How To Calculate Customer Cohort analysis in Nimble | Arithmix
Learn how to effectively calculate customer cohort analysis in Nimble with our step-by-step guide. Discover how this powerful tool can help you understand your customer behavior and make informed business decisions.
Customer Cohort analysis is a powerful tool that can help businesses understand their customers better. By analyzing customer behavior over time, businesses can identify trends and patterns that can inform their marketing and sales strategies. In this article, we'll explore what customer cohort analysis is, when it's valuable to calculate it, and how to do it in Nimble.
What Is Customer Cohort analysis?
Customer Cohort analysis is a method of grouping customers based on shared characteristics or behaviors. These groups, or cohorts, are then analyzed over time to identify trends and patterns. For example, a business might group customers based on the month they made their first purchase. By tracking these cohorts over time, the business can see how their behavior changes over time.
Customer Cohort analysis can be used to answer a variety of questions, such as:
- How long do customers typically stay with the business?
- What is the average lifetime value of a customer?
- How do different customer segments behave over time?
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 areas for improvement in their marketing and sales strategies, as well as opportunities for growth. Some specific scenarios where Customer Cohort analysis can be particularly valuable include:
- When launching a new product or service
- When trying to increase customer retention
- When trying to identify the most profitable customer segments
How to Calculate Customer Cohort analysis in Nimble
Nimble is a powerful CRM tool that can help businesses calculate Customer Cohort analysis. Here's how to do it:
- Identify the cohort criteria: This could be the month a customer made their first purchase, the channel they came from, or any other characteristic that is relevant to your business.
- Create the cohorts: Using Nimble, you can create cohorts based on the criteria you identified in step 1. For example, you could create a cohort of customers who made their first purchase in January.
- Analyze the cohorts: Once you have created the cohorts, you can analyze their behavior over time. Nimble provides a variety of tools for analyzing customer behavior, such as customer lifetime value and churn rate.
- Use the insights to inform your strategy: Once you have analyzed the cohorts, you can use the insights to inform your marketing and sales strategies. For example, if you find that customers who come from a certain channel have a higher lifetime value, you could allocate more resources to that channel.
By following these steps, businesses can use Nimble to calculate Customer Cohort analysis and gain valuable insights into their customers' behavior over time.
How Do You Calculate Customer Cohort analysis in Nimble
Nimble 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 Nimble 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 Nimble, 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 Nimble 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 Nimble 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.Use Arithmix free