Looking at all customers together mixes old loyal buyers with new ones and hides change. Cohorts show whether customers acquired this quarter repeat as often as last year's, which is how you see whether growth is getting healthier or more expensive.
Model contribution lifetime value from repeat behaviour, then see your LTV:CAC ratio and payback month.
Related terms
- LTV (customer lifetime value)LTV is the total value a customer generates over their relationship with a business, best measured in contribution rather than revenue.
- Repeat purchase rateRepeat purchase rate is the share of customers who place a second order within a set period, usually 12 months.
Part of the growth marketing glossary by Shiva Sharma.