Cohort Analysis is an analytical technique that focuses on the behavior of a specific group of users or customers over time. You are then able to uncover insights about the experiences of those customers and better cater to them.
Peel places customers into a monthly cohort when they first make a purchase with your brand. They never graduate out of a cohort and they will forever be a part of the same cohort as when they first made a purchase.
If you made a purchase in January 2021 then you will always be a part of that cohort. Any repurchase behavior that you make will be assigned to the January 2021 cohort.
Cohort Analysis provides a complete look at your customer journey, so how you acquired the customer or contact them throughout their journey will allow you to see the impact of those experiments on the customer's future purchasing behavior with your brand.
Two primary purposes of Cohort Analysis are: one-time campaign retrospection and ongoing user engagement benchmarking.
You are running a promotional campaign that sells a trial set of your product for a below margin discount. You probably want to know if those customers who bought that discounted product come back and make a full-price purchase or purchase again in the future.
When do they decide to come back? How much do they spend on average in their lifetime with your brand?
Questions like these can be answered with Peel’s Cohort Analysis along with 40+ other cohort metrics alone.
Peel allows you to look at the behaviors of your customers over time, broken down by calendar month. You can see the number of customers who first made a purchase with your brand in that month. Peel also offers other cohorts within the segmentation
- Discount cohorts - tells us if people used a discount code or not
- Subscriber cohorts tells us if people are a subscriber or transactional customer
Using cohorts allows you to group people by their behaviors and see what patterns have resulted. For example, Peel's robust segmentation allows you to then see the cohorts based on the first product purchased, the discount code acquired with, the attribution channel, the product type, the sku, the location, the payment gateway, the customer tag, etc., all that was on their first purchase.
This type of analysis is instrumental in understanding the behaviors of your customers in their lifecycle journey with your product. When you want to reach out to your customer base, it is better to go in with an idea of their spending habits and it has never been easier to do so!
Cohorts 200 Level:
Cohorts 300 Level:
- Repeat Orders Rate per Cohort
- Gross Margin Per Month
- Gross Margin Rate Per Month
Updated over 1 year ago