A fundraising dilemma that needs a solution

Using customer lifetime value to assess how effective your charitable campaigns are

Join us at F&P Forum 2021 to hear all about it on 2 September this year!


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The global marketplace for donors and donations is a fiercely competitive one. It is under increasing pressure because of declining giving trends in many, if not most, key markets combined with increasing cost of acquiring and retaining donors.


This, in turn, is placing considerable pressure on social sector organisations (charities, foundations, education, healthcare organisations, NGO’s and religious institutions) to ensure that their donor programs and the investments made in fundraising are better understood and optimised.


To respond to these pressures, NFP managers require far deeper insights into the long-term costs and return of fundraising campaigns (in general) and what drives the success or failure of specific donor campaigns.NFPs runs multiple fundraising campaigns each year, however it is difficult to pinpoint the exact effectiveness of each one.


Simply measuring the cost of the campaign and the funds it generates in that year is not enough, as a huge benefit is the acquisition of new donors who might continue to provide funds over the long run.


A more powerful measure of campaign effectiveness is to compare the acquisition cost, the retention cost over time, and the total amount that these acquired donors will give throughout their donation lifetime.


In the pilot, this concept of customer lifetime value is applied to the donor environment, to accurately track and measure the performance of donor campaign cohorts using a combination of acquisition and retention metrics, revenue and costs to determine the profitability of activity at campaign and donor level over time.


The infographic shows how we are harnessing the power of data science to evolve from relying on hindsight to predicting the pattern of donations that donors will exhibit in the future, allowing us to predict their probabilities of donating in future time periods, and act accordingly to optimise the campaigns.



Join us at the F&P Forum on 2 September 2021. Click for registration details.

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