Monitoring Lifetime Value (LTV) aids in understanding the long-term value of a customer relative to the acquisition cost, guiding resource allocation, and retention strategies.
Each KPI serves a specific purpose. For instance, Monthly Active Users (MAUs) gauge the level of user engagement and the overall health of the product, while Customer Acquisition Cost (CAC) helps in assessing the efficiency and effectiveness of your marketing strategies. Monitoring Lifetime Value (LTV) aids in understanding the long-term value of a customer relative to the acquisition cost, guiding resource allocation, and retention strategies.