How To Calculate Customer Cohort analysis in Oracle EBS | Arithmix

Customer Cohort analysis is a powerful tool that can help businesses understand their customers better. By analyzing customer behavior over time, businesses can identify patterns and trends that can help them make more informed decisions. In this article, we'll explore what customer cohort analysis is, when it's valuable to calculate it, and how to do it using Oracle EBS.

What Is Customer Cohort analysis?

Customer Cohort analysis is a method of analyzing customer behavior over time. It involves grouping customers into cohorts based on a common characteristic, such as the month they made their first purchase or the product they purchased. By tracking the behavior of each cohort over time, businesses can identify trends and patterns that can help them make more informed decisions.

For example, a business might use customer cohort analysis to track the behavior of customers who made their first purchase in January. By comparing the behavior of this cohort to the behavior of customers who made their first purchase in February, March, and so on, the business can identify trends in customer behavior that are unique to each cohort.

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 businesses identify which products or services are most popular among their customers, which marketing campaigns are most effective, and which customer segments are most profitable.

Customer Cohort analysis can also be useful for identifying trends in customer behavior over time. For example, a business might use customer cohort analysis to track the behavior of customers who made their first purchase in January. By comparing the behavior of this cohort to the behavior of customers who made their first purchase in February, March, and so on, the business can identify trends in customer behavior that are unique to each cohort.

How to Calculate Customer Cohort analysis

Calculating customer cohort analysis in Oracle EBS is relatively straightforward. Here are the steps:

1. Identify the cohort you want to analyze. This could be based on the month the customer made their first purchase, the product they purchased, or any other characteristic that is relevant to your business.
2. Group customers into cohorts based on the characteristic you identified in step 1.
3. Track the behavior of each cohort over time. This could include metrics such as purchase frequency, average order value, and customer lifetime value.
4. Analyze the data to identify trends and patterns in customer behavior. This could include identifying which products or services are most popular among each cohort, which marketing campaigns are most effective, and which customer segments are most profitable.

By following these steps, businesses can gain valuable insights into their customers' behavior over time. This can help them make more informed decisions about product development, marketing, and customer segmentation.

How Do You Calculate Customer Cohort analysis in Oracle EBS

Oracle EBS 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 Oracle EBS 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 Oracle EBS, 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 Oracle EBS 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 Oracle EBS 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.