Startup Dictionary
Cohort Analysis
Definition
A subset of behavioral analytics that takes the data from a given dataset and breaks it into related groups for analysis.
Deep Dive
Cohort analysis is a powerful analytical technique within behavioral analytics that involves segmenting a dataset into related groups, or "cohorts," for focused observation and trend identification over time. Instead of looking at aggregate metrics across all users, which can mask critical insights, this method groups users based on a shared characteristic or experience within a defined timeframe, such as their sign-up date, first purchase, or activation of a specific feature.
Examples & Use Cases
- 1An online subscription service groups users by their sign-up month to observe how their retention rates differ over subsequent months, allowing them to identify the effectiveness of specific onboarding flows.
- 2A mobile game developer tracks cohorts of players based on when they first downloaded the game to see if engagement levels and in-app purchases vary for users acquired before or after a major game update.
Related Terms
User SegmentationCustomer Lifetime Value (CLTV)Retention Rate