Conversion Optimisation
Cohort Analysis
Plain English
Comparing groups of users over time.
Definition
guideCohort AnalysisGrouping users by shared characteristics to understand retention, engagement, and behaviour over time.Open guide groups users based on shared characteristics to analyse how those groups behave over time.
In practice
Used to track glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term, glossaryEngagementEngagement refers to how users interact with a product, content, or experience, including actions like clicks, time spent, and interactions.Open glossary term, or glossaryConversionA conversion is any action a user takes that aligns with a defined goal, such as making a purchase, signing up, or completing a task.Open glossary term across user groups such as signup date or acquisition channel.
In context
It is the fastest way to tell whether a product is genuinely improving. If each month's new users retain better than the last, something is working.
The reality
Requires clean and consistent glossaryDataData is raw, uninterpreted information collected and stored so it can be analysed, processed, or used to inform decisions. On its own it carries no meaning; context and interpretation are what make it useful.Open glossary term, otherwise results can be misleading.
Compared with
Cohort Analysis vs Segmentation
glossarySegmentationSegmentation is the practice of dividing users into groups that share characteristics or behaviour, so each group can be understood and served differently. Its value depends entirely on whether those groups genuinely behave differently.Open glossary term groups users by attributes at a point in time. guideCohort AnalysisGrouping users by shared characteristics to understand retention, engagement, and behaviour over time.Open guide groups them by when they started and follows them forward. Segments compare types of user; cohorts compare glossaryVersionA version is a specific iteration of software or a product at a point in time.Open glossary term of the product.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is cohort analysis?
It is analysing groups of users who share common characteristics.
What is a cohort?
A group of users with something in common, such as signup date.
Why is cohort analysis useful?
It shows trends in glossaryBehaviourBehaviour refers to how users interact with a system, including actions, patterns, and responses.Open glossary term over time.
What can you measure with cohorts?
glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term, glossaryConversionA conversion is any action a user takes that aligns with a defined goal, such as making a purchase, signing up, or completing a task.Open glossary term, and glossaryEngagementEngagement refers to how users interact with a product, content, or experience, including actions like clicks, time spent, and interactions.Open glossary term.
Related Services
Related Guides
Related Terms
