Lifetime Value (LTV)

The Lifetime Value (LTV) represents the cumulative value of a donor over her or his lifetime. The LTV can be calculated for individuals, segments, or cohorts. LTV analyses are used in fundraising to retrospectively (past-oriented) or prospectively (future-oriented) determine the monetary value of a target group. These analyses provide critical insights into which target groups have established long-term successful relationships with the organization and where resources for marketing activities and relationship management should be allocated.