Audhi Aprilliant
Audhi Aprilliant Data Scientist. Tech Writer. Statistics, Data Analytics, and Computer Science Enthusiast

Cohort Analysis of Online Retail Data from 2011: Understanding Customer Behavior for Improved Retention

Cohort Analysis of Online Retail Data from 2011: Understanding Customer Behavior for Improved Retention

Case Study

Cohort analysis is a subset of behavioral analytics that takes the data from a given eCommerce platform, web application, or online game and rather than looking at all users as one unit, it breaks them into related groups for analysis. These related groups, or cohorts, usually share common characteristics or experiences within a defined time-span.

Cohort analysis is a tool to measure user engagement over time. It helps to know whether user engagement is actually getting better over time or is only appearing to improve because of growth.

Cohort analysis proves to be valuable because it helps to separate growth metrics from engagement metrics as growth can easily mask engagement problems. In reality, the lack of activity of the old users is being hidden by the impressive growth numbers of new users, which results in concealing the lack of engagement from a small number of people.

Personal Project

To ensure the quality of our analysis, we conducted data pre-processing before performing in-depth analysis, such as data visualization. Our analysis is centered on customer and revenue with the goal of enhancing user or customer retention within our company, while also gaining insights into customer behavior during a specific time period. Please refer to the table below for a comprehensive description of the data variables.

Several examples of cohort analysis data visualization are presented here as part of the overall analysis. Further details can be found in my report (PDF) file, which is available on my GitHub repository.

MAU Mixpanel Total Customer

Churn Rate Mixpanel Total Customer

Active Customer by Cohort

Cohorts Retention Rate Dynamics without Smoothed Line

For more detail, feel free to visit my Github repository!

Sources

Clever Tap

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