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What is a Cohort? How to Read a Cohort Analysis Chart...

Learn about Cohorts & How to Read a Cohort Analysis Chart + learn a quick dance move to help with the memorization! WHAT IS A COHORT: A cohort is a fancy word for a group It is a predefined grouping of your customers. HOW TO READ A COHORT CHART: - Each row represents a cohort of users -- "July 2021" - Each column represents a month following the cohort's creation. Month 1 being the month they became a customer. Month 2 being the 2nd month after being a customer "August 2021" in this example. - The value in the cell is the analysis you are computing - Repurchase Rate, LTV, Returning Rate, AOV, Discounts, Refund, etc. etc. Color shading is usually applied to cohorts to allow your eyes to quickly identify the key differentiators/spikes in behavior. WHY ARE COHORTS USEFUL: Cohort analysis allows us to directly compare cohorts to each other - by lining up the start date of each cohort. It is the best way to look at activity and retention numbers on a cohort-by-cohort basis. Helps you uncover the characteristics in your best and worst performing GROUPS/COHORTS of customers.