How To Calculate Customer Cohort analysis in Kinetic | Arithmix

Customer cohort analysis is a powerful tool that can help you understand your customers' behavior over time. By grouping customers based on the time they made their first purchase, you can track how their buying habits change over time. This information can help you identify trends, make informed decisions, and improve your overall customer experience. In this article, we will explore how to calculate customer cohort analysis in Kinetic.

What Is Customer Cohort analysis?

Customer cohort analysis is a method of analyzing customer behavior over time. It involves grouping customers based on the time they made their first purchase and tracking their behavior over a set period. By doing this, you can identify trends and patterns in customer behavior, such as how often they make purchases, how much they spend, and how long they remain customers.

For example, let's say you run an online clothing store. You could group customers who made their first purchase in January and track their behavior over the next six months. You could then compare this group to customers who made their first purchase in February and track their behavior over the same period. By doing this, you could identify any differences in behavior between the two groups.

When Is It Valuable To Calculate Customer Cohort analysis?

Customer cohort analysis can be valuable in a variety of situations. For example, it can help you identify which marketing campaigns are most effective at attracting and retaining customers. By tracking the behavior of customers who were acquired through different campaigns, you can determine which campaigns are worth investing in and which ones are not.

Customer cohort analysis can also help you identify areas where you can improve your customer experience. For example, if you notice that customers who made their first purchase in a certain month tend to have a lower lifetime value than customers who made their first purchase in other months, you could investigate why this is the case and make changes to improve the experience for those customers.

Overall, customer cohort analysis is a valuable tool that can help you make informed decisions about your business. By tracking customer behavior over time, you can identify trends, make data-driven decisions, and improve your overall customer experience.

How Do You Calculate Customer Cohort analysis in Kinetic

Kinetic 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 Kinetic 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 Kinetic, 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 Kinetic 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 Kinetic 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.