As Catholic school leaders, you are called to be stewards of mission and resources. Growing your annual fund is not just about asking for more, it’s about asking smarter. One of the most effective strategies to boost your results is segmentation: the art and science of knowing your donors deeply and communicating with them more personally.
Here’s how you can put segmentation to work in your school advancement program.
What is Segmentation?
Segmentation is the practice of using biographic and demographic information to group constituents and tailor your fundraising strategies accordingly. Think of it as creating smaller, more personalized audiences based on characteristics such as:
- Year of Graduation
- Geographic Region
- Occupation or Industry
- Past Giving History
- Educational Background
- Activity or Involvement
- Potential Giving Capacity
You can also combine multiple characteristics to create “multi-tiered” segments that uncover hidden opportunities.
The benefits?
- Higher response rates
- Increased average gift size
- Improved donor retention
- Better use of staff and volunteer resources
- Stronger return on investment (ROI) for your advancement efforts
Recognize Your Starting Point
Before diving in, be honest about your school's current resources:
- Do you have enough staffing or database expertise?
- How robust is your budget?
- Is your database capable of tracking detailed donor data?
- How mature is your annual fund history?
Knowing your limitations allows you to build a segmentation strategy that is realistic and achievable.
Five Practical Steps to Launch Segmentation
- Define Your Segmentation Codes: Decide how you want to group your constituents. Start simple if necessary. The key is to arrange your codes in a clear hierarchy and avoid creating too many segments that you can't manage effectively.
- Analyze and Group Constituents by Behavior: Using your advancement database, export your donor data each year, preferably by August 1. This gives you a fresh snapshot to work with for fall appeals.
- Assign Segment Codes and Ask Amounts: Sort your donors in Excel by segment. Then assign each one a segment code and a specific ask amount based on past giving or potential. Lock those codes for the year and import them back into your database to track communications and results consistently.
- Design Specific Strategies for Each Segment: Every segment should have its own plan for:
- Communication (emails, letters, social posts)
- Cultivation (personal touches, events, volunteer involvement)
- Solicitation (tailored asks based on capacity and interests)
- Stewardship (personalized thank-yous and ongoing engagement)
- Test and Refine: Small adjustments can make a big impact:
- Postage types
- Envelope design (taglines vs. traditional)
- Ask amounts (using formulas like 1.5-2x last gift)
- Color schemes, signer choice, number of pages
- Including inserts or giveaways
Tracking how these variables perform across segments helps you maximize effectiveness while minimizing costs.
Ready to Grow?
At Partners in Mission, we offer an Annual Fund Segmentation and Analysis Program to help schools like yours succeed. We deliver:
- A fully segmented database with specific ask amounts
- Tailored strategies for each segment across the year
- Easy-to-read reports highlighting key trends
- Personal consultation to help you apply insights effectively
Let’s build a stronger, more vibrant future for your school - one well-segmented ask at a time.