by Robin Campbell, Marketing at Tapstream
As competition rises, one of the biggest questions plaguing the minds of app makers today is “How do I get more users?”
The other day, Tapstream’s CEO, Slaven Radic, was chatting to an app company about exactly this, only to discover the app maker had no idea what his customer lifetime value was – that’s to say, how much he will earn from an average customer throughout their relationship. This is alarming considering he was ready to dive head-first into user acquisition.
The sexy veneer of taking action and roping-in new users is tempting, but there are some important numbers you need to know first.
Knowing your cost of customer acquisition (CoCA) and lifetime value (LTV)
Learning how much it costs to acquire a customer (CoCA) for a given channel and how much that user is worth to you (LTV) is the only way you can determine which sources of users are worth going after.