5 Reasons Segmentation Doubles Campaign Revenue

Professional success in the modern marketplace requires delivering tailored messaging to audiences of all sizes and segments. To date, brands like Netflix and Spotify have set a high bar for personalization. This is forcing other organizations to draw inspiration from their practices to increase engagement, revenue numbers, or overall campaign revenue. 

By segmenting donors into unique buckets based on actual data points, you can effectively double your campaign revenue. But getting it right isn’t easy! 

The expert team at KindKatch has identified five simple reasons why audience segmentation is essential for any brand looking to get ahead in an increasingly competitive market.

As marketers, it’s essential to recognize that not all audiences are alike. Making an effort to divide your audience into smaller groups will allow you to make meaningful connections with each segment. It will also allow you to create messages tailored toward their individual needs. 

Here are five reasons why segmenting your audience is the key to success:

#1 – Segmenting allows you to create more targeted campaigns

Donor segmentation is a powerful technique that targets campaigns based on specific customer attributes or behaviors. This targeted approach ensures that the right message is delivered to the right customer to optimize conversions. By creating targeted campaigns, marketers can send personalized messaging tailored to each segment. This allows them to craft a message that resonates with the individual customer’s interests and needs. 

This personalized, responsive approach usually leads to a deeper engagement with the audience. This results in increased click-through rates and greater conversions. For these reasons, targeted campaigns that leverage customized messaging should be essential to every successful marketing strategy. 

Ultimately, segmenting customers into specific buckets allows you to craft more intentional messaging and create campaigns that resonate with each audience on a deeper level. By exploring which segments may be most profitable for your business and then tailoring messages to those segments, you can leverage targeted campaigns that double the ROI of any effort. Thereby increasing overall customer lifetime value and generating greater campaign revenue.

#2 – Segmenting gives you a better understanding of your donor base

Segmenting is critical for intentional storytelling in marketing efforts and campaign ideas. It is a powerful tool for understanding more about your donor base. It helps you to understand their needs, behaviors, and interests, which ultimately inform how you can appreciate them. 

After doing intentional research to segment your audiences, you’ll have an enhanced understanding of what type of impact or outreach each customer segment may be interested in, enabling them to have a personalized experience with your organization. This will create trust and loyalty from these donors — two things vital to the success of any organization.

Segmenting allows you to optimize the donor journey. By segmenting your audience, you can better identify where each donor is in their individual donor journey. This segmentation enables you to create targeted campaigns tailored for each stage of the process. This will ensure maximum engagement and lead conversion rate optimization. These are the two things essential for any successful campaign and increased campaign revenue.

#3 – Segmenting makes it easier to track results, ROI, and campaign revenue

Segmenting is an incredibly powerful tool for understanding the effectiveness of dynamic marketing campaigns. By segmenting into two distinct parts – segment A and segment B – you can effectively measure the impact of different media channels, communications, etc. 

For example, segment A may focus on donors who gave to specific campaigns. Segment B will track conversions from organic general donors. By breaking down campaigns into segmented pieces, you gain insights into which approaches drive results and make a positive return on investment. It’s an essential tool to be able to measure the success of your marketing efforts accurately. 

In the responsive framework, the fourth step in the cycle is “learn.” Segmenting your donors and doing these kinds of experiments not only increases generosity but also allows you to continuously improve and grow in your responsive fundraising efforts. 

Segmenting helps you track results and ROI more accurately. You can identify which segments are most profitable and invest more heavily in those with the highest potential for increasing campaign revenue. This data-driven approach ensures that each campaign is tailored to its specific audience. That tailoring gives your business an edge in a competitive market. 

Investing in targeted messaging can have a considerable payoff. Imagine the potential returns when you discover that one group of donors is ten times more likely to convert than another. It’s time to maximize your investments by focusing on targeted outreach strategies for each segment!

Overall, segmenting is an essential tool for any successful marketing strategy. By understanding your customers and their needs, you can create more targeted campaigns that will drive higher campaign revenue and greater customer loyalty by allowing you to invest in the most profitable segments and maximize overall success.

#4 – Segmentation helps build trust and credibility with your customers

Segmentation is a powerful tool for building customer trust and credibility, and trust is the ultimate currency. Organizations can develop meaningful connections with their target audiences by segmenting customers and crafting messages tailored to those individuals. For instance, instead of sending out mass emails, businesses can create email/text lists based on interests, giving behaviors, or other affinity scores, leading to more targeted content and higher engagement. 

This increase in trust also amplifies word-of-mouth advertising as happy donors become brand ambassadors willing to share their positive experiences with others. In addition to trust and personalization benefits, segmentation allows marketers to research the success of their campaigns by isolating data sets and performing A/B testing. Overall, it’s hard to beat the power of segmentation when it comes to trust-building amongst customers. 

Segmenting helps build trust with customers by providing them with a personalized experience. By segmenting your audience, you can tailor your campaigns to specific needs and interests, making it easier for customers to give to the campaigns they resonate with most. This creates value in their eyes and gives them the sense that they’re being heard and understood. Therefore, if you want to grow donor loyalty and trust, investing in segmentation is essential as part of your strategy.

Ultimately, trust is the foundation for any successful relationship between donors and organizations. By understanding their needs and investing in segmentation, organizations can create a deeper connection with their donors and drive greater returns in the long run. Trust is the ultimate currency; without it, you lose a customer faster than Tom Cruise in a fighter jet.

