Identify trends over time with cohort analysis

Cohort analysis helps to identify trends or to spot the results of changes to the business. Averages are great for a quick overview but they don’t account for the natural lifecycle of a customer. Cohort analysis enables you to see patterns across the lifecycle of a customer or user, rather than blindly looking at all customers combined.

Let’s say you see a spike of orders in the current month.
What could be the reason? To understand who is buying more, you can perform a cohort analysis. The different cohorts group customers by registration month and illustrate how Customer Lifetime Value changes in the months following registration. As shown in the example to the right, the breakdown highlights that all cohorts performed evenly except for March’s cohort, which performed exceedingly well.
Let’s use Wunderdata’s global filter to segment all reports by this specific cohort. As you dig deeper you realize these customers were acquired through a voucher marketing campaign. The campaign didn’t seem to perform well, since the costs per order were high, but it turned out that the customers kept buying and buying. Congratulations, you just found a channel with very loyal customers!
Now you can dig even deeper. You could for example see what products, categories and brands this cohort prefers and tailor a targeted marketing campaign to advertise this products through an E-Mail newsletter.

Want to perform cohort analysis on your data?