Predictions and Calculations on LTV
Last updated
Last updated
To calculate the LTV of our users, we'll consider the following factors:
Average Revenue Per User (ARPU): Based on in-game transactions, NFT sales, subscriptions, and other revenue streams.
Retention Rate: The percentage of users who continue to engage with our ecosystem over time.
Churn Rate: The percentage of users who leave our ecosystem over a given period.
Let's assume an ARPU of $15 per month, a monthly retention rate of 95%, and consequently, a churn rate of 5%. The LTV can be calculated as:
Using these assumptions, we'll calculate a simplified LTV for our users.
Based on the assumptions of an Average Revenue Per User (ARPU) of $15 per month, a retention rate of 95%, and a churn rate of 5%, the calculated Lifetime Value (LTV) of a user in the Age of Mars ecosystem is $285.
This LTV reflects the potential revenue generated from an average user throughout their engagement with the platform, underscoring the value of investing in user acquisition and retention strategies as outlined in our go-to-market strategy.
This LTV prediction serves as a foundational metric in evaluating the effectiveness of our marketing initiatives and the overall health of the Age of Mars ecosystem. By focusing on strategies that enhance user engagement and extend the lifetime of user interactions within our platform, we aim to maximize this value, driving sustainable growth and long-term success.