Understanding Cohort Analyses: both subscription and eCommerce businesses
Claire Fauquier
904

Hey, Claire, thank you for sharing your insight on cohort analysis, very impresive on your thought and the template. When I am reading your template, the LTV calculation caught my eyes. In the templete, 2-month LTV = monthly subscription fee * 2-month retention rate * 2 = $1,000 * 90% * 2 = $1,800. If we take a customer as an example, if she spend $1,000 in the first month, and she has 90% probability to spend another $1,000 in the second month, and the 2-month LTV is = $1,000 + $1,000 * 90% = $1,900, which is a little more than $1,800. I can not tell the difference, but thinking it maybe a good idea to discuss with you, looking forward to your reply. Thank you. XF

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