Analytics
Cohort Analysis
Cohort analysis is an analytical technique that groups users by a shared characteristic or time period and tracks their behavior over time. It reveals trends in retention, engagement, and revenue that aggregate metrics would obscure.
Examples
A subscription company groups customers by signup month and discovers that January cohorts retain 20% better than June cohorts, revealing seasonal quality differences.
Best Practices
Define cohorts based on meaningful events like signup date or first purchase, compare cohorts using the same time windows, and look for both improving and declining trends.