Podcast Summary: DTC Podcast – Bonus Episode: Why You're Looking at the Wrong Data: Cohorts vs Averages with Lifetimely's Jason Proud

Release Date: July 9, 2025

In this bonus episode of the DTC Podcast, host Eric Dick engages in an insightful conversation with Jason Proud, co-founder of Lifetimely, a leading analytics tool for direct-to-consumer (DTC) e-commerce brands. The discussion delves deep into the nuances of data analysis, emphasizing the critical distinction between cohorts and averages, and how leveraging the right data can drive meaningful business decisions and growth.

1. Challenging Assumptions in Data Analysis

Jason Proud kicks off the conversation by underscoring the importance of maintaining skepticism in data interpretation. He states, “When anyone starts saying we know something, I'm like, I don't know if we know as much as we think we do” (00:00). This mindset, according to Jason, is pivotal in uncovering unexpected insights that might otherwise remain hidden.

Key Insights:

• Skepticism Unveils Hidden Truths: By questioning established beliefs, businesses can discover new opportunities and rectify misconceptions about customer behavior.
• Case Study: Jason shares an example of an Australian fashion brand that initially underestimated the lifetime value (LTV) of certain products based on volume alone. Upon deeper analysis, they found that a mid-ranked item significantly doubled the expected LTV, prompting a strategic pivot in their product focus (00:51).

2. Focus on Insights Over Data Overload

Eric Dick introduces the topic of data paralysis, a common issue where businesses collect vast amounts of data but struggle to extract actionable insights. Jason advises, “More focus, less metrics” (01:05), suggesting that businesses should prioritize depth over breadth in their data analysis.

Key Insights:

• Quality Over Quantity: It’s not about having more data but about deriving meaningful insights that inform strategic decisions.
• Prioritization: Businesses often list multiple focus areas but can only effectively tackle one or two at a time. Jason recommends having hard conversations to determine the most critical focus for the immediate period (02:00).

3. Balancing the Funnel: Acquisition vs Retention

The conversation shifts to the often-overlooked second half of the sales funnel—retention. Jason points out that while acquisition garners significant attention, retention and maximizing customer lifetime value are equally crucial, especially as acquisition costs rise (03:27).

Key Insights:

• Retention Strategies: Emphasizing repeat purchases, subscriptions, and increasing average order values can substantially enhance revenue without the escalating costs of new customer acquisition.
• Leaky Bucket Analogy: Jason likens customer retention to carrying a bucket with holes, where the goal is to patch leaks and shorten the distance to the destination, thereby improving overall efficiency (04:18).

4. Leveraging Cohort Data to Unlock Hidden Value

A significant portion of the discussion revolves around the strategic use of cohort analysis. Jason explains that cohorts can either validate existing strategies or uncover unexpected high-value segments (05:22).

Key Insights:

• Unexpected Cohorts: Discovering high-value segments that were previously overlooked can lead to strategic reallocations, such as targeting a small but lucrative male cohort in a female-focused brand, resulting in doubled LTV without increased acquisition costs (05:22).
• Diverse Cohorting Dimensions: Cohorts can be segmented based on various factors like purchase timing, behavior patterns, or product interactions, each offering unique insights into customer value and behavior (07:32).

5. Avoiding Deceptive Averages: A Deeper Dive into Metrics

Jason cautions against relying solely on average metrics, which can mask underlying dynamics. He emphasizes the need to dissect headline numbers to understand the drivers behind them (17:35).

Key Insights:

• Composite Nature of Averages: Averages encompass numerous variables and can obscure significant trends or anomalies within the data.
• Actionable Metrics: Businesses should use averages to monitor overall performance but delve deeper to uncover actionable insights that inform tactical decisions (19:12).

6. Introduction to Lifetimely: Tools for Data-Driven Decisions

Jason Proud introduces Lifetimely as an analytics tool designed to help e-commerce businesses make informed decisions by providing clear, actionable insights from their data (13:26).

Key Features:

• Smart Defaults: Pre-configured dashboards tailored to different roles within a business, enabling users to quickly access the most relevant metrics.
• Comprehensive Data Integration: Seamlessly connects with platforms like Shopify and Google Meta to aggregate data across the entire sales stack.
• Buyer Journeys and Attribution: Offers insights into customer behavior over time and the effectiveness of various marketing channels (15:38).

7. Effective Experimentation: Building a Culture of Testing

The duo discusses the importance of fostering a culture of experimentation within businesses. Jason advocates for a balanced approach to testing, where companies neither over-test without yielding results nor neglect testing altogether (15:53).

Key Insights:

• Structured Experimentation: Implementing a regular testing cycle (e.g., two to four weeks) allows businesses to systematically evaluate changes and iterate based on results.
• Long-Term Learning: Consistent experimentation leads to cumulative knowledge, significantly enhancing business strategies over time (17:11).

8. Optimizing Subscription Models: Strategies and Levers

A substantial segment focuses on optimizing subscription-based models. Jason critiques the common practice of offering perpetual discounts for subscriptions, suggesting more strategic approaches to balance acquisition incentives with long-term profitability (22:38).

Key Insights:

• Discount Structuring: Instead of offering a flat perpetual discount, businesses can experiment with higher upfront discounts paired with lower ongoing discounts, reallocating the savings towards loyalty bonuses or sample products.
• Behavioral Investments: Redirecting discount budgets towards initiatives that enhance customer loyalty and encourage referrals can yield higher LTV without directly impacting margins (25:04).

9. Flows vs. Campaigns in Retention Marketing

The discussion transitions to the debate between flows (trigger-based) and campaigns (time-based) in email and retention marketing. Jason advocates for behavior-based triggers, highlighting their ability to deliver more relevant and timely messages to customers (29:12).

Key Insights:

• Relevance and Timing: Trigger-based flows ensure that communications are contextually relevant, enhancing engagement and retention compared to generic, scheduled campaigns.
• Operational Challenges: While campaigns may seem easier to manage, the long-term benefits of flows in fostering meaningful customer interactions far outweigh the initial setup complexities (30:18).

10. Final Thoughts: Embracing Continuous Learning and Adaptation

As the episode wraps up, both speakers emphasize the necessity of continuously challenging assumptions and iteratively testing strategies to adapt to evolving market dynamics (33:04).

Key Insights:

• Continuous Review: Regularly reassessing business assumptions ensures strategies remain aligned with current market realities.
• Encouraging Skepticism: Maintaining a questioning mindset helps businesses stay agile and uncover opportunities that others might overlook.

Notable Quotes:

• Jason Proud (00:00): “When anyone starts saying we know something, I'm like, I don't know if we know as much as we think we do.”
• Jason Proud (01:05): “More focus, less metrics.”
• Jason Proud (04:18): “The challenge is you're carrying a bucket from one side of the room to the other. It's got lots of holes in it.”
• Jason Proud (17:35): “Look at averages to track overall portfolio performance.”
• Jason Proud (22:38): “Perpetual discounts are an exceptionally expensive way to invest that margin.”
• Jason Proud (30:36): “Build a culture of testing, learning, and build a culture that celebrates the experiment, not just the result.”

Conclusion

This episode of the DTC Podcast provides a comprehensive exploration of effective data utilization in e-commerce. Jason Proud of Lifetimely offers valuable perspectives on moving beyond surface-level metrics to harness the true potential of cohort analysis, optimize retention strategies, and foster a culture of continuous experimentation. For DTC brands aiming to scale sustainably, the insights shared in this conversation are both actionable and transformational.

Connect with Jason Proud:

• Website: useamp.com
• Social Media: Find Jason on X or LinkedIn by searching his name.

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