Learn from Fast Growing 7-8 Figure Online Retailers and eCommerce Experts

EPISODE 325 49 mins

Optimising CLV with Cohort Analysis

About the guests

Eden Amirav

Kunle Campbell

A serial entrepreneur over the last 12 years. Previously, Co-Founder and CEO at AlgoSeller, profitable performance marketing company with over $7 million in annual revenue; Co-Founder and CEO at Maple , a profitable global lead generation company with 70 employees operating in 12 markets. Today, the Co-Founder & CEO at Beprofit.

On today’s episode, Kunle is joined by Eden Amirav, Founder & CEO of BeProfit, a Profit Optimization and Analytics platform helping eCommerce businesses grow by leveraging the power of their own data. BeProfit is top-rated on Shopify app store and is also available on Wix stores.


We often hear merchants complain of rising costs and reducing margins. But most of those aren’t able to really quantify their claims about costs, margin and profits. The eCommerce landscape is soo dynamic that keeping tabs of costs and margins has become a real challenge. Making key buying and selling decisions without truly knowing your numbers can backfire in a hurry! On the other hand, knowing your numbers well not only helps you make sound decisions, but also helps you uncover opportunities you may not have known about.


In this episode, Kunle and Eden talk about profit calculation for fast growing eCommerce merchants. You will get to hear about why many businesses struggle to calculate their true profit, what is Cohort Analysis and what is the ideal look back window. This is a great episode for business owners and operators.


Here is a summary of some of the most important points made,

    • Many big businesses lack the tools to know their true profit
    • iOS changes have reduced the efficiency of Facebook as a marketing channel
    • Declining margins restrict merchants ability to take risks
    • Dissecting Key metrics by cohort can reveal opportunities
    • Looking at all-time averages can be deceiving during analysis
    • You should not depend on attribution data from marketing platforms


Covered Topics:

On today’s interview Kunle and Eden discuss,

  • Eden’s Backstory
  • Journey as an Entrepreneur in Israel
  • Genesys of BeProfit
  • Key Pillars of Profit Analysis
  • Major Trends in Costs
  • Cohort Analysis
  • Cadence on BeProfit
  • Ideal Look Back Window
  • Predictions for eCommerce
  • UX options in BeProfit
  • Calculating ROAS in BeProfit


  • 09:50 – Meet Eden:
    • Lives in Tel Aviv
    • Specialises in digital online processes
  • 11:00 – Tech Landscape in Israel:
    • Small and tight community
    • Mentality is to be open and transparent
  • 13:50 – Journey as an Entrepreneur:
    • Started as a professional gamer playing Warcraft 3
    • Started his first company Maple, at Age 16
    • It was a lead gen company at cost/lead
    • Took a 6-month sabbatical after sale of Maple
    • His next company was a marketplace for small business loans
    • Helped 10,000 small businesses raise over $300 million
    • Pivoted to eCommerce when Covid hit
  • 18:30 – Genesys of BeProfit:
    • Took the technology and resources from BeComm
    • Transition took around a year
    • #1 Profit calculation app on Shopify
    • Also available on Wix stores and Woocommerce (Beta)
    • Profit Optimization and Analytics platform
    • You can apply calculation to retrospective data
  • 21:30 – Key Pillars of Profit Analysis:
    • 2 main components: Sales & Expenses
    • Expenses are more complicated
      • Shipping cost
      • Production cost
      • Transaction fees
      • Marketing
      • Other expenses and overheads
    • The merchant enters the costs once while onboarding, then the cost component is automatically applied to orders
    • You can look at cost per order or on a business level
  • 25:20 – Major Trends in Costs:
    • “iOS changes have reduced the efficiency of Facebook as a marketing channel”
    • This has reduced margins for merchants in all industries
    • “When the margins go down, the risk you can take as a merchant goes down considerably.”
    • Merchants are moving to other platforms like Pinterest, TikTok
  • 31:50 – Cohort Analysis:
    • Cohorts are groups of customers divided by different parameters
    • ROAS per cohort is an important metric to track
    • LTV is much harder to track than CAC
    • Looking at key metrics by cohorts can throw up insights on opportunities
  • 37:15 – Cadence on BeProfit
    • Merchants check overview stats daily
    • Detailed analysis is more weekly or monthly
  • 38:15 – How far back to look:
    • Focusing on recent activity is a better indicator of how the business is doing
    • Looking at all-time averages can be deceiving
    • You should also factor for seasonality
    • Most merchants ad spend is 6x during BFCM as compared to regular season
  • 42:10 – Predictions for eCommerce:
    • Margins are going to go down
    • Industry will mature and will force merchants to become more professional
    • Merchants have to understand the key drivers of their margin
  • 44:30 – UX options in BeProfit:
    • Reports can be exported, scheduled
    • You can check a real time P&L
  • 45:25 – Calculating ROAS in BeProfit:
    • Ad platforms tend to over attribute their conversions
    • Base attribution more on Shopify and GA data
    • ROAS is calculated per marketing channel
    • Blended ROAS is overall revenue divided by marketing spend
    • Organic sales need to be tracked and constantly growing
    • Fashion – more than 40% ROAS in FB, 19% on Google
  • 47:50 – Final Advice:
    • Understand business metrics and have a way to easily measure daily, weekly and monthly profits


  • Most merchants ad spend is 6x during BFCM as compared to regular season
  • Ad platforms tend to over attribute their conversions
  • Merchants from the Fashion industry often have a ROAS of over 40% on Facebook

Links & Resources

Tweetable Quotes:

“When the margins go down, the risk you can take as a merchant goes down considerably.”

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About the host:

Kunle Campbell

An ecommerce advisor to ambitious, agile online retailers and funded ecommerce startups seeking exponentially sales growth through scalable customer acquisition, retention, conversion optimisation, product/market fit optimisation and customer referrals.

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