Cohort Analysis

Another interesting sales topic I would like to cover today is cohort analysis. You would learn to do a break down analysis of sales over year based on new and existing customers. Why would this topic so widely used in the business world? Because It’s directly related to a couple of very important KPIs such as Customer Acquisition Rate, Customer Retention Rate, Churn Rate.

Let’s get started with a calculation to determine the first order date per customer.

Very simple, just drop this field onto color mark card, sum of sales on Rows and Year(order date) on Column. The color tells you the year of first order.

Year of first order date

Now you can tell the components of sales each year by each group of clients, whether their first ordered this year or in the previous years.

Author:
Tram Nguyen
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