Cohort Analysis is basically an analysis format to represent data for different metrics which are useful for any business to understand their users behaviour.
In simple words cohort is a simple report of users engagement or repeat rate according to date, week or months and it’s calculated or presented based on user acquisition date.
Cohort analysis is primarily useful for :
- E-commerce Websites
- Mobile App Users
Cohort report for E-Commerce Website:
Cohort report or data is helpful in E-Commerce business to understand the data for all users that completed their first transaction during a specific time period. This particular data can be very useful to understand users buying or conversion pattern.
It also helps in understanding users repeat rate, buying pattern or transactions happening during holiday seasons, or any special offer duration for E-Commerce websites.
Cohort Report Explanation :
Cohort report basically consist three main sections :
- Report Setting
- Data over time graph
- Tabular Data
Now it’s time to discuss about the Cohort report configuration.
There are four main choices that an data analysis need to make while creating a Cohort report.
Cohort Type : Right now there is only one type of cohort available in Google Analytics - Acquisition Date. Acquisition date in the cohort report is basically the date when user first time visited the site or logged in to app or we can say it’s the first day when a user started the first session.
Cohort Size : Cohort size is basically the time period for which you want to analyse your data for. Right now Google analytics provides three options :
Day Wise
Week Wise
Month Wise
Day Wise Cohort : It shows the daily user acquire data and shows pattern how many repeat user came back in next following days. This helps in day to day monitoring of user behaviour on the site.
Week Wise Cohort : If you choose a Cohort Size of a week then it means you want to see users whose acquisition date was within the same seven day period.
Monthly Cohort : If you choose a Cohort Size of a month then it means you want to see users whose acquisition date was within the same month.
Metric : This is the actual data what you will in your chart or report. There are many metrics for which you can see the data :
User Retention
Goals Completed
Page Views
Revenue
Sessions
Transactions
Date Range : From the date range section you can choose the different date range from 7 Days, 14 Days, 21 Days or 30 Days.
So for example if you choose a cohort date range of last 7 days, and today is February 23, Google Analytics will look from Feb 16 to Feb 22 and align the data based on each user’s acquisition date. How Google Analytics would create the various ‘Days’ of data based on a user Acquisition date of Feb 22.
Day 0 = Feb 16
Day 1 = Feb 17
Day 2 = Feb 18
Day 3 = Feb 19
Day 4 = Feb 20
Day 5 = Feb 21
Day 6 = Feb 22
Day 7 = Feb 23
4
Note : In general we only 12 columns or days when we choose the analyse data according to days. But people get confused as why they don’t see 30 columns ? So if you closely look at the data, you will notice that there is not enough data from 13th or 14th days onwards. Still if you want to analyse data for a bigger date range you can choose Weekly Data or Monthly Data.
Which Cohorts should you choose?
- Ecommerce
- In App Purchase
- Publishers (Desktop & Mobile)
- Lead Generation
I will be writing more about the different uses of Cohort Reports in coming posts. Till that time stay tuned.
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