What is Refunds by Cohort?
Refunds by cohort is an ecommerce metric that informs you of how many refunds occur within a given group of customers during a given period of time. In Peel, customer cohorts are generally grouped by month of their first purchase. For example, if you are looking at customers who purchased for the first time with your company in January 2022, and you want to track how many refunds occur within that group, you can see the total dollar amount of refunds within that group for the first month they purchased (January) and each subsequent month.
Why is Refunds by Cohort important?
Your Refunds by Cohort metric can illuminate a lot of important customer info and even help you identify critical gaps in your marketing and sales tactics. For example, if you notice a spike in refunds for a given cohort for a certain month, you can go back and assess what changed in your marketing strategy. Maybe you sent them an email that led them to buy the wrong product for their needs. Or maybe your retargeting ads are not hitting the right customer segment with the right products. This is important data to use and try new experiments to refine your process. In the long run, you want to minimize the actions that led to, or even could be linked with, higher refunds by cohort.