Cohort Analysis
Definition
A subset of behavioral analytics that takes the data from a given dataset and rather than looking at all users as one unit, it breaks them into related groups for analysis.
Deep Dive
Cohort analysis is a powerful analytical technique used in behavioral analytics to understand user behavior over time by segmenting a larger group of users into distinct cohorts. Unlike traditional analytics that might look at all users as a single unit, cohort analysis groups users based on a shared characteristic or experience within a defined timeframe, such as their sign-up date, first purchase, or the marketing campaign they responded to. This segmentation allows businesses to track and compare the behavior of these specific groups as they progress through the customer journey.
Examples & Use Cases
- 1Analyzing the retention rates of users who signed up for a mobile app in Q1 2023 versus those who signed up in Q2 2023 to see the impact of a new onboarding flow
- 2Comparing the average revenue per user (ARPU) of customers who made their first purchase during a holiday sale versus those who purchased at full price
- 3Tracking the engagement levels of users who were acquired through a specific social media campaign versus those from organic search over several months.