4 ms·
"Lifetime Value", the dollar value of a user over the entire time of that user's installation of your app.
by ductionist 10y ago
"Lifetime Value", the dollar value of a user over the entire time of that user's installation of your app.
- qeternity 10y agoOtherwise known as NPV...
- ABCLAW 10y agoNit: CLTV/CLV/LTV calculations ignore acquisition costs, and are generally used to determine bounds for acquisition costs/investments - They are, however, essentially calculated as the NPV of the customer post-acquisition, which I believe was your point. NPV calculations, used to determine the value of the entire pipeline, include them.
- orasis 10y agoMost people that I know don't discount the time value of money on their LTV calculations so, in practice LTV != NPV. But yes, NPV would provide a more accurate calculation. (Edit: to be clear on definitions, NPV is "Net Present Value")