The lifetime value of donors: gaining insight through CHAID.

Abstract

Techniques such as regression and CHAID can greatly aid fund raisers in developing an understanding of the behavior of their donors. They can offer particular utility in allowing fund raisers to gain a detailed picture of the LTV of their donors. As organizations begin to employ LTV analyses to inform the targeting of their donor recruitment activity and to use them as the basis for segmenting their donor development mailings, both the efficiency and effectiveness of their fund raising will be greatly enhanced as a result.