App marketing isn’t just about bringing in new downloads; the importance of the app lifetime value for your average customer far outweighs the importance of an extra download, and it’s important to understand why this is, and how to improve the average lifetime value of your app users.
Why The Average Customer App Lifetime Value is So Important
Of course, it’s important to try to rank high in the app store, and bringing in new downloads can work wonders on your app too, but the biggest chunk of revenue will come from the customers who keep coming back, no matter what your payment model is.
Customer lifetime value, or LTV, is a phrase we use to understand the overall value of an individual customer from the moment they start using your services, to the moment they stop. In this case, it will be the moment he or she downloads your application, and on the other end of the scale, the moment he or she removes it from their device.
The importance of the app lifetime value for app marketers is usually underestimated, but the truth is that returning customers can bring in a lot for your app’s success, and whether it’s through multiple advertisements, in-app purchases or purchases for paid apps, each individual customer currently using your app could prove to be more valuable than any new downloads if you learn to improve your app lifetime value.
LTV Analysis for Customer Acquisition
22 percent of the users only open the app once. That means in practical terms app marketers need to focus on what matters and measure beyond downloads. To drive revenue you need to target and acquire high value users and different acquisition sources and mobile networks do send different quality of users. Optimising advertising activities and resources towards only the sources and campaigns bringing in the most valuable users, is a common approach in app marketing. Our marketing campaigns integrate sometimes with 100+ networks / traffic sources to compare the lifetime value of the acquisition partners to tell where to spend more and less.
Tips to Improve Your App Lifetime Value
The app lifetime value is a phrase we like to use to explain how valuable an app can be over the course of a customer’s usage, and like LTV, the longer the better. It’s not an easy task to improve your app lifetime value, but there are some tips that you can stick by, and with patient and research, you should be able to work on improving your app lifetime value.
Make Customers Want to Come Back
One of the main reasons why most of the people that have your app installed don’t use it is because they forget that your app exists. It’s upsetting, I know, but it’s the truth. To remedy this, look into how to make customers want to return to your app through various customer retention techniques.
Make the First Impression Count
First impressions are everything, so make your first introduction with a new customer count. If your app has multiple features, create a walkthrough on the application that can show how a customer can make use of these features, and explain how simple the app can be to use. Creating a good first impression and showing the smooth performance of your app right off the bat will help stop a good chunk of customers who end up removing your app as soon as they have downloaded it.
Improve Revenue Models
LTV is about two things; improving the amount of time a customer uses your services, and improving the amount of value you receive from it within that period of time. If you are struggling on improving the average customer time spent on your app, you can still work on your revenue models to increase the value of the time customers do spend on your app.
Looking at in-app purchases and various advertising models should help to improve your chances of increasing your app lifetime value, even if your average customer doesn’t even spend that long on the app.
Hopefully this article should have helped to highlight the importance of the app lifetime value and showed how you can work on improving it.