THE LIFEVALUE ACQUISITION QUOTIENT
In customer or donor acquisition the LifeValue Acquisition Quotient (LV AQ5) is the five-year value divided by the acquisition cost. The AQ5 is a ratio essential in the determination of who is acquired and how they are acquired.
The AQ5 is an important factor in keeping a perspective on the relative value of different acquisition methodologies. This approach follows the same logic as selecting a stock for an investment portfolio.
In most cases the individuals targeted for acquisition should have the highest AQ5 (usually 2.5 to 5). This means that that the predicted five-year value of the customer or donor will be from 2.5 to 5 times the cost of acquisition.
LifeValue Acquisition Analysis, a proprietary STRATMARK methodology, enhances a company's or nonprofit's ability to target the right people in the acquisition process.
