💲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).

Determining Contribution Profit

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.

Determining Customer Acquisition Cost (CAC)

To calculate the CACs, the direct ad spend and total marketing spend have been pulled out of the model and applied towards the month in which the customers were acquired.

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 CAC 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.

Amazon can often experience a 14 day lag. Click below to learn more.

📦Amazon Reports

Definitions

  • 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 LTV: Cumulative Gross Sales / Cohort Size

  • Net Sales LTV: Cumulative Net Sales / Cohort Size

  • Net Revenue LTV: 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 CAC at $0 for a Cohort Month, you may need to save a plan.

  • Contribution Profit LTV: Cumulative Contribution Profit / Cohort Size

  • Blended CAC: Direct Ad Spend / Cohort Size

  • Fully Loaded CAC: Total Marketing Spend / Cohort Size

  • Contribution Profit LTV Less Blended CAC: Contribution Profit LTV - Blended CAC

  • Contribution Profit LTV Less Fully Loaded CAC: Contribution Profit LTV - Fully Loaded CAC

💡Example: After 4 months, the Contribution Profit LTV Less Fully Loaded CAC (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 LTV without fully loaded CAC is $20.

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