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Cohort Analysis in Retail Analytics
Cohort Analysis in Retail Analytics
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Written by Sara Jaffer
Updated over a year ago

The Cohort Analysis dashboard offers a snapshot of the customer base with a cohort-based breakdown highlighting changing customer behavior and value over time.

Date picker

The date filter in this dashboard works differently to others. Where other dashboards are based on order date, looking back at activity leading up to placing the order, the cohort analysis is based on the acquisition date of customers, looking forward at activity since they were acquired. As such, when filtering by date, simply choose the cohort you wish to view.

KPI summary

The KPI summary at the top of the dashboard shows a condensed view of key performance indicators relating to the activity of customers acquired during the selected cohort.

  • Customers acquired

    The number of new customers acquired in this cohort.

  • CAC

    The average marketing cost of acquiring these customers.

  • Order Frequency

    The average number of purchases made by each customer in the cohort.

  • AOV (LTV basis)

    Average Order Value (based on the lifetime of customers in this cohort).

  • Repeat Rate

    The repeat purchase rate of customers.

  • LTV Gross Revenue

    Lifetime gross revenue.

  • LTV Gross Profit

    The lifetime gross profit margin.

  • LTV to CAC (gross revenue)

    This ratio is a signal of profitability at a customer level, i.e. does the business make a profit on each customer when accounting for acquisition cost? It should be used by your Marketing team to ensure the business does not overspend.

Deepdive

Identify trends and the relationship between metrics by viewing two charts side-by-side. Choose which KPI is displayed in each chart, how that data is split and the chart type. This provides a large degree of flexibility in choosing which data to display and how to display it.

  • KPI: Choose from any of the KPIs listed above.

  • Split: Segment the data by acquisition channel, territory, store (sales channel) or order product category.

  • Chart type: View as a bar chart showing totals for the primary range (in blue) and compare against period (in orange), or a line graph showing change over time for the chosen period.

Interpreting the metrics

Decreasing order frequencies and repurchase rates could have multiple drivers such as:

  • Poor retention activity

  • A product that is not sticky

  • Poor customer experience (fulfillment, customer service, returns)

Increasing LTV signals that the customer base is increasing in value on average. This could be driven by:

  • Changes in acquisition sources

  • Expansion of product range

  • Increasing AOV

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