Target Analytics Affluence Loyalty Index
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I was recently asked for more information on the Target Analytics Affluence Loyalty Index, a rating that is returned for each of the 5 distinct donor groups. For example, is the Loyalty Index only looking at historical giving to my nonprofit, or all nonprofits in general? How should we look at the Loyalty Index?
The Loyalty Index is actually based on consumer loyalty, using over 1,000 highly accurate individual attributes to measure each donor group and their loyalty to brands as a consumer.
The scores are returned back on a scale of 0 to 9, with the lower score indicating less loyalty and the higher score indicating more loyalty. An individual with a score of 8.1 is less likely to switch to a competitor versus an individual with a score of 3.0.
How do each of the 5 donor groups compare in terms of the Loyalty Index? I've created this chart to show you.
As you can see, the Affluent Enigmas rank highest on the Loyalty Index than any other group. However, the Affluent Enigmas are well named - they are wealthy non-donors philanthropically. While their Loyalty is high, you're going to have to cultivate the relationship first and perhaps even teach them how to give back. Next are the Philanthropists. Another wealthy group, but one that has a higher donation frequency in the Donation Attributes averages as well as a respectable $4,000 in average annual donations. It would be wise to approach your Philanthropists first while continuing to cultivate your Affluent Enigmas.
Humanitarians and Casual Donors are running neck and neck in Loyalty Index, which is classified as Average (the Humanitarians overtaking the Casual Donors slightly with a score of 4.5 to 4.4). And coming up behind the rest are Nonaffluent Enigmas (formerly known as The Masses) with a Poor Loyalty Index of 3.5.
For the Humanitarians and Casual Donors, I would urge you to look at your "internal" loyalty index of these prospects. Are some of your Humanitarians not giving year over year? This would be a good group to increase your messaging towards "brand recognition" and a greater frequency of giving.
The Loyalty Index is actually based on consumer loyalty, using over 1,000 highly accurate individual attributes to measure each donor group and their loyalty to brands as a consumer.
The scores are returned back on a scale of 0 to 9, with the lower score indicating less loyalty and the higher score indicating more loyalty. An individual with a score of 8.1 is less likely to switch to a competitor versus an individual with a score of 3.0.
How do each of the 5 donor groups compare in terms of the Loyalty Index? I've created this chart to show you.
As you can see, the Affluent Enigmas rank highest on the Loyalty Index than any other group. However, the Affluent Enigmas are well named - they are wealthy non-donors philanthropically. While their Loyalty is high, you're going to have to cultivate the relationship first and perhaps even teach them how to give back. Next are the Philanthropists. Another wealthy group, but one that has a higher donation frequency in the Donation Attributes averages as well as a respectable $4,000 in average annual donations. It would be wise to approach your Philanthropists first while continuing to cultivate your Affluent Enigmas.
Humanitarians and Casual Donors are running neck and neck in Loyalty Index, which is classified as Average (the Humanitarians overtaking the Casual Donors slightly with a score of 4.5 to 4.4). And coming up behind the rest are Nonaffluent Enigmas (formerly known as The Masses) with a Poor Loyalty Index of 3.5.
For the Humanitarians and Casual Donors, I would urge you to look at your "internal" loyalty index of these prospects. Are some of your Humanitarians not giving year over year? This would be a good group to increase your messaging towards "brand recognition" and a greater frequency of giving.
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11/19/2017 8:13pm EST
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