Cohort retention analysis is a powerful tool used to track how specific groups of users, or cohorts, behave over time. A cohort is typically defined by a common characteristic, such as the month when users signed up or the first time they used a particular feature.

By analyzing retention rates across different cohorts, businesses can identify patterns in customer behavior and pinpoint when and why churn occurs. For example, you might find that users who signed up in a particular month have a much higher churn rate than those who signed up during a different time. This insight helps businesses take corrective action, such as improving onboarding or engagement strategies during the first few weeks of a user’s journey.

Cohort analysis is particularly useful for tracking the long-term impact of changes in the product or customer experience. For instance, if a company releases a new feature or changes pricing, cohort analysis can reveal how these changes affect retention over time.