Cohort Analysis with Tableau
Increase revenue and decrease customer churn
In this article, I would like to document my learning of cohort analysis. Cohort analysis is a way to group your customer based on the different traits.
There are two main way to divide customers
- Acquisition cohorts: Customer groups divided based on their first purchase day(join day).
- Behavioral cohorts: Customer groups divided based on their behavior. Such as frequency, or the payment method.
After understanding different cohort’s behavior, it is easier for the business to develop customized strategies.
Following, I would like to share how to do cohort analysis with Tableau. The data source is the Tableau superstore dataset, containing customer order information such as order date, customer name, region, etc.
Acquisition cohort Analysis
- Divided customers based on the first order date.
2. Put order year in the x-axis, sales in the y-axis, customer first order date to color.
Based on the chart, customers who first placed an order in 2011 contribute an average of 65% of sales for each following year. The store can focus on a loyalty program to further improve customer engagement.
I hope you enjoying reading this:)