What is cohort analysis?

Learn more about your customers with cohort analysis.

A cohort is a group of customers who first bought in a particular month. The cohort is shown in the first column on the left.

Cohort Analysis is probably not very useful if you have been running your business for less than a year.

Our Cohort analysis allows you to display three different metrics: Lifetime Value, Orders, and Customer retention. We will cover each in turn.

Lifetime Value (LTV)

The Lifetime Value report shows how much a customer has spent with you over their lifetime. Once you have a good understanding of how much a customer is likely to spend then you can begin to think about what is a sensible amount of marketing to spend to acquire each customer.

The first column is the average Lifetime Value (so far) of customers recruited in that month. The other columns show how much these customers spent in the following months.

If your store has been running for several years you might want to  group your by quarters or years instead. Just choose from the dropdown menu on the top right hand side.

Orders

This report shows how many orders your customers place. It's grouped by the month the customers first bought. The first column shows the average number of orders that customers recruited in that month placed, then you can see orders placed as the months go on.

Customer retention

This report shows how you retain your customers over time. The column will always be 100% as they customers have just been recruited. Anything over 30% in the +1 column is good, and your business will be more profitable if you can increase this number,