Have you ever wondered why smartphone apps like Facebook, WhatsApp, and Amazon and kiss anime last longer and more successful in the business? I will reveal a fact that not many talks about, but it is still in effect.
Life Time Value is also called (LTV), LTV is a metric which measures the value over time of the user. Not many are aware of it, but LTV is the crucial metric in the Metrics list. The life and worth can be measured by using this metric.
The reasons why facebook is successful not because they are getting many users each day, they are making huge amount of revenue because people are coming back to the website and using it in their daily life. Once you have the grasp over the user base, you can sell anything, and your loyal users would buy it.
The same scenario is going on with the Apple because their products are getting a higher amount of sales because of the loyal fan base and they are buying if there is no innovation in their new products.
Where to Start
If you are a newbie and do not know where to start from then, i will assist you to start with basics.
You have calculated the LTV.
Retention: When retention is mentioned, there are many apps in the android market who have invested over a million dollar in advertisements and gained over a million downloads but only 20% of the users are active even after spending $1.2M. Basically you need a good android app promotion. Know the limits of your business and how much the business revenue can generate.
Monetization: I have no intention to discourage you, but if you are willing to invest in your app then you better have a good revenue plan or else there is no point in investing in a business where it cannot even generate any profits.
Viral: Did you know websites like facebook, Tumblr, Flickr and many other sites have not invested into the promotion. All of the mentioned sites made huge because of the viral content they have. How good is your app and how many shares and social exposure can it get from the social media? it matters now, you can get instant downloads.
Generate Revenue Per User: Downloads is aside, and if the app is targeted to generate revenue from per user then your business would go robust.
Other LTV Methods
There are several ways you can monetize your app to produce a decent amount of the revenue. You can choose several ways to monetize from ads to selling products.
The user is the key, and you have to keep tracking their mood and opinions of the app. You have kept touch with users because they can lead you to the gap holes of your product than yourself.
Create social profiles and start engaging with your audience build a healthy relationship and turn them into long term user. Once you are successfully solved their issues then they will spread the word of your actions and you can gian more users just like that. Avoid di-satisfaction on social media nd try to deal with the negative comment with the positive attitude.
Your users might need your assistancem, when need your assistance that time you should be ready to help them out. Create an in-app support so that you users can reach you when need you mostly
The point of the metric LTV is to increase the business and app life. The metric also assist you to improve better user engagement and imporve in revenue. By using LTV you can measure the longivity of the app.