Cohorted Financials
This report is derived by combining the financial information from the Drivepoint Smartmodel™️ and your Sales data (e.g. DTC Sales from Shopify or Amazon Sales from Amazon).
Last updated
This report is derived by combining the financial information from the Drivepoint Smartmodel™️ and your Sales data (e.g. DTC Sales from Shopify or Amazon Sales from Amazon).
Last updated
In order to calculate contribution profit per customer, the contribution margin pulled from the model is applied towards every single order that occurred within the same month. Since the contribution margin is not calculated per product, keep that in mind when using the First Segment filter that the average contribution margin from a month has been applied across all products.
The report provides insights into key cost metrics, including Direct Ad Spend and Total Marketing Spend, which represent the investment required to acquire new customers.
Total View
When selecting the Total metric type, the report displays the absolute amount of Direct Ad Spend and Total Marketing Spend for each month. This allows for an analysis of overall spending trends without adjusting for customer count.
Per Customer View
When selecting Per Customer, the report divides these costs by the number of customers acquired in each month, providing an average cost per customer.
For instance, the direct ad spend for Jan. 2024 was $10,000 and the number of customers acquired in Jan. 2024 was 200; thus, the Blended Spend CAC (Customer Acquisition Cost) for the month was $50 ($10,000 spend / 200 customers). As a result, this calculation generalizes that 100% of the spend is towards customer acquisition, which Drivepoint has found to be close to true across a portfolio of companies.
Similar to the determination of contribution profit mentioned above, there is no attribution of the CACs to a specific segment. The marketing spend that acquires a customer is not determinant of the product the customer chooses to buy.
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Metric Type: This report allows you to analyze customer financial metrics in two different ways:
Per Customer (Selected by Default): When the Per Customer option is selected, all financial metrics are divided by the Cohort Size, providing insights at an individual customer level. Example: Net Sales is calculated as Cumulative Net Sales / Cohort Size.
Total: When the Total option is selected, financial metrics are displayed in absolute values without dividing by cohort size. This allows for an overall view of revenue and profitability trends across all cohorts. Example: Net Sales in Total mode reflects the total cumulative net sales without normalization per customer.
Months Since First Purchase: Calculated as calendar months from the date of the first purchase. Month 0 represents the partial calendar month in which the first purchase occurred. Month 1 and onward represent the full calendar months that follow.
For instance, a customer was acquired in Jan. 2020. The Month 0 is representative of that first purchase and any purchases that followed within Jan. 2020. Month 1 would represent any purchases that took place in Feb. 2020, Month 2 would be Mar. 2020, Month 3 as Apr. 2020, and so on.
Gross Sales: Cumulative Gross Sales / Cohort Size
Net Sales: Cumulative Net Sales / Cohort Size
Net Revenue: Cumulative Net Revenue / Cohort Size
The following metrics rely on financials being saved from the model to the data warehouse during a Save Plan action. If you see, for instance, a Blended Spend (CAC) at $0 for a Cohort Month, you may need to save a plan.
Contribution Profit : Cumulative Contribution Profit / Cohort Size
Blended Spend: Direct Ad Spend / Cohort Size
Fully Loaded Spend: Total Marketing Spend / Cohort Size
Contribution Profit Less Blended Spend: Contribution Profit - Blended Send / Cohort Size
Contribution Profit Less Fully Loaded Spend: Contribution Profit - Fully Loaded Spend / Cohort Size
💡Example: After 4 months, the Contribution Profit Less Fully Loaded Spend (aka without any direct costs related to acquiring a customer) of customers who bought a subscription in Feb-23 is $14. After 10 months their Contribution Profit without fully loaded Spend is $20.