University of Twente Student Theses


Segmenting and targeting new charity donors

Geessink, Lisette (2013) Segmenting and targeting new charity donors.

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Abstract:EDMMedia UK is focused on charity donors. The company uses direct sales, data and targeting to make sure that charities are able to reach their donors, and in this way, EDMMedia contributes to the donations to these charities. At this moment, these incomes are under pressure because of the competition, compassion fatigue and the economic situation. The first two factors in particularly mean that charities need to do more to reach their donors and get their support. The goal of this research was therefore to find ways to reach existing types of donors and new types of donors. In that case, the next research question was formulated: What market segment could be new donors for charities and how could they be targeted? To answer this question, the determinants of donor behaviour are analysed. These influences are found in the model for charitable giving by Sargeant (1999). This model shows how the input of the charity and personal characteristics lead to donor behaviour. The model starts with the input from the charity, that consist of the fundraising techniques and channels. This leads to a perceptual reaction, where possible donors form their opinion about the cause and the charity. The actual decision to donate will be made within the processing determinants. This decision is based on past experiences and judgmental criteria. The perceptual reaction and the processing determinants are influenced by the moderating variables. These moderating variables are socio-demographic factors and personal values. Finally, the possible donor decides to give an output, in the form of time or money. The model was filled in by conducting a desk research. With use of data from different statistical sources, like the Office for National Statistics and Addynamix, it could be concluded that gender, age, income, region and religion influence donor behaviour, just like some personal values like empathy, materialism and individualism. The results from these data are that women between 45 and 64 years old are most likely to donate and also donate the largest amount. Also income has a positive effect; the higher the income, the more likely it is that there will be a donation, and the higher the amount donated. Finally, region and religion are factors in donor behaviour. In some regions people are more likely to donate and donate more. When people consider themselves as religious, they are also more likely to donate and donate more. There is a difference in the supported groups between these segments. It could be concluded that people give to what is close to them. Younger people donate to children and youth charities, whereas older people donate more to medicine and health charities. People with a lower income donate more to welfare charities that are close to home. Higher income people are meant to have a broader perspective, which leads to the fact that they give more to environment and international aid charities. Within religious people, there is no evidence that they donate more to religious charities than to non-religious charities. The different groups donate from different reasons. This could be empathy, materialism or individualism. Younger and richer people donate more from empathy, while materialism is more important for older people. Materialist people believe that status and possession of goods is very important. This could be achieved by donating, as it could give status. Religious people donate more because of the fact that it has to be done from their belief. After the current donors were derived from the results, it needed to be decided which segment could be a good new audience for charities. In that case, the lifetime value theory from Sargeant (2001a) was used. The donor lifetime value is based on the length of the relationship and the net contribution. Because these two factors were not measurable, two determinants were used. For the length of the relationship, age is used and for the net contribution, income is a good determinant. These two factors lead to a matrix, where young people with a higher income had the highest lifetime value. 8 Bachelor thesis – Lisette Geessink This segment was later more specific defined as: ‘people between 25 and 34, having an income in the two highest income quintiles’. This definition was based on the population projections. The best possible ways to reach these people is through the internet including social media and email, and mobile phones. This group uses these channels the most, compared to others, and is most favourable about advertising through these channels. To retain this group, relation marketing is needed to personally involve them and to reward them for their donations, in the form of galas and other events.
Item Type:Essay (Bachelor)
EDMMedia, London, England
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (50645)
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