Cohorts
Applying economics fundamentals to acquisition marketing
Multiple-touchpoint marketing strategies will often incorporate various marketing mediums that don't naturally fit into "touchpoint" attribution models. These mediums often generate considerably profitable campaigns, at what often seems like very little incremental marketing spend. To accurately measure your cohort profitability, your attribution model must consider both the revenue and cost implications of these support channels.
Unattributable revenue is a common frustration for marketers and managers alike. After all, how do you know which campaigns to scale if some of your best performing cohorts lack attribution? The methodology I frequently revert to is a weighted reattribution of unattributable revenue to the most likely source of acquisition.
If you're a startup or a company that has yet to make a profit, a variety of tactics can be used to extend your existing cash holdings. While it's unlikely that you can "evade profitability," you can shift focus towards a series of creative tweaks that shift your budget towards profitability given limited changes to your acquired cohorts.
When you run marketing based cohort analysis you'll frequently be forced to constrain assumptions to the single cohort with which you're working. Improving your cohort layering momentum within your assumed constraints directly translates into improvements of your firms ability to generate future revenue.
