Did you know there’s only a 5-20% chance to sell to a new customer as opposed to a whopping 60-70% for a repeat customer? Wondering why some customers stick around and others don’t? Getting lost in vanity metrics such as daily active customers that do not guarantee any traction is a recipe for disaster. This is where our latest update can help you thrive – Cohort Analysis!

For any marketer, there is nothing more alarming than losing most or part of their valued customers within days of acquisition. Traditional methods fall short in painting the full picture. To truly grasp the narrative of your customer’s journey, you need a tool that segments and analyzes with precision and purpose. Lifesight’s Cohort Analysis is designed to bring clarity and actionable insights to your customer engagement strategies.

What is Cohort Analysis?

A cohort is a group of individuals with a shared characteristic within a specific period, like users who became customers around the same time. Cohort analysis studies these groups’ activities. Analysts use cohort analysis tables to visually compare such user groups at similar lifecycle stages and understand their long-term behavior and traits.

Our Cohort Analysis chart is a powerhouse that groups customers based on when they made their first purchase. Why is this important? Because it gives you a clear, chronological view of customer engagement. You’ll see not just who your customers are, but how their interactions with your brand evolve. It’s like having a time-lapse camera on your customer base!

Traditional tools like Google Analytics provide a snapshot of customer engagement, typically in the form of a cohort table showing user retention rates and acquisition dates. But at Lifesight, we take it several notches higher.

Marketing teams can use Lifesight Cohort Analysis to understand various challenges or low-hanging opportunities:

  • Customer Retention: Track loyalty trends and identify inactive customers
  • CAC Breakeven: Identify at what stage does your brand start making profits and deriving exponential ROI.
  • Marketing Campaigns: Evaluate the impact of specific campaigns on user acquisition and retention by analyzing user behavior.
  • A/B Testing: Compare user responses to different campaigns to determine which is more effective.
  • User Engagement: Monitor trends in user engagement over time, and assess the effectiveness of different acquisition channels.

Here’s how we transform raw data into actionable insights:

Extracting Raw Data: We start by pulling comprehensive data from various sources. This isn’t just about numbers; it’s about understanding the story behind these figures.

Creating Cohort Identifiers: Next, we segment this data into meaningful groups based on the first purchase date.

Creating Insightful Visuals: Finally, we turn this data into easy-to-understand tables and graphs. Wherein you can understand trends, patterns, and opportunities.

Cohort Analysis helps you understand where you’re acquiring customers, what month you’re acquiring customers, at the cheapest cost, as well as the lifetime value behind those customers.

Tying it all up

Lifesight’s Cohort Analysis is your strategic compass for deeper customer insights and smarter business decisions. It unlocks the full potential of your customer data, empowering you to not only observe trends but actively cultivate a more engaged, loyal customer base in an easy & user-friendly view.

Plus, we’re excited to announce that we’ll soon be enhancing our capabilities with the addition of Lifetime Value (LTV) calculation, advancing your customer insights beyond the traditional methods.

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