This report provides data on customer acquisition and retention to help you better understand how to turn potential customers into loyal customers.
In This Article
Understanding the Fields and Metics
"Cohort" is a group of customers with similar characteristics. In this report, the system groups customers based on the day they placed their first order. You can use this report to identify valuable customers among returning customers and formulate effective business strategies by comparing data, such as retention rates, net sales, and subtotal, across different cohorts. The report includes the following dimensions:
Dimensions | Description |
Cohort | Customers are grouped into cohorts for different time periods based on the day of their first orders. |
Acquisition period |
The period corresponding to the day of first orders of each cohort. The unit can be: day, week, month, year, etc.. For example, If a cohort places the first order in your store on September 1, 2022, the acquisition year for this cohort is 2022, the month is September 2022, the week is August 29, 2022 (the Monday in the week of September 1, 2022 falls on August 29, 2022), and the acquisition day is September 1, 2022. |
This report includes the following metrics:
Metric | Definition |
Retention rate |
Retention rate = Retained customers / New customers grouped based on the day of their first order. Retained customers are those who place orders again in subsequent periods after placing their first order. For example, in September 2022, if 100 customers placed orders in your store for the first time, you acquire 100 new customers. Then, if 20 of them place orders again in October, and 15 of them place orders again in November, we can draw the following conclusions: For September 2022, retained customers = 100; retention rate = 100/100 = 100% For the first month following September 2022, retained customers = 20; retention rate = 20/100 = 20% For the second month following September 2022: retained customers = 15; retention rate = 15/100 = 15% |
About the Chart and Table
The cohort retention table provides retention rates and sales data by week, month, or quarter for each cohort since their acquisition period. Each row represents the lifecycle of a cohort from the same acquisition period. You can customize the cohort table by selecting a date range and time unit. These options help you manage both the cohort retention table and the cohort retention line chart.
For example, say John placed an order in your store for the first time in February 2023, and then placed orders in June 2023 and September 2023. If you select a Date range of 2023 and a Time unit of a month in the cohort retention table, John belongs to the cohort of February 2023 and is considered a retained customer in the 4th month and the 7th month. You can switch metrics, such as Retention rate, Customers, Net sales, Subtotal, and Average Order Value, from the drop-down menu. The second column presents aggregated metric values based on cohorts.
Keep in mind that the retention rate table does not display data for the current time period. Customer group analysis requires customers to place orders again after their first order, which means that the analysis can only be calculated after a full cycle is completed. For example, if it's April 2024, and you select a Date range of the last 6 months and a Time unit of a month, you can only view data up to March 2023. Additionally, data for a specific time period is displayed 24 hours after the end of that time period.
The cohort retention line chart provides the retention rates for selected cohorts within the selected date range. By default, it displays the retention rates for all cohorts. You can select a specific cohort from the drop-down menu and decide whether to include the acquisition period as the first period in the analysis by checking the Include acquisition period box.
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