Cohort analysis is a method of dividing customers or users into groups, or cohorts, based on common characteristics or experiences. This analysis is often used to track the behavior or performance of a cohort over time, and to compare the behavior or performance of one cohort to another.
For example, a company that sells subscription-based software might use cohort analysis to track the retention rate of its customers. The company might divide its customers into cohorts based on the month in which they first started using the software. The company could then track the retention rate of each cohort over time to see how well it is retaining its customers. By comparing the retention rates of different cohorts, the company can identify patterns or trends that can help it improve its retention rate.