type of donors for your organization:

1. The “Already Organized” Donor:

The segmentation study guide defines this type of donor as not impulsive in terms of their charity donations and prefers to donate to as few charities of their choice, usually on a regular basis. Thus, the consumer chooses the charity they donate to based upon their personal experiences receiving help from that organization, or from a family member or close acquaintance that was helped by the organization. These donors are “charity loyal”, and don’t easily switch who they volunteer for, or donate to. The easiest way to target this segment is by noticing them! These are your regular volunteers or donors. Building a relationship with this donor segment is a free marketing tactic to retain this type of donor.

2. The “Big Fish” Donor:

The segmentation study guide defines this type of donor as wealthy individuals or corporate executives, and is usually targeted by most charitable or non-profit organizations because they usually have more money to spend on lump-sum donations, or volunteer in a group setting with their co-workers or other business executives. This segment has a mix of “charity loyalty” and an urge to switch. This is because corporate executives usually donate to a charitable organization or non-profit that their business is already in relation with. A way to easily target this segment are through seminars, conferences, lunches, in a formal “selling” process.(ie. a sponsorship).

3. The “Socially Aware” Donor:

The segmentation study guide defines this type of donor as more thoughtful, yet impulsive contributors to charity. This segment does not take direct marketing to heart, as they will consider the merits of your charitable or non-profit cause over marketing. Reach out to this segment by using incentives that resonate with their personal values (ie. the cause of your organization) to keep this type of donor retained at your organization. Simple things like a newsletter letting them know how their donation helped the cause, or any sort of incentive to let them know they did good, will keep this segment retained.

4. The “Okay, as you asked nicely” Donor:

The segmentation study guide defines this type of donor as one who has a difficulty of saying “no”, if your marketing tactics are really good. This segment usually makes small donations. Reach out to this segment by allowing them to interact with you face-to-face. Invite this segment to an event or fundraiser you’re running through a personal invite over email. The more direct attention this segment gets, the more they are willing to participate with your marketing practices.

If your organization can conclude and understand the psychographic behaviours, and understand your target donor or volunteer, your marketing efforts will not go to waste, and your marketing efforts will be authentic enough to retain more volunteers and donors.

Are you a charity or non-profit that is looking to market themselves or discover a new target market? access www.herohub.ca to help!