1.What are cohorts in Admetrics Data Studio?
Cohorts are groups of customers who realized their purchase within a defined time period.
2. How do cohorts help in business decision making?
Cohorts allow you to track customer behavior over time.
They help you understand the impact of specific actions and provide a number of important lifetime metrics.
Track User Behavior Over Time: See how different groups of customers behave after a purchase. You can observe if retention rates are improving or declining and identify patterns that indicate when users typically churn.
Measure Channel and Campaign Effectiveness: By looking at the performance of users acquired through different campaigns or channels, you can identify which strategies are driving long-term, engaged customers versus those that only bring short-term value.
Compare Cohorts: Compare how users acquired in different time frames (e.g., months, seasons) respond to marketing efforts. This helps refine future campaigns and target the most effective acquisition strategies.
A/B Testing Validation: Use cohort analysis to validate the impact of A/B testing by tracking how different cohorts respond to variations in the product (for instance use order tag or customer tag cohort grouping for this).
Monitor Long-Term Value: Track how much each cohort contributes to revenue over time provides insight into customer lifetime value (CLV). This helps you understand which users are the most valuable and what marketing efforts or product features drive higher value.
Fine-Tune CAC: By understanding how much value each cohort brings, you can better calculate the maximum cost per acquisition (CAC) for future new customers.
Spot Churn Trends: Spot trends in user churn, such as whether new users leave more quickly than earlier cohorts. This insight allows you to adjust your engagement strategies.
Segmented Marketing: By understanding how different cohorts engage, you can better personalize your marketing efforts based on specific behaviors or needs, improving overall user satisfaction and engagement.
Project Future Revenue: By analyzing past cohorts, you can forecast future revenue from current user groups, helping you create more accurate financial projections.
Cost-Benefit Analysis: With insights into the relationship between acquisition costs and long-term value, you can allocate your budget more efficiently, focusing on channels that drive high-value customers.
3. What is lifetime in the cohort reports?
The cohort reports allow to track metrics such as Lifetime orders, Lifetime revenue or Lifetime CM2. These refer to the total value for the cohort over a specified time period. The length of the period is defined by horizon.
💡 Let’s consider an example with a cohort defined as October 1-14. This cohort contains all customers who made a purchase within the timespan. The Lifetime order metric then expresses how many orders all these customers made, each of them within 30 days. The horizon is considered from the first purchase a customer made within the selected period.
4. How do I use the Cohort Analysis report?
Navigate to the Retention tab, then
1. Configure the basic settings:
Period: Select the timeframe for analysis (e.g. Last 12 months)
Group by: Define how you want to segment your cohorts
Time-based: Week, month, quarter
Marketing-based: Ad, campaign, ad set, channel, etc.
Metrics: Select the value you want to analyze (e.g. Customer lifetime value)
Apply Filters:
Dimension Filters: Refine cohorts by specific attributes:
Marketing dimensions (campaigns, channels)
Customer dimensions (geography, device)
Product dimensions (categories, brands)
Metric Filters: Filter by performance:
Value-based filters (e.g., CAC > 20€)
Behavioural filters (e.g., number of orders)
2. Customize the view:
Accumulative/Incremental: Switch between total values (Accumulative) and period-over-period changes (Incremental)
Mark Profitability: Easily identify profitable cohorts
Heatmap: Visualize your data through colour-coded intensity
3. Interpret the Results
Use this report to discover your most valuable customer segments and understand their success factors. You might find that specific campaigns drive higher lifetime value, or certain seasonal cohorts show better retention rates. These insights will help you:
Optimize your acquisition strategy
Enhance customer engagement
Allocate your marketing budget more effectively