How To Calculate Customer Cohort analysis in AirTable | Arithmix

Customer cohort analysis is a powerful tool that can help businesses better understand their customers and improve their marketing strategies. By analyzing customer behavior over time, businesses can identify patterns and trends that can inform future marketing efforts. In this article, we'll explain what customer cohort analysis is, when it's valuable to calculate it, and how to do it in AirTable.

What Is Customer Cohort analysis?

Customer cohort analysis is a method of grouping customers based on shared characteristics or behaviors. Cohorts can be defined by a variety of factors, such as the date of their first purchase, their geographic location, or their age. By grouping customers into cohorts, businesses can track how each group behaves over time and identify trends and patterns that can inform marketing strategies.

For example, a business might group customers who made their first purchase in January 2021 into one cohort, and customers who made their first purchase in February 2021 into another cohort. By comparing the two cohorts, the business can see if there are any differences in behavior, such as differences in the average order value or the frequency of purchases.

When Is It Valuable To Calculate Customer Cohort analysis?

Customer cohort analysis can be valuable for businesses of all sizes and industries. It can help businesses identify trends and patterns in customer behavior that can inform marketing strategies, product development, and customer retention efforts.

For example, a business might use customer cohort analysis to identify which marketing channels are most effective at acquiring new customers, or to identify which products are most popular among different customer groups. By understanding these trends, businesses can make more informed decisions about where to invest their marketing and product development resources.

How to Calculate Customer Cohort analysis in AirTable

AirTable is a powerful tool that can be used to calculate customer cohort analysis. Here's how to do it:

1. Create a new table in AirTable and name it "Customer Cohorts."
2. Add columns for each cohort you want to track. For example, if you want to track cohorts based on the month of their first purchase, you might add columns for "January 2021," "February 2021," and so on.
3. Import your customer data into AirTable, including the date of their first purchase.
4. For each customer, enter their information into the appropriate column based on the month of their first purchase.
5. Use AirTable's filtering and sorting tools to analyze the data and identify trends and patterns in customer behavior over time.

By following these steps, you can use AirTable to calculate customer cohort analysis and gain valuable insights into your customers' behavior. Whether you're a small business owner or a marketing professional, customer cohort analysis can help you make more informed decisions about your marketing and product development strategies.

How Do You Calculate Customer Cohort analysis in AirTable

AirTable itself isn’t naturally geared towards letting you calculate complex metrics like Customer Cohort analysis. As an alternative, teams typically use products like Arithmix to import data from AirTable and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like AirTable, combine it with data from other systems, and create calculations like Customer Cohort analysis.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Customer Cohort analysis in Arithmix

Calculating metrics like Customer Cohort analysis is simple in Arithmix. Once you've created your free account, you’ll be able to import your AirTable data, and use it to create natural language formulas for metrics like Customer Cohort analysis.

Arithmix is designed to give you the power to build any calculations you want on top of your AirTable data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.