Cohort Analysis

Cohort analysis is a behavioral analytics technique that groups customers or data points based on shared characteristics within a defined time period, allowing businesses to observe trends and patterns over time.

Applications:

• Customer Retention: Track how long different customer groups stay active.

• Revenue Cohorts: Assess how much value a cohort generates over time.

• Product Usage: Identify how engagement changes post-onboarding.

Example:

A fintech app in Abu Dhabi might track customers acquired in January 2025 as one cohort, observing their payment behavior, churn, and upsell potential over the next 12 months compared to those acquired in February 2025.