For Shopify merchants looking to improve their marketing strategies and sales revenue, understanding customers’ behavior over time is crucial. This is where cohort analysis tools come into play. In this article, we’ll introduce you to the best cohort analysis tools available, helping you make data-driven decisions and take your business to the next level.
Table of Contents
What is a cohort analysis tool?
A cohort analysis tool allows you to segment your customers into groups, or “cohorts,” based on shared characteristics or behaviors, such as the date they made their first purchase or the specific marketing campaign they responded to. By tracking these cohorts over time, you can identify trends, measure the impact of marketing efforts, and make informed decisions to improve customer retention and increase revenue.
Cohort analysis tools provide insights into how different groups of customers interact with your store, enabling you to see patterns and make adjustments to your strategies accordingly. For example, you might discover that customers acquired through a particular campaign have a higher lifetime value or that those who make a second purchase within a certain timeframe are more likely to become loyal customers.
Why you should use a cohort analysis tool
Using a cohort analysis tool offers numerous benefits for Shopify merchants:
- Enhanced customer understanding: By segmenting customers into cohorts, you can better understand their behavior and preferences. This allows you to tailor your marketing efforts to meet their needs more effectively.
- Improved retention rates: Identifying patterns in customer behavior helps you implement strategies to retain customers. For instance, if you notice that customers who receive a follow-up email are more likely to make a repeat purchase, you can focus on optimizing your email campaigns.
- Optimized marketing strategies: By understanding which cohorts respond best to specific marketing efforts, you can allocate your budget more efficiently and maximize your return on investment (ROI).
- Increased revenue: Ultimately, the insights gained from cohort analysis can lead to higher customer satisfaction and increased sales, driving growth for your e-commerce business.
7 best cohort analysis tools for Shopify merchants
Here are seven top-notch cohort analysis tools that Shopify merchants should consider:
NestAds
The first cohort analysis tool we’re going to introduce in this article is NestAds. NestAds is an ad tracking and marketing attribution software that centralizes data from all the platforms you’re working with, such as TikTok, Facebook, Google, Klaviyo, and more. Within NestAds’ Business Intelligence, you can see cohort analysis with the cost of acquisition.
Combined with marketing insights from NestAds’ features, you get deep insights into how you should implement retention marketing for your customers, which customer segments to focus on, and which marketing campaigns are working best. By using NestAds, you get the most comprehensive and actionable view for optimizing your strategies for better results.
Key features:
- Centralizes data from multiple platforms.
- Tracks ad metrics across channels.
- Allows modification of attribution models.
- Enhances ad performance with creative reports.
- Insightful cohort analysis
| Pros | Cons |
|---|---|
|
– Cost-effective – Easy to integrate with Shopify – Comprehensive insight into your marketing strategies and customer retention – Ensure data integrity – User-friendly interface |
– Require setup first for marketing advanced features |
Pricing: NestAds only has 2 pricing tiers, making it easier for you to choose: a Free plan for Starters and a Pro plan at $49.99/month.
Shopify analytics
One of the most convenient tools for cohort analysis is Shopify Analytics. Integrated directly within your Shopify admin, this tool provides essential insights into your store’s performance, covering metrics such as orders, visitors, profit, and customer retention through detailed reports and cohort analysis. By utilizing Shopify Analytics, you can gain a deeper understanding of customer behavior and optimize your marketing efforts accordingly.
The best part? Shopify Analytics is incredibly easy to use and is available right within your admin dashboard without requiring any setup. So, if you’re looking for an easy and convenient solution to track and analyze your store’s performance, Shopify Analytics is the right choice for you.
Key features:
- Built-in integration with Shopify
- Customizable cohort analysis report, including metrics, interval, sales channel, product name
| Pros | Cons |
|---|---|
|
– No additional cost for Shopify users – Seamless integration with your store – Comprehensive data visualization |
– Limited advanced analytics features compared to specialized tools – Mainly focus on store performance metrics and provides less deep insights into marketing efforts |
Pricing: Available within all Shopify pricing plans
Google Analytics 4
Google Analytics 4 (GA4) is a well-known tool for e-commerce businesses, widely used to track store traffic, conversions, customer behavior, and more. However, it can also serve as a cohort analysis tool by creating a cohort exploration path. By utilizing GA4’s cohort analysis features, you can identify high-performing marketing strategies and customer retention trends among your customers.
Key features:
- Tracks user interactions across platforms.
- Advanced cohort analysis capabilities.
- Customizable reports and dashboards.
| Pros | Cons |
|---|---|
|
– Free to use – Powerful data analysis tools – Integrates with various marketing platforms |
– Can be complex to use for beginners – Requires setup and customization |
Pricing: Free
BeProfit
Tracking profit fluctuations closely is essential to keeping your store on the right path. For a detailed analysis of your store’s profitability, BeProfit is a great choice. It’s a profit-tracking and expense management app designed for Shopify merchants. Additionally, the app includes cohort analysis features, helping you track profitability and understand customer behavior to make data-driven decisions.
