Cohort Analysis

What it is: Cohort analysis involves grouping customers or users based on a shared characteristic or timeframe, such as their sign-up month, to analyze their behavior and performance.

Why it is important: Cohort analysis helps uncover trends, patterns, and insights related to customer segments, retention rates, and revenue generation. It informs customer acquisition and retention strategies.

How to use it in startups: Startups use cohort analysis to understand customer behavior, evaluate the effectiveness of marketing campaigns, and identify opportunities for improving customer acquisition and retention. By analyzing cohorts, startups can tailor their strategies to specific customer segments and enhance overall business performance.