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Revenue & Sales

See what it earned

The source with the worse conversion rate can be the one with the higher-value customers.

Cohorts and acquisition sources compared on what a customer turns out to be worth, rather than on how readily they signed up. Value accrues over months, so a channel judged on day-one conversion rate is being judged on the least informative part of its record.

Customer Value

  • Customer value by acquisition source
  • Cohorts matched on age
  • Medians and value bands
  • Repeat and expansion revenue per cohort

How it helps

What Customer Value gives you

1

Rank on the account, not the signup

Conversion rate ranks the sale. Revenue per acquired customer ranks the account. The two tables rarely match, and a channel that looks expensive per signup can be the cheaper one once its customers have been valued.

2

Cohorts compared at equal age

A cohort three months old and a cohort two years old are not comparable at face value. Value is read at matched ages, so a recent source is not written off for having had less time to earn.

3

Averages hide the distribution

One large customer moves a mean and makes a source look strong. Medians and value bands sit beside the average, so a channel is credited for a pattern rather than for an outlier.

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