Cohort Analysis

What is Cohort Analysis?

Cohort Analysis is a method of grouping users based on a shared characteristic, such as their signup date, to track their behavior over time. This allows businesses to see how specific groups of customers retain, churn, or expand their usage compared to others.

Why It Matters

• It helps identify whether product updates or marketing changes are improving long-term retention for newer users.

• Businesses can pinpoint exactly when users tend to churn, enabling targeted intervention strategies.

• It provides a clearer picture of customer lifetime value by isolating the performance of different segments.