We can help you understand your customer base - who are your most valuable customers and how do they behave?
Challenge
This organization was concerned about their shrinking donations.
Initial analysis suggested that although the donations per donor were steady, that perhaps the donor base was shrinking.
Approach
We looked at the size of the pool of donors, and grouped them into categories of new and lapsed. (Note the definitions of new and lapsed were varied with little effect on the results.)
A plot of the cumulative number of each group confirms the suspicion.
In the early 2000’s, there were many more new donors than lapsed donors. But as we progress we find that there are fewer new donors and more lapsed donors each year. In 2015 there were more lapsed donors than new donors for the first time. The conclusion is that the donor pool is shrinking.
Outcomes
The important insight that the donor pool was shrinking allowed the organization to focus its efforts on finding strategies to improve in three areas: acquiring more new donors, recapturing lapsed donors, and preventing donors from lapsing.
Similar techniques can be applied to your business to provide you with the information you’ll need to adapt your strategy to your customers’ behaviours. We can perform a customer lifetime value (CLV) analysis that can help you assess the value of each customer to your business over the long term, or a churn analysis that looks at how customers’ behaviour evolves over time.