What is cohort analysis used for in marketing?
Posted: Mon Feb 10, 2025 10:57 am
Cohort analysis is a useful tool for an online marketer. It is a method of studying the behavior of groups of users united by a certain characteristic or event. Cohort analysis is used to identify patterns and improve marketing strategies: to better understand how users interact with a product or service, and to make informed decisions about business growth and development.
The term “cohort analysis” comes from the norway mobile database word “cohort”, which for marketing and economics is defined as “a group of users united by common characteristics”. For example: users who registered in the same month; customers who made their first purchase on a specific day; people who clicked on an advertising link from a specific campaign; visitors who came to the site from a specific source, etc. Grouping users or customers into cohorts helps to analyze the behavior of not all users at once, but to study the audience within time or behavioral boundaries.
Provides the ability to analyze the behavior of site users dynamically;
Allows you to study how different customer groups interact with the product.
Helps you determine which acquisition channels work best and adjust costs.
It is used to analyze the customer churn process, identify factors that influence the decrease in loyalty and, based on this knowledge, develop customer retention measures.
Effective for increasing profitability. The method helps to evaluate the customer life cycle (Customer Lifetime Value, CLV) and better manage the monetization strategy.
The most common cohort analysis uses cohorts of users or customers based on time (e.g., user registration in a certain month), user activity (e.g., first purchase or viewing of a specific product), geography, or demographics. The choice of parameter depends on the purpose of the cohort analysis: for example, evaluating the effectiveness of marketing activities or improving customer retention programs.
The term “cohort analysis” comes from the norway mobile database word “cohort”, which for marketing and economics is defined as “a group of users united by common characteristics”. For example: users who registered in the same month; customers who made their first purchase on a specific day; people who clicked on an advertising link from a specific campaign; visitors who came to the site from a specific source, etc. Grouping users or customers into cohorts helps to analyze the behavior of not all users at once, but to study the audience within time or behavioral boundaries.
Provides the ability to analyze the behavior of site users dynamically;
Allows you to study how different customer groups interact with the product.
Helps you determine which acquisition channels work best and adjust costs.
It is used to analyze the customer churn process, identify factors that influence the decrease in loyalty and, based on this knowledge, develop customer retention measures.
Effective for increasing profitability. The method helps to evaluate the customer life cycle (Customer Lifetime Value, CLV) and better manage the monetization strategy.
The most common cohort analysis uses cohorts of users or customers based on time (e.g., user registration in a certain month), user activity (e.g., first purchase or viewing of a specific product), geography, or demographics. The choice of parameter depends on the purpose of the cohort analysis: for example, evaluating the effectiveness of marketing activities or improving customer retention programs.