Big data analytics has become one of the fastest-growing fields in business today. With the advent of big data, companies across industries can now collect large amounts of data and use it to gain insights into their customers’ behaviour. Organizations are using data analytics to improve customer experience, increase sales, reduce costs, and optimize operations.
Non-Profits organizations are often underfunded and lack the resources to manage their data effectively. This means they cannot fully leverage the benefits of big data analytics. What should Non-Profits do to get started? Big data analytics for Non-Profits help gain insights into their operations, improve customer service, and increase fundraising success.
Data analytics can provide valuable information for Non-Profits organizations. In addition to helping them better serve customers and donors, these tools can also help them identify new opportunities and measure performance. Before we dive into why data analytics is important for Non-Profits, and its many benefits, let’s first briefly touch upon big data analytics and what it entails.
What is Data Analytics?
Big data refers to large amounts of structured or unstructured data generated from various sources such as social media, mobile apps, sensors, etc. These data sets are collected and analyzed using advanced analytical tools. Data analytics is analyzing data to gain insights into business processes, customer behaviour, and market trends.
Businesses use data analytics to improve their operations, increase sales, and better serve customers. A data analyst uses statistical techniques to analyze data sets and draw conclusions. A data set may contain information, including numbers, text, audio, video, graphics, charts, graphs, tables, and spreadsheets.
Simply put, data analytics helps companies analyze data collected from various sources to get valuable insights and make actionable decisions.
Why is Data Analytics Important for NPOs?
Non-Profits organizations are no exception to the benefits of data analytics. They, too, need to leverage data to achieve better outcomes. However, Non-Profits organizations (NPOs) face many challenges, including limited resources, lack of expertise, and complex organizational structure. NPOs can leverage data analytics to overcome these challenges. By analyzing data collected from various sources such as surveys, social media, financial reports, and customer feedback, NPOs can better understand their customers’ behaviour.
According to a recent Center for Digital Philanthropy study, only 10% of Non-Profits currently use data analytics tools. However, there is still a lot of room for improvement. A survey conducted by the American Association of Fundraising Professionals found that nearly half of all Non-Profits organizations do not even know if they should use data analytics.
Benefits of Data Analytics for Non-Profits
There are numerous benefits associated with data analytics for Non-Profits. Some of them include the following:
Enhanced Customer Experience
By analyzing Non-Profits data related to donations, fundraising campaigns, volunteer engagement, and social media interactions, Non-Profits organizations can provide better customer experiences. It ultimately leads to increased donor retention rates and improved financial performance.
Optimized Operations
Non-Profits organizations use data analytics to measure the effectiveness of their internal processes. They can then implement changes to streamline their workflow and ensure they’re providing high-quality services to their clients.
Better decision-making
NPOs can make informed decisions regarding their programs and services using data analytics. They can also determine whether their current programs are effective and if any areas need improvement.
Improved Internal Communication
Data analytics allows NPOs to communicate internally among themselves and externally with donors, volunteers, and stakeholders. Through data analysis, NPOs can easily share important information and external parties.
Increased Transparency
Data analytics enables NPOs to provide greater transparency to their stakeholders. Stakeholders can access detailed information about the organization’s performance and progress.
Key Data Analytics Metrics for Non-Profits
While data analytics is beneficial for any organization, it is especially helpful for Non-Profits organizations because they have fewer resources compared to their for-profit counterparts. Therefore, they must focus on key metrics that matter the most to them. Some of these key metrics may look like those listed below.
Revenues and Donations
NPOs rely heavily on donations to fund their activities. Thus, they need to know which areas drive the highest level of donations. Using data analytics, you can easily determine which areas generate the largest amount of donations.
Volunteer Engagement
Non-Profits work is highly dependent on its volunteers to carry out the work. Hence, a Non-Profits organization needs to know how effective its recruitment efforts are. Data analytics allows you to determine which methods generate the best response rate.
Program Performance
Non-Profits organizations use program evaluation to assess the success of their programs. They want to know whether their programs are reaching their intended audiences. They can use data analytics to evaluate the effectiveness of their programs by looking at the demographics of participants.
How to Use Data Analytics Effectively for Non-Profits?
As mentioned earlier, data analytics is becoming increasingly popular among Non-Profits organizations. But, just having access to data does not necessarily translate into meaningful insights. The following are some steps that Non-Profits organizations can follow to maximize the benefits of data analytics:
Define Goals
Before starting any data analytics project, Non-Profits organizations should clearly define their goals. It will allow them to set realistic expectations and avoid wasting time and resources on projects that won’t yield positive results.
Identify Your Audience
It is essential for Non-Profits organizations must know their audience before embarking on any data analytics project. They cannot accurately target their messages to specific groups without knowing this.
Understand Data Sources
Non-Profits organizations should consider collecting data from multiple sources. It includes data from offline surveys, online surveys, and event registrations. Collecting data from multiple sources allows them to create a 360-degree view of their audience.
Analyze Data
Once Non-Profits organizations have identified their audience, they can start analyzing the data. They should look at data trends over time to see any emerging patterns. They can also compare data between different segments of their audience to learn more about each group.
Is Data Analytics for Non-Profits Worth It?
Yes, using data analytics for Non-Profits is totally worth it. The benefits of data analytics for Non-Profits include better decision-making, improved fundraising, increased efficiency, and reduced costs. With data analytics, you can also find out what percentage of your donors give again, which programs work best, and where you should focus your efforts.
The data analytics market is rapidly growing at a global rate of 20 percent per year. This growth has been fueled by the rise of big data, which allows organizations to collect large amounts of information about customers, prospects, and other stakeholders. Non-Profits organizations can use these insights to create better customer experiences, increase funds, and reduce costs.
However, the main challenge is getting started. There are several reasons Non-Profits don’t use data analytics, such as lack of resources, training, and funding.