One of the most difficult questions for a non-profit fundraising professional to answer is, "What is the right donation amount to ask for from this particular donor?" The answer requires an understanding of each donor's ability to give, propensity to give, connection to the cause, giving history, and various other factors.
What is Predictive Analytics?
Predictive analytics is an approach to predicting future outcomes by employing a variety of statistical techniques, including data mining, predictive modeling, and machine learning. It uses big data sets and historical information to identify patterns that can predict probable future events.
As an example, a company may use predictive analytics to "predict" what any one consumer will purchase based on the buying patterns of all of their previous customers. Have you ever been amazed that your music app can recommend songs that you like? That's predictive analytics!
How does CRM use Predictive Analytics?
Salsa applies machine learning to Predictive Analytics techniques in the nonprofit space by using vast pools of historical supporter activity data and demographic attributes to predict future behaviors. We call this SmartEngagement and it's put into practice in our platform as Smart Giving Levels.
Salsa uses SmartEngagement technology to create models that represent how a supporter is most likely to interact with your organization.
SmartEngagement technology is now infused throughout Salsa's platform, and our machine learning models help make informed predictions about the donation amounts individual supporters would be willing to give your organization.
How can Predictive Analytics make your life easier?
As a fundraising professional, one of the more difficult questions to answer about online fundraising pages is, “Who are my potential major gift prospects?” Salsa's Smart features use predictive analytics to identify supporters who may be potential mid-level or major donors by bringing attention to those supporters whose attributes and interactions suggest they could be willing and able to donate larger amounts to your organization.
These supporters are flagged as “Potential Major Donors” and “Potential Mid-Level Donors,” so that you and your staff can send personalized messages and cultivate as you choose. These “Smart Giving Level” groups are available for querying and reporting in Salsa CRM:
- Potential Major Donor—good chance they have the capacity and propensity to make a gift of $1,000 or greater.
- Potential Mid-Level Donor—good chance they have the capacity and propensity to make a gift over $400.