An Indian e-commerce platform's revenue projection for Q4 2024 is as follows:
It has 3 customer cohorts: Cohort A (joined in Q1 2024), Cohort B (joined in Q2 2024), and Cohort C (joined in Q3 2024).
- Cohort A: Cohort size: 40,000 customers. Expected values from trend: 20% retention, AOV ₹1,200, frequency 1.5 times
- Cohort B: Cohort size: 60,000 customers. Expected values from trend: 15% retention, AOV ₹1,000, frequency 1.3 times
- Cohort C: Cohort size: 80,000 customers. Expected values from trend: 10% retention, AOV ₹800, frequency 1.1 times
New Campaign: Expected to bring 1,20,000 new customers with AOV ₹900, frequency 1.2 times.
Hence, Revenue Projection for Q4 2024:
[(40,000 × 0.2 × ₹1,200 × 1.5) + (60,000 × 0.15 × ₹1,000 × 1.3) + (80,000 × 0.1 × ₹800 × 1.1) + (1,20,000 × ₹900 × 1.2)]
= ₹1,44,00,000 + ₹1,17,00,000 + ₹70,40,000 + ₹12,96,00,000
= ₹16,27,40,000
However, in a revised scenario, if the Average Order Value for Cohort A increases to ₹1,300 and the purchase frequency of Cohort A increases to 1.7 times, what would be the new revenue projection for Q4 2024?