App developers as well as marketers know that Lifetime Value (LTV) is the most important commercial metric. But many times they struggle as there is no steady way to calculate it as well. Knowing that a company’s hang of financial metrics, particularly LTV, is imperative for any app business to succeed, a free tool called “Financial Forecaster” has been launched by Pollen VC. It is available to app developers and marketers across the globe.
Financial Forecaster provides developers a visualization of LTV and cash flow scenarios based on freely available metrics that app developers and marketers can access via their analytics or attribution partner, or straight from the app stores with ease. By entering their app’s CPI (cost per install), Retention and ARPDAU (average revenue per daily active user), app developer gets a visualization of their LTV curve, and a set of customized financial projections that enables them to comprehend the likely revenues of their app based on a rigorous approach to investing in paid UA channels only when they are ROI positive.
The tool makes suggestions about where app developers and marketers should focus development resources as well to fix particular retention issues it highlights, helping set KPIs for product teams.
The purpose of creating the Financial Forecaster was to give developers the power to visualize if they are presently, or could be, making money from their app – an objective that demands an association between user acquisition goals and actual spend to attain success.
According to Martin Macmillan, CEO of Pollen VC. “If the numbers don’t add up, then the Financial Forecaster will communicate this, letting developers know that they should stop spending money on channels that are not delivering a positive ROI.”