Life Time Value in an app is all about the value that the user provides to your app till he uninstalls it. While he may not be buying anything in the app but if he is bringing references to your app, he is still offering some value. In all,three factors contribute to deciding an app’s life time value, they are –
Retention– The amount of time users are spending in app before uninstalling it
Virality–Peoplewho are coming in your app as references of the current users
Monetization–Amount of money people are spending within the app
Now that you know what all clubs together to define the Life Time Value of an app, here are the formulas to calculate the LTV. While there are a number of them mentioned in the article, the leading app development companies use a combination of them to make a custom formula that matches your business model’s,while looking at the performance of an app after its launch.
Ways to increase the Life Time Value of customers in your app
Sending customized emailers to your buying traffic can help your app go a long way when it comes to keeping the current users engaged. A simple subject line asking – How would they like a free video series or free subscription or simply avail xyz point discounts on whatever it is that your company offers? Can take you further in your users’ conscious mind and direct them to your app and spend some money while they areat it. The aim here is to remind your users, who haven’t uninstalled your app yet, of all the value that you offer, which got them hooked in the first place.
Do what Amazon does
The one sole trick that helps Amazon in increasing the lifetime valueon its app and website is showing ‘similar searches’ and ‘other people bought this’ information in the page. So even if you are not into selling things, suppose yours is a gaming app, show your users the stage their friends are in.
The move helps in making your users more engaged and feel more connected with other users on your app, making them stay in a little while longer. Do not limit this move on your app only, use similar searches tab everywhere you are promoting your app.
Invest in the right re engagement ads
A quick search on the internet will show you a series of re engagement ads package on different platforms including Facebook, Instagram, and LinkedIn etc. While it is easier to get swayed by the ones promising to get users back to your app in double digits, it is very important that you invest your money, even if it’s 1$ in those that give you the right statistics and data that you need to measure. Some of the meters that the ideal ad should provide are – cost per reopening, retention rates, rebooking, average basket sizes, and the summary of customer lifetime value.
Reward the most active ones and then notify everyone
A good reward program is not the one that gives the users appreciation but the one that motivate them to buy again. In order to make that possible, you should offer them something of real value that is in line with their past purchases or activity in the app.
Give them a reward that is attached to money. It is a psychological behavior that those who spend money will spend more time in the app as well to suck out the value of money they have invested with experience.
Bio: Currently writing for ChromeInfotech, one of India’s leading cross platform mobile development companies, Tripti has written on relationships, career, and real estate in her past. But now she is focusing on decoding the mobile world with Ed Sheeran playing on a record in the background.