So you've already created your value stream map with the purpose of capturing the customer journey as well as defining which specific activities add value. This is a very important step, as a negative or bad experience at any point in the stream can result in customer dissatisfaction, loss of revenue, undermining of your value proposition and potential negative brand impact.
Optimizing the experience and journey is needed to maximize customer value, reinforce value propositions, generate positive return on investment (ROI) and be profitable. After this, you must determine which of your efforts are working (and which is not) so that you can best use the resources that you have.
Cohort analysis is the process of comparing the behavior or defining a common element between two or more groups of people within a defined period. As we know, each group has a set of defining characteristics, such as when they became customers. Once these groups are defined then it's possible to begin building reports and creating comparison reports/ analysis.
The process is as follows:
- Define your business goal/ question to make sure that it aligns with business objectives
- Define the set of metrics that you want to evaluate to offer insights
- Define cohort groups
- Perform the analysis
In order to help determine true causation, it will also be helpful to consider items which may be influencing changes.
- Your business: Changes that you have made internally that could affect customers. Examples include technology not functioning as it should or overburdened team members.
- The outside world: What external forces could impact customer experience? Examples include the release of new platforms with easier access to new capabilities or economic or competitive landscape changes.
The main benefits to consistently performing cohort analysis include constantly finding ways to better improve the customer experience, making sure that resources are being invested in the right areas, and maximizing ROI (both economically for the company as well as what is being offered to customers.)
Are you interested in maximizing your ROI and improving the customer experience throughout your applications and other touch points that customers have with your brand (such as user interface for external facing tools)? We can help with that! Contact us to learn how or to toss around ideas.