A Time of Reckoning - How Data Bias is Impacting Donor Acquisition and the Forces That Will Expand Audience Reach

Data Bias has been evolving and impacting direct mail donor acquisition for the past 25+ years. From the early days when list rentals and exchanges ruled the day to the early introduction of the first cooperative donor database by Target Analytic Group to today's dominant use of the nearly 10 competing cooperative databases, we've hit a "Time of Reckoning" that cannot be ignored.

Donor files are shrinking. Production and postage costs keep increasing. Response rates are nearly half what they used to be. The most alarming statistic of all is that the average age of a newly acquired donor is over 72 years old. In fact, the average age of a new donor has increased by nearly 7 years over the past 10 years. To say that we're fishing from the same pond and that the fish are not getting younger is almost undeniable.

Plus, many nonprofits are using face-to-face street canvassing very effectively to acquire lower $ donors making a monthly sustainer commitment so it further validates the current situation with data bias..

Although this session will describe demographic, socioeconomic and social norm shifts that are underway, it will focus more specifically on how data bias is largely responsible for our current situation. Compounding the difficult situation is the fact that AI/machine learning is creating steeper models that are able to differentiate the highest responding or best donor prospects better than ever thereby crowding out the need for audience expansion.

This session will explore strategies and approaches to overcome this data bias and the forces that will expand audience reach.