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  3. Cohort LTV
GLOSSARY DEFINITION • D2C BRANDS

Customer Cohort Lifetime Value (Cohort LTV)

Cumulative revenue and gross margin generated by a specific monthly customer cohort over 30, 60, 90, and 180-day repeat cycles.

Cohort LTV FORMULA & STANDARD
LTV:CAC Ratio = Cumulative 90-Day Gross Margin per Customer ÷ Blended First-Order CAC

₹2,400 90-day gross profit ÷ ₹600 first CAC = 4.0x LTV:CAC

01 / DEFINITION & SIGNIFICANCE

Why Cohort LTV matters for D2C Brands

Cumulative revenue and gross margin generated by a specific monthly customer cohort over 30, 60, 90, and 180-day repeat cycles.

Great D2C businesses break even on first purchase and harvest profit on repeats. Tracking retention by acquisition channel identifies which ads produce loyal recurring buyers versus one-time deal seekers.

02 / THE CALCULATION BLUEPRINT

How to track and calculate Cohort LTV

LTV:CAC Ratio = Cumulative 90-Day Gross Margin per Customer ÷ Blended First-Order CAC

₹2,400 90-day gross profit ÷ ₹600 first CAC = 4.0x LTV:CAC Tracking this metric systematically inside your analytics stack eliminates guesswork and aligns marketing spend with true business outcomes.

03 / INDUSTRY BENCHMARK MATRIX

Typical Cohort LTV benchmarks by segment

Segment / Business Model Typical Range DesignScript Target
High-Repeat Consumables3.0x – 5.0x> 3.5x
Apparel & Footwear2.5x – 4.0x> 3.0x
Durable Consumer Goods1.8x – 2.8x> 2.2x
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