Cohort Analysis
Cohort analysis is a behavioral analytics technique that groups users into cohorts based on shared characteristics or experiences over a specific time period, such as sign-up date, and tracks their metrics over time to identify patterns and trends. It is commonly used in product management, marketing, and business intelligence to measure user retention, engagement, and lifetime value. By analyzing cohorts, organizations can gain insights into how changes in product features, marketing campaigns, or user onboarding affect long-term user behavior.
Developers should learn cohort analysis when building or optimizing digital products, especially in SaaS, e-commerce, or mobile apps, to inform data-driven decisions about user retention and product improvements. It is crucial for identifying whether new features or updates positively impact user engagement over time, helping prioritize development efforts and measure the success of product launches. For example, analyzing cohorts can reveal if a recent UI redesign leads to higher retention rates among new users compared to previous versions.