How to use the Simple YOY Retention by Segment View analysis

This analysis calculates the year-over-year retention rate of donors segmented into 'Top', 'Middle', and 'Bottom' based on their historical giving data. It leverages thresholds defined in a separate table to classify donors into these segments according to their total contributions. The data utilized includes donor IDs, gift amounts, and gift dates, allowing for a comprehensive view of donor behavior over time.

Key calculations within this analysis include the determination of how many unique donors fall into each segment for each fiscal year, as well as the count of those who continue donating in the subsequent year, specifically within the same segment. This approach allows you to understand retention not only by segment but also overall, which is crucial for identifying trends in donor loyalty.

The insights derived from this analysis are invaluable for strategic decision-making. By knowing the retention rates across different donor segments, you can identify which groups are most engaged and which may need additional outreach or support. For instance, if the retention rate for 'Top' donors is significantly higher than that of 'Bottom' donors, you might focus your efforts on enhancing the engagement strategies for the lower segment to boost their loyalty.

You should consider running this analysis at the end of each fiscal year, as it will provide a clear picture of how effective your donor engagement strategies have been over the past year. Development officers and fundraising directors should review the findings to adjust strategies accordingly. For instance, if you notice a decline in retention within a particular segment, it may be an opportunity to implement targeted campaigns to re-engage those donors.

To measure the success of applying insights from this analysis, you can track changes in retention rates over time after implementing new strategies. Additionally, monitoring the overall increase in total donations from each segment can provide a direct measure of the impact your adjusted engagement efforts are having. Evaluating donor feedback after specific outreach initiatives can also give qualitative insights into whether your strategies resonate with donors, further refining your approach.