4. Afford higher CAC
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Here is another example showing how CAC have changed over time across multiple industries. Here we see how customer acquisition costs have increased 70% in B2B industries and just over 60% for B2C brands compared to four years ago.
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We've discussed before how using a ROAS metric to determine ad efficacy will put you at a disadvantage, and why you should instead focus on ROMI (return on marketing investment).
Cohort analysis is the only way to actually get a true return on marketing investment number. As we've discussed above, you can use cohort data to understand how quickly you can expect payback from your acquisition channels.
This empowers you to invest more, knowing exactly when you can expect payback and ultimately how profitable your ad campaigns will be.
5. Determine if discounts work
Another interesting use case for cohort analysis is the effect of discounts.