LTV Benchmarks
Identify how your per-customer profitability and retention metrics stack up to other companies.
How it works:
For every Drivepoint customer, we create an aggregation per cohort month of an assortment of per-customer metrics, such as Gross LTV. We then place these aggregations together as a dataset to use in the report. When you modify the cohort months date range or any of the filters on the right side, we re-calculate quartiles for every single metric.
How to interpret:
In the chart, you'll get a view of a single metric compared to the three quartiles (25th percentile, Median, and 75th percentile). If your company is sitting between the 25th and 75th percentiles, that means you're in the middle 50% of Drivepoint customers. The best use of this chart is to show how you are trending over time against similar companies, which could be handy to show off to investors if you're outperforming the "market".
Note: You may notice that picking certain Day N metrics to show in the chart causes the date range to shorten more than the date range you had picked. This is because in order to display those values those cohort months needed to have enough time to reach that Day N. For instance, picking a Day 60 metric means that the prior cohort month is never going to show up because Day 60 essentially means a cohort month will need to have about two full months to elapse.
In the table, we output every single metric that we aggregated as described above. This does not give you an over-time basis to study the metric, but it gives you a summary level interpretation, relative to the date range and other filters, of how your company compares to the rest. In this table, being above the Median will give you an Above Benchmark or Strength rating. The exception are the CAC metrics where we generally consider having a lower CAC to be more valuable.
Metrics
Every metric except for the CAC metrics has six different versions - one without any mention of a "Day N", which means the metric shows an all-time basis, and five with different Day Ns, which reflect the n days after the customer's first purchase. We generally advise using the Day N metrics in the chart to standardize the amount of time that has elapsed for the cohort.
Gross Sales LTV
The average amount of cumulative gross sales a customer has made.
Net Sales LTV
The average amount of cumulative net sales a customer has made.
Net Sales = Gross Sales - Discounts - Returns
Contribution Profit LTV
The average amount of cumulative contribution profit a customer has contributed. This metric blends the financial model with the transactional data we pull from the APIs. We use the contribution profit margin that's tracked for every month within the model and apply it to all purchases within the same month. (If we don't have the contribution profit margin yet due to unclosed financials, we pull a three month average forward from the financials that are closed.)
Contribution Profit = Contribution Profit Margin * Net Revenue (not used as a metric in this report
Blended CAC
Direct Ad Spend per customer
Fully Loaded CAC
Total Marketing Spend per customer
Contribution Profit LTV Less Blended CAC
The average cumulative profit a customer contributes to the company after direct marketing expenses are removed. Blended CAC is pulled from the financial model from closed actuals. (If we don't have the closed numbers for CAC for an unclosed month, we pull forward a three month average of actuals to use until that month is closed.)
Contribution Profit LTV Less Blended CAC = Contribution Profit LTV - Blended CAC
Contribution Profit LTV Less Blended CAC
The average cumulative profit a customer contributes to the company after total marketing expenses are removed. Fully Loaded CAC is pulled from the financial model from closed actuals. (If we don't have the closed numbers for CAC for an unclosed month, we pull forward a three month average of actuals to use until that month is closed.)
Contribution Profit LTV Less Fully Loaded CAC = Contribution Profit LTV - Fully Loaded CAC
Contribution Profit LTV / Blended CAC
This provides a metric that some companies look at (LTV/CAC) and, for the purposes of this report, provides a better relative basis to look at profitability by indexing the contribution profit to the CAC spent.
Cumulative Customer Retention
The percentage of customers that have been at least one returning purchase.
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