No doubt: in order to grow a business you can not only focus on acquiring new customers. You also need to make sure that you attract follow-up purchases from your customers to increase your turnover.
So let's take a look at the Cohorts by Repeat Purchase Rate!
Definitions
Without cohort analysis, it is difficult to establish correlations between customers and profitability, especially in terms of scale. The Cohorts by Repeat Purchase Rate report breaks down your customers into related groups to gain a better understanding of their purchase behaviors.
In this case, your customers are grouped by when they placed their first order. In the colored cells, you can see the share of the cohort that came back for an nth follow-up purchase, and you have the ability to also see an overall view of the weighted average per column in the first row of the report.
The color of the cell indicates the performance of that cohort compared to the weighted average for the column, with a color scale that goes from the darkest green, indicating the best performance against the average, to the darkest red, indicating the worst performance against the average.
Date of First Order | Time of the first order placement. |
New Customers | Number of customers who made their first purchase |
Overall | The weighted average of the selected KPI per column |
Use Cases
Isolating and analyzing cohorts is powerful when you want to quantify the response to short-term marketing campaigns. This report can also show how the behavior and performance of individual user groups change from week to week, month to month, or year to year compared to the time your customers were acquired. So let's find out:
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Order cohorts are a great approach to determine and compare customer quality. If you have a strong increase in new customers, you can ensure that customer quality and their reorder rates do not suffer.
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If you identify a cohort with poor performance, take specific actions to lift those customers to healthy levels.
- While my campaigns get more aggressive, am I attracting more one-time buyers?
What you need
For this report to work properly, the following data must be imported:
- Order ID
- Order Date
- Customer ID
Not using RetentionX yet?
Read our full blog post about cohort analysis for Shopify stores here.
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