Joseph Hayes

referral it is not that dissimilar from when a user decides to spend money — in both cases they are signaling some incremental bit of product-mark…tand the dynamics of referrals. Say that you have an app that tries to get users to refer a friend. Each time a user sends a referral it is not that dissimilar from when a user decides to spend money — in both cases they are signaling some incremental bit of product-market fit. One can analyze the cumulative and incremental referral sending behavior as cohorts age and come up…

e activity LTV figure. In this example we are accruing weekly retention up t…te an incremental figure. In the revenue case, incremental revenue accumulates up to an LTV figure. In the usage case, incremental retention accumulates up to a cumulative activity LTV figure. In this example we are accruing weekly retention up to a weekly active user (WAU) LTV figure. For e…

In the revenue LTV case, the main lesson was to observe actual monetization throughout the lifetime of existing users and to view the trends of those LTVs. For businesses that intend to grow users and monetize them in the future the focus shifts from mone…