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Cohorts

Cohort Analysis: Gaining Insights into Customer Behavior

Have you ever wondered how top businesses understand their specific customer base? Well, they do it through "Cohort Analysis". Cohort Analysis is one of the features of Percept Insight that helps businesses analyze specific group behavior of customers over time. How? Well, by grouping customers based on specific characteristics or events.

The cohorts or groups can be segmented into, well any groups whether you need to segment them by customers who have added the product to their cart and didn't quite buy the product, the date they became a customer, or their location. And these are not the limits, you can create your own strategic cohorts according to your business needs.

Why Cohort Analysis is Important

By observing these cohorts over time, you can identify trends. You can also measure retention rates. Additionally, you can improve customer satisfaction and, in turn, overall revenue.

Also, Cohorts allow businesses to understand how customer behavior changes over time. By evaluating the different cohorts that join at different time periods, you can identify factors that contribute to customer churn, repeat purchases, or other important metrics. In this way, cohort analysis can help you to tailor marketing campaigns, personalize product offerings, and enhance customer loyalty.

Applying Cohort Analysis - An Example

Cohorts

Let's take a closer look at how you can create a cohort based on location. Here we are using "Mumbai" (location) as an example. Mumbai, being the financial capital of India, has diverse neighborhoods with distinct pin codes representing different areas. Now suppose you need a cohort from Mumbai according to different pin codes.

To begin with cohort analysis in Mumbai (example), it is essential to divide customers based on their pin codes within Mumbai. Each pincode represents a specific area within the city, offering unique characteristics and demographics.

All you need to do is:

  1. Create a new "Cohort" (as shown in the GIF above)
  2. Go to "All Users" select the pin code and create the Cohort
  3. Next, you can use the newly created "pin code" cohort as a filter integrating it with the Insights feature of Percept Insight

Eureka! It's done.

Analyzing cohorts based on Mumbai pin codes can provide valuable insights into customer behavior and preferences within specific localities.

If you want to try Percept Insights features yourself then check out our demo account - Here

How Cohort Analysis Can Help in Analysing Customer Behavior over Time

Once the cohorts are identified, you can track and analyze how customer behavior evolves within each cohort over time. This analysis includes metrics like customer engagement, purchase frequency, and average order value. By comparing the behavior of cohorts from different segments, you can identify trends, spot opportunities, and optimize targeted marketing efforts.

Few Advantages of Cohort Analysis

  1. Retention Analysis: By tracking the retention rate of customers over time, you can evaluate the effectiveness of their loyalty programs and customer satisfaction in this area.

  2. Seasonal Trends: Analyzing the purchasing behavior of a cohort can reveal seasonal trends and preferences specific to your created cohort. This information will help you to optimize your inventory and marketing strategies to cater to these preferences.

  3. Marketing Campaigns: Cohort analysis also helps evaluate the performance and impact of marketing campaigns by tracking the response rate and customer acquisition within the cohort, you can fine-tune your marketing strategies to maximize ROI.

To conclude, the features that Percept Insights offers are at par with some of the top companies that offer similar features without being heavy on your pocket. Check the pricing here!

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