Financial Glossary

Cohort Analysis

Definition

Cohort analysis is a data analytics method that groups customers based on shared characteristics or behaviors over time to assess trends, retention, and engagement.

Related Services

Marketing analytics, customer segmentation, and business intelligence services leverage cohort analysis to improve customer retention and optimize marketing strategies.

Problem and Application

Without proper cohort analysis, businesses may misinterpret customer behavior and make ineffective strategic decisions. Identifying patterns helps tailor marketing and retention efforts.

Conclusion

Cohort analysis is a powerful tool for understanding customer behavior and lifecycle trends. Businesses can use it to enhance decision-making and drive long-term customer engagement.