Simple LTV = ARPU x Average Customer Lifetime (in months). Net LTV = Simple LTV x (1 - Platform Fee %). More precise: LTV = Sum of (Monthly Revenue x Survival Rate at Month N) for N = 1 to projected lifetime. For example: Month 1: $9.99 x 100% + Month 2: $9.99 x 92% + Month 3: $9.99 x 86% + ... summed across all months.
Start with cohort-based survival curves: track what percentage of each monthly cohort remains subscribed at 1, 2, 3 months, etc. Sum the revenue at each period weighted by survival rate. For early-stage apps with limited data, use the simple formula: ARPU / Monthly Churn Rate (e.g., $9.99 / 0.05 = $199.80 projected LTV). Be conservative — early LTV estimates are almost always too optimistic.
Both serve different purposes. LTV per subscriber tells you the revenue from a paying user (useful for retention analysis). LTV per install includes the conversion rate and tells you the expected revenue from any user you acquire (useful for setting acquisition bids). LTV per install = LTV per subscriber x Install-to-Subscribe Rate. For ad bidding, LTV per install is what matters.
Three levers: 1) Reduce churn (extends customer lifetime), 2) Increase ARPU (through upsells, price increases, or additional revenue streams), 3) Improve conversion rate (higher % of installs generating revenue). Of these, reducing churn usually has the biggest compounding impact. Dropping monthly churn from 5% to 3% increases average lifetime from 20 to 33 months — a 65% LTV improvement.
A messaging strategy that targets users at key moments in their journey - from onboarding and trial to renewal and reactivation. Channels like email, push notifications, and in-app messages are orchestrated around behavioral triggers to drive higher conversion and retention.
The process of adapting your app's content, pricing, messaging, and visuals for different languages, regions, or cultural norms. Effective localization improves global conversion rates, user trust, and long-term retention in international markets.
User interactions that originate from lock screen surfaces - such as notifications, widgets, or Live Activities - without launching the full app. These lightweight touchpoints help boost engagement, reinforce habits, and improve retention with minimal friction.
The percentage of users who remain active and/or subscribed after extended periods (e.g., day 30, day 90, or day 180). Particularly important for subscription apps with annual plans or freemium models where monetization happens later in the user lifecycle.
A key profitability metric that compares the average Lifetime Value of a user to the average Customer Acquisition Cost. A ratio of 3:1 is often cited as a healthy benchmark for sustainable growth and efficient marketing spend. But lifetime value is measured differs across apps and industries, so don't use this as a hard and fast rule
Botsi automatically shows the right price to every user. Stop guessing and start growing.