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Use this guide to analyze lifetime orders (LTO) by cohort (typically first order month) and understand which acquisition cohorts generate the most repeat purchasing.

Define the cohort

Most commonly:
  1. Cohort grain: first order month
  2. Cohort key: customer’s first valid purchase date (using SourceMedium-valid orders)
Tip: Keep cohort logic consistent with any LTV reporting you already use.

Build the analysis (high level)

  1. Filter to SourceMedium-valid orders (is_order_sm_valid = TRUE).
  2. Determine each customer’s cohort (first valid order date).
  3. For each cohort, compute:
    • Total orders
    • Distinct customers
    • Average lifetime orders = total orders / distinct customers
  4. Add breakdowns (channel, product category, geography) only after the cohort math looks right.

Common pitfalls

  • Mixing invalid/test/refunded orders with valid orders (always start with is_order_sm_valid = TRUE).
  • Comparing cohorts with different “age” (newer cohorts haven’t had time to accumulate repeat purchases).
  • Blending channels (e.g., Amazon + Online DTC) when the question is channel-specific.

Next steps