#5 – Segmenting can help increase overall donor lifetime value and campaign revenue

Do you measure donor lifetime value? Try this out for me. 

Best Practice Alert!

  1. Run a report of lapsed donors with fields of first gift date and lapsed date, then use some data computation to determine the average number of months between the first gift and lapsed date.  Ex: 14 months
  1. Now, pull a report of active donors and include their first gift date. Use a formula to determine the average number of months between the first gift date and today. Ex: 8 months
  1. Now, take the average of the two numbers from 1 and 2 (lapsed and active). Ex: average of 14 and 8 is 11 months.
  1. Congrats! You have arrived at your average donor lifetime value in months. 

Next, run a similar data play to determine average dollars in lifetime value. 

  1. Pull a report of all donor gifts from their lifetime, then divide it by the number of total lifetime donors. Ex: $1,000,000 lifetime gifts/5,000 donors = $200
  1. You will arrive at a dollars per donor number, your new donor lifetime value average!

So what does this mean? Well, in the two examples above, we learned that our average donor is with us for 11 months and gives an average of $200 within that time. 

We can now do a lot with this information! 

On the donor acquisition side, we can make an informed decision on sponsoring a community event where we might have the chance to bring in new donors (by looking at the ROI, e.g. if the event is $500 to sponsor and we think we can bring in at least 3 new donors, we will break even). 

On the donor retention rate side of things, we can now focus more on the donor journey in months 9 and 10 and see if we can extend lifetime value past month 11, which will ultimately mean more giving long term.

Meeting donors where they are 

Segmenting customers is a great way to increase overall customer lifetime value through higher campaign revenue. By leveraging segmentation, businesses can develop tailored marketing campaigns and messaging that speak directly to the needs of their target audience. 

Donors who receive messages catered to their interests and preferences become more likely to continue engaging with the brand. Higher response rates mean more conversions and greater ROI for organizations, as well as increased donor loyalty over time.

In addition, segmentation allows businesses to track giving behavior and gain insight into donor interests. This data can be used to personalize further campaigns with targeted emails, ads, or promotions to encourage donors to make repeat gifts, etc. 

By providing customers with a personalized experience and responding quickly to their needs, organizations create an environment of trust and respect, which builds loyalty over time.

Staying organized with segmentation

Finally, segmentation makes it easier for businesses to stay organized by tracking customer information such as contact information or giving history. This data can also be used for predicting donor behavior to anticipate future trends or donation opportunities better—resulting in even higher returns on investment (ROI).

Overall, segmenting your donors is integral to donor stewardship and increasing donor lifetime value and campaign revenue. By understanding donor needs through segmentation, you can create meaningful connections with your audience and drive long-term success by tailoring your campaigns specifically for each group and optimizing the ROI from each segment.


Segmenting donors is crucial for any business looking to increase lifetime value, grow campaign revenue, and build trust with its target audience. By understanding the needs of your donors through segmentation, you can create tailored campaigns that speak directly to them and provide a more personalized experience. This creates an environment where donors feel respected and heard, which leads to greater loyalty over time. 

Additionally, segmentation allows organizations to track purchase behavior to anticipate future trends or opportunities better, resulting in higher ROI from each segment. 

Ultimately, investing in segmentation gives organizations the power of data-driven insights into their customer base, allowing them to make informed decisions about marketing strategies going forward as well as leverage word-of-mouth advertising by providing happy donors with experiences worth sharing with others.

With all these benefits combined, it’s hard not to see why leveraging the power of segmentation should be part of every successful digital marketing plan today!

What you should do now

Below are three ways we can help you begin your journey to building more personalized fundraising with responsive technology.

See the Virtuous platform in action.  Schedule a call with our team for personalized answers and expert advice on transforming your nonprofit with donor management software.

Download our free Responsive Maturity Model and learn the 5 steps to more personalized donor experiences.

If you know another nonprofit pro who’d enjoy reading this page, share it with them via Email, Linkedin, Twitter, or Facebook.

The Responsive Maturity Model
5 Steps to More Personalized Donor Experiences
Get Responsive Fundraising Tips
Get updates delivered directly to your inbox.
Actionable tips and insights for personalizing donor engagement with responsive fundraising.
The Ultimate Guide To Nonprofit Marketing Automation

The Ultimate Guide To Nonprofit Marketing Automation

This guide to nonprofit marketing automation will walk you through how powerful automation can help you generate more generosity while reducing manual work.
3 Easy Automation Workflows for Nonprofits

3 Easy Automation Workflows for Nonprofits

Discover 3 simple yet effective automation workflows to boost efficiency and impact in nonprofits.
The Power of Donor Stories

The Power of Donor Stories

Stories play an incredible role throughout our lives. We use storytelling to preserve our history, teach us right and wrong, help us explain complex topics, and inspire action. In fundraising,…

Grow generosity with Virtuous.

Virtuous is the responsive fundraising software platform proven to help nonprofit organizations increase generosity by serving all donors personally, no matter their gift size.

“Virtuous truly understands nonprofits and the importance of our mission. And their open access to data and built-in custom reports gave us access to the data we need.”
Todd Shinabarger
Chief Information Officer