The Revenue LTV chart: Track how well you're monetizing new users
Successfully acquiring, engaging, and retaining new users doesn't help your company grow if you can't monetize them.
With Amplitude's Revenue Long-Term Value (LTV) chart, you can:
- See how well your organization monetizes new users, using common, relevant, easy-to-understand revenue metrics.
- Analyze new-user monetization with a time horizon of up to twelve months into the past.
- See how quickly and effectively segments of new users transition to paying users.
- Set benchmarks and goals for new-user monetization going forward.
Before you begin
Events don't appear in any Amplitude charts until instrumentation is complete. Make sure you've completed instrumentation. Before you begin, refer to building charts in Amplitude.
Review the tracking revenue documentation to learn how to track revenue events. For example, if you use Amplitude's SDKs, call logRevenueV2() with the provided revenue interface. If you track in-app purchases (IAPs), use Amplitude's revenue authentication system.
Review Currency Conversion for information about how to aggregate and display original and converted currency options.
Amplitude recommends that you enable both the amplitude.Revenue() and product array tracking methods to get the most information possible.
Set up a Revenue LTV chart
Like most Amplitude charts, the Revenue LTV chart has an Events Module. Use [Amplitude] Any Revenue Event here. This lets you analyze the data Amplitude's SDK sends when it logs revenue events.
You can also calculate revenue based on other events. To segment on the event itself, add properties to it in the Events Module.
To build a Revenue LTV chart, follow these steps:
- Select your revenue event and the event property that contains the revenue information, if one exists. If you use
[Amplitude] Any Revenue Event, select$revenue. If you use your own custom revenue event, select your own custom revenue property.
You don't have to use a revenue property here. It's the most common use case of the Revenue LTV chart.
- Add properties to the revenue event by clicking + Filter, selecting the property name, and specifying the property value you want. Add as many properties as you want, one at a time.
You must send these properties explicitly through Amplitude's SDKs when you log revenue events.
If you use [Amplitude] Any Revenue Event, filter on one of five event properties, all prefixed with a $:
* $price: The price of the products purchased. * $productId: A product-specific identifier for each item purchased. * $quantity: The quantity of products purchased. * $revenueType: The revenue category. Common values include income, tax, and refund. * $eventProperties: An object of event properties to include in the revenue event.
In the Segmentation Module, identify the user segment to include in this analysis. Click Saved Segments to import a segment you've saved. Otherwise, Amplitude assumes the analysis targets all users.
To build your own segment instead of importing a saved one, add properties. Click + where, choose the property you want to include, and specify the property value you want.
To narrow your focus, include only users who have already performed certain actions. Click + perform, then choose the event you want.
To add another user segment, click + Add Segment and repeat steps 3 and 4.
Choose the measure for this analysis.
- Total Revenue: The total revenue received during the timeframe of your analysis. Specifically, it's the sum of all total revenue from all new users, starting the day they sent their first Amplitude event. Break this out on an hourly, daily, weekly, monthly, or quarterly frequency.
- New Paying Users: The number of users who triggered a revenue event for the first time during the specified hour, day, week, or month after their cohort's start date.
- ARPU: Short for average revenue per user. A new user cohort's cumulative total revenue as of the hour, day, week, or month you're looking at, divided by the number of users in the cohort.
- ARPPU: The same as ARPU, except it considers paying users only. A paying user is a user who has ever triggered a revenue event, even if their first revenue event occurs after the specific data point you're looking at. For example, if a user first purchases something on the fifth day after they began using your product, that user counts as a paying user when calculating ARPU over their first four days.
Each of these metrics only looks at users who were new to Amplitude during the timeframe of your analysis. Users don't need to have triggered a revenue event to count, except for ARPPU.
- Use the date picker to set the frequency breakdown and timeframe of your analysis.
Next steps
Next, learn how to interpret your revenue analysis.
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