Cohort Analysis
Grouping customers by a shared starting point (like signup month) to compare how their behavior changes over time.
In practice
It reveals patterns that a single blended average hides - like whether customers acquired through a recent promotion actually stick around and keep buying, or churn faster than customers acquired through other channels.
A business compares customers who signed up in January against those who signed up in June, and finds the January cohort has a noticeably higher repeat purchase rate.
Why it matters
It surfaces problems and wins a single blended average hides completely - like a channel bringing in customers who buy once and never return, dragging retention down invisibly.
Worth knowing
- Cohorts are usually grouped by signup date, first purchase date, or acquisition channel.
- Reveals whether product or onboarding changes actually improved retention for newer cohorts.
- Most useful when tracked consistently over the same intervals across every cohort.
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Let's talk it through
Tell us where things stand with putting cohort analysis into practice and we'll respond with next steps, no forms, no waiting in a queue.
- A specialist replies directly, not a support queue
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- No long-term contract to start the conversation