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2008 DMEF Customer Lifetime Value Modeling (Task 2)

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  • Jamal, Zainab
  • Zhang, Alex

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.

Suggested Citation

  • Jamal, Zainab & Zhang, Alex, 2009. "2008 DMEF Customer Lifetime Value Modeling (Task 2)," Journal of Interactive Marketing, Elsevier, vol. 23(3), pages 279-283.
    • Handle: RePEc:eee:joinma:v:23:y:2009:i:3:p:279-283
    DOI: 10.1016/j.intmar.2009.04.004
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    File URL: http://www.sciencedirect.com/science/article/pii/S1094996809000541
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    Cited by:

    1. Lee, Hyoung-joo & Shin, Hyunjung & Hwang, Seong-seob & Cho, Sungzoon & MacLachlan, Douglas, 2010. "Semi-Supervised Response Modeling," Journal of Interactive Marketing, Elsevier, vol. 24(1), pages 42-54.

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