Lifetime Value presentation to Yetizen

Below is a presentation that I gave yesterday on lifetime value (LTV) to the portfolio companies of YetiZen. It covers the importance of LTV, key variables (monetization, virality and retention) and how to affect them, importance outside gaming, cohort analysis and the predictive nature of LTV. Other than the final section on uncertainty, which echoes my blog post on Tuesday, the presentation is largely consistent with the one posted earlier that I gave at Groundwork Labs a few months ago. Here is the one from last night:

Calculating virality

Last week, I blogged about virality and its importance to LTV. Although I listed some virality variables, it was a relatively high-level look at virality and did not go into detail about calculating it. Alex St. John (with help from Anthony Percorella and Don Alvarez) recently posted a great model that goes into detail on how to measure virality. It also accounts for many variables such as exposure and immunity that I did not discuss. I strongly recommend you read Alex’s analysis and look at the underlying dynamics.
Alex st john model