LTV
LTV, or Lifetime Value, predicts the net profit attributed to the entire relationship with a customer. It helps marketers understand user value, make informed decisions on acquisition and retention strategies, and optimize user engagement. Calculating LTV involves subtracting Customer Acquisition Cost (CAC) from the Average Revenue per User (ARPU) multiplied by the Average User Lifetime. Another method involves dividing ARPU by churn rate. Marketers can improve LTV accuracy by tracking user behavior and revenue, monitoring acquisition costs, segmenting users, and leveraging Mobile Measurement Partners (MMPs) for data insights.