Data analytics describes the process of turning facts and statistics into information, which can be used to support decision making and action-taking.
Data is an invaluable asset to charities, yet its importance is widely overlooked or unharnessed. Many charities face increased operating costs, legal obligations and competing demands for scant resources and it can be challenging to assign adequate resources to data analytics or keep up with the pace of changing technology to use it effectively.
There are many ways data analytics can be used within charities to help prioritise what is important to them; from saving money, to understanding beneficiaries and service users, through to demonstrating impact and social value:
Strategy Building
Data analytics is an essential component of strategy development, helping charities to clearly articulate why they are where they are, and how to get where they’re going. Whether that be using data to identify skills gaps in teams, trustees and volunteers to developing a People Strategy or breaking down donor segmentation statistics to inform Marketing Strategy, data is key to supporting organisational growth and demonstrating change ambition.
Financial Forecasting
With a proactive approach to analysing revenue sources, expenses and historical financial performance, charities can make better financial predictions to optimise organisational efficiency and help safeguard their future. It’s useful to consider external factors in making financial predictions, such as the impact of regulatory changes, opportunities for cost-savings and the potential impact of inflation.
Fundraising
Analysing information about fundraising platforms, channels and activities, along with demographics and behaviours of supporters, can help charities target donors and campaigns in ways that achieve best returns. Fundraising tools, email marketing software and CRM systems provide valuable, and often more cost effective, ways to streamline and automate data analytics.
Communicating Impact
Articulating achievement data and stats via Impact Reports, websites and social media campaigns is a powerful way of demonstrating to existing and potential funders what impact a charity is making. Data analytics can help tell the story of a charity; the journey it has been on, how it is delivering against strategic and operational objectives and why it deserves more funder support. Displaying data in visual forms such as charts or graphs can illustrate growing or changing needs for charity services, and predictions for what will be needed in the future.
Innovation
With more charities than ever now filling the void left from diminished public services, the need for new products, solutions and services continues to grow. Data is a powerful driver for innovation but, to use it effectively, it is important to start with clarity on what data is needed to support the business case, before seeking the additional data required and confirming how it will be obtained.
The use of data analytics can be broad. Developing a tailored Data Strategy is a helpful way for charities to consolidate the data they have, identify what they need and pinpoint what is missing; ensuring tailored priorities can be addressed.
What next?
Nine Feet Tall specialises in delivering complex change. We can design, set up and deliver change programmes to help your charity to become more efficient. For more information, get in touch with us today.
