March 20, 2019

F*ck! My lifetime value is dying a slow death!

Ondrej (pronounced OW-NDRiy) felt the life drain out of him as he looked at his lifetime value (LTV) numbers.

“F*ck!” he said, as he looked above his laptop, and out above the surrounding buildings and off into the Prague countryside.

“I put all of this effort into great products – totally unique – and frequent content updates…and still my LTV isn’t growing!” thought a frustrated Ondrej, “Why?”

With that question in mind, Ondrej started off on a journey to discover the causes of his low LTV and his options for improving it. He felt like he was a monkey climbing out on different tree branches in search of fruit. The fruit was never at the trunk of the tree. He always had to follow one branch, then another, until he finally found fruit hanging at the end. It was a tiring process. He never know which line of questioning would lead to the answer, which series of branches would lead to the fruit. It was different each time.

And each time made a change to his business, in an effort to improve LTV, he had a new tree with new branches to follow.

Was LTV going up or down based on the product? The traffic source? The payment method? The device type? Etc. So many branches…and so little time. He didn’t want to spend his life chasing causes of drops in lifetime value.

Questions for Discussion

  1. How do you feel when you see a drop in LTV?
  2. What is your process for identifying the causes of a drop?
  3. What would be an ideal process for you?