Cohort Analysis - Chapter 5

Additional Use Cases

What are some additional ways that savvy marketing teams can harness the power of cohort reports? Here are a few major use cases:

  • Post-holiday retention is almost always a challenge for marketing teams. Using cohort analysis, you can look at whether the customers you acquired in holiday 2012 “stuck around” longer than those acquired in holiday 2011 or holiday 2010.
  • If a team is launching a new paid acquisition campaign, it might want to know how much it has recouped in spend from new customers. For example, imagine the display team just began advertising on a social networking site last month. How much have the new customers acquired through that campaign spent over their first four weeks of being customers? Cohort analysis provides an easy-to-use view into spend over time for a particular group of users.
  • How effective was that new welcome email series you just launched at converting subscribers to paying customers? If you define a cohort as a group of users who signed up at the same time, you can track conversion to paying customers over time. Let’s say you launched your welcome series for new members in June 2013. How did the first-month conversion rate for June 2013 subscribers compare to that of May 2013, April 2013, or March 2013?

Ultimately, cohort analysis can be a powerful tool not just in charting long-term trends in retention -- but also in evaluating the impact of specific marketing actions on customer engagement.

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