1. Classical Analysis Methods: LTV November 30 th 2010 David Dipple Institute of Fundraising: Analysis SIG

2. Life Time Value Something that all charities need to know and know what it means.................but what does it mean?

3. What Type of LTV? Gross Net To-date Time banded Predicted Lifetime(?) Fund So many Questions!

4. LTV Levels Individual Household Product Campaign Method Why are we building it?

5. Individual vrs Group This is a very important distinction – especially if cost is to be included. Is it fair that a small number of supporters are allocated a massive recruitment cost if they come in from a campaign that bombs? What about the recruitment source?

6. So many costs – but which to use? Actual Smoothed Zero rated Trimmed Discounted Estimated

7. So why LTV? Allows fundraisers to go beyond basic ROI and RFV Aids in understanding which are the most profitable supporters, group and recruitment sources

8. Predicted LTV – An example RecruitmentRecruitedTotal ValueAverage value Channel 15000£60,000£12 Channel 24000£40,000£10 Supporters recruited by two different channels – Which is best? RecruitmentYear 0year+1year+2Year+3Year+4 Channel 1100%30%20%10% Channel 2100%70%50%30% Recruitment Stats Retention Stats

9. Linking Value and Retention to Get Predicted LTV RecruitmentYear 0year+1year+2Year+3Year+4 Channel 1£60,000£18,000£12,000£6,000 Channel 2£40,000£28,000£20,000£12,000 Cumulative Value

10. Linking Value and Retention to Get Predicted LTV RecruitmentYear 0year+1year+2Year+3Year+4 Channel 1£60,000£78,000£90,000£96,000£102,000 Channel 2£40,000£68,000£88,000£100,000£112,000

11. Any Questions? David Dipple, Tangible Ltd. David.dipple@tangible.uk.com