Unlock the power of cohort analysis
Cohort analysis is a powerful tool designed for marketers who want to go beyond surface-level metrics and really dive into customer behavior. It gives you the flexibility to track customer retention and the timing of repeat purchases, helping you answer key questions like:
- How do specific products lead to repeat purchases?
- Does offering a discount code drive long-term retention?
- How long does it take for customers to purchase again after subscribing to email or SMS?
By using cohort analysis, you can gain deeper insights into customer behavior and make data-driven decisions to drive long-term growth.
Let’s dig in.
Build a cohort report
In this section, you’ll learn how to set up a cohort report that fits your needs. You’ll define your cohorts, build reports, track cohort performance, and interpret the data, giving you the foundation to uncover valuable insights into customer behavior. These steps will help you get started and guide you toward making data-driven decisions for your business.
In Klaviyo, select Advanced KDP or Marketing Analytics from the left-hand navigation, then choose Customer insights. On the Customer insights page, go to the Cohort analysis tab, where you can either select from a group of existing cohorts or click Create cohort report to build from scratch. Explore the tabs below to create your first cohort analysis report.
Define your cohorts
Start by defining the criteria that will group your customers. The goal is to choose cohorts that reveal meaningful insights into customer behavior. For example, you might want to track how long it takes for customers to make their first purchase after subscribing to email marketing.
Klaviyo also provides 4 pre-built cohorts to help you get started quickly and strategically think about customer behaviors:
- SMS consent to first order
- Repeat purchasers
- Post-purchase
- Email consent to first order
These pre-built cohorts offer a starting point for analyzing cohort performance. They allow you to explore key metrics and patterns early on while also giving you the flexibility to create custom cohorts as your needs evolve.
Build reports
Build your report to start tracking cohort engagement. Here’s how:
Report name and description: Label your report for clarity.
Cohorting event: Choose the action that triggers cohort membership (e.g., first purchase).
Instance: Select whether to track the first event over all time or within a specific period.
Filters and properties: Fine-tune your cohort by filtering based on specific behaviors or attributes.
Reporting event: Choose the performance metric (e.g., repeat orders) to track over time.
Track cohort performance
Focus on key trends in your cohort data over time. Look at:
Cohort size and performance: The size column shows the number of profiles engaged. Darker colors represent larger numbers.
Reporting events: Track how behaviors like repeat purchases change over time. See how cohorts behave after the initial event.
Measurement options: Analyze by conversions, profiles, or conversion value. Averages show performance per customer, while totals highlight overall success.
Trends: Use the "Trend on hover" feature to spot shifts over time by highlighting horizontal, vertical, or diagonal patterns.
Check out this guide for more information about using Klaviyo's cohort report.
Interpret data
When analyzing your cohort report, focus on patterns in how cohorts perform over time. Reading the data in different ways helps you understand key trends:
Horizontally: Look at how cohorts behave over time. For example, after an initial purchase, you may see most repeat purchases happen in the following month. Tracking this over several months gives you insights into customer behavior and retention.
Vertically: This helps compare cohorts at the same point in time. For example, if a cohort from a later month has a higher repeat purchase rate than an earlier cohort, it may signal an event, like a marketing campaign or product launch, that influenced customer behavior.
Diagonally: Tracking performance across cohorts at similar lifecycle stages can show patterns or external factors affecting all cohorts. If you see a spike in conversions for most cohorts, it may indicate a seasonal event, like the holiday season.
By leveraging cohort analysis, you can unlock a deeper understanding of customer behavior, allowing you to make smarter decisions and drive more effective marketing strategies. With the right insights, you’ll be equipped to enhance retention, drive more value, and ultimately grow your business.
Want to learn more? Check out our blog to uncover repeat purchase trends with Klaviyo’s cohort analysis.