Revenue by Cohorts

Revenue is one of the golden KPIs: we all analyze the evolution of revenue over time, but do we really understand what is impacting it?

Revenue is of course coming from customers - but if we look a bit closer, we can distinguish the impact that new and repeat customers have on your revenue. Is the majority of your revenue in a given month generated by new customers, or by repeat customers? When were these revenue-generating customers acquired? Let's answer these customers with the Revenue by Cohorts report:

Definitions

The Revenue by Cohorts report shows you how much of a certain period's revenue is generated by each customer cohort.

What does it mean? We take the gross and net revenue generated in a specific time period (e.g. March 2023). Then, we break down the revenue number to analyze how much of that revenue was generated by each cohort.

The analysis can be viewed either as absolute values or as percentages. With absolute numbers, you can monitor the evolution of your revenue and the contribution of each cohort, but with percentages, you can easily understand which cohort is responsible for a certain share of your revenue performance in a given time period.

Use Cases

Tracking the evolution of your revenue is important, but in order to fully understand the trends, you must know what your revenue is made up of. Focusing on customer retention will lead to customers who will bring additional revenue throughout their lifetime, not just in their first order. 

This report will showcase how much revenue is coming from new but also from older cohorts, helping you measure the impact of your retention strategies.

Not using RetentionX yet?

Read our full blog post about cohort analysis for Shopify stores here.