Lifetime Value & Retention Rate: The Metrics That You Can Measure To See Your App’s Effect


The mobile app ecosystem continues to expand rapidly, it gets harder to acquire high-quality users. Many users install an app only to never open it again, and often users uninstall an app after the first opening. It’s key for app marketers to acquire high-quality users to drive stronger return on investment (ROI) for long-term success.


Lifetime value (LTV) is a metric that can be used to measure the effectiveness of your mobile app marketing campaign. Essentially, it calculates the value generated by one of your users over the duration that they use your app. Once you know a user’s LTV, you can begin to understand how much they are worth to you and make more informed decisions about marketing and acquisition campaigns. You should also improve the retention rate of your app, the metric that shows the number of users who continue using your app over a specific time period. And did you know that both of these metrics affect your app and work simultaneously?

In this guide, we’re going to discuss a strategy to improve the metrics, and why you should know these rates.

The Importance Of Segmentation Based On Different Countries

As an app developer, you should know how to improve your retention rate, and apply the strategies to increase this rate for your app. To implement this strategy accordingly, a segmentation based on different countries will be helpful. But why segmentation is important, and why should it be based on different countries?

The answer to this question is, that there can be different churn characteristics in each country. For example, the churn rate of your app can be high during the billing time in Japan. Or users in India might churn your app after using your app for a while. To provide the best experience, it’s important to find out which stages users churn your app in different countries. And in this way, you can create solutions for each churn reason and apply different strategies. These operations will help you to have a high lifetime value for your app.


Just as the churn reason, demands can also change from country to country. Subscription packages and pricing of your app should be created accordingly for these changing demands. Providing the most preferred subscription package and pricing in each country will positively affect the installs and revenue of your app. If you can implement these strategies in the best way, your app will have more chances to have ongoing success in the long run.

How Does Retention Rate Prediction Help Your Mobile App

App Store provides the retention rate of your app after the payment period ends each month. Also showcases the retention rate of each payment period (weekly, monthly, yearly, etc.). The payments received between the 1st and 30th of April can be available to you at the end of May. In other words, you receive the retention rate of a month, in the next month. Which makes it late to make momentary optimizations. But retention rate optimization should continue non-stop. This means the earlier you receive this rate, the more calculated decisions you can make for your app.

However, the pricing team of app companies can make retention rate predictions. They create a dashboard with the current metrics combined with the App Store metrics and see the retention rate of an app earlier. The forecasting they make based on two different dashboards, allows us to take more action and improve the rate, before waiting for the App Store to send this rate.

App companies can create a weekly dashboard that shows a weekly prediction of your retention rate. And this dashboard can minimize error margins up to %15-20%. This strategy allows us to make more thoughtful decisions, take momentary action, and reach a higher retention rate sooner. Predicting the retention rate weekly, allows us to make more retention rate-oriented work, and see the improved results earlier. The prediction strategy of app companies helps mobile apps improve their LTV along with their retention rate.

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Doing more optimization and taking calculated actions will affect your app positively overall. As an app developer, it’s critical to reduce your churn rate, segment your users, improve your retention rate, and have a high LTV for your mobile app. All of these operations mentioned require a lot of time, work, and expertise. But you can get help in all of these areas, without spending money. With the partnership model of Cherry, you can work with a team of professionals. And the Cherry team can conduct the marketing and pricing operations you need.

As you can see, the time and the amount of optimization you can make at the right time is very likely to affect the LTV and retention rate of your app. With a team of professionals, you will be able to make smarter decisions about your campaigns and leverage the power of lifetime value. You can gain quality mobile users who will give you a better ROI for your app marketing efforts.


So, if you are interested and would like to know more,

please drop us an email: “hello@getcherry.app

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