I've discovered a new eCom analysis

Hey guys!

I know I’m not very active in this “newsletter”-thingy. I’ll probably never become a long-form writer.

But I recently discovered a new eCom analysis, and it’s quickly becoming one of my favorite tools. So I figured I wanted to share it here. It helps you set smarter CAC targets based on real order patterns — not just averages.

Let me show you how👇

We used to think a specific product, let’s call it X, was one of our best acquisition products. The average new customer generated DKK 323 ($50) in contribution margin. So we set our CAC target at 323 DKK ($50) and called it a day.

But when looking at the distribution (👇), which is the new analysis I’m talking about, most orders actually cluster around DKK 205 ($31). That’s the mode — the most common margin value.

Meaning: most of the time, we were losing money when CAC > 205 DKK ($31), even though the average looked fine.

This happens because most new customers buys just one (the modal), but some customers buy multiple. The result is an average somewhere between buying one and buying multiple.

So instead of relying on averages, I now set CAC targets closer to the mode (or somewhere between the mode and mean, depending on the shape of the curve).

Yes, it sacrifices some volume. But we average more margin per day because we’re profitable almost every day — not just on days when the “bigger” orders happen to roll in.

And if you’re a multi-SKU store, you can use higher-priced products to fill in the “higher CAC gap” in your ad account or test bundles, offers, or new products to raise your modal margin value.

The result:
✅ Fewer unprofitable days
✅ More efficient acquisition
✅ More stable cash flow

The above screenshot is from my new Order Distributions tool in Kleio, my $29/month eCom analytics toolbox. You can also generate it yourself in Sheets if you want to.

I hope you learned something new today!

Godspeed,
Mathias