What is cohort analysis? 

Cohort analysis involves grouping users based on shared characteristics or experiences and tracking their behaviors and performance over time. Marketers can gain insights into customer retention, lifetime value, and the impact of product changes or marketing initiatives by segmenting customers into cohorts based on acquisition channels, product usage, or demographic attributes. 

Cohort analysis provides a deeper understanding of customer behavior, enabling data-driven decisions and targeted strategies for customer engagement and retention.

How to build a cohort analysis? 

Identify specific user segments, such as customers who joined in the same period or those with similar usage patterns, and analyze their behaviors, retention rates, and spending patterns over subsequent periods. This approach helps identify trends, anomalies, and opportunities within different customer segments.

How to interpret cohort analysis 

Cohort analysis helps marketers understand how different customer segments behave over time and how changes in product or service offerings impact their engagement and retention. Marketers can refine their strategies by tracking cohort performance, personalizing customer experiences, and optimizing product-market fit to drive sustainable growth and customer loyalty.