3 Replies Latest reply on Aug 16, 2016 10:37 AM by Luciano Vasconcelos

    Customer retention using Cohort Analysis

    Atul Jena

      Hi all,

       

      I am trying to create a cohort report illustrating customer retention data over a period of 12 months. For my data I have:

      UserIDFirstOrderDateLastOrderDateNumberOfOrders

       

      Customer churn is defined as 90 days of purchase inactivity.

      Customer age is defined by the difference between the first order and the last order. If the customer churned, 90 days is added to that difference.

      How do I formulate whether or not the user is active based on the 90 days criteria?

      How do I know which customer churned and in what month?

       

      Since the data set is from Jan 2013 to Dec 2013, a threshold needs to be set for when the user churned 90 days in the future from the last date in the sample. Maybe creating a column with a date like April 1, 2014?

       

      I appreciate your help in advance.

       

      Thanks.