📊 How to Calculate Lifetime Value (LTV) Without Going Crazy?
Ever been asked about your app’s Lifetime Value (LTV) and drawn a blank? You’re not alone.
🤔 What is Lifetime Value (LTV)?
Simple definition: The total money a customer will bring to your business over their entire relationship with your app.
Think of it like this:
💰 Revenue = Price × Number of Purchases 🏷️ Price = What they buy 🔄 Quantity = How often they buy
⚠️ Why LTV Prediction is Tricky
Let’s be real—it’s complicated. Economists have spent years trying to crack this. The hard truth? It’s always a prediction, never 100% accurate. The goal is to be “usefully wrong.”
🧮 Quick LTV Calculation Method
I’ve created a simple spreadsheet to help you out: ✅ Enter your key metrics ✅ Get a basic LTV prediction ✅ No complex math required