Day: March 13, 2013

An aspect of lifetime value that is often neglected but could mean the difference between the ability to advertise (or not), are the costs associated with your game (or product for those outside the gaming space). As I have discussed in detail in the first seven posts on customer lifetime value (LTV), your lifetime value has to exceed to cost per install of a new user (CPI) to justify advertising. The LTV is a formula incorporating retention, virality and monetization. The other areas, though, that you need to look at are costs that lower the revenue stream from the user. Continue reading “Lifetime Value Part 8: Incorporating costs and expenses in LTV”