New Customers added this month?

Customers Retained since December?

COHORT ANALYSIS

Definition

Cohort Analysis helps analyze trend cycles of monthly customers, and their repeat purchase behavior.

  • New Customers: Count of customers acquired per month/quarter/year.
  • Returning Customers: Count of customers making purchases in the current and previous periods.
  • Retention %: Percentage of customers making purchases in the periods after the Zeroth month

Understanding the Dashboard

Row Headers are month names

Column Headers – 0, 1, 2,….24
These are the months. Zero here being the current month.

Values are represented in two charts.
First, is the customer numbers. Values under zero are the new customers that month.
Second, the Retention % of those new customers each month.

  • Eg 1 – If we are on Dec 2019, we have 955 new customers. From those 389 customers were still active in Month 23. Month 23 here also in this context means the 23rd month from Dec 2019, which is October 2021.
    This also means 41% of customers that billed in Dec 2019 have billed again in October 2021.
  • Eg 2 – Similarly in Feb 2021, 124 new customers came. In the next month, March, 20 or 18% billed again.

Usage

  • Track Customers
  • Track Users of an App or Website
  • Any Industry
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