The Tale of the LTV Analysis of Davie Fogarty's Lemon Scrub Cleanser

We’re thrilled to have one of our customers shouting us out in their latest YouTube video. Even more thrilled that it’s ecommerce sensation and Shopfiy expert, Davie Fogarty. 

In 2018, Fogarty launched The Oodie – the widely beloved wearable blanket brand. Think “coziest blanket meets hoodie meets adorable all-over prints.” After the explosion of The Oodies popularity, he now owns more than 7 brands (and counting according to his Insta bio). Needless to say, Davie and his brands are an immense ecommerce success and he’s become an authority on the subject. 

The Top 10 Shopify Apps You SHOULD BE Using in 2022

His YouTube channel, which boasts over 130k subscribers and garners millions of views, focuses on expert advice for ecommerce brands, budding entrepreneurs, and those looking for Shopify growth hacks.

So, to summarize, we’re STOKED to have Davie shout us out and even more excited about being his automated analytics partner.

His latest upload covers the Top 10 Shopify Apps You SHOULD BE Using in 2022. He covers everything from apps that help test shipping thresholds, to solutions for customizable review options, to just about everything you need to propel growth for your Shopify business. And you guessed it, Peel was Davie’s pick for automated ecommerce analytics. 

We’re featured among exceptional company in the video. Here are the other awesome Shopify apps and ecommerce innovators Davie recommends:

ShipScout - Shipping A/B testing and threshold testing

Dexter - Price A/B testing

Okendo - Customizable reviews

Klaviyo - Email and SMS

Postscript - SMS marketing

Rebuy - Post-purchase upsells

Back in Stock - Inventory alerts

BeProfit - Profit Analytics

GemPages - Landing page builder

Takeaways from the Video

We really dug Davie’s storytelling here. He made some interesting points when he spoke about Peel along with some great advice about our tools for both new and experienced Shopify users.

Here’s a quick summary of Davie’s Peel spiel along with some additional thoughts on the points he raises.

“The next app I recommend is mainly for people who have a replenishable product; alternatively a large amount of SKUs”

An awesome intro by Davie. And he hit the nail on the head. We provide a lot of valuable analysis for those who have replenishable products. Diving into lifetime value (LTV), average order value (AOV), and repurchase rate data can help brands like this boost their sales through discovering upselling opportunities and more.

And he’s right, we thrive with our partners who have a large amount of SKUs! We also bring a lot of flexibility to those with smaller SKU ranges.

“The App is called ‘Peel’ – What it does is it really allows you to analyze your cohort.”

Another bullseye from Davie. So many of our customers want to learn more about their cohorts and that’s one of the first things we get asked about – our cohort analysis tools.

He goes on to give a perfectly succinct description of cohorts: A cohort is a group of customers with a certain variable. In Peel’s case, your cohorts are grouped based on the month that your customers made their first purchase with your company. These monthly cohorts are the bread and butter of our Cohorts Retention and Cohorts Revenue metrics.

“That means we can spend a little bit more to actually acquire a customer, because we know that in the long run, we’re going to make that profit back.”

Davie jumps into a great example of one of our most important and sought after analyses: LTV:CAC ratio. That is, “lifetime value (LTV) to customer acquisition cost (CAC) ratio.” 

He shows a Lemon Scrub cleaner, which retails for $50, as an example of a driver of really valuable, repeat sales. Using Peel’s analysis, he learns that customers who buy the cleaner have a high LTV of $180 compared to the customer acquisition cost for those same customers, which is $65. With that info, Davie explains that they can confidently spend more on acquiring those customers because they are extremely valuable from a revenue standpoint over time.

He then contrasts the high LTV of a Lemon Scrub customer with the lower lifetime value of a customer buying a less expensive item, like $15 dishwashing cleaning gloves, which are likely to be a one-time purchase. This is a key element of making decisions based on the analysis. Knowing your LTV by cohort and then segmenting by different products can unlock so many important discoveries that lead to better marketing strategy. 

To elaborate on his story, we’d pitch that maybe the cleaning gloves are a good candidate for add-on items at checkout or a bundle with the Lemon Scrub to increase the store’s overall average order value (AOV) – which ultimately increases the customers’ lifetime value. Data analysis is fun and not overwhelming when all you have to do is use automated tools to elevate your decision making, rather than prepare, download, and compute it all yourself!

“Peel has this amazing segmentation in the backend, where you can select first-time purchase and understand LTV over certain windows.”

Thanks, Davie. We worked hard to create a robust set of tools that gives you the freedom to segment your data in the way that works best for you. He calls this out in the video and gives advice for those who are new to cohort analysis. 

He suggests looking at product-specific cohorts over a 90-day LTV. Great advice for beginners who want high-level insights on the lifetime value of their customer groups. A quarter’s worth of data will allow you enough time to see how those cohorts progress over time.

If you want to get more granular, Davie talks about how you can segment by everything from countries, to cities to see how they spend, or how certain promotional periods affect your LTV (and there are so many more dimensions to segment your data by in Peel that aren’t pitched in the video).

He goes on to give a great example of a practical use here, which also expands upon why cohorts are so helpful to look at. People who shop on Black Friday might be bargain hunters and therefore have a lower LTV, which you can see in the cohort charts. Pair that with the fact that you’re actually discounting more on Black Friday, and it may not be as profitable to run certain sales as you think. This is the kind of discovery and actionable insights Peel helps you unlock.

“It does get more expensive as you grow.”

An honest take from Davie, who’s keeping his cost-conscious viewers in mind. Ecomm tech stacks add up. We get it!

The way we recommend looking at it is that Peel gets a whole lot less expensive when you consider what it does. Difficult feats come with a cost. There are server costs, cleaning costs, and costs of automatically computing some of your most complex Shopify analytics baked into the price of Peel. Really, it’s a fraction of the human cost and time commitment of a team to manually run these analyses. Plus, Peel more than makes up for the cost in LTV and revenue growth over time.

Peel’s starting price is actually less expensive than other solutions in the space, and we’re working on an even more affordable option to make our tools available for more stores across the Shopify community. Stay tuned! 

“The main thing that you need to know when using apps to understand both your cohort and MER targets, is making sure that they have integrations for all your marketing channels.”

Wise words to close out from an ecommerce pro. Peel provides a wide range of integrations for your marketing channels and continues to add more and more integrations as we go!

That’s about it, folks! We want to thank Davie Fogarty again for the shoutout and awesome storytelling in the video! We highly recommend his channel for all the most useful ecomm advice.
If his video piqued your interest in Peel, give us a shout or check us out on the Shopify App store!