What is Cohort Analysis?

Cohort analysis is a method of analyzing user behavior by grouping users based on shared characteristics or experiences within a defined time period. It tracks how these groups behave over time, providing insights into user retention, engagement, and lifecycle patterns.

When to use Cohort Analysis?

Cohort analysis is valuable for understanding user retention patterns, measuring the impact of product changes, analyzing seasonal trends, evaluating marketing campaign effectiveness, and identifying long-term user behavior patterns.

When might Cohort Analysis be challenging?

Cohort analysis can be complex with small user bases, when defining meaningful cohorts is difficult, or when external factors significantly influence behavior. It requires sufficient data and time to show meaningful trends.

What is the importance of Cohort Analysis in Analytics?

Cohort analysis reveals retention patterns that overall metrics might hide, helps identify the best performing user segments, enables data-driven product decisions, and provides insights into customer lifetime value and business sustainability.