Charity uses lifetime value modelling to assess returns from newe-CRM systemA charity is considering implementing a new e-mail marketing system to increase donations fromits donors. The charity’s main role is as a relief agency which aims to reduce poverty throughproviding aid, particularly to the regions that need it most. Currently, its only e-mail activity is amonthly e-newsletter received by its 200,000 subscribers which features its current campaignsand appeals. It hopes to increase donations by using a more targeted approach to increasedonations based on previous customer behaviour. The e-mail system will integrate with thedonor database which contains information on customer profiles and previous donations.The company is considering three solutions which will cost between £50,000 and £100,000 inthe first year. In the charity, all such investments are assessed using lifetime value modelling.Table 6.3 is a lifetime value model showing customer value derived from using the currentsystem and marketing activities.
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