What does Nozzle’s Cohort Analysis Dashboard show?
The Cohort Analysis Dashboard shows you a breakdown of key seller metrics, grouped by the month your customer made their first-ever purchase with your brand. The months, or groups, are your cohorts.
⚠️ Important: Your cohorts will remain constant e.g. someone who first purchased from you in June 2022 will always remain in the 'June 2022' cohort.
Using the Cohort Analysis
Compare Customer Acquisition Cost (CAC) to the various Lifetime Value (LTV)s
Hovering over a cell in the Cohort analysis table will give you more granular information about this specific cohort on the month in question.
This is useful when analyzing changes you've made in your listings from one month to another, as you can directly compare key metrics between cohorts
Ideally, your CAC will be lower than the 3 month LTV figure (though this may vary depending on your purchase cadence). By waiting for 3 months for a customer to become profitable, it means you can be more aggressive with ads and increase spend up front.
A good benchmark for performance is the difference between the first purchase to 3 month LTV. A 20% increase between the first purchase LTV to the 3 month LTV indicates a healthy growing brand
⚠️ Important: The retention rate (R%) will decrease closer to the current month as customers have had less time to make a repeat purchase.