Using Woopra’s Cohort Analytics Reports to Measure Patterns Throughout the Customer Lifecycle
In its simplest form, Cohort Analysis allows you to measure the performance of cohorts, those who share common behaviors, over time. By breaking up your users into cohorts, you can understand how different activities across the organization impact specific cohorts throughout their lifecycle.
Teams across the organization can use Woopra’s Cohort Analytics to measure product engagement, marketing campaign efficiency, revenue trends, sales retention and more to increase customer health and stickiness over time.
An eCommerce business, for example, might want to use cohort analysis to understand if new customers who purchased through a promotional offer came back to make repeat purchases month over month.
Or, in a SaaS business, a cohort analysis report could reveal if a new product feature impacted retention for new monthly subscriptions.
By combining the power of Woopra’s Retention and Trends reports, a Cohort Analytics report will help you to identify changes in customer behavioral patterns as it relates to what you’re doing as a business.
To help get started, let’s walk through two examples of Cohort Analytics reports you can run today to better understand your customers.
Calculating Subscription Revenue Growth by Monthly Cohorts
It costs five times as much to attract a new customer than retain an existing one. Thus, for SaaS (and, an increasing number of eCommerce brands) today, keeping an eye on vital subscription metrics is key.
Analyzing monthly revenue growth will reveal if your customer value is increasing over time and which cohorts are performing the best. The simplest version of this would be to analyze customers by their subscription signup date, followed by their monthly payments thereafter.
To create this report, simply select the action you’ve defined to identify an acquisition or “became a customer” start date. Your repeat action will be the event you’re using to track payments and their associated payment amounts.
In the example below, we’re using “Signup” as the event that defines the “became a customer date” and “Charge Succeeded” to track when payments were by made through.
If we select the time unit as “Months” and run the report, the results instantly show our revenue trends over time by monthly cohorts.
Measuring the Impact of Product Changes on Customer Health
Your product is constantly in flux. Understanding how these changes impact the behavior of your users is essential to developing features that customers love. While segmenting by the date users became customers is helpful, it’s not always specific enough to gain a clear understanding of how product changes influence behavior over the full customer lifecycle.
Let’s say you’ve just released an onboarding tutorial within your app and you want to understand if this new onboarding experience will impact customer retention and stickiness, month over month. A Cohort Analytics report will quickly show you if the tutorial has made an impact on retention over time, and thus, help you evaluate whether the tutorial is increasing product stickiness.
You could define your initial action as “Seen Tutorial” or similar, followed by an action to measure engagement or retention (such as making payments, logging in or using features).
For example, in the below report, we’re using the “Code Added” event to indicate that a user has seen our new onboarding tutorial. Our repeat action, “Ran Report” helps us track in-app product engagement. Now we can measure if the cohort of users who saw the onboarding tutorial were retained longer than those who did not.
Notice that you can check the “Include Others” box to show how cohorts have performed compared to all other users over time.
Without a tool like Woopra, Cohort Analysis for the above examples would require a data scientist to pull the relevant events and Excel manipulation to marry the data. With Cohort Analytics Reports, anyone across the organization can answer essential questions in seconds to help you make smarter business decisions, faster.