Realized LTV per Paying Customer Chart

Realized LTV per Paying Customer

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Realized LTV (Lifetime Value) per Paying Customer (sometimes also called Average Revenue per Paying User, ARPPU) shows the actual (gross) revenue that was generated by a cohort of paying customers, divided by the number of customers in that cohort. Customers are cohorted by the date they were first seen, i.e. the date they first opened your app. Using the “Customer Lifetime” selector, you can define the time period after the customer was first seen that should be considered in terms of revenue. For example, by setting the “Customer Lifetime” selector to 30 days, all revenue generated by new customers in their first 30 days will be added up, and any revenue generated after that will be discarded for the purpose of this chart.

Realized LTV per Paying Customer gives you an overall view how the monetization of cohorts of paying customers has developed over time. A common use case is to compare a certain customer lifetime (e.g. 30 days) for users acquired in different months. You can then connect the results with what happened in product and marketing during these months. For example, changes to your paywall, App Store / Play Store features, or changes in paid acquisition may change the number of new paying customers and/or the average revenue generated per paying customer.

Realized LTV per Paying Customer can also be used as a tool to understand the profitability of (paid) acquisition. By comparing the Realized LTV per Paying Customer for a given cohort with the average cost to acquire a new paying customer for that cohort, you can calculate the acquisition profitability.