Cohort analysis refers to process of taking a large group of users or customers and breaking them down into smaller segments (aka cohorts) with certain, specified characteristics over a set period of time.
How do specific types of users engage with your app?
Cohort analysis is a highly effective method for achieving deeper insights into how specific groups of mobile users, with similar characteristics, engage with an app over time. Early in a marketing campaign, cohort analysis is typically used to identify, define and refine KPIs (key performance indicators).
It is used to optimize user acquisition campaigns, pinpointing which segments may be underperforming, and where corrective action is needed.
App marketers commonly use cohort analysis to improve user retention and lifetime value (LTV), remarket to high quality users, and scale their base.
It also lets marketers compare apples to apples, making it a reliable way to monitor changes over time.
Cohorts are commonly grouped into when and where users installed an app. For example, an advertiser can create different cohorts based on different regions, and compare the average number of sessions per user for each cohort, over the first 30 days of each user’s activity.