Cohort Analysis

Also known as: Cohort Analysis, Retention Analysis, Cohort Tracking

Tracking the behavior of consumer groups with common characteristics (cohorts) over time.

Cohort Analysis is an analytical technique that groups consumers into cohorts—groups sharing a common experience or characteristic in a specific time period, such as month of first purchase—and then tracks their behavior over time.

It is fundamental for understanding: customer retention (what percentage of the January cohort is still buying in July?), CLV by cohort, behavior of different customer generations, and the impact of product or service changes on retention.

Cohort analysis is especially valuable in subscription businesses, mobile apps, and e-commerce. With market research data, it allows correlating cohort characteristics with long-term behavior and attitudes.