One critical metric that can help predict the probability of the success of your app to a significant degree is the Customer Lifetime Value metric, otherwise known as LTV.
Lifetime value is the measurement of what a client’s business is worth to you in real monetary terms over the lifetime of the business cycle. This knowledge makes it easy to understand and segment your app’s user-base, and thereby, plan and design your budget, revenue and growth projections efficiently.
To help you understand LTV, Dot Com Infoway, a global leader in mobile app marketing solutions, has published an infographic on how to leverage LTV for long-term app development.
Why is LTV so relevant?
Today, app stores are inundated with a flood of new apps. This means that in order to stand out, you need to have an effective strategy for optimizing the ROI from your app users. By taking advantage of data derived from your LTV, you can gain higher returns on your marketing budgets. You can attain this by targeting clients that offer higher returns while optimizing for low-value customers who are critical for ratings. Following thorough research on LTV, DCI has presented critical data on LTV in their infographic.
Infographic Source: http://www.dotcominfoway.com/blog/calculate-life-time-value-ltv-app-users-massive-branding-success-infographic/