Lifetime Value (LTV)
A Core Metric for Mobile Business Growth
In mobile marketing, lifetime value, or LTV, is a user’s total value throughout their time using an app. It is one of the key mobile metrics that is instrumental in growing a mobile app business.
The LTV key performance indicator (KPI) gives marketers a more precise picture of the revenue each user generates and is expected to generate over time. This data allows marketers to modify budgets and pinpoint exactly how much money they can afford to spend on user acquisition and still remain profitable.
The first thing to do when when calculating LTV is to granularly measure how much revenue an app is generating and from which sources. With plenty of data to work with, the marketer can properly optimize revenue streams, e.g., in-app purchases, in-app advertising, subscriptions, and premium/paid-for apps. A mobile measurement and attribution provider can help you properly define and track all your revenue events.