E-commerce · Economics
Customer acquisition payback
Published · Reviewed by The Diligence Standard Team · Updated
Payback should use realized gross profit and repeat behavior rather than optimistic lifetime-value assumptions.
Records to reconcile
- New-customer spend
- Cohort contribution
- Repeat timing and churn
Warning signal
The model assumes future purchases not supported by matured cohorts.
Transaction impact
Growth may consume more cash and carry more risk than represented.
Response
Use observed cohorts and test downside payback before valuing growth.