Predictive analytics uncovers patterns, trends and associations hidden within all types of data to help predict future outcomes, solve problems and guide smarter decisions.

Commercial businesses across many industries use predictive analytics to understand their customers and build stronger,more profitable relationships. These capabilities are also used by nonprofit organizations to gain similar benefits with their donors.

Predictive analytics uses advanced algorithms to analyze donor data and deliver a 360-degree view of individual donors. These analytic results provide detailed insight into the needs, preferences and behaviors of donors. Predictive models can be created which enable nonprofits to anticipate how donors will respond to certain campaigns, which contribution amounts they would be likely to give, when they should be solicited and when they should be left alone, which communication channels they prefer and much more.

By deploying these insights to decision makers and frontline systems such as call centers or direct mail initiatives, nonprofits can significantly increase the effectiveness of donor campaigns and strategies. And because predictive analytics learns from every donor interaction, it can also help to build more loyal relationships over time and provide an “early warning system” of donors that may be dissatisfied and require extra attention.

Predictive analytics also helps nonprofits prioritize their resources based on anticipated returns and thereby reduce the costs of donor management. Organizations can determine which donor targets, messages and channels will yield the best results. The wasted effort and expense of low yield donor processing and correspondence can be minimized.