Customer Behavior Analysis

What it means

Studying what customers do — cohorts, RFM, journey mapping.

Why it matters

Predicts revenue, churn, and where marketing dollars pay back.

How to calculate — with Cawan's Shoes

Cawan's Shoes 2.4M-customer cohort analysis: • Segment A — Performance runners (18% of base): repurchase every 4.1 months, ARPU $312/yr, 12% annual churn, LTV $1,430. • Segment B — Casual buyers (54%): repurchase every 18 months, ARPU $88/yr, 34% churn, LTV $142. • Segment C — Gifted / one-time (28%): 78% never repurchase, LTV $38. RFM scoring pushes Segment A into a $49/yr 'Cawan's Elite' loyalty tier (48k members, 92% retention). Marketing spend reallocated: Segment A gets 55% of budget (was 22%) — payback improved from 14 to 6 months.

What's at stake if you ignore this

Blindness here means treating every customer the same and mispricing retention.