Cohorts are groups of people who share a trait or experience over time. In business and analytics, a cohort is a group of consumers or users who joined a firm or service at a certain time or over a specific duration.
Cohort analysis tracks and compares consumer or user behavior over time. It helps companies understand customer behavior patterns and make informed product, marketing, and customer service decisions.
For example, a corporation may track January, February, and March signups. Three cohorts with distinct traits and behaviors would result. The organization can spot patterns and trends by tracking these three groups over time.
Cohort analysis can evaluate marketing strategies, sales channels, and product lines. It helps companies understand customer journeys and find the best acquisition and retention methods.