What is the structural analysis?
The "structural analysis", or "level set", is a backwards looking analysis which outputs primarily cohort triangles for overall data and important segments for multiple metrics (Counts, Revenue, AOV, ARPU, etc). Each cohort has summary rows.
Structural analysis was called the "Level Set" at Lucky8 Capital.
In 108.20 Data Analysis - Customer analysis we are always going to do a structural analysis because the segmentation and LTV and cohorts are vitally important.
Purpose of the structural analysis
The structural analysis is done for every job because it gives us an important understanding of the business, drivers, growth, churn, strengths and weaknesses. Most of the data contained in the structural analysis is probably already known to certain individuals inside the client company, but it puts us on the same level so we can provide value. We need to answer the question:
- Are cohorts getting better or worse? Can you quantify that? Can you tell why this is happening?
Structural analysis best practices
Segmentation is ultra important
Consistency of data across outputs is vital