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Analytics : LTV

Recognize your user’s worth

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How it helps

Loyalty and frequent usage of an app by the users. A measure of a user’s value over time where users generate conversion events like purchase, view or play would be considered as a loyal and valuable user.

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LTV could be beneficial in setting the marketing budget and helps app marketers with devising strategies for pursuing valuable end users to action an event. AdGyde successfully predicts a user’s Lifetime Value serving the app marketers with a niche user segment to make rational decisions. This strategy also helps in maximizing the effectiveness of its marketing-related spending.

We calculate LTV firstly by calculating the user retention and tracking of in-app revenue events. For instance, if a user is interacting with an app at least twice a week then, he will be considered as a valued user showing his Life Time Value (LTV).

Suppose there are 2 users having an E-Commerce app in their device. If let’s say user 1 is active on an app on daily basis but doesn’t make a transaction whereas, user 2 is also active on an app on daily basis but makes some transaction either once or twice in a week then, user 2 will be considered as a valuable user. For any app marketer, every user is important but the ones who generate some potential revenue, make some purchases would define the user’s value that how important that user is.

Whereas, LTV varies depending on the type of app but returning users and revenue generating users are valuable for all apps and the same has been included in AdGyde.

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