In the digital context, Cohort Analysis is defined as technique to break your users into segments of groups for assessment who share similar traits, behavioral patterns or characteristics, rather than evaluating them as a single unit. This is a subset of behavioral analytics that takes data from a specific platform, application or a program and splits them into smaller groups or ‘cohorts’.
Cohort analysis is an effective tool to measure user engagement during a specific period of time. The cohort groups can be further divided into two types:
Acquisition Cohorts – this divides mobile app users by when they first signed up for your app. This could be the groups or cohorts based on the day, week or month when your users first installed or launched your mobile app.
Behavioral Cohorts – this divides mobile app users by the behaviors or actions that they might have or have not taken within an app during specific period of time. These actions could vary from app install, app launch, in-app purchases, form filling, transactions, etc. This could also be a combination of more than one of these discrete actions.