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Master Your Amazon Remarketing Strategy with Cohort Analysis

Boost your Amazon remarketing strategy with cohort analysis. Discover how to analyze customer loyalty, lifetime value, and drop-off rates using cohorts.
Laura North
Last updated:
July 3, 2023

Amazon is the largest e-commerce platform worldwide, and it offers great possibilities for businesses to expand their customer base. Remarketing is an essential tool to increase your conversion rate and sales by leveraging your existing customer data. In this blog, we will explore how you can enhance your Amazon remarketing strategy by using cohort analysis to understand the behavior of your customers over time and identify potential issues.

What is Cohort Analysis?

Cohort analysis is a technique that groups your customers based on their characteristics and the time they became your customers. Grouping your customers into Amazon cohorts enables you to identify patterns in their behavior over time, and it can help you optimize your marketing efforts.

Use Case: Seeing if Customer Loyalty is Increasing Over Time

One of the most fundamental aspects of cohort analysis is to analyze customer loyalty. Are your customers staying longer, or are they dropping off within a short period? Cohort analysis allows you to group customers based on their acquisition month and retention rate. This allows you to identify if your customer loyalty is increasing over time or if customers are leaving earlier.

Use Case: Understanding if My Lifetime Value for New Customers is More or Less Than Older Customers at the Same Point in Time After Ordering

Another use case for cohort analysis is to understand the lifetime value of your customers. By grouping customers and analyzing their purchase history, you can determine which customer groups are more valuable to your business. Cohort analysis allows you to understand if your lifetime value for new customers is greater or lesser than that of older customers at the same point in time after ordering.

Use Case: Understanding Where More Drop-off May Occur and Identifying the Potential Causes

Cohort analysis can also help you identify where customers are dropping off in the conversion funnel. By segmenting customers into cohorts based on their acquisition month, you can see which stage most customers are dropping off. This data can help you identify potential issues in your checkout process, website design, or marketing strategies.

Watch the full webinar to understand how Cohort Analysis can help boost your Remarketing Strategy

Cohort analysis is a powerful tool for Amazon sellers that can help you understand your customers' behavior over time. By grouping customers based on their characteristics and the time they became customers, you can better optimize your marketing efforts and address potential issues in your sales funnel. Proper utilization of cohort analysis will provide invaluable insights that help Amazon sellers to improve their ROI through personalized and targeted marketing.

If you're looking to master your Amazon remarketing strategy, we strongly advise you to watch the full video on cohort analysis to get a deeper understanding of this analysis process.

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