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The Five Stages of Reducing Mobile Customer Churn

Retention is a top priority for mobile marketers. Our new five-step framework is here to help you improve your existing strategy.

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2020 Mobile App Engagement Benchmark Report

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We tailor each demo to your specific business needs. See it for yourself and contact us today!

Thanks for reaching out! While you wait for confirmation from an Apptentive team member, you may find these free resources to be of interest:

Guide

View resource

Guide

The Five Stages of Reducing Mobile Customer Churn

Retention is a top priority for mobile marketers. Our new five-step framework is here to help you improve your existing strategy.

Download Now

Guide

View resource

Guide

2020 Mobile App Engagement Benchmark Report

Apptentive’s annual mobile app engagement benchmark report serves as a baseline to help app publishers across categories understand their app’s engagement strengths and areas for improvement.

Download Now

Mobile Marketing

Understand and Measure Customer Lifetime Value

Ashley Sefferman  //  September 20, 2018  //  2 min read

Does a low cost per install (CPI) mean you should pour all your marketing dollars into paid acquisition? Does a high average revenue per user (ARPU) mean your app’s sitting pretty in the black? The answer to either question is an unequivocal no.

When evaluating the health of their mobile apps, many marketers automatically turn toward ARPU and CPI. But while it may be common practice, relying on these two metrics alone provides just one side of the picture. What’s missing is a holistic understanding of the customer, which boils down to a single metric known in the world as Customer Lifetime Value (CLTV, or just LTV). That’s why we wrote our new guide, Understand and Measure Customer Lifetime Value.

How to understand and measure customer lifetime value

Lifetime value is a simple yet powerful heuristic for assigning a dollar value to both the tangible and intangible value a customer contributes to the health of your mobile app over the duration of their time with your app (‘lifetime’).

The tangible comes down to what we already know: Average Revenue Per User and Cost Per Install. The intangible dives deep within the customer journey to extend the definition of value beyond its monetary connotation. Factoring in the intangibles of customer loyalty, satisfaction, engagement, and retention, LTV provides a truer assessment of how much a customer relationship is worth to your app.

In this new guide, we break down mobile customer lifetime value into its three parts and provide tips and best practices for calculating each component, including:

  1. Why understanding LTV is important
  2. The three main drivers of LTV
  3. How to measure and use LTV

In wrapping up, we bring everything back together in the form of one very meaningful metric to be used against the cost of customer acquisition (CAC) as a way to gauge the return on your marketing investment.

Success in the app business often comes down to knowing your numbers—and a firm grasp of customer lifetime value is what will ultimately differentiate your app from the sea of millions of other apps competing for your customers and revenues. Grab your copy of Understand and Measure Customer Lifetime Value and harness the power of LTV to your advantage!

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About Ashley Sefferman

Ashley Sefferman is Head of Content at Apptentive. A digital communication and content strategy enthusiast, she writes about multichannel engagement strategies, customer communication, and making the digital world a better place for people. Follow Ashley on Twitter at @ashseff.
View all posts by Ashley Sefferman >

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