Cohort Analysis

Cohort analysis is an analytical method that focuses on analyzing the behavioral data of a particular group of users over time, and uncovers insights about the experiences of those users, in order to guide companies on how to improve those experiences.

Performing a cohort analysis is one of the simplest ways to run an experiment for your business. As a digital marketer, you can run a time-bound campaign with a specific set of characteristics you want to test like ad content, marketing channel, duration of the ad, target audience, landing page design, etc. You can then compare these metrics for reach, engagement, and conversion for various marketing campaigns. This helps in seeing which factors of the campaign actually helped boosting online conversions and achieving your campaign goals.

Cohort analysis helps to explain the behavior of cohort groups of users apart from your entire user base. Here’s how you can use cohort analysis for your benefit:

  • Look at data in a better way
  • Understand the distinction between user engagement.
  • Examine individual cohorts to gauge response for short-term marketing efforts like single-day email campaigns.
  • See how the behavior and performance of individual groups of users change day to day, week to week, and month to month, relative to when you acquired those users.
  • Understand conversion sweet spots, products/ campaigns that have higher potential for sales growth.
  • Identify the reasons why customers leave and what can be done to prevent them from leaving.
  • Organize users into groups based on shared characteristics like acquisition date, and then examine the behavior of those groups according to metrics like user retention or revenue.