Cohort Analysis: Analyse Magento Customers’ Behaviour

grandstand-330930_1280Understanding your customers natural behaviour can not only bring more sales to you, but also make your brand loved and honoured.

When average businessman hears about Cohort analytics, Latency Matrix or RFM reports, the only thing that arises in mind is pain or mess. You never know which side you should start from or what are the best practices for completing the analysis. Though there’s nothing too complicated – it is made to divide your customers by groups to work better with them via e-mail, phone or any other method of contact you may use.

________________________________________
A cohort is a group of people who make the same thing and whom we expect the typical ways behaviour in the future
________________________________________

Get lost in the search results?

Let Promodo experts help your website index better by optimising your pages, improving your content, and enhancing your linking strategy.

By clicking this button you agree to our terms & conditions

Simple example of cohort sales analytics usage

Let’s say you sell toothbrushes. As per recommendations, people should change it at least once a month. Any toothbrush will be fine, so there’s no difference which one is bought, just the fact that it is ordered is considered as desirable shopper’s behaviour.

If the customer hasn’t ordered a toothbrush from you for over 2 months since the first purchase was made, you need to do everything to remind him/her about your store. Tell the shopper that the last toothbrush was ordered from your store and if he/she liked it, a new order should be placed once again.
In case buyer hasn’t ordered a toothbrush for 6-10 month period, you’ve lost him/her, as most likely his/her behaviour was changed and moved to another store. Customers with orders made over 12 months ago are considered as lost and you need to bring them back as new ones.

The predictable action depends on product lifetime. Find out what is your customer’s normal behaviour.

How the cohort analytics can help you get those purchasers back? You can filter your customers by time period when they have placed their orders, for example, get the list of clients who have placed an order within last month. Then send them reminder that it is advisable to change toothbrush every month, forward details from dentists why it is important and try to make a second sale. It is our first simple cohort of customers, who have placed the order within one month and we want them to make a second purchase. The e-mail shouldn’t contain any discount code or coupon, but it need to be informative. Talk to your clients and they will keep the task of ordering toothbrush in mind and your store will be the first in the list where it can be ordered.

Next step is to find customers who have placed their orders within 1-2 month period. It is our second cohort. You should send these shoppers a kind of call-to-action e-mail in order to remind about importance of the toothbrush renewal and all horrors of using an old one.

Clients who have placed an order 2 – 6 months ago most likely are placing orders at some other store with toothbrushes or just do not care too much about their dental health. You can try to convince them with some offer or code in order to bring them back to your shop and turn these occasional buyers into your loyal clients.

While customers who haven’t placed an order for over 6 months should be treated differently, you should take care about them as well.

Filter customers by last interaction, to help them move forward

That’s simplest Cohort report with Recency as main parameter. This analytics can be executed right in Excel.
Just export the list of orders from your store for the last year, open it in Excel and in the new sheet insert “show unique” or “unique” to get the list of unique e-mails and in the next column add “sumif” formula to show the latest order date made by each customers.

Filter the list using dates to get your desired cohorts. You’ll get the lists of buyers to work with or send an e-mail via any mail client. According to the RFM model, a customer who has recently interacted with your store is more inclined to accept another interaction that you initiate.

Almost all ecommerce sites have 60% of one-time buyers

Though when working with cohorts this way you might miss some important points, like one-time buyer or customer who has placed 10 orders this far. You will treat the same way two customers who have spent $10 and $1000 as only the last order and the fact that it was placed will be taken into consideration. This way all the people, who have left order at you webshop are treated basing on their last purchasing action.

More complete analytics is shown in Recency, Frequency, Monetary report. It considers the number of purchases as well as total sum that customer has spent at your online store.

These types of reports you can check for your Magento store with Store Manager. Learn more about it or download it right away here.

3e56531This post is provided by guest contributor Oksana Semenyuk, CMO at eMagicOne  – company offering smart and convenient ecommerce solutions that make maintaining online business very easy and effortless.

 

Leave a Reply

avatar
  Subscribe  
Notify of

Recent posts

How to analyse the shopping behaviour on your website: 5 easy steps

June 21, 2019

Sometimes, ecommerce business owners give shopping behaviour analysis a miss, examining only separate indicators such as conversion rate or bounce rate. However, being aware of how your customers transfer between each stage of your purchase funnel may help you provide prudent solutions, improve user experience, and increase website performance at no additional cost. We should Continue reading >

Social Listening Tools: Why and How to Use Them

May 31, 2019

Social Media Marketing, SMM for short, is a digital marketing tool ecommerce owners have known and used for a while now.  Unfortunately, there’s often a lot of confusion about the key tasks SMM can be used for. For an online store, the main goal of social media marketing is much bigger to remain visible to Continue reading >

Promodo Partners X: Digitalisation is in the air

May 31, 2019

The anniversary 10th Promodo Partners conference was held in Kyiv, on May 16th. This year, over 600 ecommerce executives visited the event to share their best practices, exchange experiences, and expand their professional network. Traditionally, there are two parallel sessions. On the main stage, owners and C-levels of leading ecommerce businesses in Ukraine, Turkey, and Continue reading >

What are outbound links?

May 13, 2019

Outbound links are URLs on your website that link externally to other web properties. Both outbound and inbound links are important for your website’s search engines ranking. The only ‘ones’ that fully understand the ranking criteria are search engines themselves, and they carefully protect their algorithms. Still, SEO specialists can use external links outside of Continue reading >

Let's get the ball rolling

Please fill in this short form and we will be in touch with you soon

For any questions [email protected]

UK | USA

+44 (0) 20 313 766 81
+44 7852 537715

Lincoln
The Terrace AT5,
Grantham Street,
LN2 1BD

+1 347 809 34 86

Las Vegas
7848 W. Sahara Ave.
NV 89117

State Of Ecommerce 2018 (Poland)

TOP 50 Market Players & Their Traffic Analysis

enter correct name, please
enter correct e-mail, please
SEO

Cohort Analysis: Analyse Magento Customers’ Behaviour

0
start now

Start now