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 Predicted lifetime value (pLTV)

Description
Customer acquisition cost (CAC)
CAC shows how much you spend to win a single new customer.
Predicted lifetime value (pLTV)
pLTV combines past learnings with current measurements to predict how much revenue a user will bring in over the time they use your app.
Target audience
Customer acquisition cost (CAC)
App owners, marketers, and product managers
Predicted lifetime value (pLTV)
App owners and marketers
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

Predicted lifetime value (pLTV)

• Protects user anonymity by analyzing behavioral clusters, rather than individual user data
• Segments users based on their acquisition source so you identify the highest-performing sources
• Provides behavioral insights to shape acquisition and re-engagement campaigns, highlighting characteristics of high-potential users

How to calculate
Customer acquisition cost (CAC)
Total sales & marketing cost
Number of customers
Predicted lifetime value (pLTV)
N/A - models are based on machine learning algorithms
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

Predicted lifetime value (pLTV)

• Constantly feed your pLTV model with accurate, relevant data
• Choose the right KPIs
• Segment your audience into behavioral clusters
• Define team responsibilities and consider outsourcing your model if you lack expertise in house

Read more
Customer acquisition cost (CAC)
Predicted lifetime value (pLTV)
Background
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