Yetizen presentation on LTV

Presentation given to Yetizen on LTV: the importance of it, what to measure and how to affect it, and the predictive nature of LTV. Similar to previous presentation at Groundworks Lab with an added section on Uncertainty.

1.   How Lifetime value determines your success and how to impact it Lifetime Value

2. Presentation Overview

3. From Start-up to BigCo Relevant Background

4. Been there, done that

5. The three most important Letters for your Business: LTV Why Lifetime Value

6. Based on three performance metrics

7. Interdepence

8. Relationship between LTV and CPA

9. Think of LTV starting day 1

10. Crucial to any Business Importance beyond social media

11. Online offerings Netflix Ebates Farmville

12. B2B

13. SaaS Salesforce HootSuite Basecamp

14. Retail

15. Word of Mouth’s exponential effect Virality

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 virality

19. Improving Virality

20. Crucial and hard to fix Retention

21. Definition of retention

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. Show me the money Monetization

25. Definition of monetization

26. Importance of monetization

27. Improving monetization

28. Do not forget Variable COsts The Cost Side

29. Cost Drivers

30. There is no Single LTV LTV v aries among customers

31. Cohorts

32. Segments

33. Sources

34. It is a Prediction Uncertainty of LTV

35. Uncertainty Principle

36. Risk vs Uncertainty

37. The major difference between a thing that might go wrong and a thing that cannot possibly go wrong is that when a thing that cannot possibly go wrong goes wrong it usually turns out to be impossible to get at or repair,” wrote Douglas Adams in The Hitchhiker’s Guide to the Galaxy series .

38. Do not discount qualitative information

39. Avoid Overfitting

40. Solutions

41. [email protected] www.lloydmelnick.com @ lloydmelnick Thank you