Like Velveeta, most of your institutions have been around for over 100 years.
Like Velveeta, most of your institutions are recognizable brands in your community.
Like Velveeta, most of your institutions change very slowly.
Unlike Velveeta, most of your institutions did NOT generate $100 million in new revenue last year. So how’d they do it?
As covered in the March 2014 issue of the Harvard Business Review, Velveeta identified “superconsumers” and made their best customers even better.
“When we talked to superconsumers, we learned that in fact they wanted to use Velveeta more—they were starving for it.”
-Greg Gallagher, Kraft Foods
By understanding a combination of institutional giving data and external social data to identify “superdonors,” you can raise more money for your institution.
What is a superdonor?
Most Velveeta customers are like most of your donors. They buy Velveeta once a year to make Queso Dip for their Super Bowl party or family reunion.
Likewise, most of your donors give once a year through an annual appeal or in person at an event.
Velveeta realized that a minority of customers not only purchase Velveeta much more frequently but are also highly involved at an emotional level. They don’t just eat a lot of Velveeta; they passionately eat a lot of Velveeta.
Through segmentation analysis, Velveeta realized that this 10% of consumers resulted in 30-40% of sales. By targeting this group with new products, Velveeta generated $100 million in new sales and became a high-growth business for the first time in a very long time.
Has your nonprofit identified its superdonors?
Superdonors aren’t just your biggest donors. In fact, many of your largest donors may not be interested in supporting your organization in other ways.
Superdonors are your most consistent, most passionate donors who—in spite of everything they are already doing for you—want to do even more.
Superdonors not only give every year but also volunteer for regional alumni boards, mentor fellow alumni, and help lead reunion campaigns. And they love every minute of it.
Like Velveeta superconsumers, superdonors might even feature your institutions in dessert recipes like a Williams College wedding cake and UCLA birthday cake.
So what’s the problem?
It was hard for Velveeta to find its superconsumers, so it’ll probably be hard for you to find your superdonors. Some will self-identify, making them easy to find. But most institutions have hundreds or thousands of superdonors hidden in their databases.
Nielsen data shows that 54% of marketers say their biggest concern with superconsumers is “I can’t find them” and their biggest need is “superconsumer data & analytics.” It’s no different for nonprofits. You have the same challenges and needs.
At EverTrue, we’re addressing these challenges and needs for nonprofits by pioneering the emerging field of social donor management. We’re committed to helping you uncover your most loyal, most emotionally-invested donors so you can offer them the same kind of targeted experience and new products that helped Velveeta transition from a stagnant food company to a high-growth business. That’s part of our recipe for fundraising success.
Click here to start finding your superdonors!