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Lifetime value decreasing?

  • 29 April 2019
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When I checked the LTV in the Revenue app a week or two ago, the LTV for the fourth month (which is the longest time period available in our account so far) was around $45. Now the LTV for the fourth month is about $33. There haven't been any refunds, so how is it possible that the LTV for the same time period (the fourth month) could go down? The time span of the report has not changed. I would have thought that without refunds, the LTV can only increase.


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Best answer by sarahhorton 29 April 2019, 22:54

Hey @successm, the revenue looks like it is going down because the lifetime value line chart in Revenue looks at the average lifetime value across all current paying users. Which is possible for a newer user to bring up the average in earlier time units, but not yet affect later days/weeks/months. Thus, resulting in a lifetime value chart that goes down over time. Please take a look at the example illustrated here.


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Hey @successm, the revenue looks like it is going down because the lifetime value line chart in Revenue looks at the average lifetime value across all current paying users. Which is possible for a newer user to bring up the average in earlier time units, but not yet affect later days/weeks/months. Thus, resulting in a lifetime value chart that goes down over time. Please take a look at the example illustrated here.


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Got it, thanks


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