Cohort analysis basics

Cohort analysis groups users who share a common characteristic, typically when they first used your product. This reveals patterns that averages hide. January users might retain better than July users due to product improvements or seasonal factors. Additionally, tracking users by other characteristics like feature usage, plan type, or acquisition channel, can reveal which features create the most or least value and which cohorts have found product-market fit while others haven’t.

Track how each cohort's behavior changes over time. Do users who joined during a promotion churn faster? Do those who used a specific onboarding flow engage more? Cohorts expose which changes actually improve long-term metrics.

Compare cohorts to measure progress. If September cohorts retain 10% better than January cohorts at the same age, you're improving. This method isolates product improvements from user mix changes or seasonal effects.