Cohort Analysis
A method of analyzing customer behavior by grouping users who share common characteristics over time.
Definition
Cohort analysis groups customers based on shared characteristics (like signup date) and tracks their behavior over time. This helps identify patterns in retention, revenue, and engagement.
Common Cohort Types
- Time-based: Users who signed up in the same month
- Behavior-based: Users who completed specific actions
- Size-based: Accounts by company size or revenue
- Acquisition-based: Users from the same marketing channel
Why It Matters
- Retention Patterns: Shows how well you retain customers over time
- Product Improvements: Identifies when users typically churn