> ## Documentation Index
> Fetch the complete documentation index at: https://docs.saletides.com/llms.txt
> Use this file to discover all available pages before exploring further.

# LTV & AOV by Cohort

> Track cumulative lifetime value and average order value over time for each customer cohort.

## Lifetime Value (LTV) cohorts

The **Lifetime Value** cohort report shows the cumulative revenue generated per customer from each acquisition cohort over time.

Navigate to **Cohorts → Lifetime Value** in the sidebar.

### How to read it

Each cell shows the **average cumulative revenue per customer** at that point in their lifecycle:

| Cohort   | Month 0 | Month 1 | Month 3 | Month 6 | Month 12 |
| -------- | ------- | ------- | ------- | ------- | -------- |
| Jan 2024 | \$48    | \$62    | \$71    | \$89    | \$134    |
| Feb 2024 | \$52    | \$69    | \$80    | \$101   | —        |
| Mar 2024 | \$45    | \$58    | \$68    | —       | —        |

* **Month 0** = average first-order value
* **Month 1** = average cumulative spend after the first repeat purchase period
* **Month 12** = average total spend per customer after 12 months

### What this tells you

* Are customers spending more or less over time compared to earlier cohorts?
* What is the LTV at 6 months? 12 months? This informs how much you can afford to spend on acquisition.
* Which cohorts have the highest LTV — can you trace this to a specific campaign, channel, or product?

## Average Order Value (AOV) by cohort

The **AOV by cohort** report shows how the average order value changes as customers age within each cohort.

This answers: "Do customers tend to spend more per order as they become more familiar with your store, or do they spend less?"

### Typical patterns

* **Increasing AOV** — customers gain confidence and buy more per order over time. Healthy signal.
* **Flat AOV** — customers consistently spend the same amount. Neutral.
* **Decreasing AOV** — customers may be cherry-picking deals or downgrading. Worth investigating.

## Orders per customer by cohort

The **Orders per Customer** report shows the cumulative average order count per customer over time.

| Cohort   | Month 1 | Month 3 | Month 6 | Month 12 |
| -------- | ------- | ------- | ------- | -------- |
| Jan 2024 | 1.0     | 1.28    | 1.45    | 1.72     |
| Feb 2024 | 1.0     | 1.31    | 1.49    | —        |

A rising number means customers are making more purchases over time — a positive signal for customer loyalty.

## Sales over time by cohort

The **Sales over time** report breaks down monthly revenue contributed by each cohort. This shows:

* How much of your current revenue comes from recently acquired customers vs. older cohorts
* Whether your older cohorts are still active contributors
* Whether the revenue base is diversifying across many cohorts (resilient) or concentrated in recent acquisitions (fragile)

## Using LTV data for acquisition decisions

Cohort LTV data directly informs your customer acquisition cost (CAC) decisions:

```
If Month-12 LTV = $134 per customer
And your gross margin = 50%
Then max acceptable CAC = $134 × 50% = $67
```

If you're currently spending more than \$67 to acquire a customer, you'll be unprofitable on that cohort.