Appsflyer metrics

App marketing metrics comparison

App marketing is all about the data - but how do you know what to measure? Quickly compare metrics to be sure you're tracking what matters, giving you confidence in your campaign decisions.

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Customer acquisition cost (CAC) VS Lifetime value (LTV)

Description
Customer acquisition cost (CAC)
CAC shows how much you spend to win a single new customer.
Lifetime value (LTV)
LTV is an estimate of the average revenue a user will generate over the time they use your product.
Target audience
Customer acquisition cost (CAC)
App owners, marketers, and product managers
Lifetime value (LTV)
App owners, marketers and product managers
Benefits
Customer acquisition cost (CAC)

• Shows the effectiveness of your acquisition efforts
• Guides decisions on where to allocate budget for best results (and where you’re wasting your money)
• Helps you assess business profitability when compared against LTV

Lifetime value (LTV)

• Helps with forecasting and strategic campaign decisions
• Shows you where to focus activity for UA and re-engagement
• Boosts profitability

How to calculate
Customer acquisition cost (CAC)
Total sales & marketing cost
Number of customers
Lifetime value (LTV)
Average purchase size x Number of purchases x Retention period
How to improve it?
Customer acquisition cost (CAC)

• Make the most of your owned media to keep acquisition costs down
• Implement a referral program to bring in more customers for free
• Re-engage existing customers to boost retention
• Review your audiences and channels, and allocate budget where it’s most effective

Lifetime value (LTV)

• Keep improving overall user experience, from onboarding to purchase and support
• Connect LTV to attribution data
• Encourage upselling and cross-selling
• Use push notifications to re-engage users, and build loyalty through earned media

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Customer acquisition cost (CAC)
Lifetime value (LTV)
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