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How to read a Cohort Analysis
How to read a Cohort Analysis
Updated over a week ago
  • Every column corresponds to a monthly interval. 'Month 0' designates the month in which a customer made their first purchase. 'Month 1' refers to the subsequent month post their customer initiation, with "August 2021" serving as the illustrative point in this instance.

  • The numerical entry within each cell quantifies the metric under evaluation.

  • Examine from left to right to assess the longitudinal progression of each cohort.

  • Analyze from top to bottom to evaluate the relative performance or trends among the cohorts.

  • Inspect the data diagonally to discern any seasonal patterns or fluctuations in sales, orders, or customer behaviors that correspond with specific times of the year.

  • Note the application of color shading to cohorts, which facilitates rapid visual identification of significant variances or surges in behavior.

💡 Tip: Hovering your mouse over any cell in this section will pull up an explanation of the value you’re looking at.

A Detailed Walkthrough

The first cell of every row identifies the cohort that you’re looking at. In this case, the cohort consists of customers who made their first order in January 2023.

The next three columns provide the following information:

  • CAC (Customer Acquisition Cost) - an estimate of the average cost of acquiring each customer in the cohort, measured by total ad spend divided by the number of new customers.

  • New customers - the total number of customers in the cohort. The reason they are “new” is because they made their first order in August 2023.

  • RPR-% - the percentage of customers in the cohort who made at least one additional order within the selected time period of the report

The remaining cells in the row show us the value you are computing for.

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