What is Cohort Analysis?

The cohort analysis process is a way to determine how an organization should adjust their member services or content depending on the needs of different customer segments.

Following a new customer from the moment of engagement to longer-term retention can help businesses understand what segments may need different types of support.

Well-executed cohort analysis can help identify patterns and levels of behaviours over time, such as the rate at which customers subscribe to services, or a decrease in the number of subscribers.

Cohort Analysis example

A digital marketer can segment their users by the place they used to sign up on their website.

• Website Header
• The promotional message that offers a discount via pop-up
• Checkout form
• Footer form

Cohorts are a group of individual visitors tracked over time. Their journeys through lifecycle stages determine where to focus and advertise your advertising efforts. It also focuses on specific individuals as opposed to groups.”

Cohort analysis is a type of data mining that measures how customers are changing and visualizes those changes in order to improve the customer experience.