Understanding Retention Part 3: LTV and Retention
Understanding Retention Part 3: LTV and Retention
In my previous posts, I covered the importance of long-term retention and how games with low retention will survive. Now, it’s time to talk about how we can calculate LTV (lifetime value) and its relation to Retention.
⥅ Here’s the formula
LTV = Lifetime ⛌ ARPDAU
Using this formula you can make estimations on your early retention data
How Retention Impacts LTV
Retention and LTV are closely linked. The longer players stick around, the more opportunities they have to make in-app purchases or watch ads, increasing their lifetime value.
↳Higher retention naturally translates to a higher LTV.
If you found this post helpful:
→ Give it a like 
→ Share your thoughts in the comments
→ Repost it to help others
→ Follow me for more insights on Game production and leadership
→ DM me and let’s maximize your performance
