Cohort analysis: What it is, how to use it and how to present it

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Cohort analysis is a tool used to analyze customer behavior in time by segmenting them into groups (cohorts) that share the same defining characteristics. It is a great tool for helping you understand the results, disaggregate and see what's actually driving the business. Cohorts can be segmented by demographics, geography, customer acquisition, behavior and psychographics. Typical cohorts used include average transaction value, time spent on the site, number of products bought, total sales, number of customers in the cohort, churn rate percentage, gross margin and conversion rate. For more on segmentation, check the presentation added to additional resources.