User Lifetime Value (LTV) is the measure of a user’s value over time. It is one of the most important metrics to track and can be displayed in many ways; sharing the app on social media, spreading the word among friends or it could even be the revenue generated from ads and in–app purchases. Even if a user doesn’t spend money using your app but they share it with other users that do spend money, they are considered valuable.
Yes, for mobile apps to be a success, they require high retention rates and engagement but they demand an ever-increasing focus on ensuring the app is downloaded in the first place and that the users keep on using it. So, to help get you started, here are a few tips about maximising LTV.
1 Impact the Right Users
It sounds obvious, but it’s important. Impact those users who are likely to be interested in the product and contribute to it. Make sure you can tie revenues to specific acquisition channels. Think about each channel and consider how the audience would interact. If you create a mobile game, for example, users who come from a games environment will be more profitable than those who come from standard ads. Targeting is key here.
2. Go Overboard on Onboarding
The first five minutes on mobile are critical so work hard to deliver optimised, personalised onboarding experiences that answer the questions a typical user may ask. Work on the onboarding funnel and measure the effectiveness of each stage of the process. Only then will you be able to tackle the challenge. Start testing various onboarding approaches and establishing what is actually working for you.
3 . Push Wisely
Push notifications can be useful if used correctly. Start by using opt-in where users are less likely to opt-in ‘blind’. Explain why their experience will be improved and they will be more receptive. Once you have permission, send push notifications that improve the user experience: relevant, personalised messages at the right time for each individual to make them even more effective.
4. Improve UI
If your mobile app User Interface (UI) design makes it impossible for users to access certain features, they will become frustrated and eventually stop using it. Using analytics to understand friction points will allow you to create a much more seamless and easy experience that will boost usage and session length.
5. Be Social
Social media is more than just a place to give user feedback. They are excellent platforms where users can spread the word about the app. It is particularly important for media apps where the more content is shared, the more users it will attract. It can also be used as a User Acquisition tool and as a means of creating a buzz about your app. Include sharing buttons on your app so users can easily promote pages, content, and products.
So, despite which tactics you choose to boost user LTV, the ultimate goal is to create user satisfaction. Without this, users will drop off in their droves while LTV suffers the consequences. To avoid this, create the best possible experiences for your users. Experiences that drive engagement, retention and revenue to ensure they come back for more. These five tactics will set you on your way to help create an enjoyable experience for users as well as making your app a success.