#37 - Build A Successful Shopify App - Cohort analysis 🚀

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There is an important thing you have to understand. Niching down can actually help you earn more. This is a fact.But I want to talk about another "niching down". When it comes to data analysis...You have an app. You have users. Everything is working and slowly growing. Great.But do you know that you can keep niching down and that it will help you earn more by sometimes doing less.Let's talk about comparing cohorts.I discovered cohorts in Data a few years ago when I used Mixpanel. It was for WideBundle that I did it the first time.Cohorts are basically groups of people. Properties are what create these groups.For example, we'll take the property "Number of products in the Shopify Store". And then we'll create 2 groups based on that: People with more than 10 products and people with less than 10 products.We now have 2 groups of people.Your goal will be to do this with as many properties as possible. And the more specific to your app, the better.For example for WideBundle, we used properties like: number of products, number of variants on product, country of the store, referring channel (how they found WideBundle), etc...And then it becomes interesting...You will calculate your metrics based on these groups. What is the churn of group A compared to group B?What is the conversion rate? The activation rate? The average revenue per user?And what you want to find out is: what group is better than the other one?Imagine if you have a 20% churn each month. This is for your global users and this is usually what people get.And then they think: "How do I reduce this number? What do I do?"But there is an easy answer: create cohorts!What if you compare 2 groups: People who mostly use feature A and people who mostly use feature B.You might notice that people using mostly feature A have a 10% churn while people using feature B has a 30% churn!So obviously, in the end you have 20%.But once you know that, what do you do? You know people prefer feature A because they churn less.So you go and change your app listing, marketing, and message to sell feature A instead of feature B. Because that way you'll attract more people interested in feature A and based on your data analysis you know that they will stick to the product.And then you can do this with every property (as soon as you have enough data inside)Imagine if today you're doing Youtube videos and Tiktok Reels. What if you notice that the conversion rate for people coming from Tiktok is only 3% while people coming from Youtube is 20%.Where should you focus your marketing efforts? Youtube obviously!Or... You might try to understand why Tiktok conversion rate is so low! Maybe you will realize something!This is how you use your data and why Mixpanel can be so powerful!If you're interested I have a free Mixpanel course that you can get by clicking here

Marketing Action of the week

We'll use what we learned today! List all the properties you can think about: number of products, channel the user came from, features used, etc.Then list your important metrics: Activation Rate, Conversion Rate, Churn, etc...Then create your cohorts whether it's on Mixpanel or somewhere else and compare the results.When you find important differences try to understand why and then see if you need to double down on it! Or try to understand how you can use this information.For example, if you notice that people who opened your dashboard at least 10 times have a higher conversion rate. Well then maybe you can start sending email to ask people to open their dashboard? Or maybe you can add some special analytics in the dashboard so they will open it more often?

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And that's it for today's email.See you next week,Mat 😁

PS: You can join our Shopify App Founders community, you'll love it! https://facebook.com/groups/shopifyappfounders