Unit Economics Course

Lesson 1 • Why Unit Economics Matter

Explains how unit-level profitability signals business viability and scalability. Grounds abstract metrics in real decision-making contexts.

Lesson 2 • Common Misconceptions and Pitfalls

Identifies frequent errors in defining and interpreting unit economics. Prevents analytical mistakes before students apply metrics independently.

Lesson 3 • Defining the Unit in Business

Establishes what a 'unit' means across different business models. Connects the definition of the unit to accurate metric calculation throughout the chapter.

Lesson 1 • CAC Payback Period

Introduces the time dimension of acquisition cost recovery using gross margin. Links payback period to cash flow and business sustainability.

Lesson 2 • Blended vs. Channel-Level CAC

Distinguishes aggregate CAC from channel-specific CAC and explains when each is appropriate. Enables students to diagnose channel efficiency accurately.

Lesson 3 • CAC Formula and Components

Breaks down every cost input that belongs in a correct CAC calculation. Ensures students build an accurate numerator and denominator before analysis.

Lesson 1 • Segmenting LTV by Cohort

Teaches cohort analysis as the primary tool for comparing LTV across customer groups. Enables students to identify high-value segments and acquisition channels.

Lesson 2 • Churn Rate and Retention Modelling

Explains how churn rate drives LTV and how to model retention curves accurately. Connects churn reduction directly to LTV improvement.

Lesson 3 • LTV Fundamentals and Formulas

Covers the core LTV equations from simple to predictive forms. Establishes the mathematical foundation required for all LTV modelling in this chapter.

Lesson 4 • LTV Model Validation and Limits

Addresses how to stress-test LTV assumptions and communicate model uncertainty. Prepares students to present LTV credibly to sceptical stakeholders.

Lesson 1 • Cohort-Based LTV Projection

Extends cohort data into forward-looking LTV estimates using extrapolation techniques. Links historical cohort behaviour to future turnover forecasting.

Lesson 2 • Cohort Analysis Fundamentals

Introduces cohort construction logic and the difference between cross-sectional and longitudinal views. Establishes why cohorts are essential for accurate unit economics.

Lesson 3 • Interpreting Cohort Curves

Teaches students to read retention and turnover curves and identify healthy vs. problematic patterns. Connects curve shapes to product and business model insights.

Lesson 4 • Building Retention and Revenue Cohort Tables

Walks through the mechanics of constructing retention and turnover cohort tables from raw data. Produces the analytical artefacts used in all subsequent sections.

Lesson 1 • Diagnosing Ratio Problems

Teaches students to identify whether a poor ratio stems from CAC, LTV, or both. Enables targeted corrective action rather than generic optimisation.

Lesson 2 • Ratio-Driven Investment Decisions

Shows how the LTV:CAC ratio governs marketing budget allocation and growth investment. Connects ratio thresholds to go or no-go spending decisions.

Lesson 3 • Calculating the LTV:CAC Ratio

Combines prior LTV and CAC work into a single ratio with clear calculation rules. Establishes the benchmark ranges used throughout the chapter.

Lesson 1 • Margin Analysis by Product and Channel

Applies contribution margin to compare profitability across SKUs, tiers, and sales channels. Enables resource allocation based on margin contribution.

Lesson 2 • Operating Leverage and Scaling

Explains how fixed cost spread over volume improves unit economics at scale. Prepares students to model margin expansion as a business grows.

Lesson 3 • Contribution Margin Mechanics

Defines contribution margin and distinguishes it from gross and operating margin. Anchors the concept as the primary unit-level profitability signal.

Lesson 1 • Value-Based Pricing Fundamentals

Introduces willingness-to-pay research and value metric identification as pricing inputs. Connects customer-perceived value to margin-maximising price points.

Lesson 2 • Discounting, Promotions, and Margin Erosion

Analyses how discounts and promotions affect unit margin and LTV at the cohort level. Equips students to set discount policies that protect unit economics.

Lesson 3 • Pricing Models and Their Unit Impact

Surveys major pricing models and maps each to its unit economics implications. Gives students a framework for choosing the right model for their business.

Lesson 4 • Price Elasticity and Demand Modelling

Teaches how to estimate price elasticity and model its effect on volume and turnover. Enables students to predict unit economics outcomes of price changes.

Lesson 1 • Multi-Segment and Multi-Product Modelling

Extends unit economics modelling to businesses with multiple customer segments or product lines. Enables portfolio-level analysis and cross-subsidisation decisions.

Lesson 2 • Unit Economics at Scale

Models how unit economics evolve as a business grows from early stage to maturity. Identifies inflection points where metrics improve or deteriorate with scale.

Lesson 3 • Presenting Models to Decision Makers

Teaches how to translate complex models into clear executive summaries and investor narratives. Closes the chapter by connecting analytical rigour to real-world influence.

Lesson 4 • Scenario and Sensitivity Analysis

Applies scenario planning and sensitivity testing to stress-test unit economics assumptions. Prepares students to present a range of outcomes rather than a single point estimate.