Google's Last Tool - Cohort Analysis
If you’re already seriously into the online marketing analytics, this might quickly become one of your most valuable marketing research tools. If you're a newbie to marketing analysis and aren’t yet acquainted with Google’s new tool, here is some help in understanding what it’s focused on.
To begin, we must say that the cohort analysis is not new. It is new as Google's tool. The cohort is a group or band of people is what the dictionary states. That notion, as old as Ancient Rome, where a legion of soldiers was broken down into ten cohorts. In its more current definition, cohort analysis has been presented for quite some time. Insurance companies, for example, have used the idea to create data tables for mortality rates, etc.
Cohort analysis is the easily break down of the certain demographic groups into smaller one. The goal of analyzing the characteristics of these sub-categories is to find common behaviors usually specified in regards to a phase in the buying cycle. The habits observed can show a company how its customers relate to the product in the first stages of experience with it, instead of how customers behave later in the buying process.
Cohort analysis provides potential to tailor marketing to these specific sub-groups. For example, there may be a group of clients during checkout. Another cohort might explain the actions of customers who acted immediately to a particular advertisement that was shown over a given period of time. Standard metrics that may be revealed are a specific date or time frame your customers first clicked on your hyperlink. Others are when they purchased from you the very first time, or the second, or third time.
When a cohort reveals, for example, the styles common to your higher-paying customers, after that, you can tailor the next marketing effort with their particular pursuits and needs, thus pushing higher-paying sales.
Google continues to tweak their cohort tool, so more options will probably appear in the future. For now, you can access the tool and become acquainted with. Here are few tips how:
If you don’t have an analytics account, create one here. After you setup the account and log in, go to YOUR VIEW. Next, select REPORTING, then AUDIENCE, then COHORT ANALYSIS. Here is where you can tailor your future report options.
At the current stage of the tool development, your options are the date of acquisition, cohort size, date range.
• The date of acquisition point to the first time your customer does whatever it is you are examining, such as first click, first sign in, first purchase, etc.
• Cohort size allows you to choose a day, week, month, quarter, or year to discover how many users created and event during that period, for example.
• The metric indicates the data you see - how many pages were visited, the number of purchases, etc.
• The date range is the particular period you are measuring.
Experiment with Google’s new tool for some time to get accustomed to what it can do. As is the situation with all useful tools, practice with it now, to utilize it easier when its features increase as more options are added.
Making use of the cohort analysis can be an advantage that can improve business performance through better knowledge of your users and their habits and behavior.
The more you understand your visitors, the better you can meet their needs and boost your business performance.