Lifetime Value (LTV)

"How much is my customer worth over time?"

Among other uses, this key figure helps you to decide how much to spend to acquire and serve a customer.

It's not easy to calculate so we put the effort in to make it simple for you to track. It's built it right into the home page and we update it each day.

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The Terms


Lifetime Value (LTV)

The revenue per user within a lifetime period. We are using 6 months from the time of the initial purchase.

Selection

The selection is chosen in the filters. By default, it is the last 30 days. For example, if you selected July 1 and July 30 it would show subscriptions that began between January 1 through January 30.

Comparison

The comparison is chosen in the filters. By default, it is the previous 31 to 60 days. For example, if the comparison was set for June 2 and June 30, it would show subscriptions that began between December 2 through December 31.

Difference

The percentage difference between the selection and the comparison. It is green when it is positive and red when it is negative.

The Math


Lifetime Value (LTV)

The lifetime value is 6 months.

100 new subscriptions on Day X, let's say January 1, 2020. By July 1, 2020, they have spent $10,000.

We divide the amount they have spent by the number of subscriptions. $10,000 / 100 = $100.

The chart shows the daily results for the selection and comparison. It also shows the average LTV for the period and the difference between them.

The Visuals


X axis (or horizontal axis)

The six-month Lifetime Value in US dollars.

Y axis (or vertical axis)

How often each six-month Lifetime Value dollar amount happened during the period. The higher the point of the curve the more often that dollar amount happened. The lower the point, the rarer it was to see that dollar amount during the period.

Blue Line

Selection (by default: current status for the last 30 days). Change the selection in the filters.

Grey Line

Comparison (by default: previous 31 to 60 days). Change the comparison in the filters.

The Updates


This report, like most others, updates once per day at 8 a.m. CET / GMT+2.

The Filters


Default is 30 days like almost all reports

When comparing data ranges it is good to use the same amount of days in the selection and comparison.