A new Diagnostic Discovery Research System (DDRS) can help non-profits better understand their donors and increase their fundraising success says Dave Magnuson –Ford, Senior Development Officer at the Victoria General Hospital Foundation in Winnipeg.

 

Traditionally, non-profits had their market research done by outsiders. A few organizations do “in house” research, but often then don’t trust the results.  Frequently they hire Campaign Consultants to do Feasibility Studies, however, most research is shelved after it is received and largely ignored until it is out of date.

 

When the Victoria General Hospital Foundation in Winnipeg needed to raise funds, they decided to hire a consulting firm to do a feasibility study.  Results of the study showed that they could only raise $1.5 million.  After implementing DDRS and conducting other preparatory work, they have raised $3.5 million. 

 

To read more about Market Research and DDRS click here

 

 

Pitfalls of Traditional Market Research

 

Traditional market research definitely has its limitations.  Analyzing data is largely left to the experts and is highly dependant on what was collected and how the data collection was done. A typical survey has about 15 questions and is answered very subjectively. A variety of factors can influence the results including unclear questions and the perceptions of the interviewer. Thus the results are “unclear”. Researchers “deduce” conclusions from the information gathered. The research companies suggest the results are statistically valid 19 times out of twenty with a margin of error that is plus or minus 5%.

 

Often market research tries to paint a picture of the donor base with averages. The inference seems to be once we know what our average donor looks like, the professional fundraiser will know what to do. For example, say, on average the households in our catchment area have 2.3 children. So we think we need kids in our illustrations. But really just how do you market to households with 2.3 kids? Put 1/3^rd of a kid on the brochure or an extra kid every three brochures?

 

The data collection process is either conducted through self-reporting or collected by others. The value of the data is dependent upon variables such as the sample size, random sample, question clarity and respondent honesty.  It is based on deductive reasoning.

 

Problems arise if your sample is skewed, the respondents answer wrong, the questions are unclear, the data is time-limited or the world scenario changes.

 

Optimally, what you need is a system that provides:

• Data which would be valid for several years
• Data which wasn’t dependent on sample size
• A system where truthful self-reporting is a non-issue
• That the right questions get asked

 

DDRS is such a system.

 

Work on a sample of data concerning the healthcare system accurately reached the same conclusions as the Romanow report for a fraction of the cost. Romanow used traditional methods and spoke directly to many who were involved. The research for that report cost several million dollars and took a year to do.  A.S. Gillman, one of the creators of DDRS,  felt that many of the same conclusions were reached through the VGH study.

 

DDRS:  What is it?

 

DDRS is a new model of information gathering.  Developed by Delphi Consultative Surveys and Research International Ltd., it surpasses traditional market research by bridging the left and right brain gap.  The system uses abductive reasoning and is interactive, creating a virtual donor.  It also uses modal logic, neural nets and holographic technology. 

 

DDRS was developed to avoid the shortfalls of current market research and to outline pathways to move givers to give to the organization. It provides pictures of “connections”, not statistics. The web of “what is connected to what” allows us to see paths of how decisions are made. Should we want to present our cause we need to know the easiest path for a donor to take to come to support our cause. We also need to know what blocks the path. We can then build our material to enable a donor, rather than hinder a donor in their decision-making.

 

The Process:

• The consultative forum
• Data gathering via a “questionnaire-like” instrument
• Provides raw results/index of pathways
• Provides connections to giving to your organization – not averages or percents
• Opportunities to interact with a virtual donor
• Client decides on data’s meaning

 

Initially, VGH used a consulting firm to do a traditional feasibility study. The firm produced a report that said without outside assistance the VGH could only raise $1.5  million. Consideration was given to interviews, outside influences, data analysis and the suggestion was that without help, the VGH would have to underwrite any project out of its reserves.

 

The VGH heard about the DDRS but up until that point it had only been used for for-profit companies.  The VGH then held a  “Virtual Forum” using DDRS. Their results included known information that validated the data gathered and new information that they tested for validity.

 

• Sent out 2000, “500 questions” Consultative Forum booklets to a representative sample of donors, non-donors and VGH staff

 

• Return rate was the same as a “normal questionnaire”

 

• The data confirmed both known information and provided new information.  The process forced staff to reflect on the data’s meaning.

 

• The “virtual donor” is a web of links the system builds which allows you to interact with the database and ask questions

 

Findings:

 

• Branding information
• Common fundraising knowledge
• Connections to giving to the VGH
• Paths to make it easier to give
• New information was obtained and tested
• Much information has yet to be processed

 

Implementation:  Using DDRS Data

 

The VGH used the data to establish their brand and to guide the content of promotional material.  They also used the data to choose a campaign co-chair.  Ultimately, they discovered they have more material than they can use.  They have raised $3.5 million dollars.

 

When you consider all the technological advances that have occurred in the last 20 years, why should there not be a different way to do market research?

 

For further information on DDRS: contact Arthur S. Gillman, President, Delphi Consultative Surveys and Research (International) Ltd., Winnipeg, Manitoba, Telephone #: (204) 896-1060.