| Abstract: | This paper describes a predictive model developed by the Royal National Institute for Deaf People (RNID) for the evaluation of donor management strategies. The high cost of acquiring new donors means that effective donor management is essential throughout the charity sector. Early RNID analysis of donor behaviour used conventional sector approaches. This led to the development of a predictive model that uses a statistically determined segmentation system for current donors with responses of the donor base described by a Markov model. The model is used primarily to evaluate the expected rate of return of possible campaign strategies, but there are many other ways in which the approach is of value, both to the RNID and to the charity sector as a whole. |
