Reference no: EM133149658
Question - Tess is the development manager for the Isabelle Stewart Gardner Museum in Boston, working on a new donor recruitment campaign. She was trying to decide which type of donor to cultivate.
Her first choice was a younger, arts active woman living in Boston. This type of woman was likely to give in smaller increments, about $300 per year, but, given her young age, could be expected to donate to the museum for the next 10 years. This type of donor costs $100 to acquire.
Her other choice was an elderly, charitably inclined, suburban woman. This type of woman gave big gifts, on average around $1,000 per year, but only could be counted on to give to the museum for 3 years. This type of donor requires a bit more attention, so it costs $250 to acquire.
Tess also spends $0.25 for every donation dollar received, in variable costs.
What is the DOLLAR DIFFERENCE between the younger donor's and the older donor's CLV?
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