Cohort LTV
Definition
Cohort LTV: Cohort LTV (lifetime value) measures the cumulative revenue per customer within a specific acquisition cohort at fixed time intervals (7, 30, 60, 90 days). It answers which channels, campaigns, or creatives bring in the most valuable customers.
Related glossary terms
Continue exploring the DTC ad-analytics vocabulary — every term in this glossary cross-links to the next.
-
Ad Frequency
Ad frequency is the average number of times a single user in your target audience saw an ad during a given…
-
Attribution Window
An attribution window is the time period during which a conversion is credited to a prior ad click or view.…
-
Average Order Value (AOV)
Average Order Value (AOV) is total revenue divided by total orders in a period. It is one of the three levers…
-
Blended ROAS
Blended ROAS is total revenue across all channels divided by total paid ad spend. It answers how much revenue…
-
CAPI Match Rate
CAPI match rate (also called Event Match Quality) is the percentage of server-side Conversions API events…
-
First-Click Attribution
First-click attribution assigns 100% of a conversion's credit to the first marketing touchpoint a user had…
-
Incrementality
Incrementality measures the revenue a marketing channel actually caused — the conversions that would not have…
-
Linear Attribution
Linear attribution splits a conversion's credit evenly across every marketing touchpoint in the user's…
-
Marketing Efficiency Ratio (MER)
MER (Marketing Efficiency Ratio) is total revenue divided by total marketing spend across all paid channels.…
-
Meta Ad-Set Learning Phase
The learning phase is the period during which Meta's delivery system is still gathering conversion data on a…
-
Payback Period
Payback period is the number of days it takes for a customer's cumulative gross profit to equal the cost of…
-
Performance Max
Performance Max (PMax) is Google Ads' goal-based campaign type that serves across all Google inventory —…
-
Pixel-to-Conversion Discrepancy
The pixel-to-conversion discrepancy is the gap between orders reported by your storefront (Shopify,…
-
iOS 14.5 Attribution
iOS 14.5 (released April 2021) introduced App Tracking Transparency, requiring Apple users to explicitly opt…
Frequently Asked Questions
Is cohort LTV the same as customer lifetime value?
Cohort LTV is a time-windowed slice of LTV (e.g., 90-day LTV of the March cohort). True lifetime value is the sum of all revenue a customer ever produces — useful but only knowable in hindsight.
What is a good 90-day cohort LTV?
It depends on category. Consumables (coffee, supplements) often hit 1.8-2.5x of day-0 AOV; durable goods (apparel, furniture) typically land at 1.1-1.3x. Compare against your CAC, not against other brands.
How soon should 90-day LTV exceed CPA?
For most DTC brands, break-even by day 60-90 is the target. Payback longer than 120 days usually means you are under-pricing or over-paying for acquisition.