Recruitment & the
Lifetime Value of
Donors
John Baguley
International Fundraising Consultancy.
Charlie Keep
Medical Foundation.
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Fundraising today...
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Recruitment Channels
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Direct Mail
Inserts
Print Ads
Face to Face
Door to Door
Events
Social media etc
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GENERATIONAL COHORTS
Age Cohort
Media Preferred
SENIORS
1901 - 1924
Letter
SILENTS
1925 - 1945
Letter
BOOMERS
1946 - 1964
Letter. Phone. Email
GEN X
1965 - 1980
Email. Internet.
Phone.
GEN Y
1981 - 2000
Internet. Email.
MOBILE
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The greatest danger
for most of us
is not that our aim is
too high
and we miss it,
but that it is
too low
and we reach it.
Anon
What is lifetime value?
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Total net value gained
over the lifetime of
their giving
But it also, needs to
account for activists
etc
Developing profiles of
typical supporter
behaviour patterns
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Why is it important?
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Demonstrating to non-fundraisers why the
structure of donor recruitment and
development is used in the way that it is
Honestly assessing whether what you are
doing is really working in the long term
Giving confidence to ask for investment in
fundraising
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Getting started
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Sample a number
Look at their
behaviour
How long/how
much/patterns
If working with very
small numbers it
may be all you need
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How is LTV calculated?
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On a macro or micro level is usually most
informative
IE either looking at a single group of
recruits over time
OR evaluating top level aggregate values
across the database
Different uses for these approaches
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Some gentle maths
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LTV net:
z(n)  ( x  y(n))
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LTV as a ratio:
z (n)
x  y(n)
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Based on variables:
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N = mean donor longevity (period)
Z = mean value (period)
X = recruitment cost (unit)
Y = retention cost (period)
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Some more exciting maths
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Mean donor longevity:
n   xp( x)
x
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How can LTV be used?
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There’s no point doing lots of maths if
there’s no way to actually use it
Comparing options for recruitment – what
kind of supporters do you get from what
kind of activity?
What activities increase LTV, what may
diminish it?
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STRATEGY
“I saw the angel in the
marble and carved until I
set him free.”
MICHELANGELO
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FIRST FRIDAYS
The Hub Kings Cross – 34b York Way – 2.005.00
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THANK YOU!
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