The key to truly understanding your LTV/CAC ratio

Cohort analysis allows you to “examine the behaviour and performance of groups of users related by common attributes.”

Here’s a description which you might be familiar with if you’re a power user of Google Analytics. Sounds scary, right? We don’t blame you!

Hope this hasn’t put you off. Taking a few moments to understand this concept is key to operating a successful online business, especially if you’re looking to ramp up your marketing budget.

Put simply, it’s all about analysing your customers by dividing them into sub-groups based on a common characteristic. This can be as granular as you want…

Nikhil Parmar

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