7+ Examples on why you need Cohort Analysis in Marketing and How to?
There are so many guides out there explaining about cohort analytics in a very intuitive way. They clearly explained the concept of analysis and examples with generic stories. I owe some of my colleague explaining with the real story of how I used in different use cases in different companies.
Why cohort analysis is important?
Thanks to Rjmetrics, an old BI tool acquired by Majento as they were the one who taught me the use cases on Ensogo time. Every morning I look at that dashboard before opening up other ads management or any other analytics use cases.
Instead of just looking at the spending and revenue in a short span, cohort charts used to provide a better picture in the long term how everything is performing. I was like others when I started my career looking directly at how much I spent and how much is the revenue. it’s sad when my campaign is not working. And so I try to optimize campaigns to win the game very often. Am become sad/clueless
However, after I start to use cohort analytics, I came to realize that even though some campaigns are not performing well In a short time but they tend to perform well in the long term. It’s good learning that this can really avoid short term quick decision of changing campaigns and related things. This perspective of looking at a cohort lens is particularly crucial when someone working on products/services where the there time is taken/purchase cycle is long(like more than 60days).
Why? Because imagine you are a car dealer. Am as a person who wants to buy a car would
- Compare different cars and it’s model
- Ask my friends where they buy (Showroom A vs Showroom B)
- Then compare different bank loans or any sort of financial arrangement
- Decide when to buy
If you have been on the journey of buying, you will spend a lot of time thinking and asking feedbacks. The % of people who see. a car on the first day and buying it on the next day is way lower than 10%…