The Bottom Line: Ecommerce Tactics for Profitable Growth 5 Things Most Brands Get Wrong About LTV
Dec 10, 2025
Many brands misunderstand customer lifetime value (LTV) by focusing on shallow metrics. Cohort analysis is essential for revealing true retention and predicting revenue. Short-term profits can be deceptive, masking deeper cash flow issues. Long-tail retention, assessed over 12-24 months, is crucial for unlocking customer value. The type of product dictates retention more than marketing tricks. Effective tactics include increasing email engagement and optimizing post-purchase experiences. Lastly, a real look at your business model's viability is vital for sustainable growth.
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Track Customers With Cohorts First
- Do set up cohort tracking before you scale acquisition or forecast LTV.
- Cody Wittick says cohort analysis reveals real repeat behavior and prevents cash surprises.
50K Spend, Misleading Profit Picture
- Cody recalls brands spending $50K monthly to acquire customers while reporting inflated revenue.
- Cohort breakdown revealed much of that revenue came from older customers, leaving new customers underwater.
The Long Tail Adds Real LTV
- Long-term retention often adds significant value beyond 90 days and can change acquisition math.
- Cody Wittick shows cohorts can rise from 45% extra value at 90 days to much higher over 12ā24 months.