How Do I Measure Long-Term RCS Impact on Customer Behavior?

Measuring Long-Term RCS Impact: Cohort Analysis

The real value of RCS shows up over time, not in first conversion.

Why First Conversion Misleads

Last-click attribution tells you "this customer purchased after clicking RCS" but misses:

• Customer who saw RCS, clicked email later, purchased
• Customer retained longer because of RCS engagement
• Customer who spent more because of RCS-driven product discovery
• Customer who referred others based on great RCS experience

The real question: Do RCS-engaged customers have higher lifetime value?

Cohort Analysis Methodology

What is a cohort? Group of customers who share a common characteristic (e.g., received first RCS message in January 2024).

How to set up cohorts:

1. Define cohort by RCS engagement date (first message opened)
2. Track behavior over time (30, 60, 90, 180, 365 days)
3. Compare against control cohort (no RCS)

Example cohort structure:

This shows RCS customers retain better and have 48% higher lifetime value.

Key Metrics to Track

Retention Rate

• Percentage of cohort still active at time X
• Track: 30, 60, 90, 180, 365 days

Repeat Purchase Rate

• Percentage making 2nd purchase within time window

Average Order Value (AOV)

• Average revenue per transaction

Purchase Frequency

• Average purchases per customer per period

Customer Lifetime Value (LTV)

• Total revenue from cohort over lifetime

Churn Rate

• Percentage who stop engaging

Tools for Cohort Analysis

• Google Analytics 4 (cohort reports)
• Mixpanel (retention reports)
• Amplitude (cohort analysis)
• Salesforce, HubSpot
• Spreadsheet (for smaller scale)

Real-World Examples

E-commerce cohort findings:

• RCS cohort: 35% repeat purchase in 90 days, $180 LTV
• Control: 22% repeat purchase, $115 LTV
• RCS drives 60% repeat purchase lift and 57% LTV lift

SaaS cohort findings:

• RCS: 78% renewal at 12 months, $450 LTV
• Control: 62% renewal, $320 LTV

Common Mistakes

• Not waiting long enough (wait 90+ days)
• Poor cohort matching (controls must be comparable)
• Attributing all lift to RCS (use controls to isolate)
• Ignoring segment differences

The Bottom Line

Cohort analysis reveals the true long-term value of RCS beyond first conversion. Track retention, repeat purchase, AOV, and LTV over 30/60/90/180/365 days.

The typical finding: RCS drives 20-40% higher LTV through better retention and higher spending. This justifies investment far beyond what last-click attribution shows.