Understanding your audience of constituents is vital to every aspect of the marketing planning process. SMARTER Market Segmentation(sm) mathematically selects the audiences for your marketing and fundraising strategies using characteristics of your audience (such as values alignment) to rank and select the best audiences for your marketing strategy. SMARTER Market Segmentation must be performed before audience needs analysis is performed. And an audience needs analysis is necessary to the development of an effective marketing and fundraising strategy.
Fortunately, a unique method is available for selecting the right audience for a nonprofit marketing campaign based on a scientific approach. This method is called SMARTER Market Segmentation.
A SMARTER Approach Market segmentation is a strategy for selecting customers according to differences in the way they respond to marketing efforts, choosing among alternative market opportunities, and tailoring marketing strategies to those distinctive opportunities. Positioning exploits the potency of market segmentation, improving your nonprofit image by designing a value proposition that matches nonprofit capabilities with unsatisfied, or under-satisfied, needs of customer segments. SMARTER Market Segmentation is a technique for estimating segment attractiveness and fit to your company capabilities. SMARTER stands for Simple Multi Attribute Rating Technique Exploiting Ranks. SMARTER is a fancy way of saying the right audience can be selected on the basis of how those audiences are ranked on certain attributes such as audience size, ability to purchase, motivation, needs, etc. SMARTER Market Segmentation increases the probability of higher response rates, cost effectiveness, and positive return on investment through the process of determining which market is most likely to have needs that can be better satisfied by your nonprofit causes compared to its competitors. In the nonprofit sector, this translates to the capacity to donate, interest in the cause, difficulty of reaching the donor audience, awareness of the cause, size of the donor group, competition with other causes, and stability of the donor group, among other attributes.
3 Easy Steps to SMARTER SMARTER market segmentation is implemented in 3 easy steps: 1. Determine the criteria to evaluate your potential audiences against. Rank the attributes from most important to least important. 2. Brainstorm potential audiences. 3. Rate each audience from 0 to 100 on each attribute, calculate attribute scores and a total SMARTER score. Select the audience that rates the highest. An example will demonstrate the SMARTER Market Segmentation approach. In the table below there are thirteen attributes used to rate three audiences. A set of weights, derived from a predetermined table, are used to calculate a score from the rating x weight. In this case, capacity to donate is the highest ranked attribute and contributes most heavily to the overall score of 80.2365 for Volunteers. Based on group consensus from ratings and mathematical formulas the right audience is selected. This model has been proven time after time. In fact, the model has been shown to select the best option as much as 87 percent of the time.
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