Cohort

A cohort is a group of users segmented based on shared characteristics or behaviors over a specific time period.

Why it matters

Helps in analyzing user behavior trends.
Assists in measuring the effectiveness of marketing strategies.

How to measure

Track user retention rates within the cohort.
Analyze over weekly or monthly intervals.

Details

In the context of mobile applications, cohorts are often used to understand how different groups of users interact with an app over time. For instance, you might create a cohort of users who installed the app in a particular month to see how their engagement evolves. This can reveal insights into user retention, app feature adoption, and the impact of updates or marketing campaigns.

Cohort analysis is crucial for growth teams to identify patterns and trends that can inform strategic decisions. By comparing cohorts, teams can pinpoint which changes lead to improved user retention or conversion rates, enabling data-driven optimization of the user experience.

Examples & formulas

For example, a cohort analysis might show that users who signed up in January have a higher retention rate than those who signed up in February, suggesting that changes made in February may need review.

Retention Rate = (Number of users retained at end of period / Number of users at start of period) * 100

Common mistakes

Ignoring external factors that may affect cohort behavior; always consider context.
Over-segmenting, which can lead to data that is too granular to be actionable.