Lifetime value (LTV) is a KPI that’s at the very heart of app marketing. Knowing exactly how much revenue users generate throughout their lifetime informs marketing investment in user acquisition, engagement and retention. LTV is also essential to measuring the extent to which marketing investments deliver a positive ROI.
There are several ways to calculate LTV but regardless of the exact formula, there are three factors at play: revenue, retention and organic – all of which are provided by AppsFlyer for analysis, so marketers can measure and improve their performance. Let’s break this down.