š How to Calculate Lifetime Value (LTV) Without Going Crazy?
Ever been asked about your appās Lifetime Value (LTV) and drawn a blank? Youāre not alone.
š¤ What is Lifetime Value (LTV)?
Simple definition: The total money a customer will bring to your business over their entire relationship with your app.
Think of it like this:
š° Revenue = Price Ć Number of Purchases š·ļø Price = What they buy š Quantity = How often they buy
ā ļø Why LTV Prediction is Tricky
Letās be realāitās complicated. Economists have spent years trying to crack this. The hard truth? Itās always a prediction, never 100% accurate. The goal is to be “usefully wrong.”
š§® Quick LTV Calculation Method
I’ve created a simple spreadsheet to help you out: ā Enter your key metrics ā Get a basic LTV prediction ā No complex math required