| Abstract: | Donor lifetime value analysis can be an extremely powerful tool in not‐for‐profit marketing. Many organisations are yet to use this tool to its full value because of practical difficulties with definition and implementation. This paper outlines how Sight Savers International has defined lifetime value and the limitations and problems that needed to be overcome to use the technique effectively as a means of informing decisions about new donor recruitment. The paper introduces the concept of time‐based lifetime value and how it can be developed to measure return on investment of each type of donor recruitment activity. The results of the analysis as applied to Sight Savers are shown; these reveal that some current assumptions, such as that which says cold direct mail produces the best donor lifetime value, may need revising. Copyright © 2000 Henry Stewart Publications |
