Guide to cohort analysis – How to reduce churn
Posted: Mon Jan 20, 2025 5:14 am
You've just launched a new feature on your platform and users are signing up in waves. But after a few weeks, you realize something worrying: while some users stay, many are churning.
How do you find out what’s going wrong? Through cohort analysis. By grouping users based on common traits like acquisition date or behavior, cohort analysis helps you identify patterns of user engagement and retention.
A Deloitte study shows that 88% of companies now see customer experience as their biggest competitive advantage. This figure underlines how crucial it is to understand what keeps users engaged.
Cohort analysis is not a one-time task, but rather an ongoing customer retention strategy chief vp sales marketing officers email list to reduce customer churn, improve product usage, and enhance the customer experience.
Whether you're optimizing a product or fine-tuning your marketing campaigns, cohort analysis gives you the actionable insights you need to understand your users and keep them coming back.
What is cohort analysis?
A cohort is a group of users who have experienced a shared event within a specific time period. Cohort analysis examines the activities of that group of users , even if those activities occurred outside of the designated analysis period.
Example of cohort analysis
You launched a new app in January and tracked users who signed up that month. Your January cohort includes everyone who signed up during that time.
When you perform a customer cohort analysis, you can see how this group interacted with the app over the following months. For example, while most users interacted heavily in January, their activity decreased in March.
This information allows you to identify potential issues with user retention and develop strategies, such as collecting feedback through customer surveys. These strategies can increase engagement in the future.
Read also :
How to Analyze Customer Feedback
How do you find out what’s going wrong? Through cohort analysis. By grouping users based on common traits like acquisition date or behavior, cohort analysis helps you identify patterns of user engagement and retention.
A Deloitte study shows that 88% of companies now see customer experience as their biggest competitive advantage. This figure underlines how crucial it is to understand what keeps users engaged.
Cohort analysis is not a one-time task, but rather an ongoing customer retention strategy chief vp sales marketing officers email list to reduce customer churn, improve product usage, and enhance the customer experience.
Whether you're optimizing a product or fine-tuning your marketing campaigns, cohort analysis gives you the actionable insights you need to understand your users and keep them coming back.
What is cohort analysis?
A cohort is a group of users who have experienced a shared event within a specific time period. Cohort analysis examines the activities of that group of users , even if those activities occurred outside of the designated analysis period.
Example of cohort analysis
You launched a new app in January and tracked users who signed up that month. Your January cohort includes everyone who signed up during that time.
When you perform a customer cohort analysis, you can see how this group interacted with the app over the following months. For example, while most users interacted heavily in January, their activity decreased in March.
This information allows you to identify potential issues with user retention and develop strategies, such as collecting feedback through customer surveys. These strategies can increase engagement in the future.
Read also :
How to Analyze Customer Feedback