Customer Insights

Cohorts vs Month

Cohorts vs Month

Last Update:

Aug 12, 2024

‍

What is “Cohort” analysis?

Cohort analysis is a method of gaining practical insights from past order data by dividing customers into groups called "cohorts" and measuring the behavior of each cohort over time.
With 'cohorts by first month of purchase' vs 'months from first purchase (Shown as M0, M1, ..., Mn)', you can see X-month LTV (Lifetime Value) and X-month conversion rates to 2nd - 5th purchase.

‍

Available KPIs for Cohorts vs Month

Metric	Definition
Lifetime Value	For example, for "2021-12 × M3", if you assume that there were 100 customers who made their first purchase in December 2021, and by the end of March 2022 (3 months later), they had purchased a total of $1,000, the 3 months-Lifetime Value would be calculated as $1,000 ÷ 100 people = $10.
CVR to 2nd Purchase	The percentage of customers who made their first purchase in the “first purchase month” and made a second purchase at Mn point. Example: If 100 customers made their first purchase in April 2022, and 10 of them made a second purchase within 1 month (within 30 days), the CVR to 2nd would be 10.0% for M0.
CVR to 3rd Purchase	The percentage of customers who made their first purchase in the “first purchase month” and made a third purchase at Mn point. Example: If 100 customers made their first purchase in April 2022, and 5 of them made a third purchase within 2 months (within 60 days), the CVR to 3rd would be 5.0% at M1.
CVR to 4th Purchase	The percentage of customers who made their first purchase in the “first purchase month” and made a fourth purchase at Mn point.
CVR to 5th Purchase	The percentage of customers who made their first purchase in the “first purchase month” and made a fifth purchase at Mn point.

‍

Definitions

Metric	Definition
First Purchase Month	For example, for "2021-12", this refers to "Customers who made their first purchase in December 2021”
First Purchase	Aggregation for the first purchase (only for Lifetime Value)
Mn	Months from first purchase (Shown as M0, M1, ..., Mn). For example, if the first purchase month is 2021-12, M0 refers to within 30 days from purchase, and M1 refers to within 60 days from purchase.
Over all time	The result of aggregating the selected entire period

‍

Author

ECPower Product Manager

Edited and supervised by Product Manager of ECPower - Shopify Customer Segment & Journey Management, supporting Shopify merchants' CLV growth, CRM strategy and data analytics.

Learn more Free Install on App Store

Change log

Jul 13 2023 Article Published

Dec 10 2023 Updated

Aug 5 2024 Updated