SAN FRANCISCO, January 16, 2017 /PRNewswire/ --
- The Financial Forecaster calculates app LTV and maps out what an app stands to make for the next 365 days, helping app companies decide when it makes sense to invest in paid user acquisition. It also calculates how the app's net cash position would compare if revenues were recycled more rapidly back into additional marketing.
- App and game developers have additional visibility into metrics that allow them to plan effective marketing as the tool shows whether they are spending profitably or not with the major ad networks
- The Financial Forecaster is aimed to assist app developers that monetize through in-app purchases, but future versions of the tool will accommodate alternative monetization models.
While app developers and marketers understand that Lifetime Value (LTV) - the total revenue generated by a user from the time they download the app until they abandon it - is the most important commercial metric , they often struggle because there is also no uniform way to calculate it.
Recognizing that a firm grasp of financial metrics, particularly LTV, is key for any app business to succeed, Pollen VC, a fintech company focused on accelerating payments in the app ecosystem, has developed and launched the Financial Forecaster, a free tool available to app developers and marketers globally - calculator.pollen.vc
The tool offers developers a visualization of LTV and also cash flow scenarios based on readily available metrics that app developers and marketers can access easily through their analytics or attribution partner, or directly from the app stores. By inputting their app's CPI (cost per install), Retention and ARPDAU (average revenue per daily active user), the app developer sees a visualization of their LTV curve, and a set of customized financial projections which allow them to understand the potential revenues of their app based on a rigorous approach to only investing in paid UA channels when they are ROI positive.
The purpose of creating the Financial Forecaster was to allow developers to easily visualize whether they are currently, or could be, making money from their app - a goal that demands an alignment between user acquisition goals and actual spend to achieve profitability. "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," notes Martin Macmillan, CEO of Pollen VC. The Financial Forecaster also makes suggestions about where app developers and marketers should focus development resources in order to fix specific retention issues it highlights, helping set KPIs for product teams.
"Our goal is to help developers understand what their metrics really mean, and importantly how to act on them to benefit their business when the conditions are right." When users can be acquired profitably, Pollen injects additional capital to fuel the app's growth in a capital efficient way. "By adding liquidity into the app ecosystem and helping successful apps grow more quickly, everyone benefits - platforms, ad networks, attribution providers and most importantly the developer.", adds Macmillan.
Key Assumptions and Disclaimer: These results are only a prediction of revenues, based on the data you provided and market data. Our model is based on a 50% reinvestment rate. All results are given for illustrative purposes - you should not make decisions based on such results without further consideration. Use of the tool is subject to additional terms available here: http://www.pollen.vc/#/terms.
Tweet the news:
Check out your app's cashflow and LTV metrics via the @PollenVC Financial Forecaster tool https://calculator.pollen.vc/#/
About Pollen VC
Pollen VC gives app and game developers faster access to revenues they've already earned from the app stores. Revenue can be seamlessly channeled back into user acquisition through the platform, meaning that the app or game is funding its own user growth, and developers are less reliant on self-funding or venture capital to grow their business.
Rebecca Spence - firstname.lastname@example.org
SOURCE Pollen VC