LTV (life time value) is the user life cycle Sri-Lanka Phone Number value, which is the sum of all the benefits of the product from user acquisition to loss. LTV Sri-Lanka Phone Number is use to measure the value generated by users to the product. It is the ultimate indicator for improvement of all user operation methods. At the same time, LTV should also be the ultimate measurement indicator for all operation methods.

Definition of LTV

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T LTV. For the same product, the new customer acquisition cost of channel A is 150 yuan, and the cost of new customer acquisition of channel B is 300 yuan. It is intuitive to feel that the effect of channel A is better.

Although channel B is more expensive for new customers, channel B is more effective.

Whether it is user acquisition, retention or awakening, how much resources need to be invest  by LTV. The unified formula is as follows:

Among them, rate represents the input-output ratio, which  represents the increase in LTV caused by user operation activities, and cost represents the cost of operating activities.

When the input-output ratio is greater than 1, it means that the activity has positive returns. This is a very simple formula, but it is rarely used in actual user operations. In addition to the lack of in-depth popularization of the LTV concept, another key reason is that the improvement of life cycle value is difficult to measure in a short period of time. . In fact, this problem is not without solution. Below we will mention how to calculate LTV to improve the input-output ratio of LTV.

2. Calculation of LTV

At present, there are some more general LTV calculation methods on the Internet. MMR is used to represent the income brought by monthly users to the platform, and churn rate is the monthly churn rate of users. Then the calculation method of LTV is as follows:

These short-term data include the retention of new customers on the next day, the retention on the 7th, and the retention of these retained data on the 30th, as well as the revenue data such as the consumption amount on the 7th day and the consumption amount on the 30th day. Since BD can use these data to make judgments based on human experience, it means that there is enough information in the short-term data to predict the user’s long-term LTV.

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