Your Business Needs Cohort Analysis, Here's Why
It can be very useful to compare groups of customers in assessing your company’s progress. As you analyze how various groups behave during a standard time period, you can pick out patterns and use that information to better identify problems, satisfy customers’ needs, and design engagement strategies.
Do customers you acquired last month act differently than ones you signed up the month prior? Do users who responded to a discount or promotion behave differently than those who purchased at full price? Cohort analysis answers these questions and allows a company to identify clear patterns across different customer groups.
Sales Cycle Length - How does sales cycle length impact business?
Different Types of Cohorts
There are countless combinations that you can subgroup your customers into as long as the cohort users share a common denominator. Some of the most common SaaS cohorts are:
Acquisition Date - How does seasonality or timelines impact business?
Acquisition Source - Where does the lead come from? (Event, sales, paid ad, newsletter, referral, social media, etc.)
Device Source - What device was the visitor using? Desktop, tablet, or mobile device?
Geographical Regions - How do geographical regions impact customer engagement?
Customer Size - How does the service/product perform for individuals vs. large firms?
Pricing Plans - How do pricing impact?