How Customer Data Platforms Can Revolutionize Your Nonprofit

In order to grow, every organization needs a strategy, including one for technology. It doesn't matter what industry you're in — every organization is always looking for ways to make their services better, more effective and more profitable. One of the best ways to accomplish this is to use customer data — or donor data in the case of nonprofits. Customer data platforms (CDPs) allow organizations to collect, analyze, and act on constituent feedback quickly and efficiently.

Data collected from donors can help nonprofits improve their operations in many different ways. For instance, they can bring about new marketing strategies or create a better experience for their supporters. In short, customer data platforms are changing how organizations do business worldwide rapidly. Nonprofits need to keep up with these changes and take action to stay competitive. Why? We’re nearing the end of cookie tracking.

Cookie tracking is one of the most common ways to collect customer information; however, internet search engines will block them soon. As organizations shift toward customer data platforms, cookies are getting phased out due to privacy and concerns about the lack of transparency. If you're in a nonprofit that uses cookies and sponsored ads, soon, you'll need to prepare for this.

What Is a Customer Data Platform?

Different from a customer relationship management (CRM) platform, a customer data platform is an online platform with a customer or donor information database. This information can come from many different sources, including customer surveys, social media interactions and email communication. The platforms are designed to access this information and use it to build business intelligence tools or identify new opportunities in their market.

The main benefit of these platforms is that they allow organizations to collect more data than they would find on their own. For example, if a nonprofit sends out an email survey, it may get only 50 responses. But with a customer data platform, hundreds — or even thousands — of responses could be collected and synthesized through analytics. You also don't have to pay for expensive research or consultant firms that might not provide accurate results or insights into your organization's direction. You can get reliable information from donors at no additional cost with customer data platforms.

How Customer Data Platforms Can Revolutionize Your Nonprofit

Data collected from donors can help nonprofits improve their operations in many different ways. Customer data platforms allow organizations to collect, analyze and act on donor feedback quickly and efficiently. As competition in the sector increases, these platforms could help maximize the data of the organizations that use them.

Customer data platforms make collecting information on donors easier than ever. Let's say your nonprofit participates in marathon, 5K or 10K races. You might use customer data platforms to determine which types of events are the most popular with your target audience. Or maybe you're running fundraisers and want to see which ones get the most supporters and through which channels. Using the platform means you'll have more time and resources to focus on what matters: ensuring that your organization runs smoothly, grows steadily and provides the best possible donor experience.

Data collected from donors can help nonprofits improve their operations in many different ways. Nonprofits can: 

• Collect donor data through surveys, comments, feedback, social media posts, ratings, etc.
• Sort data into categories that make sense for the organization (e.g., age group or demographic).
• Automatically analyze and aggregate data, allowing them to make decisions quickly when needed (e.g., what kind of content will resonate most with donors).
• Use this information to shape their digital or amplification marketing campaigns to reach the right people for their missions.

Customer Data Platform Benefits and Ethical Considerations

Data collected from donors can help nonprofits improve their operations in many different ways. They can bring about new ideas for marketing strategies or create a better experience for their supporters. However, nonprofits must develop processes and policies around data gathering, protection and security due to increasing donor privacy concerns.

The key to using customer data platforms effectively is ensuring that they get used ethically. For example, if you offer an incentive to people who sign up for your newsletter, you should ensure that no one signs up by accident. You could do it with double verification procedures.

When it comes to customer data platforms, you must be careful because ethical data collection isn't always straightforward. You need to ensure that your business practices are ethical for your donors to trust your judgment regarding their personal information.

Six Further Considerations

When transitioning to a customer data platform, here are six more essential elements to also consider.

1. The type of data you want to collect.
2. How you will manage that data.
3. How your nonprofit intends to use the data.
4. The kind of analysis that you’ll do on the collected data.
5.  The policies and processes you’ll have in place regarding the data.
6. How you intend to ensure the transparency and safety of the collected data.

As the world moves to customer data platforms, you should ensure that your nonprofit has the necessary resources, such as time and money, to implement a comprehensive strategy.