Calculate the Life Time Value (LTV) of your App Users for Massive Branding & Success [ Infographic ]

Calculate the Life Time Value (LTV) of your App Users for Massive Branding & Success [ Infographic ]


Customer lifetime value or more commonly LTV (Life time value of an app user) is an important indicator that can help determine the real success of an app over time.

LTV brings to the surface the actual worth of engaging a client over a period of time. It measures what a customer actually contributes to an organization, loss or profit, over the entire customer life cycle from the beginning till the end.

LTV can help app developers learn more about their best customers, fix realistic budgets and also determine the real position of their app from time to time. Keeping the importance of this magic figure in mind, Dot Com Infoway, a leading force in the mobile app marketing arena, has collated useful strategies and tips for app developers to increase the LTV for their apps. Here’s all you need to know about LTV.

So, what’s the hype all about?

The hype about LTV is very much real as it is one factor that can help app developers strategize the long term success of their app. In today’s market scenario that is flooded with more and more apps every single day, most apps face stiff competition, and measuring and improving LTV of app users can significantly alter the future of an app for good.

There is no doubt about the fact that more and more people are spending most of their online time on mobile apps. While this may mean more users on your app, it definitely doesn’t mean all your users will be profitable. As is true for most business models, 80% revenue comes from 20% users. Measuring the LTV of users can help app developers narrow down their best users and create offers and promotions to reward their loyalty to boost retention. LTV helps app developers gain more repeat users, very important for an app’s overall health.

What this means is that LTV helps app developers plan marketing budgets optimally by helping them differentiate between high-value customers and the rest. Thus, app developers can leverage their marketing spends in a better manner by focusing on clients that are better ROI than acquiring tons of low value clients.

How can app developers unleash the power of LTV?

Measuring LTV is the first step for creating effective marketing strategies. The formula for calculating LTV depends on the marketing strategies employed but it is important to have an accurate measure so that you can determine the real status of your app.

Once measured, the next step is to enhance the customer value of your app by designing efficient digital marketing strategies that target high value customers to optimize the budget spend, while also focusing on converting the low value users to higher ratings.

As a top app marketing firm in the digital world, DCI has spent several years researching marketing trends and analytics focusing on increasing user acquisition, user engagement and experience for our clients. In order to help app developers have a better insight in understanding their app’s success over time, here is an Infographic explaining everything anyone needs to about the one single metric that can help determine an app’s present as well as future – the customer lifetime value or LTV.


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