• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Use cohort analysis to drive smarter startup growth

September 2, 2021 by David Barret Leave a Comment

Jonathan Metrick
Contributor

Share on Twitter

Jonathan Metrick is the chief growth officer at Sagard & Portage Ventures, where he helps build some of the world’s leading fintech companies.

Cohort analysis is a way of evaluating your business that involves grouping customers into “cohorts” and observing how they behave over time. A commonly used approach is monthly cohort analysis, where customers are grouped by the month they signed up, allowing you to observe how someone who joined in November compares to someone who signed up the month before.

Cohort analysis gives you a multivariable, forward-looking view of your business compared to more simple and static values like averages or totals.

Cohort analysis is flexible and can be used to analyze a variety of performance metrics including revenue, acquisition costs and churn.

Let’s imagine you’re the CMO of the “Bluetooth Coffee Company.” You sell a tech-enabled “coffee composer” that brews coffee, tracks consumption and orders replacement coffee when users are running low. The longer your customers are subscribers, the more money you make. You recently ran a Black Friday feature on a popular deals site and you’re interested to know if you should run it again.

The chart below is a simple analysis you might do to gauge your marketing performance. It shows the total customers added each month, and a clear spike in November following the Black Friday promotion. At first glance, things look good — you brought in more than double the monthly customers in November compared to October.

Marketing campaign results in significant uptick to users added

Image Credits: Sagard & Portage Ventures

But before you rebook the promotion, you should ask if these new Black Friday consumers are as valuable as they seem. Comparing monthly customer percentage is a good way to find out.

Below is a monthly cohort analysis of new customers between September 2020 and February 2021. Like our previous chart, we’ve listed the monthly cohort size, but we’ve also included the customer engagement rate (calculated by dividing daily active users by monthly active users or DAU/MAU for each month (M1 is month 1, M2 is month 2, and so on).

This analysis lets us see how the customer engagement of each monthly cohort compares to the next.

Customer engagement by cohort

Image Credits: Sagard & Portage Ventures

From the figures above, we see that most cohorts have a customer engagement rate in their first month (M1, 42%-46%), meaning 42%-46% of new customers use the coffee composer everyday. The November cohort however has materially lower engagement (M1, 30%), and remains lower in subsequent months (M2, 26%) and (M3, 27%). Interestingly, the customer engagement rate only drops with the November cohort, returning to normal with the December cohort (M1, 45%).

Source Link Use cohort analysis to drive smarter startup growth

David Barret
David Barret

Related posts:

  1. Oil rises on declining inventories and weaker dollar
  2. PUBG: New State goes for pre-registrations in India for Android and iOS
  3. Xi says China to set up stock exchange in Beijing
  4. The Fujifilm GFX50S II is the cheapest digital medium format camera ever

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Alien Abduction Or A Trick Of The Mind? A Down To Earth Explanation Of Close Encounters
  • Six Months Into Trump’s Presidency, Americans Report Record Low Pride In Being American
  • TikToker Unknowingly Handles Extremely Venomous Cone Snail And Lives To Tell The Tale
  • Scientists Sequence Oldest Egyptian DNA To Date, From A Whopping 4,800 Years Ago
  • “Uncharted Waters”: Large Hadron Collider Begins Colliding Oxygen For The First Time
  • 125,000-Year-Old Neanderthal “Fat Factory” Shows They Gorged On Bone Grease
  • On July 3, Earth Will Reach Its Farthest Point From The Sun – 152 Million Kilometers Away
  • NASA’s Perseverance Rover May Have Recorded Evidence Of Electrified Dust Devils On Mars
  • “Hymn to Babylon”: Missing Mesopotamian Text Dating Back Nearly 3,000 Years Discovered
  • Multiple New Species Of Cute Spotty And Stripy Geckos Discovered In Remote Cambodia
  • ChatGPT May Be Surprisingly Good At Piloting Spacecraft, Taking 2nd Place In Spaceflight Competition
  • Incredible Supernova Finding Shows That “Double-Detonation Mechanism” Happens In Nature
  • Soda Cans, Asthma Inhalers, And… Water Bottles? All Things That Could Explode In Your Car This Summer
  • Video: Is There An Ideal Sleeping Position?
  • If You Look Up At The Right Time Today, You Will See A Giant “X” On The Moon
  • We May Have Our Third Interstellar Visitor And It’s Nothing Like The Previous Two
  • Orcas Filmed Kissing (With Tongues) In The Wild For The First Time
  • How Easy Is It For A Country To Change Its Time Zone?
  • Earth’s First Commercial Space Station Set To Launch In 2026
  • Black Hole Moon: Rogue Planets With Weird Signatures Could Be A Sign Of Advanced Alien Life
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version