Intro to Forecasting Lifetime Value for Mobile Apps

What is LTV?

LTV, or the Lifetime Value of a user, is a powerfully informative metric whose purpose is to give decision makers an idea as to what a new user’s monetary worth is. Moreover, when produced from a forecasting model, LTV can be calculated for some point in the future, using current data. In simplest form, LTV is calculated as the monetary contribution that an average user will generate during their lifespan.

Because LTV is such a popular topic it’s not surprising that the internet is a cornucopia of links…