What is Cohort LTV - Gross Margin Per Month
Cohort LTV - Gross Margin Per Month is a key metric for your ecommerce store that tells you your amount of profit for a particular cohort (or group of customers with a particular likeness). In this case, your customers are grouped into cohorts based on the month they made their first purchase. For example, if a customer made a purchase for the first time on your site in the month of July, they’ll remain in your July cohort. From there, you can see how much profit each month-based cohort brings in over the subsequent months.
How to Increase Gross Margin Per Month
By using Cohort LTV - Gross Margin Per Month data in Peel, you can get a better understanding of the buying activity of your customers and adjust your marketing plan accordingly. For example, if a specific cohort has a high gross margin to begin with, stays relatively strong for a few months and then drops off, you can dig into their customer journey to find out how you can either improve the months where they drop off or put more emphasis on certain marketing efforts for the months where you know your gross margin is the highest. This is affected by seasonal buying trends, promotions, and other marketing activities that you can test/adjust according to your data.