Why (and How) Optimizers Should Take Advantage of User State Models


day 1 retention). By running this analysis, we can see that receiving a text 6 or more times (the behavior) is positively correlated with long-term retention. In this case receiving 6 texts has a PPV of 26% and an NPV of 93%. William A.

How to create a profitable Freemium startup (spreadsheet model included!)


Understanding your engine of adoption User retention Of course, it’s not enough to just acquire paying users, you need to retain them. How sensitive are retention numbers on lifetime value? But, I agree with Steve that a constant retention rate seems a bit off.

Business Model Analysis, Part 6: LTV and CAC

Platforms and Networks

Up to some point—I* in the figure below—increasing investments should boost a firm’s net present value (NPV), but at a diminishing rate as the cost of acquiring each additional customer rises. This post is part of a series on business model analysis for entrepreneurs.