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Understanding Cohort Analysis for the Modern Digital Enterprise

Posted on 1.22.2015

Today’s digital marketer loves anything that will provide them with greater insights into who is buying from them, who isn’t buying from them and, of course, why. 

Cohort analysis is a form of behavioral analytics that uses cohort grouping – or a group of subjects who share a common characteristic or experience within a particular time span (as defined by Framed Data). 

An example, as it applies to the modern digital enterprise, can be taken from RJMetrics: used RJMetrics to get a long-term view of the health and performance of the e-commerce company. An executive from the company told RJMetrics, “We use our Cohort Analysis dashboards almost exhaustively. The cohort analysis helps us understand systemic changes in our business. Identifying a macro trend that doesn’t have anything to do with a group of users is just as important as identifying what marketing is working for each group of users.”

Additionally, the team looked at how they acquired each customer, what the sign up media was and what sale they came through on – all using cohort performance data.

RJMetrics provides sophisticated metrics for businesses, as does Mixpanel for mobile, but those using Google Analytics may want to check out this tutorial for setting up cohort analysis in 30 minutes. It should be noted that Mixpanel and Google Analytics can be consolidated into the RJMetrics "warehouse."

Content marketers may want to continue their "cohort" journey to track and compare performance between articles and blogs. Check out this tutorial here





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