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The Monthly Activity Dashboard - LTV by Cohorts
The Monthly Activity Dashboard - LTV by Cohorts

How to read and interpret the data of the Monthly Activity Dashboard - LTV by Cohorts

Updated over a week ago

This dashboard answers the question: How is my LTV (tax included, shipping excluded) evolving monthly?

Where to find it?

This dashboard is the last one on the Monthly Activity page, in the Business section.

Who is it for?

This dashboard is useful to all users, on a monthly basis.

How to read it?

The date filter does not impact this dashboard that always displays the last 12 months of data.

The optimal order source is the Online store. The other order sources might work but give less accurate results (see Section 7 if you use Recharge - coming soon).

Data description

The data displayed on this dashboard shows a 12-month analysis.

For example, if you view it in April 2023, you will see all cohorts from April 2022 to March 2023.

For each cohort represented in the chart, you can read:

  • the average cart for that cohort at the time of the first order (blue bar),

  • the average of all revenue brought in by each customer in that cohort since that first order (green line).

How to interpret the results

The LTV decreases from the past to the present linearly.

The LTV of the last month (the one closest to today) should almost equal the value of the average basket. This is normal: customers who made their first order last month had less opportunity to make new purchases (order rank >= 2) than the oldest observed cohorts.

Observing the difference between the LTV and the average basket of rank 1 for a cohort (therefore over 1 month) will allow you to evaluate the performance of your repeat business.

For example, if we are in July 2023, we look at the November 2022 cohort and we see:

  • the average basket for the first rank (blue bar) is $118

  • LTV for this cohort (green line)(average revenue/customer brought in between November 2022 and June 2023) is $124.

We deduce that repeat business is, on average, +$6 per customer over 8 months for this cohort.

Tips for your business

We advise you to observe and draw conclusions by observing the oldest cohorts (the oldest being the most accurate).

Then it is interesting to dig and understand the context that may have led to "outliers".

An outlier is, for example, an abnormally low or high LTV in a given month, where "abnormally" means that the LTVs of the surrounding months are in line with a constant trend, whereas the outlier is not.

Among our customers, the best-performing stores in terms of repeat business have a 12-month LTV (i.e. for the oldest cohort analyzed in our dashboard) equal to 1.3 (+30%) or even 1.5 (+50%) times the cohort's average rank 1 basket.

So, in our example, if the average basket on the first order is $118, the LTV one year later should be between $153 and $177.

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