Metric

LTV

What is LTV?
Filippo Burattini
1 minute

LTV stands for Customer Lifetime Value and indicates how much an average user will bring in as revenue over the whole period of his use of the product. For instance a user that pays $10/month and stays for 10 months total, has a LTV of $100 (10 * 10).
The LTV is just as important as the ARPA to understand the unit economics and the financial health of a company, even in the early stages.

How to improve the LTV

If you understand what the LTV is, then you also see that there are two levers that you can pull: value and lifetime. So to improve your LTV, you can either increase the value for each user (ARPA) or you can increase the time that they keep using your product, which means reducing churn.

Of course, with LlamaFi you get all of this and more out-of-the-box.

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