Optimize for fast conversions or Lifetime Value?
Last Updated on June 29, 2022 by
In this article we talk about priorities in your marketing. Should one think short-term or long-term? Fast conversions or Lifetime Value?
So, what is the answer?
The answer to the title question is Lifetime Value. How to boost it then?
First of, you need to identify what makes your existing customers or users stay with you.
This is a cohort analysis, which could be a first step in finding out why a certain segment chooses to stay longer than others.
In the table below you can see that the first column shows the months in 2021. The second column shows the percentage of users who continue to use the app the following month since the day they installed the app, and so it continues.
Why is this useful?
If we look at the group of users who signed up for the app in October. Evidently, it is some type of activity, campaign, feature or change that has made these users stay longer than the other groups.
This type of ongoing analysis can help you find interesting patterns that you can then dig deeper into. Which hopefully can boost your users’ Lifetime Value.