What is Cohort analysis?
Cohort analysis is a method of grouping customers or users by a shared starting point, such as the month they signed up or made a first purchase, and tracking how each group behaves over time. It reveals trends that overall averages hide, such as whether newer customers stay longer than older ones.
Why it matters for your business
Cohort analysis shows whether product changes, pricing or marketing actually improve retention and repeat purchases, helping teams invest in what keeps customers rather than what only attracts them.
A subscription business compares customers who joined in January with those who joined in June, after an onboarding email series was added, and checks which group renews more often.