Cohort Analysis
Cohort analysis is a type of analytics that groups customers by shared characteristics or timeframes — such as the month they signed up — to track behavior and retention patterns over time.
How Cohort Analysis Works
Instead of looking at all customers as one group, you segment them into cohorts. For example, you might compare members who joined in January vs. February to see which group retains better after 3, 6, and 12 months.
Why It Matters
Cohort analysis reveals trends that aggregate data hides. You might discover that members who join during a promotion have 40% higher churn than those who join at full price, or that customers who complete onboarding in their first week retain 3x better.
Common Cohorts
- Acquisition cohort: Grouped by sign-up date
- Behavioral cohort: Grouped by first action (e.g., completed onboarding)
- Channel cohort: Grouped by acquisition source (Facebook, Google, referral)
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