Case Studies Cohort Analysis – DataXoft

Description

Cohort analysis is customer-centric, it enables you to compare customers in the same stage of the customer lifecycle since their cohort is defined by their acquisition date.
Just analyzing month 0 (ARPU approach), one could say that the Dec 2017 campaign was more effective than the Dec 2016, but notice how the ARPU (Average Revenue per User) sustains more revenue for the Dec 2016 cohort.
After five months on the date of acquisition, the Dec 2016 cohort average total is $180 per customer while the Dec 2017 is $151.
Now you are aware that the customers acquired in 2017 were not the same quality as the ones in Dec 2016.
Cohort analysis is a simple, yet effective way to understand the performance of your marketing retention and acquisition efforts.

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