GlossaryGrowth & Customers
Cohort Analysis
Also called: cohort report
What is Cohort Analysis?
Cohort analysis groups customers by when they first bought and tracks each group's behaviour over time. It shows whether recent customers behave better or worse than earlier ones.
Why Cohort Analysis matters
Blended averages hide direction. A retention figure can stay flat while every new cohort performs worse, because the older cohorts are still propping it up.
How Cohort Analysis works in practice
Compare month-one, month-three and month-six repeat rates across cohorts. A deteriorating pattern usually means the channel bringing customers in has changed, not the product.
Frequently asked questions
Six months of monthly cohorts is enough to see direction in most small businesses.