Customer Cohort Analysis

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What is customer cohort analysis?


Customer cohort analysis evaluates customer behavior by grouping them based on common actions such as first purchase/order or an app launch.

The purpose of cohort analysis is to track the behavior of each cohort over time to study user engagement. By doing so, businesses can gain insights into how their users behave over time and how they can improve their marketing, product offerings, and customer service.

Some of the key metrics that can be tracked through cohort analysis include retention rate, churn rate, customer lifetime value, and revenue per customer. By analyzing these metrics across different cohorts, businesses can identify which groups of customers are most valuable, which ones are at risk of churning, and what factors contribute to customer loyalty or dissatisfaction.

Overall, customer cohort analysis is a powerful tool for businesses looking to improve customer engagement and maximize the value of their customer base.


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