Marketers know that customer retention plays an important role in fostering customer loyalty and revenue growth. After all, if you are losing a large chunk of the customers you bring in every month, then your hard-earned customer acquisition efforts are being siphoned away by churn.

But how do you know if your recent marketing and retention campaigns are performing well? In aggregate, top-line metrics such as customer growth or total revenue tell you very little about your individual customers, and can even hide recent successes – or problems – in your acquisition or retention efforts. Are newer customers acting in a similar way as our customers have in the past? Do these new customers spend as much as past customers? How much are they likely to spend in their first year?

An important tool for answering these questions and understanding how your customers behave is the cohort analysis. It enables marketers to see how campaigns and projects impact customer loyalty, engagement, spend, and more over the lifetime of the campaign, and how it impacts customers differently.

To help marketers better understand the role of cohort analysis, we’ve published an Intro Guide to Cohort Analysis, where we dive deeper on how this works and its implications for marketers. Click here to read on!