“Reader lifetime value” is an extremely significant measure for any digital publication. Yet, it’s one of the least understood and most overlooked metrics in digital publishing business — especially now that calculating it has become more and more dynamic. It is particularly important mainly because it gives you an idea if a particular reader will re-subscribe to your title, which in turn can help you decide how much your allowable and investment acquisition cost for that audience should be.
Once you gather the data generated by your readers or their activity inside your publication, you can better understand how to make use of your resources in terms of strategies you’ll need to keep your audience — and keep them engaged.
If you’re still in the planning stages of your digital publication and still figuring out how to work the numbers in the lifetime value equation, bellow’s extract from Matt Lindsay‘s article on Talking New Media might help. In his full article, Matt discussed how digital publishers can maximize return on their investments in data and analytics.