Don't be Fooled by the Magic Cohort

The Magic Cohort is the sub segment of customers who represent your a set of customers that have the highest CAC to LTV ratio.

It’s a fallacy to only look at the Magic Cohort because you also spend money on acquiring and servicing all the customers who are not part of the magic cohort.

If I take out the customers that we acquired that only stayed 2 months, then our LTV:CAC ratio is 100 times bigger.  🙂

We frequently use Cumulative CAC to highlight this point.

‍

‍