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Not Your Average Conversation with Data Mad Scientist Kirk Schmidt, Ep #51

Ben Johnson
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Episode 51

With Benjamin Johnson and Kirk Schmidt

Data nerds rejoice! On this episode of Frontier FM, Ben sits down with Product Manager and Data Mad Scientist at Wisely, Kirk Schmidt to discuss what it means for charities to be data-driven in a meaningful way. The two dive into improving standards in the charitable sector, the difference between demographics and identity, and the value of taking a holistic approach to data.

You will want to hear this episode if you are interested in...

  • Getting to know Kirk Schmidt and how a degree in mathematics helps in the fundraising world [0:22]

  • The power of reinvestment, the potential of maintaining a business mindset in the charitable sector, and the vice of being shortsighted [7:17]

  • What does it mean to be data-driven? [12:42]

  • Thinking about RFM as a segmentation tool and how to use data effectively [16:01]

  • Why average isn’t always accurate and the value of holistic data [24:41]

  • Unpacking identity versus demographics when surveying donors and the impact of personalization [29:27]

  • Why good stewardship is good defense [37:29]

  • What is A/B testing? [40:07]

Let the data drive

Being a “data-driven” organization should be every charity’s goal, but what does it mean? Kirk believes that being data-driven looks different depending on the stage your organization is at. In the early years, data-driven could mean using information collected from donations to send out other solicitations. Or figuring out which areas of the city are supportive, and which are not. Being data-driven at a higher level means trusting what the data tells you and allowing what it says to go against your biases and what you want it to say. Failure and success are equally important because you’re trying to get a clear picture of what is going to work. So further down the road, being data-driven means taking a lot of risks and experimenting. Charities need to be willing to let the data drive and do things that might fail because it’s the only way to succeed and grow.

Get the holistic picture

On a recent episode with Eric Frans, we discussed how there’s no such thing as the average donor. How can an organization say they truly know their donors when there are 25,000 of them? According to Kirk, averages aren't bad, they're just misused. There are certainly times when they are useful. After all, close only counts in horseshoes, hand grenades, and fundraising. But you can always abuse the system when you overvalue certain statistics, averages included. That’s why using multiple metrics together paints a more holistic picture. Widespread key performance indicators (KPIs) and analysis of multiple data points are the only way to see what’s actually going on in your organization. It’s never a good idea to base entire marketing strategies off one shortsighted number that doesn’t account for donor identity or growth.

The donor’s story

The value of surveying donors solely depends on the type of data being collected. Demographic data can only take you so far in that it can identify certain relevant factors like age. However, people can have connections to a charity, cause, or idea that can't be found in their demographics. So much of fundraising revolves around story, but we forget that the donor’s story is equally important because charities need to know where their donors are coming from. Demographics don’t tell you the donor's story. That’s why survey questions should be about uncovering the donor’s why. Those little nuances reveal their identity more than their age or geographic location ever could. We understand the physics of giving when we use data to reveal the donor’s story. 

Resources & People Mentioned

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