The question of calculating lifetime value (LTV), also known
as customer lifetime value (CLV), sooner or later pops up before the developers of mobile games and apps.
Not exact matches
This focus on
lifetime value has created both a big job market (according to a search on LinkedIn, more than 2,800 «
customer success» - related job openings exist),
as well
as spawned a hot new product market.
For just about any growing company in this «
as - a-service» world, two of the most important metrics are
customer churn and
lifetime value.
The book has more of a consumer - goods angle, but many of the ideas explored — such
as measuring
customers»
lifetime value — also apply to business - to - business settings.
They will want to examine metrics such
as gross margin, website traffic, revenue growth and
customer metrics such
as acquisition costs and
lifetime value — and the history associated with each.
For example, they need to know the costs of acquiring a
customer as well
as the
lifetime value of a
customer.
Then they must disclose information such
as how much they spend to acquire users, each
customer's
lifetime value, and how much cash they have on hand.
«We've been working closely with industry leading brands, pioneering mobile engagement
as a way to deepen
customer relationships, grow revenue, loyalty and
customer lifetime value.»
In its S - 1 filing, Match explains that it acquired The Princeton Review because «it relies on many of the same competencies
as our dating business, such
as paid
customer acquisition, a combination of free and paid features, deep understanding of the
lifetime values of
customers, and strong expertise in user interface development.»
According to SEC filings, Match said the education businesses, «relies on many of the same competencies
as those relied upon by our Dating business, such
as paid
customer acquisition, a combination of paid and free business models, a deep understanding of the
lifetime values of
customers and a strong expertise in user - interface development.»
We may think of ourselves
as «
valued»
customers, but the banks and their data mining... [Read more...] about Why The Chase 5 - 24 Rule Is Worse Than Amex's Once Per
Lifetime
When your cost - per - install figures rise above your
customer lifetime value,
as they have for most of the mobile games industry, that's when you're in trouble — at least according to Michael Velkes» Casual Connect Tel Aviv 2015 lecture.
Secondly, a paid model sets a lid the potential
lifetime value of a
customer,
as it's close to impossible to monetize players who already paid for the game.