ENTR

What is a cohort analysis and when would you use it?

Model answer

Model answerA cohort analysis groups users by a shared characteristic — usually the time they signed up — and tracks their behavior over time. You use it when aggregate metrics are hiding the truth. If overall retention looks flat but cohorts from 6 months ago retain at 60% while recent cohorts retain at 30%, you have a serious problem that averages conceal. I'd use cohort analysis whenever I suspect that product quality or user quality has changed over time.

Framework · Cohort Analysis

  1. ADefine the cohort
    Pick the right cut: signup date, acquisition channel, or feature adoption
  2. RChoose the metric
    What behavior to track: retention, revenue, or engagement — per cohort
  3. RCompare across time
    Do newer cohorts perform better or worse? Plot the curves and look for trends
  4. RDiagnose the gap
    If a cohort dips, what changed? Feature launch? Marketing channel? Seasonality?

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