Presentation on monetization and ltv

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Presentation given at Groundworks Labs on how to grow your company by focusing on customer lifetime value (LTV) and monetization.

Presentation given at Groundworks Labs on how to grow your company by focusing on customer lifetime value (LTV) and monetization.

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  • 1. Monetization and Lifetime Value HOW LIFETIME VALUE DETERMINES YOUR SUCCESS AND HOW TO IMPACT IT
  • 2. Presentation OverviewRelevant backgroundWhy Lifetime ValueImportance beyond social mediaViralityRetentionMonetizationLTV varies among customers
  • 3. Relevant Background FROM START-UP TO BIGCO
  • 4. Been there, done thatCo-founded Merscom CCO, led all marketing/sales/distribution• Grew to top-5 casual game company• Initiated and negotiated sale to Playdom, which was then rolled into $570 million Disney acquisitionGM of Playdom’s International Publishing team• Responsible for Europe, Latin America, Russia and India• Grew it from scratch to 25 percent of Playdom’s revenueCEO of FiveOneNine Games• Joint venture of EW Scripps and Capitol Broadcasting• Launched Facebook and mobile gamesCurrently consulting for The Jockey Club and Curious Sense, Chairman ofGlobalization Committee at NC Central’s School of Business
  • 5. Why Lifetime ValueTHE THREE MOST IMPORTANT LETTERS FOR YOUR BUSINESS: LTV
  • 6. Function of three performance metricsMonetizationViralityRetention
  • 7. Interdepence
  • 8. Relationship between LTV and CPALTV > CPA• SuccessLTV < CPA• Failure
  • 9. Think of LTV starting day 1 Design and Beta and Post launch develop other testing to focus onGreen-light focused on to optimize improving LTV LTV LTV
  • 10. Importance beyond social media CRUCIAL TO ANY BUSINESS
  • 11. Online offerings Netflix Ebates Farmville
  • 12. B2BSquareRackspaceBronto
  • 13. SaaS Salesforce HootSuite Basecamp
  • 14. RetailRestaurantsDepartment storesCar dealers
  • 15. ViralityWORD OF MOUTH’S EXPONENTIAL EFFECT
  • 16. Definition of virality K-score K=i*conv% (conversion percentage), where “i” is the number of invites sent out by each new customer and “conv%” is the percentage of invites that convert into costumers
  • 17. An advanced look
  • 18. Importance of viralityLowers cost ofcustomeracquisitionExponentialgrowth
  • 19. Improving ViralityK=i*conv%Increasing I• Generate virality quickly• Cater to ConnectorsIncreasing conv%• Quality of communication• Provide value for virality
  • 20. RetentionCRUCIAL AND HARD TO FIX
  • 21. Definition of retention Customer lifetime N-day retention Churn rate
  • 22. Importance of retention If they do not come back, monetization improvements are virtually useless
  • 23. Improving retention Product quality Get in their heads Make it social Make it global Use email and advertising for re- engagement
  • 24. MonetizationSHOW ME THE MONEY
  • 25. Definition of monetization ARPDAU Percentage of ARPU (Average (Average customers whorevenue per user) revenuer per monetize daily active user) Average number Average of monetization transaction events per customer
  • 26. Importance of monetization
  • 27. Improving monetization Product qualityPromotions Value and sales Shopping Moreexperience selection Balancing
  • 28. LTV varies among customers THERE IS NO SINGLE LTV
  • 29. CohortsTime of yearStage of product lifecycleHolidays
  • 30. SegmentsAgeSexIncomeInterests
  • 31. SourcesIncentived Targeted Television ads search ads Cross Virality Press promotion
  • 32. Thank youLLOYD@VERUSENTERTAINMENTGROUP.COM WWW.LLOYDMELNICK.COM @LLOYDMELNICK