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Let’s move to Slide 29 and let’s start with our customer acquisition strategy. Kredivo today boasts a very robust, very efficient customer acquisition strategy. Nearly 50% of our customer base comes to us organically: you’ll see that in the pie chart on the left-hand side. What you also see through some of these other charts is that over the last few years, as we’ve scaled up customer acquisition by nearly 6X to 7X on a monthly basis, customer acquisition cost has actually not just stayed stable, but it’s actually come down over time, and that speaks to the efficiency of our customer acquisition engine.
We are by far the lowest cost customer acquisition engine in the market compared to our buy now pay later peers. But additionally, across the customer’s life cycle, when we really think about the overall marketing spend as a share of our total transaction value, we are far lower than our peers, coming in at only about 0.5% of transaction value compared to our peers who are spending 3% to 5% or so.
Moving on to Slide 30, right, this is really the other side of the business, what we call internally here, the demand side slide flywheel. What you really see here is very, very strong trends around increasing dollar retention over time. The right way to look at this chart is both horizontally and vertically. All the data here for each cohort is really normalized, starting with 1X for the 2016 cohort, our earliest cohort. Looking at this vertically, what you’ll see is that over time each new cohort is actually transacting more or spending more on our platform than the previous one. Looking at this horizontally, you’ll see that each cohort is actually spending more over time.
Now, these are incredibly strong trends that go on to show you the powerful network effects of the business across our retention, engagement, and average order value dynamics. At the end points here what you’ll really see is a slight blip, that’s what’s highlighted in orange. This is only due to COVID-19 when we really slowed down our business, switched off (just as an example), our 12-month product, which is also where we see the highest value transactions. That brought down average order values, which is what you actually see here but when we look back at our data since Q4 last year when we started reaccelerating, we are exactly back on trend. You can see that there’s a very, very strong trend line for positive dollar retention built into this business model.
Now, all of this feeds into Slide 31, our LTV CAC framework where when we model out lifetime revenue for any sample cohort, using both historical and very conservatively modeled out projections, right, we’re generating a lifetime value of about $120 USD. This is a result of removing all of the direct costs for any revenue stream: All of the costs of credit, which is the losses, cost of funding the loan book, cost of data partnerships, cost of processing, collections, etc., are all netted out, and that’s how we result in such a large number of about $120, which ends up being about 11X or 12X of the customer acquisition cost. We also fully recover customer acquisition cost in right about three to four months for any sample cohort, which is just a very, very early payback period and makes us just one of the strongest consumer businesses in this part of the world.
With that, let me actually hand you over to Dennis, my colleague, and our CFO to walk you through some of our financial highlights.
Dennis Lerchl
Great, thanks very much, Akshay.
Yes, so before we dive into the financials, let’s spend a minute on our business model.
On the right-hand side of Page 33, you can see our unit economics waterfall. The percentage number shown here are all based on GMV or loan disbursements. In this graph, there are two numbers I’d like to highlight. First, we generated a very attractive take rate of 13% over the last 12 months, with indexes very favorably to our global peers, like Klarna, Affirm, Afterpay and so forth, and that’s despite the fact that we are the lowest cost buy now pay later provider in Indonesia.
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