P & L.? Yep. Profit and loss.
ROI? Uh-huh. It stands for return on investment.
REO? Okay that’s just to see if you are paying attention. And yes, that was a Thursday throwback to classic rockers REO Speedwagon.
How about the acronym LTV?
I’ll save you the time it would take to do a fast Google search (or Bing, if that’s your thing). LTV stands for ‘lifetime value’ and it’s being tossed around a lot lately when referring to how much value consumers place on a product — more specifically all those apps on our smartphones.
Here’s an APPsolutely amazing statistic. According to Apple, more than 800 apps are downloaded every second from the company’s App Store. 800 a second! And that’s just Apple.
Here’s where LTV comes into play. One of the most recent studies on smartphones shows 22% of the apps are never used more than once. Put another way, consumers are fast to download. The problem is not a lot of them see a compelling reason to return to a lot of those apps. Low LTV for certain. Not good for business!
Marketers miss the mark when they think a ‘cool looking’ or ‘pretty’ app is the secret to success. It’s not. Smartphone users want something more. It’s all about engagement.
By way of example, The NHL just went live with a fan app that is a hat-trick for hockey heads. (1) Fans can download the app for just their team, (2) it has features for those fans who actually go to the arena to watch the team in person and (3) it has features for fans who watch on TV from the comfort of their couch. Yes, it offers real time scores. You’d expect that. It also lets you watch out of market games live. See? That’s something you wouldn’t expect. A great example of a feature that will bring users back time and time again (at least during the season).
Then there’s the app called RecycleBank. Users earn points and special offers for logging their green living and recycling efforts. Again, it’s all about engagement. It’s not just static information.
2013 is almost a memory. Lots of companies spend the last few months thinking about ‘next year’ and how they’ll make their business even better. For businesses with smartphone apps, perhaps some deep thought should be given to re-tooling the customer experience by improving the LTV of their mobile products.