Quick Guide: Cohort Retention Analysis in Shopify

Understanding customer behavior is a critical aspect of e-commerce success, and cohort analysis is an invaluable tool for this. This guide simplifies how to perform Shopify Cohort Analysis effectively using By the Numbers, an intuitive Shopify application.

Fundamental Concepts in Cohort Analysis

Before diving into the analysis, it’s important to understand two key terms:

Cohort – A group of customers who made their first purchase within a specific time period.
Retention – 
A customer who makes a purchase in a subsequent month after their first purchase.

Getting Started with Cohort Analysis

If you haven’t already installed¬†By the numbers, do so now. It offers a free 14-day trial with no need for a credit card. Then, choose the Reports section from the left navigation bar and search for the Retention by Cohort report found under the Customers section and a chart like this should appear:

If you haven’t already, start by installing By the Numbers. It offers a 14-day free trial without requiring credit card details. Once installed, navigate to the Reports section and locate the Retention by Cohort report under Customers. You’ll be presented with a chart offering valuable insights:

The above chart provides the following information:

  • The initial purchase month for each cohort.
  • he customer count in each cohort.
  • The retention percentage for each month thereafter.

This analysis illuminates which marketing campaigns are more effective in retaining customers, allowing you to refine your retention and repurchase strategies. Based on this data, you can choose to discontinue underperforming campaigns or invest more in successful ones.

Utilizing Cohort Analysis for Business Growth

By mastering Shopify Cohort Analysis with By the Numbers, you gain the ability to understand customer retention trends deeply. This insight is crucial for tailoring marketing campaigns to enhance customer loyalty and repeat business. For a more in-depth exploration, refer to the help documentation on cohort retention.

With By the Numbers, cohort retention analysis on Shopify becomes straightforward and impactful, enabling you to make data-driven decisions that propel your business forward.

By being able to see which marketing campaigns were more successful in terms of customer retention, you can easily deploy more sophisticated retention and repurchase campaigns. You can choose to discontinue campaigns that performed poorly or double down on the ones that performed well.

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