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.
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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.
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Sales Cycle Length - How does sales cycle length impact business?
Different Types of Cohorts
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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:
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Acquisition Date - How does seasonality or timelines impact business?
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Acquisition Source - Where does the lead come from? (Event, sales, paid ad, newsletter, referral, social media, etc.)
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Device Source - What device was the visitor using? Desktop, tablet, or mobile device?
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Geographical Regions - How do geographical regions impact customer engagement?
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Customer Size - How does the service/product perform for individuals vs. large firms?
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Pricing Plans - How do pricing impact?