Unpacking Retail Customer Retention Through Cohort Analysis and Demographic Segmentation

Understanding customer retention in retail presents a challenge that this research addresses by leveraging cohort analysis and demographic segmentation. The relevance lies in its ability to enhance retail competitiveness by uncovering how different customer segments exhibit varying retention behaviors over time, thus informing more effective retention strategies. The methodology combines cohort analysis with demographic segmentation to examine retention rates among diverse customer groups. This approach facilitates efficient detection and analysis of retention trends that reveal significant differences in customer retention patterns across demographic segments. Female customers exhibit higher loyalty than males across various cohorts, while Baby Boomers and Gen X display distinct engagement levels. These insights suggest that tailored retention strategies are necessary to address the unique behaviors of different demographic segments. The study’s managerial implications are substantial, providing actionable insights for business stakeholders to optimize marketing efforts and enhance customer relationship management practices based on demographic and cohort analysis.