- Case Studies
- Case Study Details
Devising and executing a Customer Cohort Analysis for retail industry
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IndustryRetail -
DomainAdvanced Analytics
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LocationMiddle East
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Date25 Apr, 2022
Client Background
The company we serve is a retailing behemoth in the Middle East with a diverse product offering and a large consumer base. They wished to understand more about consumer behaviour and devise tactics for increasing client retention and loyalty.
What did we helped with
We assisted the client by devising and executing a Customer Cohort Analysis, enabling them to understand customer behaviour and make well informed strategic decisions.
- Data Collection and Analysis
- Behaviour Analysis
- Churn Mitigation Strategies
- Strategies for Retaining High-Value Customers
- Customer Cohort Creation
- Customer Retention Analysis
- Order Analysis
- Getting all the key variables such as the date of first purchase, duration of purchases, and months of purchases
The Ultimate Challenge
While we started with the analysis we encountered various challenges at the beginning such as limited access to relevant customer data, defining meaningful cohorts, identifying crucial variables, analysing complex customer behaviour patterns, and implementing effective churn mitigation strategies.
Generic Data and Churn Challenges :
- Access to relevant customer data as most of the data was in silos
- Inconsistency of data
- Building central repository / warehouse of data
- Building a data-driven culture and mindset
- Difficulty in aggregating and cleaning data for analysis
- Identifying and resolving data quality issues
- Defining and measuring churn accurately
- Identifying the reasons behind customer churn
- Handling data discrepancies caused by system upgrades or migrations
- Developing effective churn mitigation strategies
- Implementing targeted campaigns to reduce churn
- Monitoring and evaluating the success of churn mitigation efforts
- Defining and measuring customer retention accurately
- Identifying and tracking retention metrics over time
- Understanding the factors influencing customer retention
- Incorporating customer feedback into retention analysis
- Benchmarking retention rates against industry standards
Cohort Development Technical Challenges :
- Dealing with overlapping or ambiguous cohorts
- Adjusting cohorts as the business evolves or expands
- Determining the appropriate cohort segmentation criteria
- Defining the time periods and intervals for cohort analysis
- Balancing the need for granularity in cohort analysis with data complexity
The Ultimate Outcome
Our solution involved implementing Customer Cohort Analysis to address the client’s challenges effectively. We built ease to read, and statistical-driven advanced dashboards to allow relevant stakeholders to get insights about business in no time.
After we collected and analysed data from various different data sources, and based on the comprehensive analysis we gained insights about:
- Average purchase frequency
- Customer retention rates
- Factors influencing churn
This informed the development of targeted marketing campaigns to win back disengaged customers and improve retention.
Additionally, our order analysis identified popular products and categories, facilitating optimization of product offerings and pricing strategy. Overall, our solution provided the client with valuable insights into customer behaviour, enabling data-driven decision-making for improved retention, loyalty, and business growth.
