2008 DMEF Customer Lifetime Value Modeling (Task 2)

Zainab Jamal and Alex Zhang

Journal of Interactive Marketing, 2009, vol. 23, issue 3, 279-283

Abstract: We describe our approach for predicting individual donor's total gift amount over a two-year target period. We divide the donors into 8 segments; for each segment, we fit a logit model for predicting the probability of giving, and a log-linear model for predicting the amount of gifts conditional on a donor giving. We found that recency, frequency, and first gift amount are good predictors of the probability of giving, while time-weighted total gift amount in the past years is a good predictor for future gift amount.

Keywords: Lifetime value (LTV); Logit models; Linear models; Recency; Frequency; Monetary (RFM) (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joinma:v:23:y:2009:i:3:p:279-283

DOI: 10.1016/j.intmar.2009.04.004

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