Key features:
- Profit tracking and expense management.
- Cohort analysis and customer segmentation based on acquisition
- Detailed financial reports.
| Pros | Cons |
|---|---|
|
– Focus on profitability – Easy to use and integrate with Shopify – Comprehensive financial insights |
– Only limited to financial and profit tracking |
Pricing: Basic plan starts at $49/month with an additional $0.3 per order above 200 monthly orders.
By the Numbers
By the Numbers is an advanced analytics tool tailored specifically for Shopify merchants. It offers in-depth insights into user behavior, allowing businesses to track customer interactions and measure the effectiveness of their marketing campaigns through robust cohort analysis features.
By the Numbers helps merchants gain a granular understanding of user behavior. By tracking customer cohorts, merchants can identify successful marketing strategies and optimize their efforts. This leads to better customer retention and increased sales, as businesses can focus on what works best for different customer segments.
Key features:
- Dashboard KPIs let you track insights into your Customers, Sales, Products, Ads, and more
- Detailed cohort analysis.
- Sync customer lists with integration with Google Ads, Klaviyo & more
- Provide AI insights for delivering into your customer segment, products, and retention rate.
| Pros | Cons |
|---|---|
|
– Advanced user behavior tracking with AI tools – Integrates with various marketing platforms – Tailor specifically for Shopify merchants |
– May require experience in using – Mainly focus on sales performance metrics and may neglect in marketing aspects of merchants |
Pricing: Free plan available, paid plans start at $19/month
Lifetimely LTV & Profit
Lifetimely is a popular cohort analysis solution among Shopify merchants. As its name suggests, Lifetimely primarily focuses on providing merchants with insights into customer lifetime value. This tool offers valuable insights into profit changes, customer purchase journeys, and the lifetime value of your customers.
The cohort analysis feature of Lifetimely is of high quality and also provides predictive data, allowing you to anticipate future changes in customer behavior and make responsive adjustments to your strategy. This can help you optimize marketing efforts, improve customer retention, and ultimately increase profitability.
Key features:
- Customer lifetime value tracking.
- Cohort analysis and segmentation.
- Detailed financial and marketing reports.
| Pros | Cons |
|---|---|
|
– Advanced user behavior tracking with AI tools – Integrates with various marketing platforms – Tailored specifically for Shopify merchants |
– May require experience in using – Mainly focus on sales performance metrics and may neglect marketing aspects of merchants |
Pricing: Free to install, paid plan starts at $49/month
Retention X
Looking for a good value investment with all the basic lifetime value analysis features? Check out RetentionX. This tool provides insights into your Customer Lifetime Value (LTV), cohort analysis, and customer segmentation. By using RetentionX, you can seamlessly integrate it with your existing Shopify data to identify trends and optimize your marketing strategies. This helps merchants implement effective retention strategies and improve customer loyalty.
Key features:
- Detailed customer segmentation
- Cohort analysis feature
- AI integration to recognize and anticipate customer behavior pattern
| Pros | Cons |
|---|---|
|
– Insight into your customer’s lifetime value – Comprehensive integration that can work well with other marketing and your CRM tools – Cost-effective for small merchants |
– Cohort analysis design isn’t optimal for gaining informative insights |
Pricing: Free plan available for up to 250 active customers. Paid plan starts at $10/month, plus $0.01 per additional active customer.
How to choose the best fit cohort analysis tool for your business?
When selecting a cohort analysis tool for your Shopify store, you should consider the following features:
- Integration capabilities: For the tool to perform its best, we recommend you choose one that can easily be integrated with your Shopify store and other marketing tools and advertising channels to offer you the most holistic and convenient view.
- Data accuracy: Cohort analysis is one of the things you should use for making responsive decisions to optimize your store. Hence, look for tools that provide accurate and real-time data analysis to make informed decisions.
- User-friendly interface: Choose a tool with an intuitive interface that makes it easy to navigate and understand the data.
- Comprehensive reporting: Opt for tools that offer detailed and customizable reports, allowing you to analyze data in various ways.
- Cost-effectiveness: Consider the pricing plans and choose a tool that offers good value for money while meeting your business needs.
- Support and training: Look for tools that offer robust customer support and training resources to help you get the most out of the software.
Cohort analysis is a powerful technique that can provide invaluable insights into customer behavior, helping Shopify merchants optimize their marketing strategies and boost sales. By choosing the right cohort analysis tool, you can make data-driven decisions, improve customer retention, and ultimately grow your e-commerce business. Explore the recommended tools, and start leveraging cohort analysis to take your Shopify store to new heights.
