Our powerful Cohort Analysis Chart provides insightful metrics to help you understand and optimize your business performance over time. This guide will walk you through the various features and functionalities of our Cohort Analysis Chart.
Understanding the Cohort Analysis Chart
Navigate to Reports > Customer Life Time , explore the following columns :
1. Customer Cohort: Categorizes cohorts based on the week they made their first purchase (W01 - W06).
2. New Customers: Reflects the number of new customers in each cohort who made their first purchase during a specified time period.
3. Customer Acquisition Cost (CAC): Quantifies the cost of acquiring new customers within a cohort, derived from the total marketing spend divided by the new customers in that cohort.
4. Lifetime Value (LTV): Represents the average monetary value each customer in a cohort contributes over their lifetime, calculated by dividing total purchases by the number of new customers.
5. Weeks Since Cohort: Rows labeled 0 to 6 indicate the time passed since a cohort's first purchase.
Cohort Analysis Chart Settings
Adjust the following options to analyze your shop's cohorts :
1. Date Picker: Use the top-left Date Picker to select the desired time period for analysis.
2. Cohort Grouping: Choose to filter cohorts by Week, Month, or Year for customized analysis.
3. Column Limit: Displays a maximum of 13 columns, providing a comprehensive view of your selected date range.
4. Filter Adjustment: Customize the analysis table using filters to display specific data.
5. Metric Selection: Choose the Base Metric for analysis (Sales, ROAS, Repurchase Rate, or Gross Profit)
6. Data Progression: Select either Accumulated (cohort's accumulated metric value per period) or Marginal (cohort's marginal metric value per period).
7. Calculation Scheme: Opt for either Average per Customer (average metric value per customer in the cohort) or Total Cohort (total metric value per cohort).
Analyzing the Cohort Data - Example
Cohort W01
Initiated with 50 new customers with an average lifetime value of $300 for this cohort. ROAS gradually increases, indicating cumulative return on ad spend. At 0 weeks, ROAS for Cohort W01 was 0.4 ($0.40 on each dollar spent). At 1 week, ROAS increased to 0.5 ($0.50 on each dollar spent).
Break Even Point
Hover on the cell with the green triangle, this is the break-even point. The green triangle on each row represents the estimated point in time at which the LTV matches the CAC for that respective cohort. In other words, from that point forward you begin to generate profit from that cohort.
