Pareto Principle - Theory v Reality
- You will get a majority of your revenue from a minority of donors
- If you have a ‘flat Pareto score’ - like 20% of donors giving you 50% or less of revenue - then you are probably not doing enough work in the areas of bequests, mid and major donors
- If you have a ‘steep Pareto score’ - like than 5% of donors giving you 80% of revenue – then you may be too reliant on a few donors for your whole operation. Time to invest in some monthly givers?
- Increasing investment in your ‘top’ donors is likely to reap rewards. What type of investment?
- Better stewardship
- Visits, events and meeting donors ‘in the field’
- Bigger, better direct mail to fewer donors
- Integrating direct mail with digital, phone, visits and events