In case you missed the introduction to the Customer Cohort Analysis, go check out our previous post. Now we will go through Model Results, which consists of 3 tabs: Cohorts, Repeat by, and Details.
After you run your model, the first tab that appears is the Cohorts Tab. Depending on the metric (the default is No of Customers), the results are presented through a heatmap and her graphic representation. In the example above, groups of customers are grouped by year when they made their first purchase. Column 0 represent numbers of customer per cohort (i.e. 4255 customers made their first purchase in 2018). Now we can see their activity year to year: 799 customers came back in 2019, 685 in 2020, and 118 in 2021. If you switch your metric to Percentage, you will get results in percentages.
Let's track our Monetary column (in our case total amount spent per customer) and switch metric to Amount to see how much money did our customers spend through the years. As you can see above, customers that have made their first order in 2018 have spent 46.25M, and 799 customers that came back in 2019 have spent 12.38M. In case you want to track the total amount spent through years, switch metric to Amount (Cumulative).
Besides these, there are 3 more metrics: Average Order Value, Average Order Value (Cumulative), and Average Revenue per Customer. Basically, we tracked the long-term relationships that we have for our given groups (cohorts). On the other hand, we can compare different cohorts at the same stage in their lifetime. For example, for all the cohorts, we can see how much is the average revenue per customer two years after they made their first purchase: the average revenue per customer in the cohort from 2019 (12.02K) is almost half less than from 2018 (21.05K). Here is an opportunity to see what went wrong and make a new business strategy.
In case you broke down and filtered cohorts by a variable with less than 20 distinct values (parameter Repeat by in Model Scenario), for each value you will get a separate Cohort Analysis in the Repeat by Tab. All the values related to the Cohorts and Repeat by Tabs, with much more, can be found on the Details Tab, in the form of a table. Now it's your turn to track your customer's behavior, see when is the best time for remarketing, and how to improve customer retention. Enjoy! 🙂
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