How to use the Segment Graduation Rates analysis
This analysis provides a clear, year-over-year view of how your donors transition between giving segments—Top, Middle, and Bottom—based on their total annual giving, using your organization's own customizable thresholds. By examining the gift history of each constituent over the past six fiscal years (adjusted to your fiscal calendar), it identifies whether a donor has upgraded to a higher segment, maintained their giving level, downgraded, or lapsed entirely in the following year. The analysis draws on your Gifts and Constituents data, dynamically excluding deceased records and focusing on recent, relevant giving histories.
You gain actionable insights into donor migration patterns, revealing which segments are most stable, where upgrades or downgrades are most likely to occur, and which segments face the greatest risk of attrition. The analysis summarizes these transitions with clear metrics: total number of donors in each starting segment, and the rates of upgrade, retention, downgrade, and lapse. These rates are particularly valuable for targeting stewardship efforts and evaluating the effectiveness of your donor engagement strategies. For example, a high lapse rate among Middle donors may signal the need for more personalized outreach, while a strong upgrade rate in Bottom donors could help you refine your annual fund appeals or mid-level pipeline cultivation.
This analysis is recommended to be reviewed periodically as part of your Constituent Intelligence routines, especially by fundraising directors, development officers, and anyone responsible for donor stewardship or segmentation strategy. You should use these insights to prioritize outreach to donors at risk of downgrading or lapsing, tailor your communications to celebrate upgrades and maintainers, and evaluate the impact of specific stewardship or solicitation initiatives on segment movement.
To measure success, track improvements in upgrade and retention rates within each segment over time, reductions in lapse rates, and the movement of donors into higher-value segments. Ultimately, incorporating this analysis into your Constituent Intelligence process will help you focus resources where they can have the greatest impact and build a stronger, more loyal donor base.