In ecommerce a cohort analysis is an analysis of customers grouped by some attribute. Most frequently they are grouped by the year and month they first ordered in.
Cohorts each act as a customer segment where each segment has the same/similar attribute.
A Cohort Analysis will analyze customers who belong to each cohort, usually measuring standard ecommerce metrics like:
- Total sales
- Average Order Value
- Repeat Purchase Rate
- Total orders
Once analyzed, the different cohorts can be compared to each other. This allows you to identify over and under-performing cohorts.
Often a cohort analysis will also measure the cohort's metrics over time. This lets you see how the next months after their initial order.
Eric Davis
Get a snapshot of your customer behavior
The sooner you signup for Repeat Customer Insights, the more comparison points your store will have. Each 1st of a the month a new snapshot is taken and saved to your account for analysis.