Boost your customer acquisition & retention thanks to cohort analysis

1www.universem.be
Boost your customer acquisition & retention
thanks to cohort analysis
-
August 25th 2016
#GAUCbe - @Universem - @hubcy

2www.universem.be
Co-founder of Universem
Independent, expert and digital focus

3GAUC Brussels 2016Picture: https://www.flickr.com/photos/cadencrawford/8344048410/
Stop focusing on acquisition metrics only!
It costs five times as much to attract a new
customer, than to keep an existing one

4GAUC Brussels 2016Picture: https://www.flickr.com/photos/68532869@N08/17471462035/
The end of the single device consumer
48% of people are using at least 3 devices to
connect on the web in Belgium
The Connected Consumer Survey 2016, Google, Belgium data

5www.universem.be
Retention is key in a mobile world
Source: New data shows losing 80% of mobile users is normal, and why the best apps do better, Andrew Chen
Only 23% of users use an app 3 days after install

www.universem.be 6
How can we take these trends into account in our analysis?

A cohort is a group of users who share a common
characteristic within a defined timespan

9GAUC Brussels 2016
What? In Practice
Example of Google Analytics
First session
Evolution over time
One cohort

10GAUC Brussels 2016
What? In Practice
Typical cases where cohort analysis are insightful
1. Telecom/SaaS businesses to analyse churn rates and define Lifetime value
2. Understand which channels drives the best customers over time
3. Response to marketing actions
4. Changes on the website or the way customers are served

Practical ways to use cohort analysis
Comparing acquisition sources behaviour
• Large ecommerce
website
• Evolution on the
revenue per user is
much more positive
for organic traffic

Practical ways to use cohort analysis
Comparing cohorts over time
• Mobile app
onboarding was
improved on June 18th
• Very positive impact
as retention increases
significantly

• What? In Practice
Easily add to your dashboard
Advanced segmentation available
All parameters available to configure your
cohort analysis (Size, Metric, Date range)
The graph for all users.
Data table per cohort

Cohort analysis in Google Analytics
Good to start but limitations are there for advanced usage
1. Maximum 12 periods of analysis
2. Only some dimensions/metrics are available for analysis
3. Based on cookies  less relevant for a long period
4. Not easy with recurring revenues models (ex: SaaS businesses)
5. Analysis based only on first session. Not on subscription, first order …

Beyond Google Analytics: 2 main options
From user data to insights in Google Analytics
Dedicated tools Visualisation & exploration tools
Focus for today: Excel

Leading Private Sales Bike shop

Sales only for members
Great offers on top brands
For a limited time only

19www.universem.be
Private sales business model
Visitor Member Customer

Veloflash case
Revenues generated over time per cohort
Note: all data for information only

Veloflash case: first conclusions
Revenues generated over time per cohort
• Peak of turnover the
month after subscription
• Members generate sales
months after months for
a long period
• High correlation
between new members
and revenues

Great visualization …
But how do you do it practically?

Creating cohort analysis
Step 1: configuration of Google Analytics
• Enable User-ID and setup
the technical
configuration to be sure
to track any visit of your
identified users

Step 1: configuration of Google Analytics
• Configure a custom
dimension with the
subscription date to be
sure that you have the
“original” session of your
users
• Format: YYYYMMDD
• Other custom dimensions

Step 2: Export data from Google Analytics
• Create a custom report
with key dimensions
• Month of the year
dimension
• Key metrics that you
want to analyze

Note: sensitive data have been hidden
• Custom
report table
• Be sure to
avoid
sampling in
your data

• Push on Export
and your have your
data available 

Step 3: Build your model in Excel
Sum of all revenues
in May 2015 where
subscription date
starts by “201501”

Step 4: play with your data!
Start from business questions and analyse
evolutions over time thanks to cohort
analysis:
• What are the most effective acquisition
channels?
• How is user retention evolving over time?
• Is the Lifetime value of my customers higher if
they access my service from multiple devices?
• …

Veloflash case
Are my campaigns effective?
• When are we cash-flow positive?
• How much can we pay for a new member?
Marketing
budget

Veloflash case
Are my campaigns effective?
Hypothesis: gross margin of 25%
3-4 months pay-back period
6-7 months pay-back period
 Detailed analysis of the ROI led to more
aggressive & still profitable acquisition campaigns

Veloflash case
How is my conversion rate evolving over time?
Change in onboarding process Big promotion on Veloflash

Cohort analysis: take-aways
1. Customer’s behaviours require other analysis
2. Incentivize people to log in
3. Cohort analysis can be powerful
4. Start from business questions

35
Universem - Wallonia
Parc Créalys
Rue Camille Hubert, 13
5032 Gembloux (Belgium)
Tel: +32 (0)81 713 430
contact@universem.be
Universem - Brussels
Auderghem
Herrmanndebrouxlaan, 40
1160 Brussels
Tel: +32 (0)2 318 23 90
contact@universem.be
Hubert de Cartier
Partner & Project Director
+32 (0) 486 635 687
hubert@universem.be
Any Questions?
Let’s talk!
#GAUCbe - @Universem - @hubcy

Boost your customer acquisition & retention thanks to cohort analysis

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